Beginners Guide to Proprietary Trading for USA Traders
Beginner’s Guide to Proprietary Trading for USA Traders
If you're in the U.S. and looking to start proprietary (prop) trading, this guide will help you understand how prop trading works, which firms are best for U.S. traders, and how to get funded without risking your own capital.
1. What is Proprietary Trading?
Proprietary (prop) trading is when a firm provides traders with capital to trade financial markets (stocks, forex, indices, futures, etc.) and shares profits with them. Instead of using your own money, you trade with the firm’s capital, following their rules.
Why Choose Prop Trading?
✅ No Personal Capital Required – Trade with the firm’s money.
✅ Profit Sharing – Earn up to 90% of profits.
✅ No Deposit Needed – Unlike personal trading accounts, most prop firms only require passing an evaluation.
✅ Scalability – Many firms allow you to scale your account up to $2M+ based on performance.
2. How Prop Trading Firms Work
Most prop firms follow a structured process to fund traders:
1️⃣ Evaluation/Challenge – Prove your trading skills by following risk rules and hitting a profit target.
2️⃣ Funded Account – Once you pass, you get access to a funded account to trade live markets.
3️⃣ Profit Sharing – You keep a percentage of your profits (usually 50%-90%).
4️⃣ Scaling Plans – Some firms allow you to increase your capital over time.
Types of Prop Firms
🔹 Challenge-Based Firms – Require traders to pass an evaluation before funding (e.g., FTMO, MyFundedFX).
🔹 Instant Funding Firms – Provide immediate capital for a fee (e.g., The5%ers, BluFX).
🔹 Futures-Focused Firms – Specialize in futures trading (e.g., Topstep, Apex Trader Funding).
🔹 Stock & Options Firms – Fund stock and options traders (e.g., Maverick Trading, Trade The Pool).
3. Best Proprietary Trading Firms for USA Traders
Here are some of the top prop firms for U.S. traders, ranked based on evaluation process, profit split, and funding options:
| Rank | Prop Firm | Profit Split | Max Funding | Evaluation Required? | Best For |
|---|---|---|---|---|---|
| 1️⃣ | FTMO | Up to 90% | $400,000 | ✅ Yes | Forex, indices, stocks |
| 2️⃣ | Topstep | 90% | $150,000 | ✅ Yes | Futures trading |
| 3️⃣ | The5%ers | 50%-80% | $4M (scaling) | ❌ No | Forex traders |
| 4️⃣ | Apex Trader Funding | 90% | $300,000 | ✅ Yes | Futures traders |
| 5️⃣ | Maverick Trading | Varies | N/A | ❌ No | Stock & options traders |
| 6️⃣ | Funded Trading Plus | Up to 100% | $200,000 | ✅ Yes | Forex, crypto, indices |
| 7️⃣ | MyFundedFX | 85% | $300,000 | ✅ Yes | Forex traders |
| 8️⃣ | Trade The Pool | Varies | $200,000 | ✅ Yes | Stock traders |
| 9️⃣ | DNA Funded | 90% | N/A | ✅ Yes | All asset classes |
| 🔟 | BluFX | 50% | $50,000 | ❌ No | Forex traders |
4. How to Get Started with a Prop Firm in the USA
Step 1: Choose a Prop Firm
- If you want instant funding → The5%ers, BluFX
- If you trade futures → Topstep, Apex Trader Funding
- If you trade stocks & options → Maverick Trading, Trade The Pool
- If you prefer big accounts & high payouts → FTMO, MyFundedFX
Step 2: Register & Read the Rules
- Each firm has different risk limits (e.g., maximum drawdown, lot size restrictions).
- Ensure you understand their profit split and withdrawal rules.
Step 3: Take the Challenge (If Required)
- Most firms require you to pass an evaluation before funding.
- Common rules:
✅ Hit a profit target (e.g., 8-10%).
✅ Avoid max drawdown (e.g., 5-10%).
✅ Trade for a minimum number of days (e.g., 10 trading days).
Step 4: Get Funded & Trade
- Once you pass the challenge, you’ll receive a funded account.
- Follow the firm’s trading rules to avoid violating the contract.
Step 5: Withdraw Your Profits 💰
- Most firms offer monthly or bi-weekly payouts.
- Some firms, like FTMO & Apex, allow you to withdraw profits within 14 days.
5. Tips for Success in Prop Trading
✅ Risk Management is Key – Keep drawdowns low to avoid losing your funded account.
✅ Don’t Rush the Challenge – Most traders fail by overtrading. Take your time.
✅ Use a Trading Plan – Have clear rules on entries, exits, and stop-loss levels.
✅ Stick to High-Probability Trades – Avoid risky strategies that could violate firm rules.
✅ Understand Market Conditions – Stay updated on economic news and market trends.
6. Prop Trading Regulations in the USA 🇺🇸
Prop trading firms in the U.S. operate under strict regulations, especially for stocks and futures. Some things to note:
- Forex Prop Firms (e.g., FTMO, The5%ers) – Usually operate offshore. U.S. traders can join, but ensure the firm allows U.S. residents.
- Futures Prop Firms (e.g., Topstep, Apex Trader) – Must follow CFTC & NFA regulations.
- Stock & Options Firms (e.g., Maverick Trading, Trade The Pool) – Require Series 57 or other certifications for full access.
⚠️ Warning: Some firms may restrict U.S. traders due to SEC, CFTC, or NFA regulations. Always check a firm's terms and conditions before joining.
7. FAQs About Prop Trading in the USA
🔹 Do I need a license to join a prop firm?
- No for forex & futures prop firms.
- Yes for stock & options firms (Series 57 or similar).
🔹 Can U.S. residents trade with offshore prop firms?
- Yes, but read the firm’s restrictions (some firms exclude U.S. traders).
🔹 Do prop firms pay real money?
- Yes! Once funded, you can withdraw profits like a normal brokerage account.
🔹 Can I trade with multiple prop firms?
- Yes, many traders work with multiple firms to increase funding.
🔹 What happens if I lose money?
- Your personal funds are not at risk. However, if you violate risk rules, your account may be terminated.
Final Thoughts
Prop trading is one of the best ways for U.S. traders to access large capital without personal risk. Whether you trade forex, stocks, indices, or futures, there’s a prop firm that fits your needs.
Best Choices for U.S. Traders
🔥 Best for Forex: FTMO, The5%ers
🔥 Best for Futures: Topstep, Apex Trader Funding
🔥 Best for Stocks/Options: Maverick Trading, Trade The Pool
🔥 Best Instant Funding: The5%ers, BluFX