Prop trading firms are perhaps the best way to get your foot in the trading door if you lack capital–and enhance your trading skills in the process.
They are companies that provide traders with capital in exchange for a small percentage of the profits earned.
But that’s not all a prop trading firm is good for.
In this article, we will take a look at the highest-paying prop trading firms so you can use them to your benefit.
What to Look for in Prop Trading Firms
While high payouts are nice, they’re not the only things you should be looking for in a prop trading account. Here is what to look for in a firm:
- Commissions – As a trader, you will make a large portion of the profits you generate. But the firm that gives you the capital will also take a percentage. This is usually in the 10-50% range.
- Fees – Some firms will charge an extra fee for providing you with capital in the first place. Be sure to read the fine print.
Additionally, here are a few other things to notice:
- Withdrawal policies
- Support
- Track record
- Hidden fees
Highest Paying Prop Trading Firms
Now that the mundane details are out of the way, here are the highest-paying firms:
FTMO
FTMO is a proprietary trading firm that operates on a funded trading model where traders receive up to $100,000 in trading capital with the potential to earn a share of the profits they generate.
The firm offers a unique evaluation and selection process based on real-time trading activity and risk management. Traders must pass through a comprehensive evaluation process to prove they have the necessary skills and discipline to manage trading capital effectively.
FTMO also offers traders a flexible trading schedule, a supportive community and the potential to trade with no risk.
FTMO’s compensation structure is performance-based, allowing traders to earn up to 80% of the profits they earn.
FTMO is a great platform for beginners, which is one reason why it is on our list of the best prop trading firms for aspiring traders.
DRW Trading
DRW Trading is a leading proprietary trading firm founded in Chicago in 1992. The firm has offices in Singapore, London, New York and Montreal.
DRW Trading specializes in derivatives trading, quantitative analysis and market-making in global financial markets. The company has a rigorous selection process; hence only top-performing candidates get selected.
The firm offers exceptional benefits, including a competitive salary, performance-based bonuses and a 401k plan.
SurgeTrader
SurgeTrader is an innovative proprietary trading firm that offers traders a chance to trade with a funded account with a maximum purchasing power of $1 million.
SurgeTrader operates on a 90:10 profit split model, where traders receive 90% of the profits they generate and the remaining 10% goes to the company. The firm also provides its traders with a customized trading platform, real-time market data, risk management tools and a team of experienced trading coaches.
SurgeTrader’s selection process is competitive and rigorous, offering traders a chance to showcase their skills and access opportunities to grow and develop their trading strategy.
The firm’s low minimum fee, its ability to trade multiple asset classes and the option to trade remotely makes it an attractive employer for traders looking for flexibility and a chance to grow their career.
TopStep Trader
TopStepTrader is a US-based proprietary trading firm that provides a risk-free simulated trading environment called the Trading Combine.
The Trading Combine allows traders to showcase their skills and qualify for a funded trading account whereby they receive 90% of their profits as compensation.
TopStepTrader also offers its traders a comprehensive training program, performance analytics and mentoring resources to help them succeed in trading.
The company has a transparent and merit-based approach to recruitment, allowing traders of all levels to showcase their talent without prior trading experience. TopStepTrader also attracts traders from diverse backgrounds–from individuals trading part-time to full-time traders.
The firm’s compensation structure is highly competitive and reflective of the trader’s individual performance, making it an attractive destination for aspiring traders looking for an opportunity to hone their trading skills.
OneUp Trader
On our list of best-funded forex trading accounts, OneUp Trader is a proprietary trading firm that offers traders a chance to trade with a funded account of up to $1 million in purchasing power.
The firm operates on a performance-based model whereby traders receive 100% of all profits generated up to a certain threshold and the firm takes a percentage of profits above that level.
OneUp Trader provides its traders with a customizable trading platform, risk management tools, and daily statements and performance reports.
OneUp Trader’s selection process is rigorous and based on real-time trading activity and risk management. The firm also offers one-on-one coaching and support to its traders, making it an attractive employer for traders looking to develop their trading skills.
OneUp Trader’s fee structure is also competitive, with low minimum fees and the potential to earn significant profits with risk management and discipline.
Final Thoughts
Choosing a prop trading firm that best suits you is a big decision–possibly one of the biggest ones you’ll ever make.
This is why it’s essential to do your own due diligence. But, hopefully, the ones we mentioned above will get you started.