Looking to trade options online but need additional capital? Prop trading firms could be the solution. They provide trading funds after completing an initial challenge, such as reaching a profit target without exceeding the maximum drawdown.
Prop firms also offer training and support, ensuring you’re equipped with the right knowledge to succeed.
This guide reveals the best options prop trading firms for 2024. We rank the top providers for the most important factors, such as available capital, fees, profit sharing, and challenge requirements.
Best Options Prop Trading Firms Ranked
According to our research, these are the leading options prop trading firms:
- OFP Funding – Best Options Trading Firm with Instant Funding and No Evaluation
- Trade The Pool – Best for Day and Swing Trading Options
- The 5%ers – Best for Managing Up to $4M for a Private Equity Fund
- Challenge4Trading – Best for Trading Options with 85/15 Profit Split & Zero Risk
- Axi – Best for Fee-Free Funding Programs with a Regulated Broker
- Apex Trader Funding – Best for Funded Accounts via the NinjaTrader Platform
- Funder Trading – Best for Seasoned Options Traders
- Maverick Trading – Best Options for Continuous Learning and Support
- SMB Capital – Best for Securing a Career as an In-House Options Trader Without Prior Experience
- OneUp Trader – Best for Flexible Prop Challenge Requirements Without Daily Loss Limits
Comparing the Best Options Prop Trading Firms
We’ve analyzed the top options prop firms for 2024, covering everything traders need to know. Read on for our comprehensive reviews of the leading providers.
1. OFP Funding – Best Options Trading Firm with Instant Funding and No Evaluation
OFP Funding is one of the best options prop trading firms for traders who want to get started with a funded account immediately. This firm doesn’t require you to go through an evaluation. Instead, you pay a monthly account fee and get a funded account right away.
As long as you follow the rules of your account for maximum drawdown, profitability, and consistency, you can start earning real money. Successful options traders can get their first payout within four days of signing up for OFP Funding.
Another great thing about this firm is that it provides a lot of flexibility to suit traders of different styles and experience levels. You can choose an account size ranging from $5k to $200k, plus customize the limits for your account’s maximum drawdown and required consistency.
Pricing for a basic account with $5k to trade starts at only $18.25 per month, making this prop firm extremely affordable for beginners. For more information, check out our detailed OFP Funding review.
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2. Trade The Pool – Day and Swing Trading Options Prop Firm
Trade The Pool is another excellent options prop trading firm that caters to a wide range of strategies. The platform offers separate accounts for day and swing traders, so you can choose an account that best matches your strategy and goals.
For day traders, accounts at Trade The Pool range from $20k to $160k. Swing trading accounts are somewhat more restrictive, offering $3k to $24k. On the plus side, Trade The Pool has very reasonable limits for maximum drawdown and profitability, making it easier for intermediate traders to earn a funded account.
Traders at Trade The Pool also get access to 1-on-1 coaching and a detailed statistical analysis platform to help you hone your trading skills over time.
Accounts at Trade The Pool are available for a one-time fee of as little as $97. The profit split varies by account but can be up to 70/30.
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3. The 5%ers – Manage Up to $4m For a Private Equity Fund
The 5%ers is a great options trading prop firm for experienced traders who want the opportunity to manage a massive portfolio. Top traders on the platform can get qualified to manage a $4 million account on behalf of a private equity fund.
Of course, you don’t have to be in charge of a multi-million dollar account to use The 5%ers. Accounts range from $5k to $100k, and there are several different evaluation programs available to suit traders of different experience levels. The Bootcamp program is especially attractive for new traders since you don’t have to pay an account fee unless you pass the evaluation.
The 5%ers offers incentives for funded traders including account balance increases, customizable payout frequencies, and tiered profit splits. So, the longer you trade with the platform, the more you stand to earn from your trading.
All trading at The 5%ers is done through MetaTrader 5, so the platform will look familiar to experienced traders. Plus, MetaTrader 5 supports algorithmic strategies.
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4. Challenge4Trading – Trade Options with 85/15 Profit Split & Zero Risk
Challenge4Trading is another one of the best options prop trading firms. It offers funding capital of between €15,000 and €500,000. Like most options prop firms, the first step is to choose and complete a challenge. The basic challenges have two steps, requiring an 8% and 5% profit target, respectively. The maximum daily and overall loss is 5% and 10% for both steps.
There’s no time limit for meeting these targets, but you need to trade for at least three days. Challenge prices range from €150 to €1,800, depending on how much capital you need. The advanced challenge is more expensive, with prices ranging from €180 to €2,160.
This requires a higher profit target of 10%, and the maximum daily loss is 3%. The minimum trading time is just one day, so the advanced challenge is ideal for fast-tracking the funding process. Those completing a challenge will enter a profit-sharing agreement. Challenge4Trading allows traders to keep up to 85% of their gains.
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5. Axi – Fee-Free Funding Programs Directly With a Regulated Broker
Considered one of the best day trading platforms, Axi offers a top-rated prop funding program. Unlike most providers, Axi doesn’t require you to pay a challenge fee. Instead, participants need to hit an ‘Edge’ score of at least 50. The trading activity determines the score.
It considers multiple variables, including performance, consistency, risk, and experience. To qualify, you need to place at least 20 positions on Axi’s trading platform. You also need to deposit at least $500. The program offers funding of between $5,000 and $1 million.
This increases incrementally based on the equity in your Axi account. Axi offers a profit share of between 40% and 90%. A leverage of up to 250x is available, although jurisdictional restrictions apply. Do note that the maximum loss for all funding accounts is 10%.
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6. Apex Trader Funding – Funded Accounts From $75,000 via the NinjaTrader Platform
Next on this list of options prop trading firms is Apex Trader Funding. This is a good choice for options traders with experience in NinjaTrader, a top derivatives platform. The minimum funding provided is $75,000, which comes with a monthly fee of $187. The challenge requires at least 12 traded contracts and a minimum profit of $4,250.
While no daily drawdown limits apply, there’s a trailing threshold of $2,750. The largest funding amount is $300,000 and this comes with a profit goal of $20,000. A minimum trading amount of 35 contracts is also required. All challenges have a minimum trading time frame of seven days.
According to Apex Trader Funding, the challenge pass rate was 43.13% last year. More recent statistics aren’t provided. In addition to options, Apex Trader Funding also supports futures, including the CME and NYMEX exchanges. It also supports spot currencies, stocks, and the best cryptocurrencies to buy.
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7. Funder Trading – Popular Prop Firm Aimed at Seasoned Options Traders
We found that Funder Trading is one of the best options for seasoned traders. It has created the ‘TrueEdge Challenge,’ which must be completed to qualify for a funded account. This comes with a range of strict requirements, including a minimum profit of $5,000 and a maximum daily loss of $500.
What’s more, participants must trade for at least 12 days and place no less than 80 round positions. The biggest single win must be greater than the largest loss.
Completing the challenge initially enables traders to keep 100% of their gains, until the subscription fee is covered. Then, an 80% profit-sharing agreement kicks in.
Funder Trading is also ideal for educational resources. Its lead trader, Michael Patton, holds a daily livestream before the financial markets open. It also runs a live trading room and one-on-one sessions. This is in addition to over 60 training videos.
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8. Maverick Trading – One of the Best Options for Continuous Learning and Support
Education and improvement sit at the heart of Maverick Trading’s philosophy. It helps participants become better traders through continuous learning and support.
This starts with the Maverick Trading book, which covers everything you need to know about its program, not to mention proven strategies for succeeding in the options trading market.
Crucially, traders must receive certification before receiving capital. While this won’t appeal to those needing funds quickly, Maverick Trading is all about long-term growth.
You’ll also join its ever-growing community of traders, allowing you to gain insights from other participants. Once the initial requirements are met, traders keep up to 80% of the generated profits. However, the main drawbacks are the $5,000 membership fee and the desk fees of $200 per month.
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9. SMB Capital – Secure a Career as an In-House Options Trader Without Prior Experience
SMB Capital is an established proprietary trading firm based in New York. It’s a solid choice for entry-level options traders seeking a fully-fledged career. SMB Capital has multiple openings for in-house mentorship, training, and guidance. Those passing the initial stages will receive trading funds.
That said, SMB Capital also offers remote openings for those who prefer trading online. Either way, training programs are delivered by experienced traders, ensuring participants receive the best insights possible.
According to previous candidates, SMB Capital has a highly competitive work culture. You should expect long hours and aggressive targets. Nonetheless, SMB Capital claims that its top-performing traders earn seven figures.
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10. OneUp Trader – Flexible Prop Challenge Requirements Without Daily Loss Limits
OneUp Trader is a top-rated prop firm offering flexible challenge requirements. The funding amounts range from $25,000 to $250,000. Those opting for the lowest funding amount need to make a profit of just $1,500.
This comes with a $1,500 trailing drawdown but no daily loss limits. These requirements increase in line with the requested funding amount. All options come with a 90% profit share and 24/7 customer support. The latter includes telephone, email, and live chat.
Traders can also access the NinjaTrader platform and Level II market data. However, OneUp Trader charges a monthly fee. This ranges from $125 to $650, depending on how much capital is needed.
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Comparing the Best Options Prop Trading Firms
Now let’s compare the options proprietary trading firms discussed above:
| Prop Firm | Fees | Max. Daily Loss | Min. Funding | Max. Funding | Profit Share |
| OFP Funding | From $18.25 per month | 3%-5% | $5,000 | $200,000 | Up to 80% |
| Trade The Pool | From $97 | 4.5% | $20,000 | $160,000 | Up to 70% |
| The 5%ers | From $39 | 6% | $5,000 | $100,000 | Up to 100% |
| Challenge4Trading | From €150 | 5% | €15,000 | €500,000 | Up to 85% |
| Axi | None | 10% | $5,000 | $1 million | Up to 90% |
| Apex Trader Funding | From $187/month | None, but a trailing threshold from $2,750 | $75,000 | $300,000 | Up to 100% |
| Funder Trading | Not stated | $500 | Not stated | Not stated | Up to 100% |
| Maverick Trading | $5,000 membership fee / $200 monthly desk fee | 5% | $4,000 | Unlimited | Up to 80% |
| SMB Capital | Depends on the trader’s requirements | Determined after the training program | Not stated | Not stated | Starts at 50% |
| OneUp Trader | From $125/month | None, but a trailing threshold from $1,500 | $25,000 | $250,000 | 90% |
What Is Options Prop Trading?
Prop trading firms provide options traders with funded accounts. This means that traders aren’t required to use their own bankroll. They’re a great option for skilled traders with limited funds or those looking to take things to the next level.
Either way, most options prop firms have ‘challenges.’ These must be completed to qualify for funding. They usually require a minimum profit target (e.g., 10%) and a maximum daily loss limit (e.g., 5%). However, challenges aren’t risk-free; most come with an upfront or monthly fee.
Failing to meet the challenge (such as exceeding the loss limit) means the prop firm keeps any fees paid. Conversely, successfully completing the requirements often means immediate access to capital. This initially averages $10,000 – $25,000 but can increase to hundreds of thousands of dollars after consistent performance.
How Does Options Prop Trading Work?
Options prop trading won’t be for everyone, so let’s take a closer look at how the process typically works.
Trading Challenges
In most cases, traders must complete at least one challenge before receiving funding. This ensures that traders have the required skills. After all, prop firms are risking their own capital, so they want to ensure traders can make consistent gains.
Now, challenges vary depending on the prop firm. Nonetheless, most come with the following requirements:
- Profit-Target: You’ll be required to make a minimum amount of profit in the specified time frame. For example, you might need to make 10% gains within a month.
- Maximum Daily Loss: This is the maximum loss that can be made in any single day. For example, losing more than 5% of the provided capital could forfeit the challenge.
Other trading conditions can apply, such as leverage limits and restrictions on certain markets. As such, it’s crucial to understand the terms of the challenge before starting.
Upfront Fees
Even the best options prop trading firms charge upfront fees. This ensures that only serious traders participate. It also prevents fraud, as traders might be tempted to open multiple accounts until they pass the challenge.
The fee usually depends on how much capital the trader requires. For example, Challenge4Trading charges €150 on a €15,000 account. At the other end of the scale, a €500,000 account comes with an upfront fee of €1,800.
Either way, the upfront fee is typically non-refundable. This means the prop firm keeps the funds if you don’t pass the challenge.
Profit Sharing
After passing the initial challenge requirements, you will receive the funded account. Thereon, a profit-sharing agreement kicks in.
This means the prop firm gets a percentage of any generated gains. This averages 20%, meaning traders keep 80%. However, these amounts vary depending on the provider and other terms.
Nevertheless, suppose you make a $5,000 profit in month one. If the profit-sharing agreement is 80%, you’d keep $4,000. The prop firm would collect the remaining $1,000.
What Do Options Prop Trading Firms Offer?
Prop firms provide a range of benefits. This section explores the key perks available to options traders.
Large Capital Balances
The most obvious advantage is that prop firms provide large capital balances. This means you can trade with significantly more than you have available. For example, Axi offers funded accounts worth up to $1 million. So, a monthly profit of 5% would generate gains of $50,000.
Additionally, apart from the initial challenge fee, prop trading is essentially risk-free. This is because you aren’t risking your own capital. That said, prop firms have strict terms to ensure reckless trading is avoided. This means you could lose access to the capital if you go on a prolonged losing run.
Access to Advanced Platforms and Data
Options proprietary trading firms often have access to highly advanced platforms. These platforms aren’t used by retail clients, meaning you’ve got access to the same tools as institutional traders.
This can mean unprecedented insights, custom data feeds, and in-house indicators. Ultimately, prop firms provide all the tools needed to make consistent gains.
Comprehensive Training
Prop firms and options traders have a common goal: to make profits in a risk-free way. The leading prop firms provide comprehensive training programs as part of their package.
This means you can learn from the industry’s best, including proven prop trading strategies, charting setups, and risk-management tools. Support is typically ongoing, ensuring your trading outcomes improve over time.
What Options Can You Trade Via Prop Firms?
Available options markets will vary depending on the prop firm. This could be based on their location. For instance, US-based firms might only be able to trade US-listed options.
Additionally, the range of markets must align with the firm’s risk tolerance. For example, firms with a low-risk model might only trade major forex pairs. In contrast, those with a higher risk tolerance might also opt for minors and exotics.
Nonetheless, the following options markets are widely available when using a prop firm in 2024:
- Chicago Board Options Exchange (CBOE): This is the primary options market for trading US indices, including the Dow Jones and S&P 500.
- NYSE American Options: This exchange is a good choice when trading stock options, whether that’s Apple, Amazon, or Tesla.
- Chicago Mercantile Exchange (CME) Group: Those wishing to trade commodity or forex options are best suited for the CME.
Ultimately, it’s important to check which options markets are supported when choosing a prop firm.
Pros & Cons of Options Prop Trading
The benefits and drawbacks of options prop trading are summarized below:
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How to Start Prop Trading Options
The step-by-step walkthrough below explains how to get started with an options prop firm. We’ve used Challenge4Trading for this example, so the steps can vary slightly if you’re using another provider.
- Register an Account – Visit the Challenge4Trading website and click ‘Sign up.’ Provide your name, email, and telephone number. Click ‘Register’ to confirm the account.
- Choose a Challenge – Next, you’ll need to choose a challenge. Beginners should opt for a basic challenge, as the trading conditions are less difficult to achieve. Funding amounts range from €15,000 to €500,000.
- Pay Challenge Fee – You’ll now need to pay the upfront fee for the selected challenge. This ranges from €150 to €1,800, depending on the funding amount.
- Download Sirix – Challenge4Trading uses the Sirix trading platform. While web-based trading is supported, it’s wise to download the desktop software. This provides the best options trading experience.
- Review the Challenge Conditions – We’d suggest reviewing the challenge conditions before starting. Assess key requirements like the profit target and the maximum daily and overall loss.
- Start Trading – You can now start trading options via the Sirix platform. The objective is to meet the profit target without exceeding the loss limits. What’s more, you need to trade for at least three days, even if you’ve already met the target.
- Receive Funding – You’ll receive the funded account once you’ve completed the challenge. This means you’ll earn up to 85% of the profits generated. Those failing the challenge will lose the upfront fee paid.
Conclusion
Prop firms are ideal for options traders seeking more capital than they can afford. You will, however, need to pay an upfront fee and meet the challenge requirements. As such, ensure you have the required skills before proceeding.
Overall, we found that OFP Funding is a good choice for first-time prop traders. There’s no evaluation period and you can open a funded account from just $18.25 per month. The trading terms are also fair, with an initial profit target of just 3% to 5%.
FAQs
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References
- Introduction to Options (Charles Schwab)
- What is Proprietary Trading? (Corporate Finance Institute)
- NYMEX (CME Group)
- Who We Are & What We Do (CBOE)
- NYSE Options Markets (NYSE)
- Options and Futures Markets (CMEGroup)
