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Best Crypto Prop Trading Firms
The rapid rise of cryptocurrencies and their growing integration into the financial systems has ushered in some massive shifts in the proprietary trading landscape as well. These days, many established and new companies are allowing trading in cryptocurrency, which is why we decided to compare the market's leading crypto prop trading firms.
Top Crypto Prop Trading Firms for November 2023
Fidelcrest
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Fidelcrest was established in 2018 by seasoned professionals in the prop trading domain. Their dedication to excellence is evidenced by a stellar 4.6 rating on Trustpilot, further complemented by their accolade as the Best Micro Forex in Europe at the Forex Expo 2021. Although the company is currently gearing up towards introducing Real Crypto trading, you can still trade crypto through Forex (CFD's) Challenges.
- •High maximum capital limit
- •No hidden fees
- •High leverage
The Trading Pit
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
The Trading Pit, grounded in Real Futures and CFD trading, is progressively broadening its scope. Currently, their crypto engagement is limited to Forex (CFD's) Challenges, featuring pairs such as BTCUSD and ETHUSD. The firm plans to launch its Real Crypto trading Challenges by early 2024. Their trading parameters dictate a standard account margin of 50% and a more lenient 35% for professional accounts, with trading amounts ranging from 0.01 to a maximum of 10.
- •Trading platform variety
- •No time limits
- •Wealth of educational and mentorship resources
FTMO
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Established in Prague in 2014, FTMO has firmly entrenched itself as a formidable entity in the prop trading arena. FTMO provides its traders with the option to trade with the current top 10 cryptocurrencies, which as of the time of the writing of this article include coins like Bitcoin, Ethereum, and Litecoin. The firm's commitment to fostering trader growth is accentuated by its wealth of online resources and instructive webinars.
- •No trading period limits
- •Free trial account
- •24/7 customer support
SurgeTrader
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
SurgeTrader has swiftly cemented its reputation in the trading community. The company’s versatility in offering a variety of trading instruments has been a hallmark of its approach. The resonance of their impact is palpable in the form of a commendable 4.6 Trustpilot rating, a metric built upon feedback from over 600 reviews. The firm’s trading gamut spans stock market indices, forex, metals, oil, and an impressive roster of more than 20 cryptocurrencies.
- •Large number of cryptocurrencies available
- •Real-time trade analytics
- •Fast payout processing
Funding Traders
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
The brainchild of Wall Street maven Stan G., Funding Traders emerged in 2023 with a clear mandate: to democratize trading access by equipping novices with necessary capital and foundational knowledge. Their trading umbrella encapsulates forex, indices, stocks, metals, and cryptocurrencies, with the crypto trading avenue being particularly facilitated through a partnership with Coinbase Commerce, albeit under certain conditions.
- •Allows account merging
- •Crypto payouts available
- •Rich knowledge hub
Best Crypto Proprietary Trading Firms in 2023 - Our Picks:
Fidelcrest - Best for high leverage level
The Trading Pit - Best educational and mentorship support
FTMO - Best customer support
SurgeTrader - Best crypto trading selection
Funding Traders - Best for crypto payouts
What Are Crypto Prop Trading Firms?
Think of crypto prop trading firms as the bridge between Wall Street’s trading floors and Silicon Valley's crypto innovation labs.
Traders leverage the firm’s sizable capital to engage in trades, circumventing the need for personal investment. The trade-off is a slice of the profit pie that goes back to the firm.
Crypto prop firms provide a significant advantage to traders in the form of capital. A trader's potential is often bottlenecked by the limits of their own financial means. However, with the backing of a prop trading firm, their horizons are expanded exponentially.
A small-time trader can wield capital that multiplies their trading capacity, thereby increasing the potential for larger profits.
These firms also bring forth a treasure trove of resources, be it in the form of sophisticated trading tools, research, or mentorship. Such infrastructure can prove pivotal in navigating the volatile waters of the crypto markets.
How to Choose a Crypto Prop Trading Firm?
Navigating the maze of crypto trading firms requires discernment, and here are the guideposts:
- Reputation & Track Record: Examine the firm’s past – their successes, setbacks, and awards. Investigate their handling of past market downturns or internal crises to gauge their crisis management capabilities.
- Profit-Sharing Structure: Transparency is vital. Ensure the profit-sharing agreement terms are transparent, with no ambiguous or hidden clauses. Determine the structure for bonuses based on high performance and potential penalties for losses or sub-par performance.
- Capital Allocation & Leverage: Ample capital offers trading leverage. Determine if the crypto prop firm offers progressive capital increments based on your success milestones.
- Risk Management Tools: Confirm the firm provides adequate risk management tools, considering the volatile nature of the crypto market. Features to consider include automated stop-loss, real-time analytics, and hedging capabilities.
- Training, Mentorship & Resources: Check if the firm provides tools for navigation, be it through seminars, interactive courses, or direct mentorship.
- Technology & Infrastructure: Assess the reliability, speed, and efficiency of the firm's trading platform. Confirm the platform's ability to integrate with third-party tools or software. Ensure the firm has robust data security measures, including advanced encryption standards and a proven record of security.
Is Crypto Proprietary Trading Legal?
Regulatory waters around crypto activities can be murky, with changes being the only constant. Crypto proprietary trading is generally considered legal, but it’s paramount to also choose a firm that sails these waters with a clear legal compass, ensuring compliance at every turn.
Pros and Cons of Crypto Prop Trading Firms
Some of the main advantages of crypto prop firms include:
- Higher Capital: This not only amplifies gains but facilitates hedging strategies and exposure to a broader asset spectrum.
- Advanced Tools: Cutting-edge software, predictive AI algorithms, and deep learning integrations provide traders unparalleled insights.
- Learning Opportunities: Regular industry expert interactions, access to exclusive market research, and peer-to-peer knowledge exchange forums.
The disadvantages that can come with crypto prop trading are:
- Profit Sharing: The downside to zero personal capital investment is the relinquishment of a profit portion.
- Pressure: High stakes, with the weight of enormous capital, can sometimes be a mental challenge, particularly in bear markets.
- Regulatory Risks: Aligning with a non-observant firm can have repercussions beyond financial loss, including legal complications.
How to Join a Crypto Prop Trading Firm?
Joining a crypto prop trading firm requires a combination of diligent research, skill development, and adept communication.
- Research and Identify Suitable Firms: Embark on comprehensive research to pinpoint crypto prop trading firms that resonate with your trading aspirations. Evaluate firms based on their reputation, track record, educational offerings, and community engagement. Delving into reviews, forums, or connecting with current or former traders can also provide valuable insights.
- Familiarize with the Evaluation Process: Each crypto prop firm may have its distinct evaluation challenge. Understand and examine these in detail, as failing to meet certain requirements can lead to account closure and other penalties.
- Hone and Demonstrate Your Trading Skills: Crypto prop trading is an extremely competitive space, and relying on basic skills and strategies might not suffice. Commit to enhancing your trading acumen. Regularly backtest your strategies, keep abreast of market dynamics, and ensure you have a consistent and profitable trading record.
- Application Submission & Interviews: With confidence in your skills and clarity about the firm's requirements, proceed to complete the application. Ensure that you furnish all essential details, potentially including your comprehensive trading history, relevant performance metrics, and any documentation explicitly requested by the firm. In interview settings, it's crucial to competently discuss your past trading endeavors, strategic approaches, and overarching objectives. Portraying a synthesis of technical proficiency and genuine enthusiasm will strengthen your standing as a candidate.
Bottom Line
Crypto prop trading firms are the future’s trading desks, merging traditional trading wisdom with crypto dynamism. While the sky's the limit in potential returns, it's essential to have grounded expectations, do meticulous research, and be unwavering in your commitment to learning.
FAQ
Which prop firms allow crypto trading?
2023’s standout prop crypto firms are FTMO, Fidelcrest and FX2 Funding.
Does FTMO allow crypto trading?
FTMO allows trading in the current ten highest-valued cryptocurrencies, which right now includes Bitcoin, Ethereum, XRP, Litecoin and more.
Is there a risk involved with crypto prop trading firms?
Prop trading is by nature a high-risk venture, whether it involves trading in crypto or not. However, with the volatile crypto market come some specific risks that aren’t usually associated with forex trading.
Are crypto prop trading earnings taxable?
In most jurisdictions, yes. A local taxation expert can guide on specifics and potential tax-saving avenues, or you can use modern solutions like crypto tax software.
What is the best prop firm to trade crypto?
Some of the best prop firms for crypto trading in 2023 are:
- Fidelcrest
- FX2 Funding
- FTMO
Are there any crypto prop firms?
Prop firms have recently started offering crypto trading options, and the list of companies adding crypto symbols available to traders is on a continuous growth. Make sure to keep track of the prop trading news to see which companies are adding crypto to their instrument lists.