Navigating Futures Trading with Prop Firms: Your Definitive Handbook (2024)

FAQs

Can you trade futures on prop firms? ›

Futures trading can be quite expensive, and when our account is small, it's difficult to cover the costs and even make a profit on top of that. The solution that a lot of traders find is to apply to a futures funded account from a proprietary firm.

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

Best for Dedicated Futures Traders NinjaTrader

We chose NinjaTrader as the best platform for dedicated futures traders because it offers multiple low-cost pricing options; low margin rates; and access to strong desktop, web, and mobile platforms that support direct trading from customizable charts.

For example, FTMO clients can access CFD contracts on stock indices, crypto or futures with zero commission. However, the truth is that trading Futures is still much more difficult financially because of paying for the data feed and platforms.

Apex Trader Funding is the best futures prop trading firm on this list for a variety of reasons, but most notably because it boasts the highest pass rate for its evaluation program out of all the futures prop firms on this list. It is also by far the most friendly option for beginner futures traders.

Personal Risk: One of the significant drawbacks of prop trading is the potential personal financial risk. If a trader doesn't perform well, they may lose their deposit, and in some cases, their job. Loss Limitations: Prop firms often implement daily loss limits to protect their capital.

Prop Firm Trader Salary

The salary of a prop trader can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.

Also known as “prop trading,” it offers higher earnings potential much earlier in your career than jobs like investment banking or private equity. It's arguably the most merit-based industry within finance: if you make millions of dollars for your firm, you'll earn some percentage of it.

This can be a risky form of trading, but it also has the potential to generate large profits. If you are starting with a small amount of capital, such as $10 to $100, it is still possible to make money on futures trading.

Who is the worlds best futures trader? ›

Some small futures brokers offer accounts with a minimum deposit of $500 or less, but some of the better-known brokers that offer futures will require minimum deposits of as much as $5,000 to $10,000.

An individual or retail investor who wants to trade futures must typically open an account with a futures commission merchant and post the initial margin requirement, which, in turn, is held at the exchange's clearinghouse.

Proprietary trading firms, or prop firms, are specialized financial entities that engage in trading assets with their own capital across various financial markets. These can include stocks, currencies, commodities, crypto-assets, and other financial instruments.

Not all prop trading firms offer options trading, as some may focus on other markets or instruments such as futures, forex or stocks. Some prop trading firms may also have specific requirements or restrictions for options trading, such as the types of options, strategies, platforms or markets that are allowed.