Stock and Futures Prop Trading Firms Review and Funding Comparison

To prop or not to prop is the question – should you go for funding qualifiers, directly join one of the remote prop trading firms or skip the prop trading route altogether? It depends what you want to trade, so let’s compare the available remote proprietary trading firms side-by-side by product group such as futures, stocks, and forex:

NOTE: please double-check the individual prop trading firm review pages under the header menu above for current special promotions!

 

FUTURES

FIXED-CONTRACT futures prop trading firms

 

Futures Prop Trading – Fixed-Contract vs. fixed-Margin

There’s no easy way to get into serious proprietary trading firms because “real” prop firms deal with market making and algorithmic trading and hire graduates from top universities instead of recruiting trading talent from the general public.

At the time of writing this post, the only firm catering to the public and offering real professional rates that CME member firms enjoy over the retail world is Apteros Trading.

The fact that leverage is already built into futures contracts makes the current retail pay-for-prop model kind of redundant in the futures space any way, except for beginners seeking a structured environment to break into this profession.

As long as you have to pre-pay for the opportunity to scale up your contract size and earn the promised account again in the funded account according to some scaling plan — which really means building equity before you get the promised buying power — you should take a close look at the permanent-sim prop trading offers often referred to as “Performance Accounts” which openly state that your trades are never cleared with an external counterparty and therefore are able to offer better conditions on paper.

For some traders in jurisdictions like Germany this is actually great news because they would otherwise be technically prohibited from participating in these prop trading schemes. However, the risk here is that regulatory agencies will eventually shut down these bucket shops like Apex Trader Funding or Leeloo Trading and you won’t be able to cope with real markets and liquidity constraints that sandbox trading cannot simulate.

VERDICT: prepare yourself in a simulated environment with proper guidance and a sound understanding of how markets and price formation actually work. Then you can opt to verify your sim results by taking a challenge at one of the remote prop trading firms before risking your own capital.

If you qualify, take the opportunity for what it is and eventually use your accumulated profits to go solo and keep 100% of your profits.

 

Nasdaq/NYSE STOCKS

 

US-STOCKS remote prop trading qualifiers

 

How to get more leverage trading US stocks?

The situation is quite different for U.S. stocks, in that it is relatively easy for experienced traders living outside of the U.S. with a profitable track record to either join an offshore prop trading firm with a profit sharing agreement or a No-PDT-Rule broker offering leverage up to 30:1.

Offshore in this context literally means any broker or prop firm outside of the U.S. that doesn’t solicit or accept U.S. clients.  In contrast, traders domiciled in the U.S. are limited to 4:1 intraday leverage in retail accounts or need to pass the Series 57 exam before joining a prop trading firm.

If you have enough money and experience, Alaric Securities is the place to go for day trading stocks, if not give UTEX.io a shot to get your feet wet and practice with a small account. There’s also the opportunity to qualify for a trading account with buying power up to $100,000 or $260,000 respectively by passing the trader selection programs of Try2BFunded or the Trade The Pool.

VERDICT: U.S.-based traders have no other choice than joining a prop firm to get professional leverage. Non-U.S.-based traders on the other hand should think twice whether they should trade through a prop trading set-up. Factors to consider are the differences in the cost structure and taxation consequences when being classified as a professional trader and trading other people’s money as an independent contractor.

FOREX / CFDs

INSTANT-, EVALUATION- and SELF-funding FX prop trading career programs

 

 

Forex Trading – Retail vs. Pay-for-Prop Model

In the evaluation space of forex remote prop trading firms, myForexFunds stands out among the crowd with the effective capital, i.e. how much of your own money you would need to replicate the same buying power and trading conditions in a retail account, they provide with their low-cost entry option.

However, among all forex funding offers out there, LUX Trading is the only forex prop firm that is capable and willing to show proof that funded traders actually trade with real money in real accounts. This is further evidenced by the choice of its broker (Global Prime) and the trading platforms that are available beyond the usual — and these days quite frankly sub-standard — Metatrader platforms.

The scale up ladder at LUX Trading offers a true career opportunity for both experienced traders and motivated newcomers with the incentive to reach the $2,500,000 maximum account size.

If you plan on aggressively scaling your trading from the very beginning, then considering the FX funding offers is your best bet.

However, the 75/25 profit split at LUX Trading falls short of the competition such as FTMO which offers up to 90%, but this seems to be the price if you want to trade in a real-time environment versus a trading sandbox.

Nevertheless, you should be aware of the alternatives before plunging into a trading challenge. The paradox in the remote prop trading world is that before taking a trading challenge you should already have a proven approach that is profitable in a (even if small) real-money account.

VERDICT: Don’t fall into the trap of thinking that more buying power will instantly make you a better trader. Make sure to prepare no matter which direction you decide to go.

Alternatively, you can also grow your personal account organically by choosing a broker that doesn’t trade against you and caters to professional traders if you already have sufficient starting capital available to you.

 

 

 

 

 

Let me help you navigate through the jungle of available options and together pick the best option for your personal needs!

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