Prop firms—proprietary trading firms—provide capital to online traders. They’re ideal for those with limited funds who want to trade full-time. But there’s a key stipulation; applicants must complete trading challenges to be eligible for funding.
This often means reaching profit targets while keeping within drawdown limits. Read on, we discuss the best prop firms for US traders in 2024. The top providers are ranked by challenge requirements, available funding, payout times, supported markets, and reputation.
List of the US Best Prop Firms in 2024
The leading prop firms for US traders are ranked below:
- Profitex Funding – The Overall Best Prop Firm for US Traders
- FundedPrime – A Great Option for Entry-Level Traders on a Budget
- FocusFunded – Get Funded With $200,000 When Hitting an 8% Profit
- Rocket 21 – Popular Prop Firm With a Maximum Total Drawdown of 10%
- The City Traders – Top-Rated Option for Swing Traders and Automated Strategies
- Lionheart Funding Program – Offers a Wide Range of Challenge Requirements and Targets
- Sure Leverage Funding – Start Earning Real Profits After Just Five Trading Days
- Pip Traders Funding – Manage up to $1 Million With a 90% Profit Share
- MiFunder – Obtain Funding of up to $60,000 Without any Upfront Payments
- Funded Peaks – 100% Fee Refund When Successfully Completing Challenges
Detailed Reviews of the Top US Prop Trading Firms
The best prop trading firms in the US will now be reviewed in full. Read on to select the right provider for your requirements.
1. Profitex Funding – The Overall Best Prop Trading Firm
Profitex Funding is the overall best option for US traders seeking capital. It offers prop funding of up to $1.2 million. However, traders must first complete the challenge requirements. This comes with five funding options; $15,000, $25,000, $50,000, $100,000, and $200,000.
The price ranges between $129 and $1,400, depending on the required capital. All options come with an evaluation and funded stages. The former requires traders to make a 10% profit while keeping the maximum daily drawdown to 7%. The total drawdown is 10% of the capital received.
Leverage of up to 1:30 is available on all plans. Once completed, the funded stage kicks in. This offers an 80% profit share but requires a minimum of 10 trading days. No profit target exists but the same drawdown limits apply.
Profitex Funding offers trading facilities via Eightcap, a regulated broker supporting 800+ markets. This includes forex, commodities, stocks, indices, and some of the best cryptocurrencies. To date, Profitex Funding has provided over 100,000 traders with capital.
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2. FundedPrime – A Great Option for Entry-Level Traders on a Budget
FundedPrime is one of the best prop firms for entry-level traders -especially those unwilling to risk large amounts on challenge fees. FundedPrime offers a $10,000 account with leverage of up to 1:50. The challenge fee costs just $65, making it one of the most affordable options in the market. The challenge requires a 10% profit and a minimum trading period of three days.
The maximum daily and total drawdowns are 5% and 10% respectively. Once achieved, the same conditions must be met again but with a lower profit target of 5%. Finally, the funded stage kicks in, with traders receiving up to 80% profit share. Those seeking additional capital can choose funded accounts from $25,000 to $250,000.
This comes with a challenge fee of $155 to $1,299, respectively. All plans provide access to Eightcap markets and the DX Trade platform. This ensures a wide range of assets and trading features, such as indicators and drawing tools. Do note that the first withdrawal requires 30 days of trading. Thereon, payouts are made twice per week.
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3. FocusFunded – Get Funded With $200,000 When Hitting an 8% Profit
FocusFunded is another reputable prop firm offering fair challenge requirements. The initial maximum account available is $200,000. This costs $1,250 and comes in two stages. First, traders must make an 8% profit while trading for at least five days. The maximum daily and total drawdowns are 4% and 8% respectively.
What’s more, leverage of up to 1:100 is available. The second stage comes without minimum trading days or profit targets. The same drawdowns apply and leverage is reduced to 1:50. The second stage also comes with a 70% profit share, which is slightly lower than other providers.
Those seeking smaller capital requirements can opt for the $50,000 or $100,000 accounts. These cost $225 and $550 respectively. Supported markets include forex, commodities, and indices. Withdrawals can be made 30 days after becoming a funded trader. Customer support is available 24/7 and there are no ongoing fees.
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4. Rocket 21 – Popular Prop Firm With a Maximum Total Drawdown of 10%
Rocket 21 has funded over 50,000 trading accounts and supplied more than $4 million in profit-sharing payouts. It supports hundreds of trading markets via regulated brokers and provides funding from just $5,000 to $300,000. This can be increased to $600,000 once traders have a proven track record.
The challenge requirements offer a maximum total drawdown of 10%. This is beneficial, especially when considering the profit target is just 8%. However, do note that the maximum daily drawdown is 5%. Nonetheless, Rocket 21 offers leverage of up to 1:100 and challenges come in three stages.
Each stage requires at least five days of trading without breaking the drawdown requirements. The profit share starts in the third stage, with Rocket 21 offering up to 90%. In terms of challenge fees, the $5,000 accounts cost $79. Those opting for the $300,000 account must pay $1,399. Like most prop firms, challenge fees are non-refundable.
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5. The City Traders – Top-Rated Option for Swing Traders and Automated Strategies
The City Traders is one of the best prop firms for swing traders. Not only does it enable weekend positions but also news trading. This enables swing traders to focus on fundamental triggers rather than technical analysis. What’s more, The City Traders also supports expert advisors (EAs), otherwise known as automated trading bots.
This means challenges and funded accounts can run autonomously. Funded accounts range from $10,000 to $100,000. Challenge fees start from $110, with the highest funded account costing $600. All options come with a 10 profit target and a total/daily drawdown limit of 6% and 4%, respectively. Leverage of up to 1:10 is permitted, which is lower than most prop firms.
Nevertheless, The City Traders offers an 80% profit share once the challenge requirements are met. It also offers community features to help participants become better traders. This includes live streaming sessions and market analysis. There’s also a discord channel, enabling like-minded traders to share trading insights and strategies.
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6. Lionheart Funding Program – Offers a Wide Range of Challenge Requirements and Targets
Lionheart Funding Program is a great option for beginners and experienced traders alike. It offers funding from $5,000 to $400,000, ensuring all requirements and risk profiles are catered for. What’s more, a wide range of challenge plans are available, each offering various profit targets and drawdown caps.
For example, novice traders might like the Guardian challenge with capital of $5,000. This is a four-stage challenge, with the profit target ranging from 4% to 6%. The daily and maximum drawdowns are 4% and 8%, respectively. This option costs just $49.
At the other end of the scale is the Pride Challenge with $400,000 in funded capital. This costs $1,959 and comes in just two stages. The initial profit target is 10% and the daily drawdown is just 3%. This option is best suited for risk-averse trading strategies like scalping.
The Lionheart Funding Program offers one of the highest profit shares, with traders keeping up to 90% of their gains.
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7. Sure Leverage Funding – Start Earning Real Profits After Just Five Trading Days
Sure Leverage Funding is a great option for traders seeking real profits without long challenge delays. Its one-step challenges require just five days of trading before the profit-share kicks in. The challenge requires a profit target of 8% and a maximum total drawdown of 8%. The maximum daily drawdown is just 4% and leverage of up to 1:50 is available.
Once completed, traders receive up to 100% of the generated gains. Account sizes range from $5,000 to $200,000. Challenge fees start from an affordable $49, going up to $799 for the highest account balance. Although challenge fees are non-refundable, traders get one free reset if they fail to complete the requirements. This must be within 10 days of starting the challenge.
In addition, Sure Leverage Funding supports MetaTrader 5 (MT5). This popular trading platform supports hundreds of unique trading tools, customizable charts, EAs, and technical indicators. Another benefit is that Sure Leverage Funding allows High-Frequency Trading (HFT) strategies. This is often prohibited when using other prop firms.
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8. Pip Traders Funding – Manage up to $1 Million With a 90% Profit Share
Pip Traders Funding offers up to $1 million in prop capital, making it a great choice for those seeking significant trading balances. It also offers a huge profit share of up to 90%. However, traders must initially pass the trading challenge, with $200,000 being the maximum account available.
This comes with a challenge fee of $1,747 and a profit target of 8%. The challenge has a minimum time frame of five days. The maximum daily and total drawdowns are 5% and 8% respectively. Leverage of up to 1:100 is available and positions can be held overnight and across weekends.
This means Pip Traders Funding is suitable for longer-term strategies like swing and trend trading. Pip Traders Funding is also ideal for entry-level traders, with the minimum capital account being just $10,000. However, this comes with a challenge fee of $187, which is higher than the industry average. That said, challenge fees can be reduced when opting for a two-step process.
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9. MiFunder – Obtain Funding of up to $60,000 Without any Upfront Payments
MiFunder is one of the best prop firms in the US for those wanting to avoid upfront payments. It offers a ‘Buy Now Pay Later’ feature, meaning the challenge fee is only paid once successfully completely. This offers a risk-free experience for talented traders with limited funds.
There are four funding options when completing the challenge; $7,000, $15,000, $30,000, and $60,000. Each option comes with a 5% profit target and participants must trade for at least 10 days. This is without breaching the maximum total drawdown of 6%. Funding is arranged once the challenge is completed and the fee is paid.
This ranges from $69 to $379. Do note that challenges come with two free retakes. This means you get three attempts without risking capital. However, the initial profit split upon completion is just 60%. This increases to 80% with creating a scaling plan. MiFunder supports EAs, news trading, weekend positions, and even copy trading strategies.
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10. Funded Peaks – 100% Fee Refund When Successfully Completing Challenges
Funded Peaks is the final prop firm to consider today. It offers multiple challenge types and funding amounts. The standout feature is that the initial fee is refunded when completing challenges. This makes Funded Peaks a good option for traders who have courage in their convictions.
The standard challenge offers accounts between $5,000 and $300,000. Fees range from $51 to 1,549, with an initial profit target of 8%. The second stage reduces the profit target to 5%, and it’s completely scrapped in the final stage. The maximum daily and total drawdown is 5% and 12% respectively. The rapid and pro challenges come with different fees, terms, and targets.
Traders should review each option before proceeding. Funded Peaks is also popular for its fast payouts. Withdrawals are typically received within 24 hours of approval. Supported trading markets include indices, forex, and commodities. Bitcoin and some of the best altcoins are supported too.
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Best US Prop Firms: Key Comparison
Here are some key stats about the leading US prop firms.
| Prop Firm | Min. Initial Funding | Max. Initial Funding | Min. Challenge Fee | Max. Leverage |
| Profitex Funding | $15,000 | $200,000 | $129 | 1:30 |
| FundedPrime | $10,000 | $200,000 | $65 | 1:50 |
| FocusFunded | $50,000 | $200,000 | $225 | 1:100 |
| Rocket 21 | $5,000 | $300,000 | $79 | 1:100 |
| The City Traders | $10,000 | $100,000 | $110 | 1:10 |
| Lionheart Funding Program | $5,000 | $400,000 | $49 | 1:100 |
| Sure Leverage Funding | $5,000 | $200,000 | $49 | 1:50 |
| Pip Traders Funding | $10,000 | $200,000 | $187 | 1:100 |
| MiFunder | $7,000 | $125,000 | $49 | 1:30 |
| Funded Peaks | $5,000 | $300,000 | $51 | Not Stated |
How Does Prop Trading Work?
In simple terms, prop trading firms provide online traders with capital. Participants must complete trading challenges to qualify. This ensures capital is provided to capable traders who understand risk management principles. Challenges typically come with a profit target and a minimum number of trading days.
For example, traders might need to make an 8% profit and trade for at least one week. Importantly, challenges always come with maximum daily and total drawdowns. This is the most a trader can lose from the provided capital. For example, suppose the challenge provides $50,000 and the maximum total drawdown is 10%.
This means traders will lose the challenge if the balance drops to $45,000. Do note that prop trading isn’t risk-free. On the contrary, participants must pay upfront fees when entering challenges. This is typically kept by the prop firm regardless of whether the challenge is completed successfully. The fee increases as more capital is required.
Nonetheless, live funded accounts are provided when traders complete the challenge. This means traders receive a share of any future profits generated. This averages 80% but can be higher or lower depending on the proper firm. Most providers support multiple asset classes, including forex, stocks, commodities, indices, and cryptocurrencies.
Am I Suitable for Prop Trading?
Prop firms are suitable for all trading profiles. They’re simply a mechanism to obtain more trading capital without relying solely on leverage. For example, consider an up-and-coming forex trader who has had great success trading on demo accounts. They’ve produced solid profits since starting and have a firm grasp of risk management.
However, the trader has limited trading capital, so they approach a prop firm. Assuming the trader completes the prop challenge, they’ll receive funding. This enables that trader to make real money, with the only initial risk being the challenge fee.
Similarly, prop firms are also used by seasoned pros. This is why some challenges offer an initial funding account of up to $400,000. And, when successfully completing that challenge, the trader can often request higher amounts. Profitex Funding, for example, offers up to $1.2 million to proven traders. This increases to $5 million when using MiFunder.
What Markets and Strategies Do Prop Firms Support?
Prop firms are interested in one key metric; are you able to make consistent profits without breaching risk management rules? As such, providers have little interest in the assets being traded. The only requirement is that the assets are supported by the partnered broker(s).
That said, we found that most prop firms support the following asset classes, although traders should check before proceeding:
- Forex: Most prop firms support forex trading pairs, covering majors like EUR/USD and JPY/USD. Most also support minor and exotic pairs.
- Stocks: Major stocks from the US markets are typically supported too. This often includes Amazon, Apple, IBM, Microsoft, Tesla, and Netflix.
- Indices: Prop traders can also access popular indices, including the Dow Jones, FTSE 100, and NASDAQ 100. These markets offer lower risk and volatility levels.
- Commodities: A wide range of commodities can be traded when using prop firms. This includes everything from gold and natural gas to oil, wheat, and corn.
- Crypto: Some prop firms support cryptocurrencies like Bitcoin and Ethereum, not to mention the best meme coins like Dogecoin and Shiba Inu. However, traders should keep an eye on the drawdown limits, considering cryptocurrencies are highly volatile.
In addition to asset classes, traders should also explore what strategies and systems are supported. This is because restrictions can apply depending on the prop firm.
For example, some providers prohibit automated bots, such as forex EAs. They can also ban certain strategies, like hedging and arbitrage trading.
Reasons to Use a Prop Trading Firm
Still not sure if prop trading is right for you? Read on, we’ll now explore the key benefits of obtaining prop capital.
Increase Capital Capabilities
There’s a direct correlation between capital capabilities and profit potential. After all, the more trading funds allocated to a position the more money that can be made. For example, suppose you’ve had a successful month, returning net gains of 4% when trading forex.
However, your average capital balance was just $1,000. For all your efforts you’ve made just $40 in real terms. Now consider the same scenario via a prop firm, which has provided $100,000 in capital. This increases the monthly profit from $40 to $4,000. Even with an 80% profit share, you keep $3,200.
Ideal for Risk-Averse Strategies
Prop firms aren’t always required when trading highly volatile assets, such as growth stocks or cryptocurrencies. This is because the profit potential is high, so even smaller stakes can generate substantial returns. However, this isn’t the case when trading in low-volatile markets with risk-averse strategies.
Take a forex scalper as an example. They specialize in the EUR/USD pair, which rarely rises or falls by more than 1% in a trading session. And, considering scalping positions are kept open for minutes or seconds, the profit potential is minute in real terms. This is where prop firms can help.
Let’s say the forex scalper obtains $1 million in prop funding after completing the initial challenges. They target monthly gains of just 2%. However, this amounts to $20,000 on a $1 million account. And, with an 80% profit share in place, the scalper keeps $16,000. Crucially, scalping and other risk-averse strategies are ideal for prop trading. Their low-risk nature ensures that the drawdown limits aren’t breached.
What Happens if the Drawdown Limit is Breached?
The drawdown limits are the most important metric to be aware of when prop trading.
- The daily drawdown is the most you can lose in 24 hours.
- The total drawdown is the most you can lose in total.
- Both figures are percentage-based.
- If either drawdown is breached, the prop trading account will be closed.
- This is the case regardless of whether you’re completing a challenge or using a funded account.
- This is why risk management strategies are so important.
Limited Personal Risk
Another benefit of prop trading is that participants bear limited risk. The only money the trader can lose is the initial challenge fee. This is typically a small percentage of the overall prop funding amount.
For example, suppose you opt for the $50,000 account at Profitex Funding. This comes with a challenge fee of $350. Successfully completing the challenge means you have amplified that initial payment by over 142 times.
Any losses derived from that $50,000 won’t personally impact you. This is because the capital is provided by the prop firm. Conversely, if you fail to complete the challenge, the most you would lose is $350.
Suitable for Multiple Assets and Strategies
The best prop firms in the US support multiple asset classes. This ranges from stock trading and indices to cryptocurrencies, forex, and commodities.
What’s more, while some restrictions might be in place (e.g. hedging or arbitrage trading, most strategies are supported. This includes anything from swing trading and scalping to day trading.
Support From Experienced Traders
Prop firms are often run by experienced traders. This means you have access to one-on-one support, guidance, and insights.
Crucially, this ensures your trading abilities constantly improve, helping you to increase profits and reduce risk.
Choosing the Right Prop Trading Firm
The following factors should be considered when selecting a prop trading firm:
- Reputation: First, ensure the prop firm has a solid reputation, especially regarding payouts. It’s best to stick with established providers too. Use TrustPilot and other review websites to make an informed decision.
- Strategies and Markets: Ensure the prop firm supports your preferred strategy, such as scalping or swing trading. Check which asset classes and markets are supported, such as major forex pairs or precious metals.
- Funding Amounts: Prop firms offer various funding amounts, often ranging from just $5,000 to over $400,000. Ensure the available amounts align with your requirements.
- Challenge Fee: Ensure the challenge fee is viable for the amount of funding offered. Just remember, the more capital needed the higher the fee. Most providers have a no-refund policy on challenge fees, so ensure the amount is within your budget.
- Challenge Requirements: Another important factor is the challenge requirements. These must be completed to obtain funded accounts. Check the required profit target, maximum drawdowns, and minimum number of trading days.
- Profit Share: Ensure you’re comfortable with the profit share percentage. This averages 80%, meaning you keep $80 for every $100 gained.
- Payouts: Check the payout terms, such as withdrawal frequencies, minimums, maximums, and payment methods. Many prop firms offer bi-weekly withdrawals after completing a 30-day grace period.
How to Get Started With a Prop Trading Firm
The steps below explain how to start prop trading. We’re using Profitex Funding for this example. But the required steps are similar with most other prop trading firms.
- Step 1: Choose a Challenge – First, spend some time browsing the available challenges. These range from $15,000 to $200,000, costing from $129 to $1,400. Click the ‘Buy Now’ button once you’ve made a decision.
- Step 2: Complete Payment – Next, complete the online form that appears. This requires personal and contact details, alongside a supported payment method. Profitex Funding accepts debit/credit cards and e-wallets.
- Step 3: Review Challenge Terms Again – Before starting the challenge, ensure you’re aware of the challenge terms. In particular, the maximum daily and total drawdowns, profit targets, and prohibited strategies.
- Step 4: Start Trading – Visit the trading dashboard and begin placing buy and sell orders. Your progress, including profit/loss and drawdowns, is accessible via the Profitex Funding dashboard.
Only one of two outcomes can happen hereon.
- If you meet the challenge requirements, you will receive the funding amount. This means you will begin earning real money, assuming you generate profits within the funding rules.
- If you fail the challenge (e.g. because you breached the drawdown limit), the process is over. You must purchase a new challenge should you wish to try again.
Conclusion
In summary, prop firms are well worth considering when obtaining increased trading capital. The risk-reward ratio is appealing, considering traders can only lose the initial challenge fees.
Our research shows that Profitex Funding is the overall best option. It offers prop accounts from $15,000 to $200,000 and fees start from just $129.
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References
- What is a Scalping Strategy in the Stock Market and How Does it Work? (TD Bank)
- What is Proprietary Trading? (Corporate Finance Institute)
- 3 Strategies to Help Reduce Risk (Fidelity)
