Proprietary trading (prop trading) is when firms use their own capital to trade financial instruments for profit, rather than for clients. Traders benefit from the firm’s resources – capital, technology, and insights – and share profits with the firm. As online forex and futures markets evolve, new trends and strategies are key for both new and experienced prop traders.
Understanding Proprietary Trading
What is proprietary trading?
Proprietary trading involves financial institutions or firms engaging in trading activities using their own funds. The primary objective is to achieve capital gains through various financial instruments such as stocks, bonds, forex, and derivatives. Unlike traditional brokerage firms that execute trades on behalf of clients, prop trading firms retain all profits generated from their trades while absorbing any losses incurred.
How Proprietary Trading Works
In a typical prop trading setup:
- Capital Allocation: Firms allocate specific amounts of capital to skilled traders who execute trades based on market analysis and strategies.
- Team Structure: Traders often work in teams and have access to advanced trading technologies and real-time data analytics tools.
- Risk Management: Effective risk management policies are crucial. Firms usually set limits on drawdowns and employ risk managers to oversee trading activities.
Traders benefit from access to substantial capital and resources that would be difficult to obtain independently. They also receive training and mentorship from experienced professionals.
Current Trends in Online Forex and Futures Prop Firms
Here are some of the best proprietary trading firms in the forex market for 2025, based on recent evaluations and trader feedback:
- FTMO
- Overview: A leader in the prop trading industry, FTMO offers a robust evaluation process with account sizes from $10,000 to $200,000.
- Profit Split: Up to 90%.
- Features: Comprehensive trader metrics and analytics, scalable models allowing management of accounts up to $400,000.
- The5ers
- Overview: Focuses on long-term growth for swing and position traders, with funding options starting at $6,000 and scaling up to $4,000,000.
- Profit Split: Competitive rates.
- Features: No time limits on evaluations and a supportive trading environment.
- Fxify
- Overview: Known for trader-friendly conditions and fast evaluation processes.
- Profit Split: Flexible options available.
- Features: User-friendly platform with access to multiple asset classes, including forex, commodities, and indices.
- Alpha Capital Group
- Overview: Offers simple and transparent funding programs.
- Profit Split: Competitive rates.
- Features: Collaborates with regulated brokers for added security.
- Audacity Capital
- Overview: Provides funding to forex traders with a focus on mentorship and development.
- Profit Split: 50-50 profit split.
- Features: Access to an in-house trading floor and expert mentoring.
- City Traders Imperium (CTI)
- Overview: Offers various funding programs with account sizes ranging from $2,500 to $100,000.
- Profit Split: Competitive rates.
- Features: Options for both two-step evaluations and instant funding.
- FundedNext
- Overview: Offers a two-phase evaluation program with competitive profit splits.
- Features: Access to advanced trading platforms and educational resources.
- Nova Funding
- Overview: Supports traders with capital upon passing their assessment.
- Profit Split: High-profit splits available.
- Features: Straightforward evaluation process with a variety of trading instruments.
- TradexProp
- Overview: A newer firm focused on transparency and trader empowerment.
- Features: Committed to addressing common challenges faced by traders in the market.
- Oanda Prop Trader
- Overview: A well-established broker entering the prop trading space with transparent pricing and no hidden fees.
- Features: 24/7 support and educational resources available for traders.
- These firms represent a mix of established players and newer entrants in the prop trading landscape, each offering unique advantages tailored to different trading styles and preferences. When choosing a prop firm, consider factors such as profit splits, evaluation processes, and the overall support provided to ensure a good fit for your trading career.
Here are some of the best proprietary trading firms for futures in 2025, based on recent evaluations and features:
- DNA Funded: Recognized as the best overall prop trading firm, DNA Funded offers competitive pricing, diverse challenges, and flexible trading options. Traders can access over 800 instruments with profit splits of up to 90%. The firm is backed by DNA Markets, ensuring tight spreads and efficient execution.
- Topstep: This firm is noted for being the best for futures trading. Topstep provides a structured path to funding, allowing traders to keep 100% of their first $10,000 in profits and transitioning to a 90% profit split thereafter. Their Trading Combine evaluation offers unlimited time to meet profit targets while enforcing strict risk management.
- Apex Trader Funding: Known as the best futures prop firm, Apex allows traders to earn 100% of their first $25,000 in profits, with a subsequent profit split of 90%. They support various trading styles and offer multiple accounts with different contract sizes and profit goals.
- BrightFunded: This firm features profit shares up to 100% and offers a multi-phase evaluation process. BrightFunded is recognized for its competitive evaluations and flexible add-ons, catering to traders looking for clear progression opportunities.
- Funded Trading Plus (FTP): FTP provides instant funding options and competitive profit splits of up to 90%. They offer various challenge types, including one-phase and two-phase evaluations, as well as an instant funding program that allows experienced traders to trade live capital immediately.
- My Funded Futures: This firm is particularly appealing for undercapitalized futures traders. They offer flexible account sizes and a straightforward evaluation process designed to help traders secure funding quickly.
These firms are distinguished by their unique offerings, including profit-sharing models, evaluation processes, and support for various trading strategies. Each provides an opportunity for traders to leverage firm capital while minimizing personal financial risk.
Safest Ways to Pass an Evaluation
Passing a proprietary trading evaluation is critical for gaining access to firm capital. Here are some strategies that can enhance your chances of success:
- Develop a Comprehensive Trading Plan: A well-defined trading plan should outline your strategies, including entry and exit points, risk management protocols, and performance objectives. This plan must be adaptable to changing market conditions.
- Consistency is Key: Adhere strictly to your trading plan without deviating into impulsive trades. Demonstrating discipline not only helps in achieving profit targets but also showcases your understanding of market dynamics.
- Implement Robust Risk Management: Effective risk management involves setting stop-loss orders, determining position sizes based on account equity, and maintaining a favorable risk-reward ratio. This practice is essential not only for passing evaluations but also for long-term success in trading.
- Reflect on Performance: After completing the evaluation challenge, take time to analyze your trades—what worked well and what didn’t. Learning from both successes and failures can refine your strategy for future evaluations or real-world trading scenarios.
- Utilize Technical Analysis Tools: Familiarize yourself with technical indicators such as moving averages, Relative Strength Index (RSI), and Bollinger Bands. These tools can help you make informed decisions based on market volatility and price movements.
By focusing on these strategies, aspiring prop traders can enhance their skills while minimizing risks associated with proprietary trading evaluations.
In summary, proprietary trading offers a unique opportunity for traders to leverage firm capital while honing their skills in a competitive environment. With the ongoing trends favoring forex and futures markets, coupled with advancements in technology, prop trading continues to evolve as a viable alternative for traders seeking greater financial independence without risking their own capital.