Best Prop Firms for Futures 2024
Updated August 26, 2024
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A list of the Best Prop Firms For Futures for October 2024 are:
- FTMO – Best for multiple trading strategies
2.Lux Trading Firm 3. DreamTicks 4. IG 5. Jane Street – Best for high-frequency trading 6. 3Red Partners – Best for technology and tools 7. The Trading Pit – Best for trading options
Proprietary trading didn’t always have the best reputation and often finds itself as the root cause of the 2008 economic crash.
However, prop trading firms are making a more regulated comeback and offering traders the chance to profit from the futures market.
If you are looking to diversify your trading portfolio, this article will share the five best prop firms for futures and the best tips for picking the right one for you.
Description of the best prop firms for Futures for October 2024:
As prop trading is making somewhat of a comeback, there are lots of companies to choose from.
Some of the best prop firms for futures are:
1. FTMO
Pros
- Zero risk once you pass the challenge
- No trading strategy restrictions
- Allows overnight holding
- One time fee
- Lots of educational resources
- Has access to MT4 and MT5
Cons
- Only have 10 days to complete the challenge
- Despite receiving a payout, you only ever trade with a demo account
Rating: 4/5
Minimum balance: $10,00
Maximum balance: $20,000
Profit share: 80% for a majority of the accounts, 90% for the top scaling account
Additional fees: €155 to €1080 registration fee for the qualification challenge.
FTMO was founded in 2014 and is based in the Czech Republic. They are considered one of the most successful futures prop firms in the world with over 10,000 traders using their services.
There are several account options, including a Swing account that allows you to hold over the weekend and during microeconomic releases.
With FTMO you can also trade indices, commodities, stocks, forex and bonds.
If you have continued success, your account limit will increase by 25% every four months.
To help with your growth, FTMO employs psychologists to train and support you in understanding your decision-making process and making smarter trader decisions.
2. IG
IG is a great share trading platform for beginners thanks to its user-friendly interface and extensive educational resources.
Pros of IG include a wide range of trading instruments and markets, as well as the ability to access multiple account types and trading platforms. The platform also offers a demo account for beginners to practise trading strategies before investing real money.
However, IG isn’t the cheapest share trading platform, with relatively high trading fees and a minimum deposit requirement of £250 when paying by credit/debit card or PayPal.
In terms of additional fees, IG charges a commission fee for share trading, starting from £8 per trade. There’s also a custody fee of 0.25% per year for holdings of £250 or more.
Overall, IG is a solid choice for beginners looking for a user-friendly platform with extensive educational resources, but investors should be aware of its fees and minimum deposit requirements.
3. DreamTicks
Pros
- Trade with real capital when funded
- A lot of trading assets
- Great spreads
- EA is allowed
- High Profit split
- Unlimited trading time
- Same day payouts
Cons
- Minimum trading days is 5 days
Rating: 4/5
Minimum balance: $10,000
Maximum balance: $200,000
Profit share: Up to 90%, start at 80%
Additional fees: $99 to $979, refundable registration fee for the qualification challenge.
Overview
DreamTicks connects futures traders with up to $200,000 to enhance their trading endeavors. It represents a significant opportunity for individuals seeking to expand their trading activities without exposing their capital to risk or for those facing liquidity constraints. Moreover, DreamTicks ensures swift profit disbursement, a feature its users appreciate.
Founded by former traders who harbored grand aspirations while confined to their homes in 2021, DreamTicks empathizes with traders' needs due to their firsthand experiences. Their insights make DreamTicks a preferred platform for traders aiming to step up their game.
DreamTicks essentially transcends mere financial support; it strives to empower traders with the requisite tools and assistance to thrive. DreamTicks stands out as a reliable choice for those venturing into futures trading.
4. Jane Street
Pros
- Supports lots of trading options
Cons
- Very little information is provided to entice new traders
Rating: 2/5
Overview
Jane Street is one of the world’s largest market-makers, and has been for over 20 years. It was founded in New York in 1999 and also has offices in Chicago, London and Tokyo.
Jane Street uses high-frequency and quantitative trading. You can also trade in EFTs, equities, crypto, forex, commodities and bonds.
5. 3Red Partners
Pros
- Develops and uses excellent software and tools
- Has an international clientele
Cons
- Very secretive
Rating: 2/5 (would be higher if they released more details)
Overview
3Red Partners is another Chicago-based futures prop firm founded in 2011. It uses high-frequency trading and has developed technology and strategies based on maths, IT, economics, research and experience.
In addition to futures, you can also trade crypto, options, shares, securities and derivatives.
Unfortunately, 3Red Partners do not disclose their figures or fees, making it difficult to attract new traders.
6. The Trading Pit
Pros
- Dedicated account manager
- Great educational resources
- State-of-the-art trading system
- Real-time statistics
Cons
- A very new company, so not much information
Rating: 3/5
Minimum balance: $10,000
Maximum balance: $5,000,000
Profit share: Up to 70%
Additional fees: €99 challenge fee for the small account, €599 for the bigger account.
Overview
The Trading Pit was founded in 2022 and is based in Liechtenstein. Despite being a new company, it is quickly becoming one of the more popular futures trading prop firms.
In addition to futures, you can trade forex, metals, energies, shares, EFT and bonds.
The types of accounts you have access to depends on how well you do in the challenge.
There are four challenges:
- Lite – The single-phase challenge lasts 30 days with a minimum of 10 days to trade. You need to make a profit of $1,000. Your funded account will give you a 50/50 profit split.
- Standard – Another single-phase challenge that lasts 30 days. At this level, you have 15 days to trade and a profit target of $7,500. Your profit split will be 60/40.
- Executive – You have 30 days to complete two phases. Both phases have a profit target of $3,000, but different drawdowns. You have a minimum of seven days to trade and your profit split will be 60/40.
- VIP – Same profit goals as the Executive challenge. You will have a minimum of five days to trade. Your profit split will be 70/30 in the funded account.
What Are Futures Prop Firms?
Proprietary trading is when stocks, commodities, currencies, crypto and forex are traded using a firm's own money.
It allows the firm to make money from the trade, rather than commission from a client. Which in turn, allows them to retain more of the profit.
Trading futures can be expensive and tricky, and they are highly volatile. But, they can also yield large profits when traded properly.
Futures prop firms give traders with small accounts access to the funds needed to trade futures.
Prop firms also:
- Allow you to trade without risking your own capital
- Give you a large amount of funding so you don’t need to overleverage and gamble
- Force the trader to follow risk management policies
- Provide traders with lots of educational tools and resources
To qualify for a fully-funded account, traders need to pass an evaluation or challenge. This usually involves reaching a certain profit figure within a specified time frame, without exceeding a maximum loss.
You will most likely have to pay a fee to take the challenge and will complete it using a demo account.
Once you pass, you will have access to funds and a live account.
Depending on the firm, you can expect to keep 80 - 90% of the profits, with your funding going up after periods of continued success.
There are four main types of futures proprietary trading firms:
The Four Main Types of Futures Proprietary Trading Firms
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Event-driven trading firms – Typically trades and exploits the fallout after an economic or corporate event such as elections, bankruptcy and mergers.
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Multi-strategy trading firms – These firms use several different short and long-term trading strategies.
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High-frequency trading firms – High-frequency trading uses algorithms, financial data and electronic tools to make high-speed trades with high turnover rates and high order-to-trade ratios.
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Quantitative trading firms – Quantitative trading strategies rely on mathematical and statistical models to find and execute trading opportunities.
The right proprietary futures trading will depend on the type of trader you are and the strategies you use.
How to Pick Futures Trading Prop Firms?
With so many funded futures trading firms available, picking the right one is not going to be easy. When assessing your options, consider the following:
Step 1. Assets Available
Trading and investing is an incredible industry with so many assets and strategies to trade and learn.
When making your choice, decide if you want to just focus on futures prop trading or if you want the option to diversify your portfolio.
Some traders believe in becoming a master of one asset, while others believe you need a diverse trading portfolio to be a successful trader.
Step 2. Reputation
The best futures trading prop firms are those with a long-standing reputation of being reliable and trustworthy. There are so many companies today that are offering get-rich-quick schemes or incredibly low fees that turn out to be a scam.
Sadly, it isn’t always possible to spot fake firms. If in doubt, stick to the prop firms that have been around for a while. Even if it means higher fees.
Step 3. Resources and Support
If you feel you could benefit from additional support, look for firms that offer educational materials and mentoring.
With new technologies, markets and challenges emerging daily, there is always something to learn, even for experienced traders.
The best futures prop firms recognise this and will provide top-shelf educational materials.
Step 4. Trading Styles
Some prop firms, like 3Red Partners and Jane Street, focus on high-frequency trading, while others are more flexible and leave the strategies to individual traders.
Before committing, confirm what strategies are allowed on your funded futures account and what data and tools you have access to.
Step 5. Fees and Costs
Different firms have different payment structures.
Of course, the most appealing are those with a low one-off payment and high profit splits. However, those firms might not offer the best tools and resources.
Deciding which firm is the best value for money will involve assessing the fees, profit split, features and support. As everyone’s budget is different, what is ‘good value’ will be different also.
Prop firms are companies that use their own money to make trades. They employ the best traders and give them the tools and resources to make high-profit trades.
Yes, there are several firms, such as TopStepTrader, Jane Street, FTMO, 3Red Partners and The Trading Pit that allow you to trade futures.
To find the best prop firm you need to assess the reputation of the firm, the tools and resources they offer, their profit split and other fees, and the trading styles you can use.
Prop trading firms don’t typically disclose where their capital comes from or how they make money. However, one way we know for sure is from the profit split of successful trades. Another is from the fee traders pay to take the qualification challenge.
The benefits of investing with a prop firm are that you have access to higher amounts of cash, you have less risk, and you can trade hard-to-access assets like futures.
To become a successful futures trader with a prop firm you will first need to learn about trading by completing a course. After completing your course, you should open a trading account with a broker and spend time perfecting your style and strategy on a demo account.
Once you have proven success and feel confident in your skills, you can sign up for a prop firm by completing a qualification challenge.
If you pass, the firm will give you access to funds. While trading futures with a prop firm, make it a habit to always learn and develop your craft by using the resources available to you.
If you are a skilled trader, then yes, prop trading firms can be worth it. The profit splits are generally 80/20 so there is a lot of money to be made.
Prop trading firms typically have a lot of rules you need to follow. This is so the industry doesn’t get out of control like it did in 2008. As such, it can be stressful for traders as they need to ensure they don’t break any of the rules.
Yes, it is possible to make a living with prop trading. However, having a diverse trading portfolio and using a variety of long and short-term strategies is better for financial security.
Any form of trading is risky. However, as prop firms aren’t regulated the same way as normal brokers, there are additional risks.
While there are some prop firms that offer the support beginner traders need, futures are a highly volatile market. You also need to pass a challenge before being accepted which can be difficult for new traders to pass.
Before exploring futures prop firms, take the time to perfect your skills and strategy trading other assets.
The top futures prop firms are TopStepTrader, Jane Street, FTMO, 3Red Partners and The Trading Pit. Jane Street and 3Red Partners are very secretive about their fees and profit splits but they do offer some of the best technology and high-frequency trading.
TopStepTrader is one of the best all-around prop firms that specialise only in futures.
FTMO has much more flexibility in its rules and trading strategies, and The Trading Pit is great for those wanting to trade more than just futures.
Final Thoughts
For skilled and successful traders, futures prop firms are a great way to boost profits. However, as a highly volatile market, there are a lot of risks.
Before deciding which of the best futures prop firms is right for you, take the time to assess the reputation, fees and resources of each one.
Remember, all trading is risky so take advantage of the tools you have available and never gamble more than you can afford to lose.
WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
