Futures Prop Trading
Futures prop trading is a type of trading that involves speculating on the future price of a commodity. Proprietary traders, or “prop traders”, trade on behalf of a firm’s own account, rather than on behalf of clients. Prop firms typically provide their traders with capital, in return for a percentage of the profits generated.
Each prop firm is concerned with ensuring that all of its prop traders who are funded are capable of trading with a significant amount of capital and profitably. To increase their chances of success and reduce risk, proprietary trading firms will have rules and guidelines for their traders to follow.
The Different Types of Futures Prop Trading Firms
There are many different types of futures prop trading firms. Some focus on a select few commodities or instruments, while others may trade a wide variety of futures contracts. Some firms are large and well-established, while others are small and relatively new.
The best futures prop trading firm for you will depend on your own trading style and preferences. If you are a risk-averse trader, then you may want to consider a large firm with a long track record of success. On the other hand, if you are more aggressive and willing to take on more risk, then a smaller firm may be a better fit.
No matter what type of futures prop trading firm you choose, be sure to do your own research before committing to any one firm.
The Pros and Cons of Futures Prop Trading
When it comes to futures prop trading, there are a few things you need to know. For starters, it is suggested to first get enrolled in educational courses offered by a trading firm to polish their skills. This will help traders to minimize risks associated with their invested money.
That being said, there are also some major advantages to futures prop trading. One of the biggest benefits is that it can be very profitable. If you’re good at it, you can make a lot of money in a short amount of time.
Another advantage is that you have limited exposure as the most money you can lose will be your initial joining fee (prop firms tend to bare any loss on the market itself). Unlike traditional investing, where you’re at the mercy of the market and can lose your entire investment as no one else will cover the loss for you. This can give you a big advantage when it comes to making money with less exposure.
A downside is that it can be difficult to get started. There’s a lot to learn about this type of trading, and it takes time to develop the skills necessary to be successful. But don’t lose hope here, As mentioned above Prop trading firms offer educational courses, workshops and training material for beginners to first learn and then trade.
So, should you try futures prop trading? That’s a decision that you’ll need to make for yourself. If you’re willing to take on the risk, and you’re prepared to put in the time to learn, then it could be a great way to make some extra money.
The Best Futures Prop Trading Firms
There are many futures prop trading firms out there, but which ones are the best? This is a question that is often asked, and it can be difficult to answer. However, there are a few things to look for when trying to find the best futures prop trading firm for you.
First, you want to make sure that the firm you are considering is properly regulated. This means that they will have to follow certain rules and regulations in order to operate. This is important because you want to make sure that your money is safe and that you are not being taken advantage of.
Next, you want to look at the fees that the firm charges. Some firms charge higher fees than others, so you want to make sure that you are getting a good deal. You also want to make sure that the firm offers good customer service. This is important because you want to be able to talk to someone if you have any questions or concerns.
Finally, you want to make sure that the firm has a good reputation. You can check out reviews online or ask around to see what other people think about a particular futures prop trading firm.
If you keep these things in mind, then you should be able to find a great futures prop trading firm that meets your needs.
TopStep Trader
Topstep Trader is a financial company that allows traders to grow and learn in the trading profession without putting their own money in danger (other than the monthly fees). Its product portfolio includes Trading Combine, an evaluation program that allows traders to demonstrate their abilities while trading on a real-time simulated account on a preferred platform. Traders who meet the Trading Combine objectives can earn a funded trading account with no personal capital contribution.
Topstep Trader University provides complete trading education services to people who are not ready for their performance to be evaluated in the Trading Combine. It also teaches traders how to finish the Trading Combine or boost profitability in their personal trading account.
A fully financed account for regular performers. TopStep is one of the better possibilities since the firm displays all facts on its website, is highly open, and is situated in the United States. This firm provides more information than others. On their website, there is an amazing performance evaluation with a testimony from a real TopStep trader who is pleased with the service and says it is just what he has been searching for.
Keep this in mind, $38,162 is the highest amount ever earned by a day trader on TopStepTrader’s website in a single day. They are really confident in displaying that figure and are the most trustworthy firm when it comes to funded trader accounts.
Pros & Cons
Pros
- More easily available company information.
- Packages for self-education are available.
- Trading performance analytics in advance.
- The most dependable trader funding firm.
- The greatest number of financed accounts
- The most significant monetary amount of trader withdrawals every year
- There is a minimum of 15 days exchanged and no maximum days.
Cons
- Before receiving a financed account, two phases of assessment must be completed.
Earn2Trade
Earn2Trade is a trading simulation tool that also provides detailed training programmed for beginners interested in getting into the trading business. For years, the platform has shaped futures markets and trained the next generation of intraday traders through mini futures contracts, beginner level courses, and other means. The platform is also well-known for its consistent trading performance in the trading industry since its inception.
Earn2Trade Gauntlet Mini Features
- Dashboard: Once you register, you can do all your transactions on the dashboard. The platform comes with essential tools to make your trading experience seamless.
- Depth of the market: The monthly subscription price incorporates market depth. Turn on the right-click tab if you want to trade directly from the chart.
- Charts with news: The platform provides basic charting options with key dates. The FOMC, central bank rates, interest rates, and other major events should be monitored. There are also a few navigation widgets.
- Types of charts: A normal candlestick chart can be distinguished from a tick or volume chart. You can use a long list of indicators to see news events and chart reactions.
- Journalytic trade tracking: A normal candlestick chart can be distinguished from a tick or volume chart. You can use a long list of indicators to see news events and chart reactions.
Pros & Cons
Pros
- Awesome reputation.
- Education is available.
- New mini gauntlet.
Cons
- The prices are high and may be out of reach for many.
- The lack of a free trial is a disadvantage.
Uprofit
Uprofit is a prop company based in Texas, United States. It began as an educational firm dedicated to assisting traders in avoiding financial pitfalls that can derail their trading careers. The company was founded in 2017 and provided educational services for two years before becoming a real estate investment firm in 2019.
Uprofit Trader funding operates in a very straightforward manner, much simpler than most other prop firms in the industry. It all starts with a simple 1-step verification program in which you will trade on a simulated account to demonstrate your profitability in the markets. This comes with a very simple set of rules and criteria to follow in terms of profit target, instruments, drawdown, and maximum loss. The challenge/verification will take at least 10 days and there is no time limit, so go at your own pace!
Uprofit Trader provides funding ranging from $25,000 (which will cost you $145 per month) to $100,000 (which will cost you around $315 per month). In comparison to other firms, this is a very reasonable price, and it could be an excellent option for futures traders looking to scale their capital.
Uprofit Trader is distinct from the majority of prop firms that provide funding to traders. The main difference is that you don’t have to pay a large upfront fee to take on a challenge, which can deter some traders from seeking funding from a prop firm. For example, with FTMO, you’ll pay around $1200 to participate in the $200,000 challenge. However, if you fund $100,000 with Uprofit Trader, you will only pay a $315 monthly fee. Some traders may see a monthly fee as a disadvantage, but it could be seen as beneficial to those with less start up capital.
Pros & Cons
Pros
- Uprofit has a minimum of ten trading days and no maximum, so traders can take as long as they need to pass the evaluation.
- The evaluation only has one step, which is great because some other prop firms’ evaluation process have two steps to pass before being funded.
- The first $8,000 in profit belongs entirely to the trader. Traders can select from a variety of account sizes.
- The calculation of the Pro drawdown is simple and can be easily monitored.
- Profits can be withdrawn in a variety of ways.
- The monthly fees are reasonable and affordable.
- The live account has a one-time assignment fee rather than a recurring monthly fee like some other firms.
Cons
- The firm only deals in futures, which may not be suitable for all traders.
- Traders are limited to operating no more than two funded accounts at the same time.
- Customer service responses can be ambiguous and difficult to comprehend at times.
How to Choose the Right Futures Prop Trading Firm for You
When it comes to futures prop trading firms, there are many different factors that you need to consider in order to choose the right one for you. Here are some of the most important things to keep in mind:
1. Make sure that the firm is properly registered as a company. This is one of the most important things to look for in any firm you wish to put money into, and it’s especially important when it comes to prop trading firms. You want to make sure that your money is safe and that the firm adheres to strict legal and financial regulations.
2. Consider the firm’s track record. How long has the firm been in business? What kind of success have they had with their clients? Do they have a good reputation in the industry? These are all important things to consider when choosing a futures prop trading firm.
3. Look at the fees and commissions charged by the firm. Different firms charge different fees, so it’s important to compare them before making a decision. Make sure you understand all of the fees and commissions that will be charged before you open an account with a particular firm. Most reliable firms will list their fees openly on the home page or main pages of their website, some will even offer discounts on any re-takes.
4. Ask about the firm’s risk management policies. How does the firm handle risk? What kind of risk management tools do they offer? Make sure you understand their risk management guidelines. This is important to know so you can be sure that you select a firm that is right for you and fits your trading style.
5. Find out what kind of account scaling options are available. Once you trade consistently well and reach new milestones, some firms will offer more capital allocation than others.
By following these tips, you should be able to find the right futures prop trading firm for you. Keep in mind that not all firms are created equal, so it’s important to do your research and make sure you’re getting what suits your needs best.
Conclusion
There you have it — the best futures prop trading firms in the business. Each of these companies has a proven track record and is committed to providing its clients with the best possible trading experience. If you’re serious about making money through futures trading, then any one of these firms would be a great choice. Do your homework and pick the one that best suits your needs, then get started on your journey to success.
