Best Futures Prop Trading Firms in February 2024

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Written By

G. Dautovic

Updated

December 11,2023

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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.

Top Futures Prop Trading Firms for February 2024

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On Official Website

Topstep

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Best Prop Firms for Futures - 2024 Picks:

Topstep - Most affordable starting price
The Trading Pit - Highest capital ceiling
Liberty Market Investment - Best for multiple funded accounts

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 $115,198 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.

Insights, advice, suggestions, feedback and comments from experts

Introduction

As an expert and enthusiast, I have extensive knowledge and expertise in various topics, including finance and trading. I have been trained on a wide range of financial concepts and have access to a vast amount of information from reputable sources. My responses are generated based on this knowledge and are aimed at providing accurate and informative insights.

Concepts related to the article

This article discusses futures proprietary trading and highlights three reputable futures prop trading firms: Topstep, The Trading Pit, and Liberty Market Investment. It provides an overview of each firm, including their features, evaluation criteria, trading platforms, prices, maximum capital, and maximum contracts.

Futures Proprietary Trading: Futures proprietary trading refers to the act of trading futures contracts using a firm's capital. Proprietary trading firms provide traders with capital and resources in exchange for a share of the profits generated from trading activities.

Topstep: Topstep is a leading futures prop trading firm that specializes exclusively in futures trading. It offers affordable entry fees, a wide selection of trading platforms, educational resources, and coaching. Topstep provides a profit split of 100% on the first $10,000 and 90% thereafter.

The Trading Pit: The Trading Pit is a futures prop trading firm that aims to democratize the trading space by offering no minimum deposit requirements or hidden fees. Traders can refund their initial fee, and the company provides high maximum capital and a variety of trading platforms. The profit split offered by The Trading Pit can go up to 80%.

Liberty Market Investment (LMI): LMI is a specialized futures prop trading firm that offers various contract options, a 14-day free trial, and a one-step evaluation program. It charges a monthly subscription fee and provides access to the VolFix trading platform, trader tournaments, and the option to have three active funded trader accounts simultaneously. LMI offers a profit split of up to 100%.

Futures Trading Strategies: The article mentions several common futures trading strategies, including the Pullback Strategy, Trend Following, Breakout Trading, Short Trading, Long Trading, Scalping, and Swing Trading. These strategies involve different approaches to analyzing market movements and making trading decisions.

Pros and Cons of Futures Trading: The article suggests that futures trading can be highly lucrative but requires a great level of skill, knowledge, and risk management. It emphasizes the importance of understanding the market and employing appropriate trading strategies. It also mentions that futures trading is regulated and recommends that traders familiarize themselves with the rules and regulations enforced by regulatory bodies such as the Commodity Futures Trading Commission (CFTC) in the US.

Legal Aspects of Futures Prop Trading: The article states that proprietary trading is legal in the US and does not require traders to hold a license. However, the prop trading industry is highly regulated, and prop trading firms that offer futures contracts must comply with the rules and register with the CFTC.

Profitability and Risk of Futures Trading: The article briefly addresses the profitability and risk of futures trading. It mentions that historically profitable futures contracts include gold, crude oil, corn, and natural gas. It also notes that futures trading is not inherently riskier than other investments but may not be suitable for beginner traders due to its complex nature.

I hope this overview provides a comprehensive understanding of the concepts discussed in the article. If you have any specific questions or need further clarification, feel free to ask!

Best Futures Prop Trading Firms in February 2024 | Fortunly (2024)