What is Futures Prop Trading – Get Funded Trading Futures (2024)

Futures Prop Trading – Get Funded With a Large 5, 6, or 7-Figure Trading Account:

Online futures prop trading is an industry that was created in 2012 (about a decade ago) by Topstep Trader.

Prop trading – short for proprietary trading – certainly existed before then, but Topstep was the first to take things entirely virtual and make the “hiring” process objective. At this point, there are dozens of other funded trader programs that have essentially copied them.

What proprietary or “prop” trading means is that traders have access to a firm’s resources like coaching/training and platforms/technology, but the most important one of all is capital. Funding is the main feature of a proprietary trading firm.

By strategically deploying capital to competent traders who have the ability to capture profits while appropriately managing risk, these prop firms (as well as the individuals trading with their capital) have the potential to make quite a bit of money.

It’s an interdependent relationship where the prop firm offers various tools and resources (real-time market data, risk management rules, access to capital, etc.) in exchange for a portion of your profits – which can vary quite a bit from firm-to-firm.

I’ve seen profit-splits as low as 50/50 all the way up to 90/10 (where you receive 90% of your profits and the firm keeps 10%). But regardless of the specific details, generally speaking, funded trader programs are incredible opportunities for developing traders.

Get Funded Trading Futures – Top Benefits and Drawbacks of Funded Trader Programs:

In my personal opinion, the benefits of funded trader programs (especially high-quality ones like Topstep Trader) far outweigh the drawbacks. But I think it’s important to have a well-rounded perspective before blindly jumping into any of them.

The first drawback is that there’s a tryout process (Topstep calls theirs a “Combine”) and that process isn’t free. It’s a monthly subscription fee anywhere from around $100 to $400 per month depending on the account size you’re attempting to get funded with.

I hardly even consider this a drawback because it’s peanuts in comparison to the trading profits you can generate once funded. I also believe it to be 100% necessary to have at least this small amount of skin in the game – it’s much more realistic from an emotional level.

PROS:

• Safe Environment For Development;Heavy Focus on Risk Management
• Access to Capital; Opportunities to Get Funded With 5, 6, and Sometimes Even 7-Figure Accounts
• Only Risk During the Tryout Phase is the Monthly Fee; Firm Takes on All Downside Risk Once Funded

CONS:

• Tryout Fees, Risk Management Rules, and Profit-Splits Are Essentially Unavoidable
• Typically Only Offer Intraday Trading (Must Close Open Positions Before Settlement/Maintenance Periods)
• High-Quality Training Tends to Be Limited; I Would Recommend a Program Like Trade With Profile For Development

Ironically, I often see people complain about these fees, but blindly throw around thousands of their hard-earned dollars in live markets. This behavior doesn’t make sense. The small fee keeps your risk limited, but also makes you take the opportunity seriously.

Just put yourself in the prop firm’s shoes – would you want to fund compulsive gamblers trading randomly with millions of your own dollars? Or would you want to fund individuals who are serious about developing experience/skill and trading the right way?

This is why the tryout fees, risk management rules, and profit-splits exist. Without them, the risk wouldn’t be worth it for the firms.

What is the Best Funded Trader Program Available Online → Topstep Futures:

If you search online, you’ll find tons of funded trader programs that have popped up within the past several years – Earn2Trade, FTMO, OneUp, Leeloo, The5ers, Apex, UProfit, Bulenox, and the list goes on-and-on. The industry has become quite saturated.

But in my opinion, these are all just copy-cat versions of Topstep – and I have a much higher level of trust in Topstep as a long-standing member of the online funded trader industry. In fact, Topstep essentially created the industry roughly a decade ago in 2012.

Some of these other programs might offer legitimate opportunities, but I just don’t see any substantial advantages/features that would attract me to them over Topstep. I would much rather interact with the trustworthy industry-creator than anyone else.

So when I discuss funded trader programs, I automatically think primarily of Topstep. But keep in mind that there are many others to choose from. Just be careful and do your research on how long they’ve been around and how they operate before joining.

With that being said, the online funded trader industry is something that barely even existed when I first started trading – and now it’s booming with programs – and I think the high-quality ones like Topstep offer opportunities that are too good to pass up.

Lack of capital is no longer a valid reason to not pursue trading. If you have the desire to succeed, resources are available out there.

Check Out My Free Trading Success Framework Course

Written by Matt Thomas (@MattThomasTP)

Related Pages:

• Topstep Trader – Frequently Asked Questions (FAQs)
• What is Topstep Futures – Earn a Funded Futures Account
• What is Trade With Profile – Best Trader Training Program?
• Day Trading Futures – Beginners Guide to Intraday Futures
• Is Topstep Trader a Scam – My Thoughts as a Topstep Trader