Futures trading is a highly dynamic and potentially profitable sector of financial markets. However, many traders face challenges such as insufficient capital or access to advanced trading tools. Futures proprietary trading firms (prop firms) offer a unique solution: they allow skilled traders to trade the firm’s capital in exchange for a share of the profits. This article explores the best futures prop firms for 2024, examining their features, benefits, and suitability for traders.
Best Prop Firms
What Are Futures Prop Firms?
Futures prop firms provide traders with the opportunity to trade futures contracts using the firm’s funds. These firms typically evaluate traders through a structured assessment process or trading challenge to ensure they can consistently manage risk and generate profits. Upon passing, traders are given a funded account with strict risk parameters.
Top Futures Prop Firms in 2024
1. Topstep
- Overview: Topstep is one of the most well-known futures prop firms. It focuses on helping traders develop their skills while providing funding opportunities.
- Key Features:
- Transparent evaluation process (two-step combine).
- Access to industry-leading platforms like NinjaTrader and TradingView.
- Scaled account growth as traders prove consistency.
- Payout: Keep 100% of the first $5,000 profit, then 90% of the subsequent profits.
- Best For: Beginner to intermediate traders seeking a structured learning and trading environment.
2. Earn2Trade
- Overview: Earn2Trade offers a range of educational resources alongside its funding programs, making it ideal for traders who want to improve their skills.
- Key Features:
- Two funding options: Gauntlet Mini™ and the traditional Gauntlet™.
- Educational tools, including webinars, quizzes, and mentorship.
- Partnered with Helios Trading Partners for funded accounts.
- Payout: Up to 80% of profits.
- Best For: Traders looking to combine education with funding opportunities.
3. OneUp Trader
- Overview: OneUp Trader streamlines the evaluation process, making it easier for traders to start trading funded accounts.
- Key Features:
- Single-phase evaluation program.
- Daily loss limits and trailing drawdowns for risk management.
- No monthly subscription fees after passing the evaluation.
- Payout: Keep 100% of the first $10,000 profit, then 90% of profits.
- Best For: Experienced traders who want a quick path to funding.
4. Leeloo Trading
- Overview: Leeloo Trading offers flexible account options and promotional pricing, making it accessible to traders on a budget.
- Key Features:
- Variety of account sizes and evaluation types.
- Competitive pricing and occasional discounts.
- Fast payouts and no restrictions on trading styles.
- Payout: Up to 90% of profits.
- Best For: Traders seeking flexibility and cost-effective evaluation programs.
5. Apex Trader Funding
- Overview: Apex Trader Funding stands out for its trader-friendly rules and customizable evaluations.
- Key Features:
- No minimum days required to pass evaluations.
- Risk-friendly rules, including no trailing drawdowns on funded accounts.
- Multiple account options with scaling opportunities.
- Payout: Keep 100% of the first $25,000 profit, then 90% of profits.
- Best For: Traders prioritizing flexibility and fast funding.
Key Considerations When Choosing a Futures Prop Firm
When selecting a futures prop firm, consider the following factors:
- Evaluation Process: Understand the difficulty and requirements of the firm’s trading challenge.
- Payout Structure: Look for firms offering high profit splits and reasonable terms.
- Risk Parameters: Ensure the firm’s risk limits align with your trading strategy.
- Platform Support: Verify that the firm supports your preferred trading platforms.
- Cost: Assess the evaluation fees and potential recurring costs.
FAQs About Futures Prop Firms
1. What is a futures prop firm?
A futures proprietary trading firm provides traders with the firm’s capital to trade futures contracts. Traders retain a percentage of the profits in exchange for meeting the firm’s risk and performance requirements.
2. How do futures prop firms work?
Futures prop firms typically require traders to complete an evaluation process. This process assesses a trader’s ability to manage risk and generate consistent profits. Once the trader passes, they receive a funded account with specific rules, such as maximum drawdowns and position size limits.
3. How do I get funded by a futures prop firm?
To get funded, you need to:
- Select a prop firm and register for their evaluation or challenge.
- Meet the firm’s performance and risk criteria during the evaluation.
- Once you pass, you’ll be given access to a funded account.
4. What are the best futures prop firms?
Some of the top futures prop firms include:
- Topstep: Known for its structured evaluation and scalability.
- Earn2Trade: Offers both funding and educational resources.
- OneUp Trader: Simplifies the evaluation process for quick funding.
- Leeloo Trading: Known for flexibility and competitive pricing.
- Apex Trader Funding: Offers fast funding with trader-friendly rules.
5. Do I need to pay to join a prop firm?
Yes, most futures prop firms charge an evaluation fee or subscription fee. This fee covers the cost of accessing the evaluation account and sometimes includes educational tools. Once funded, additional fees are rare.
6. How much profit can I keep?
Profit splits vary by firm. Common structures include:
- 100% of profits up to a certain threshold (e.g., $5,000 or $25,000).
- 80% to 90% of profits after the initial threshold.
7. What trading platforms do prop firms support?
Most futures prop firms support popular platforms like:
- NinjaTrader
- TradingView
- MetaTrader
- Rithmic Check with your chosen firm to confirm platform compatibility.
8. What happens if I lose money in a funded account?
If you exceed the firm’s risk limits (e.g., maximum drawdown or daily loss limit), your funded account may be revoked. You may need to retake the evaluation or pay a reset fee to continue trading.
9. Can I trade any futures contracts with a prop firm?
Most prop firms allow trading a wide range of futures contracts, including indices (e.g., ES, NQ), commodities (e.g., oil, gold), and currencies. However, some may have restrictions or require specific risk management practices.
10. Are there minimum trading days to pass evaluations?
Some firms, like Apex Trader Funding, have no minimum trading days, while others may require 5–10 days. Always check the rules of your chosen firm.
11. Can I trade multiple accounts with the same firm?
Yes, many firms allow traders to manage multiple accounts simultaneously. Some firms even offer bulk pricing for traders managing several accounts.
12. How quickly can I get funded?
The time required depends on the firm and your performance during the evaluation. With firms like OneUp Trader, you can complete the evaluation in a few days if you meet the profit and risk targets quickly.
13. Do prop firms offer educational resources?
Yes, firms like Earn2Trade include educational resources such as webinars, mentorship, and quizzes. These tools are particularly helpful for beginner traders.
14. What are the risks of joining a futures prop firm?
The main risks include:
- Losing the evaluation fee if you fail the challenge.
- Being unable to meet the firm’s risk management rules.
- Misalignment of the firm’s policies with your trading strategy.
15. Are futures prop firms legitimate?
Most futures prop firms are legitimate, but it’s essential to research a firm’s reputation, reviews, and funding terms before committing. Avoid firms with unclear policies or unrealistic promises.
16. Can I trade overnight or during news events?
Policies vary by firm. Some allow trading during news events and overnight, while others restrict it to manage risk. Check the firm’s guidelines to avoid violations.
17. How are payouts processed?
Payouts are typically processed through bank transfers, PayPal, or other payment methods. The frequency and minimum payout amounts depend on the firm’s policies.
18. What happens if I want to leave a prop firm?
If you decide to leave a prop firm, you can typically withdraw any profits you’ve earned (if eligible). Evaluation fees, however, are non-refundable.
Conclusion
Futures prop firms provide an excellent pathway for traders to access capital and hone their skills. Whether you’re a beginner looking for structured guidance or an experienced trader seeking fast funding, there’s a firm to meet your needs. By carefully evaluating each firm’s offerings and aligning them with your trading style, you can choose the best partner to accelerate your trading journey.