4 Best Prop Trading Firms in USA

The best prop trading firms in the USA are proprietary trading companies allowing traders to use the firm’s capital. Finding the best prop trading firms in the USA is challenging due to the many available options and differing criteria for defining the best. Traders can benefit from a curated list of the top 4 prop trading firms in the USA to aid in their decision-making process. This list includes firms specializing in forex trading, stock trading, cryptocurrency trading and those that cater specifically to beginners.

A curated list of the top 4 prop trading firms for United States citizen is listed below: 

1. Prop Number One
2. Funded Trading Plus
3. E8 Funding
4. The5ers

The main characteristics to look at for selecting a prop trading firm include the following aspects: Financial Instruments offered, Profit Share, initial fees, subscription costs, or other financial commitments, Trading platforms provided, maximum account size or balance, Evaluation process and criteria, Refundable Registration Fee. Understanding these characteristics helps traders make informed decisions aligned with their goals and preferences.

1. Prop Number One

Prop number one offers funded trading accounts to traders. The firm operates from New York, Singapore, Dubai and London. Funded traders of prop number one can trade equities, forex, cryptocurrency. The company provides a profit-sharing ratio of 100%. Prop number one offers trades funding accounts that start from $7,000, which can scale up to $300,000. The firm emphasizes risk management and adequate leverage for futures trading. Prop Number One requires traders to pass a two-step evaluation process. Traders must demonstrate trading skills and risk management. The rules mandate meeting specific profit targets while adhering to defined risk parameters.

Pros:

• Prop number one’s evaluation process selects skilled traders
• The firm supports platforms like MetaTrader 4 (MT4),MetaTrader 5 (MT5), cTrader, DxTrade and MatchTrader. 
• Prop number one offers one of the highest profit splits equal to 100%.

Cons:

• The evaluation process requires strict rule adherence
• Topstep charges a monthly fee

Prop number one stands out as a premier proprietary trading firm in the United States of America. It combines rigorous standards with substantial trader benefits. For more information check Prop number one.

2. Funded Trading Plus

Funded Trading Plus has operated as a Forex proprietary trading firm since 2021. Funded Trading Plus provides services to traders globally, including USA-based traders. Funded Trading Plus supports trading in forex, indices (CFDs on Dax, Nasdaq, Dow Jones, S&P 500, and FTSE), Commodities, Metals, Stocks, Crypto. The firm provides flexible account sizes with growable initial balances. Successful trading and adherence to scaling plans can increase funded account balances to $2,500,000.

Funded Trading Plus applies dynamic leverage. High balance accounts typically have lower leverage, while smaller accounts offer higher leverage. Traders must pass an evaluation process to qualify for funding. The firm enforces specific profit targets and risk management rules. 

3. E8 Funding

E8 Funding is a proprietary trading firm. The company began operations on November 5, 2021. E8 Funding identifies and supports talented traders globally. The firm provides remote capital management opportunities. E8 Funding maintains its headquarters in Dallas, Texas, USA. The company also operates an office in Prague, Czech Republic.

E8 Funding enables traders to trade commodities, cryptocurrencies, forex, indices, and metals. This variety offers traders broad market access and strategic flexibility. Successful traders at E8 Funding receive an 80% profit split after completing evaluation phases. E8 Funding offers multiple account sizes. These range from $25,000 to $1,000,000. The firm’s programs include the E8 Evaluation Program, ELEV8 Program, and E8 Track Program. These account sizes accommodate different trader skill levels and performance metrics.

E8 Funding provides leverage up to 1:100. The evaluation process at E8 Funding consists of two phases. Phase 1 requires traders to achieve an 8% profit target within 30 days. Traders must not exceed a 5% daily loss limit or an 8% maximum loss limit. Phase 2 requires a 5% profit target within 60 days, adhering to the same loss limits. This two-phase evaluation ensures consistent profitability and risk management.

E8 Funding allows traders to trade during news events, hold trades overnight, and trade on weekends. This unrestricted schedule enables diverse trading styles and market opportunity exploitation.

4. The5ers

The5ers provides traders with funded account management opportunities. The firm focuses on forex trader skill development and success. The5ers operates from Israel. It serves traders globally, including those in the USA. The firm’s online platform allows flexible trading regardless of location.

The5ers enables trading of various financial instruments within funded accounts:

• Forex: Major, minor, and exotic currency pairs
• Indices: CFDs for Nasdaq, Dow Jones, and S&P500
• Commodities: Crude oil and natural gas

The5ers offers a profit share of 80% up to 100%. This model incentivizes traders to maximize performance while managing firm assets. The5ers provides account sizes for different trading levels: Starter Accounts: $25,000 to $50,000, Experienced Trader Accounts: up to $100,000, Advanced Trader Accounts: $150,000 and above. 

These account sizes allow traders to progress through funding levels as they demonstrate capabilities. The5ers offers leverage options based on account type and traded instruments. Forex trading typically features 1:10 to 1:30 leverage. This leverage enables larger position management with smaller initial investments.

Traders must complete The5ers’ evaluation process to qualify for funded accounts. Criteria include:

• Profit Targets: Traders achieve specific profit targets during evaluation
• Risk Management: Traders adhere to strict risk management rules
• Trading Duration: Traders demonstrate consistent performance without exceeding drawdown limits

The5ers allows trading during all active market hours. This access enables 24/5 forex market opportunity capitalization.

What to know about Prop Firms in the USA?

Prop trading firms in the USA provide traders capital to conduct trades using firm funds. There are three different types of proprietary trading firms operating in the USA, and they are:Traditional prop firms, prop shops, and funded trading accounts.  Proprietary trading shifted to smaller independent firms after post-2008 regulations restricted bank activities. The Volcker Rule specifically limited proprietary trading by banks. Prop firms now range from traditional fixed operations to flexible remote opportunities. Market-making and high-frequency trading represent specialized industry segments.

How are Prop Firms Regulated in the USA?

Prop trading firms in the USA operate under regulatory frameworks. The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) oversee prop firms. The SEC enforces compliance with securities laws and regulations. It monitors trading activities, enforces disclosure requirements, and investigates market manipulation or insider trading. FINRA regulates member brokerage firms and exchange markets alongside the SEC. It sets rules, conducts examinations, and enforces compliance standards.

The Commodity Futures Trading Commission (CFTC) oversees prop firms involved in trading futures and commodities. It ensures operations involving these financial instruments adhere to legal frameworks and maintain market integrity.

Regulation of prop firms faces challenges with Contracts for Difference (CFDs). The USA bans CFDs for retail traders, prompting some prop firms to exit the market. Regulators like the CFTC have targeted infrastructures such as MetaQuotes, impacting firms offering CFDs.

Prop firms currently receive less regulation than traditional brokerage firms. They do not handle client funds directly. However, regulatory bodies are increasing oversight. They aim to address preliminary reviews and gather data on prop trading practices. Future regulations will likely include safeguarding client funds, clear trading rules, and transparency to mitigate issues like payout denials. Prop firms might explore offshore jurisdictions with lighter regulations as the regulatory landscape evolves. This shift entails potential trade-offs like reputational risks and market access limitations. The SEC, FINRA, and CFTC play pivotal roles in monitoring and enforcing compliance for prop firms in the USA. 

Do all prop firms accept USA clients?

Not all prop firms accept USA clients. Regulatory and compliance issues impact client acceptance significantly.

The main Criteria used by prop firms for Evaluating USA Clients are the following:

1. Trading Experience: Prop firms require potential USA clients to demonstrate successful trading history, commonly between 6 months to several years.
2. Educational Background: Some firms prefer clients with formal education in finance, economics, or related fields. Firms also consider self-taught traders with proven skills.
3. Financial Standing: Firms evaluate an applicant’s financial stability and risk management capabilities. This includes personal finance reviews and credit history analysis.
4. Technical Proficiency: Firms assess understanding of market analysis, risk management, and trading platforms during evaluation.
5. Psychological Assessment: Some prop firms employ personality tests or interviews to gauge decision-making under pressure and mental preparedness.
6. Regulatory Compliance: USA clients must meet specific regulatory requirements, including legal age (typically 18 or older) and adherence to financial regulations.
7. Performance in Evaluation Programs: Many prop firms require potential traders to pass a funded trader program or challenge to demonstrate expertise before acceptance.
8. Geographic Location: Prop firms may impose state-specific or regional restrictions within the USA due to varying regulatory demands.
9. Capital Requirements: Certain firms mandate a minimum personal capital for investment or loss coverage.
10. Trading Style Compatibility: Prop firms look for traders whose strategies align with the firm’s risk management policies and overall trading philosophy.

Some prop firms accept USA clients, but acceptance depends heavily on regulatory compliance and meticulous evaluation of trading experience, financial standing, educational background, technical skills, psychological robustness, geographic location, and capital sufficiency.

How to Get a Prop Firm Account as a USA Citizen

USA citizens must meet specific eligibility criteria to get accepted into a prop firm. Traders need to be at least 18 years old to participate in trading activities. Some firms require traders to contribute a security deposit. Traders must demonstrate solid financial understanding.

Prop firms evaluate applicants’ trading experience through a one phase or two phase challenge. Some firms require certifications like Series 7 and Series 63 for regulatory compliance.

Prop Number One accepts US traders and offers platforms like MT4 and MT5, supporting Expert Advisors (EAs) after successfully completing a two phase challenge.

Prop firms evaluate traders through trading challenges. These assessments verify traders’ ability to meet profit targets and comply with drawdown limits. The evaluation process assesses traders’ consistency and competency in managing real capital.

Prop Number One provides a 100% profit share and capital up to $300,000. USA citizens can access prop firm accounts by meeting these criteria. This access enhances traders’ potential to leverage professional trading capital and profit-sharing schemes effectively.

Why Choose Prop Number One as a Prop Firm in the USA?

Prop Number One offers multiple unique benefits for traders in the USA. Funded traders of prop number can trade equities, forex, cryptocurrency, stocks. Traders can effectively diversify strategies and can benefit from the use of expert advisors. 

Prop Number One provides a highly competitive 100% profit share model. Traders retain all profits generated from trades. Traders receive considerable trading account sizes from Prop Number One. Accounts can have up to $300,000 in trading capital. This substantial capital enables traders to execute larger trades and enhance potential earnings.

Prop Number One offers high leverage options for traders. Traders can amplify trading positions and potentially boost returns with leverage. However, traders must manage leverage judiciously to mitigate risk.

Traders must pass a two step challenge evaluation phase to become funded with Prop Number One. This phase assesses trading skills and risk management strategies. Qualified traders obtain a funded account within 24 hours and over weekend trading possibilities. Prop Number One supports traders with advanced tools and resources. These include sophisticated software, such as: MetaTrader 4 (MT4),MetaTrader 5 (MT5), cTrader, DxTrade and MatchTrader.Training programs, and risk management mentorship. These resources enable continual growth and trading success. Traders can visit the official Prop Number One website for more information about benefits and opportunities.

What criteria need to be considered when selecting a prop firm in the USA?

The main criteria to consider when selecting a prop firm in USA are the following:

• Regulatory Compliance:Prop firms must adhere to CFTC and SEC regulations. Compliance indicates transparency and trustworthiness.
• Capital Requirements: Prop firms offer trading capital ranging from $10,000 to over $1 million. Traders should choose a firm providing appropriate capital for their strategy and goals.
• Profit Sharing: Profit sharing models affect trader satisfaction. Some firms offer up to 100% profit splits to traders. Transparent and motivating models enhance satisfaction.
• Training and Mentorship Programs: Comprehensive educational resources help traders improve skills and performance. Firms should provide training modules, mentorship, and market data access.
• Fee Structure: Transparent fee structures allow traders to determine overall costs. Platform fees, data fees, and other charges impact affordability and financial outcomes.
• Risk Management Policies: Robust risk management frameworks protect capital and support sustainable trading. Policies should align with a trader’s style and risk tolerance.

Careful analysis of these criteria enables traders to select an appropriate USA prop firm. Each criterion significantly impacts trading success and experience. Evaluating regulatory compliance, capital offered, profit splits, training resources, fees, and risk policies leads to informed decisions.

How Trading Styles Influence Prop Firm Choice

Trading styles determine prop firm selection based on specific requirements. Each trading style demands particular conditions, tools, and support. Traders choose prop firms aligning with their strategy.

Scalping: Scalping involves numerous short-term trades for small price movement profits. Scalpers require high liquidity and tight bid-ask spreads. Prop firms for scalping offer:

• Low latency execution
• Advanced trading tools
• High leverage

Day Trading: Day trading entails buying and selling securities within one trading day. Day traders need:

• Robust trading platforms
• Real-time data feeds
• Flexible risk management policies

Swing Trading: Swing trading captures medium-term price movements over days to weeks. Swing traders require:

• Reliable market analysis tools
• Flexible trading conditions
• Supportive trading environment

Position Trading: Position trading involves holding trades for months or years to capitalize on long-term trends. Position traders need:

• Stable trading environment
• Comprehensive market analysis tools
• Firms with long-term focus

Prop firm selection depends on trading style. Scalpers need low latency and advanced tools. Day traders require real-time data and robust platforms. Swing traders benefit from flexible conditions and analysis tools. Position traders need reliability and long-term focus. Understanding these requirements ensures traders choose firms matching their strategy and needs.

What criteria determine the best prop trading firms in the USA?

Regulatory compliance determines the best prop trading firms in the USA. Firms must adhere to SEC and FINRA regulations. Capital requirements influence prop firm quality. Top firms offer account sizes from $10,000 to $400,000. FTMO, Prop Number One provides trading accounts in this range. Profit sharing models affect firm ranking. Leading firms offer up to 90% profit splits up to 100% as the case of Prop number One. Risk management policies define quality firms. Effective policies include maximum drawdown and daily loss limits. A 10% maximum drawdown and 5% daily loss limit safeguard capital. Customer support and community engagement enhance firms.  Trading platforms and instruments offered affect firm ranking. Leading firms provide MetaTrader 4 and 5 access. They offer stocks, options, futures, forex, and commodities.

Reputation and track record influence firm quality. Evaluation processes impact firm selection. Top firms clearly define evaluation criteria. They tailor assessment challenges to different trading styles. These definitive factors help traders identify the best USA prop trading firms. Considering these criteria aligns traders with firms matching their needs and goals.

What are the best forex prop firms in the USA?

The best forex prop firms in the USA are Prop number One, Fundend Trading Plus, E8 Funding and The5ers. Forex prop firms in the USA provide traders capital to trade foreign exchange markets. These firms evaluate traders through trading challenges before allocating capital. Top forex prop firms offer various funding levels, profit splits, fee structures, and educational resources.

Traders should consider these factors when selecting a forex prop firm:

• Reputation
• Trade Evaluation Models:
• Trading Flexibility:
• Support and Community:

Traders must assess funding levels, profit splits, fee structures, and educational resources to find the optimal firm. Topstep, Apex Trader Funding, City Traders Imperium, and FXCI exemplify some of the best forex prop firms in the USA due to their comprehensive offerings and strong reputations.

What are the best prop trading firms for beginners in the USA? 

Prop trading firms for beginners in the USA provide entry points into trading for those with limited experience. 

The main characteristic determining the best prop trading firms for beginners in United States of America are listed below: 

• • Comprehensive educational resources
  • Lower capital requirements
  • Lenient evaluation processes
  • Organized and responsive support systems 
  • Risk management tools
  • Simulated trading environments
  • Gradual scaling opportunities
  • Transparent fee structures
  • Flexible trading conditions
  • Regulatory compliance

What are the best prop trading firms in the USA for equity trading?

Prop trading firms for equity trading in the USA provide traders with capital to trade stocks and options. These firms offer structured environments with specific rules and profit-sharing models. Prop trading firms for equity trading in the USA support traders by offering capital to execute trades in stocks and equity-related instruments. They furnish traders with necessary capital to trade without using their funds.

The key attributes for Selecting the Best Equity Trading Firms in USA are the following:

• Capital Allocation.
• Profit-Sharing Structure.
• Technology and Tools.
• Risk Management.
• Training and Support.
• Market Access.
• Compliance and Regulations.
• Fee Structures.
• Scalability.
• Specialization.

What are the best prop trading firms in the USA with the highest profit sharing?

Prop Number One, Apex Trader Funding, FTMO, MyFundedFX, and Topstep offer the highest profit sharing among prop trading firms in the USA.

Prop Number One gives funded traders the opportunity to trade with a profit share model of 100% and a funded account that starts from 7,000$ and can reach up to 300,000$.

Apex Trader Funding provides 100% of the first $25,000 in profits and 90% thereafter. 

FTMO offers an 80% profit split, increasable based on performance. MyFundedFX starts profit-sharing at 80% and increases to 90% after six months, based on trader consistency and reliability. Topstep allows traders to keep up to 90% of generated profits. 

These firms distinguish themselves through high profit-sharing percentages, comprehensive educational resources, and substantial funding levels. Traders should evaluate capital availability, reputation, education, and flexibility when selecting a prop trading firm aligned with individual trading goals and strategies.