Prop trading firms are specialized financial institutions that provide traders with access to capital to engage in financial markets. These firms stand out as they offer funded accounts and take a share of the profits generated, making it a risk-sharing venture. Access to more significant capital allows traders to diversify their strategies and potentially earn higher returns.
In the realm of options trading, there are several firms that will be well-regarded in 2023. These firms provide a range of benefits, including commission or profit splits, and resources for both beginner and experienced traders to hone their skills.
Before choosing the best options prop trading firms, it’s crucial to assess the risks involved, as they generally do not offer the same regulatory protections as traditional brokers. Traders often need to put up a significant amount of money as collateral, which can be lost. However, the upside includes support from experienced professionals and potentially competitive compensation packages. So if you’re serious about boosting your trading career, especially in options, these firms may provide the capital, tools, and professional network you need.
Top-Rated Prop Trading Firms
Each prop firm has unique features catering to different types of traders:
- Top Step: Best for those seeking 24/7 trading options and high-profit splits. It has a “stellar reputation” and is notably the best for trading futures.
- Fidelcrest: Suitable for traders wanting varied trading challenges. Known for performance coaching and up to a 90% profit split.
- Maverick Trading: For traders who prioritize education and risk management
- Earn2Trade: A good starting point for novices who wish to learn as they trade.
- Elite Trader Funding: Caters to traders who prefer to skip the evaluation phase.
- E8 Funding: Designed for those seeking straightforward trading rules and fast funding.
- Funded Trading Plus: A good fit for traders who prioritize relaxed trading rules and a wide variety of tradable assets.
- FTMO: Known for its comprehensive educational platform and claims to offer the best profit splits and strong educational resources.
- FundedNext: Ideal for those valuing flexible trading conditions and robust customer support.
Choose a firm that aligns best with your trading style, educational needs, and financial goals.
In-Depth Guide to the Best Options Prop Trading Firms
Selecting among the best options prop trading firms depends on various factors, such as eligibility criteria, profit splits, asset offerings, and the firm’s reputation. Here are some of our favorites:
Maverick Trading
Maverick Trading is a proprietary trading firm with a focus on Stocks, Options, and Forex trading. Established in 1997, the firm aims to turn new traders into experts by providing them with the required training, technology, and capital. It operates both in the United States and globally, offering remote trading options. The firm has several divisions and programs aimed at different types of traders:
- Stocks & Options Trading Program: For those interested in options and stock trading. The program provides you with Maverick’s capital to trade and a share of the profits.
- Forex Program: Specifically tailored for forex enthusiasts, allowing traders to use Maverick’s capital and share profits.
- Maverick FX Fund: A hedge fund managed by Maverick that is open to both individual and institutional investors.
- Capital Access: The firm offers access to capital ranging from $25,000 to $800,000, providing traders ample room to scale their trading activities.
- Education and Training: A comprehensive qualification program is in place that all recruits must undergo. It includes at least two months on a demo account, homework, reviews, and self-assessments.
- Pricing: The firm charges a lifetime membership fee of $4,000 and a $199 monthly desk fee. A risk capital deposit of $2,000 is also required for live trading.
- Risk Management: The firm has a vigilant risk management setup to ensure safe and profitable trading. Risk managers actively monitor trades, and any losses exceeding the risk capital deposit are non-recourse.
- Community and Support: Maverick provides ongoing mentoring, webinars, and support, for which they charge $200 monthly. They have a strict selection process; only 3-4% of applicants get in.
It’s an ideal platform for traders who are serious about growing their trading skills and managing risks effectively.
Earn2Trade
Earn2Trade is a proprietary trading firm that focuses on educating and funding traders. Its features are:
- Comprehensive Educational Content: Earn2Trade offers a variety of educational materials, from beginner crash courses to advanced futures courses, aiming to provide mentorship to traders of all levels.
- High-profit split of up to 80%: The available information does not specify the profit split; however, it mentions that traders get to withdraw their profit.
- Thorough Evaluation Process: Earn2Trade offers three trading challenges – The Trader Career Path, The Gauntlet Mini, and The Gauntlet. Traders undergo an evaluation stage and have to meet specific targets to progress.
- Allows All Trading Styles: The platform welcomes traders of all levels and does not restrict trading styles.
- Offers Forex and Futures Trading: While primarily focused on futures trading, the platform also allows trading futures contracts for various commodities, currencies, equities, and indices.
Earn2Trade appears to be a versatile platform, providing comprehensive resources for both amateur and professional traders.
FTMO
FTMO is one of the best crypto prop trading firms with a strong reputation. It offers a two-phase evaluation process that, if passed, provides traders with funded accounts up to $400,000. A one-time fee is required for entry into the program, which is refunded upon successful completion of both evaluation stages.
- High-profit split up to 90%: Eligible traders can earn up to 90% of their profits, making it one of the most lucrative profit-sharing programs in the industry.
- Two-phase evaluation period: FTMO’s evaluation process is rigorous but fair. Passing both stages of the evaluation ensures your initial fee is fully refunded.
- Supportive trader program: With an excellent rating on TrustPilot, the program is highly regarded for its supportive environment, prompt payouts, and top-notch customer service.
- Forex and futures trading: Traders have the opportunity to trade in both forex and futures markets.
- No maximum time limit: Unlike many prop firms that impose time restrictions, FTMO doesn’t charge any monthly or maintenance fees after the initial one-time fee.
- Flexible trading style: FTMO is open to various trading styles, allowing traders to employ strategies best suited for them.
FTMO offers a unique blend of high-profit splits, rigorous evaluation, and a supportive trading environment, making it a standout choice for both new and experienced traders looking for the best forex prop trading firms.
Best Options Prop Trading Firms: Final Thoughts
Choosing the right proprietary trading firm for options trading can be a daunting task due to the specific nature of options trading and the limited availability of firms catering to this niche. Various firms offer different features such as trading challenges, profit splits, and asset classes, including options. But with the best prop trading firms, you have the opportunity to rapidly increase your portfolio. Be responsible and choose wisely.
