Best Futures Prop Trading Firms
Trading on futures remains one of the most popular ventures in the financial world, and while there aren’t as many options available to prop traders that want to specialize in this trading instrument, there are still some reputable futures prop firms to choose from.
Best Futures Prop Firms in December 2024
The Trading Pit was created with the idea of democratizing the trading space by having no minimum deposit requirements or hidden fees, while providing their traders with the ability to refund their initial fee. The company now serves traders from 160 different countries, and due to its high maximum capital offering and a rich selection of trading platforms and resources, it can be the right place to start trading in futures whether you are an experienced trader or a beginner.
- •Fully refundable fee
- •No time limits
- •High maximum capital
Liberty Market Investment (LMI) is a specialized futures prop trading firm, offering a great variety of different contract options to choose from, a 14-day free trial and the option of a one-step evaluation program. There are no registration fees here, so you only have to pay the monthly subscription, which starts at $35 and goes up to $325 for the Extra trading account. Trading with LMI also provides you with free access to the exclusive VolFix trading platform, on which you can track your trading statistics and history, as well as compete in regular trader competitions.
- •No registration fee
- •Trader tournaments
- •Allows 3 active funded trader accounts at the same time
4PropTrader is a trading firm specialized in funding skilled futures traders. Offering an industry-high payout rate and a one-step evaluation process for all of its six different programs, it provides a cutting-edge trading environment best-suited to experienced traders who want to trade with a maximum capital of $250,000.
- •Highest payout rates on the market
- •1-step evaluation on all programs
- •No platform fees
Darwinex Zero is a first-of-its-kind subscription service, designed to provide prop traders with the ability to raise investor capital with zero risk, all from a virtual account. For futures trading, Darwinex Zero allows you to trade commodities, currencies, treasuries, indices and Bitcoin on CME and Eurex exchanges, with up to $3,000,000 equity in your MetaTrader 5 futures virtual account. By building a good track record and learning to manage capital at scale, you can grow your brand as an investment manager and attract outside investors to you.
- •Live server virtual account
- •No min/max drawdown
- •Cutting-edge analytics
Top Futures Prop Trading Firms - Our Picks for 2024:
4PropTrader - Highest payout rates
The Trading Pit - Highest capital ceiling
Liberty Market Investment - Best for multiple funded accounts
Darwinex Zero - Best for traders looking to build their own brand
A Guide on Futures Proprietary Trading
Futures trading can be a highly lucrative venture, but is also one that requires a great level of skill and knowledge to predict the market movements ahead, as futures contracts always have standardized expiration dates.
This is why employing strict risk management techniques and trading strategies is essential to long-term success.
Some of the most common futures trading strategies available to traders are:
- The Pullback Strategy
- Trend Following
- Breakout Trading
- Short Trading
- Long Trading
- Scalping
- Swing Trading
To be successful in this financial market, you have to familiarize yourself with these and other strategies used by futures traders, because the biggest mistake you can make in the prop trading world is going into it blind or without a clear vision and plan that will help you prove yourself and earn greater funding and profit in the long run.
You should also be aware of all the pros and cons of futures trading, or when to hedge or speculate on a commodity or a stock of your choice. These are, after all, one of the more complex agreements in the trading world, and are generally recommended only for those traders with a deep understanding of the market.
Is Futures Prop Trading Legal?
Proprietary trading is legal in the US, and doesn’t require you as a trader to hold a license in order to be able to trade on any of the available markets.
However, the prop trading industry itself is highly regulated, especially since the 2008 financial crisis, which led to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Volcker Rule, which prohibited banks from engaging in proprietary trading.
Aside from the Securities and Exchange Commission (SEC), there are now also several other government regulatory bodies that regulate the prop trading markets, and some state regulatory bodies can enact their own rules and regulation on prop firms as well.
As for futures prop trading, the Commodity Futures Trading Commission (CFTC) is responsible for regulating futures and options trading contracts, so any prop trading firm in the US that offers futures contracts must comply with its rules and register with the CFTC.
FAQ
Which futures are the most profitable?
Some of the historically profitable future contracts are gold, cruide oil, corn and natural gas.
Can you make a lot of money in futures?
According to the latest data from Glassdoor, futures traders in the US have an average salary of $270,098 per year, which makes future trading one of the more lucrative trading ventures out there.
Are futures high risk?
Futures are not considered inherently riskier than other investments, but due to their nature, they are not a recommended option for beginner traders.