Multi-Asset Prop Trading Firm (2024)

FAQs

Which is the most trusted prop firm? ›

In summary, it's entirely possible to trade with multiple prop firms at once, provided it's within the terms of service of the prop firms you're working with. This can be very beneficial and allow traders to scale their capital under management, increase profits and reduce their risk.

In conclusion, the income of prop firm traders 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.

The major U.S. high-frequency trading firms include Virtu Financial, Tower Research Capital, IMC, Tradebot, Akuna Capital and Citadel LLC.

FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.

Yes, prop firms do pay. While there are some scams out there popping up everyday, reputable prop trading firms like True Forex Funds, FTMO,5%ers,FundedNext are legitimate and pay traders according to their profit-sharing agreements. As for True Forex Funds, I can vouch for their credibility.

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.

Prop trading can be lucrative, with earnings tied to a profit-sharing ratio. Unlike traditional brokers relying on commissions, prop traders' income directly links to generated profits. Ratios vary, often ranging from 75/100 to 90/100, offering flexibility based on experience and strategy.

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. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders. But why is the percentage of failure so high?

It's a competitive, high-stress field with drawbacks like any other career. It's also awash with less-than-reputable firms that offer zero base pay, limited profit sharing and often make new hires pay for training and tech. Avoid these types of firms as they're a ticket to plenty of risk with minimal reward.

Do you need a license to be a prop trader? ›

Prop trading firms are less heavily regulated than regular brokerages and broker-dealers. However, if such laws apply, you must still properly register your business and get licensed.

To summarize, the amount of money you need to open a prop firm can range from $10,000 to $1 million, depending on the type of prop firm, the technology, the registration, the liquidity, and the CRM tool.

Be aware that HFT is an extremely technical discipline and it attracts the very best candidates from the fields of mathematics, physics, computer science and electronic engineering, often at the grad school level or with years of industry expertise in a niche area.

Does FTMO allow high-frequency trading (HFT)? Short answer is No. While FTMO does not explicitly prohibit the use of HFT strategies, they do have strict rules and guidelines for traders with that trading strategy.

Overview: 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.

FunderPro: FunderPro is the most popular alternative to FTMO. It has a similar two-step challenge process, but the requirements are slightly more lenient.

Overview and Reputation

FTMO is an established Czech prop firm founded in 2017 specializing in Forex trading. With over $70 million paid to funded traders in 2022 and a strong reputation for payments, FTMO sets the industry standard.

Yes, some prop firms are entirely legitimate! Concerns may arise as online prop firms are unregulated. As a result, scam firms do, unfortunately, appear. But this does not mean that all prop firms are illegitimate.