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Proprietary trading firms, also known as prop trading firms, are companies that use their own capital to trade in the market.
Prop firms will employ highly skilled traders who use sophisticated trading strategies to generate profits. These traders are usually those looking for a high-stakes and high-reward environment–one that offers significant profits but also comes with a high level of risk.
Prop trading firms have become increasingly popular in recent years with many savvy traders seeking out opportunities to trade while honing their skills and making a steady profit
In this article, we will be delving into some of the best prop trading firms on the market.
OneUp Trader
OneUp Trader was founded in 2017 and has already become a leading firm in the world of prop trading–focusing on futures and forex trading.
OneUp Trader gives you a wide range of funded trading accounts–from $25,000 to $250,000. Perhaps the most attractive trait is that OneUp charges no management fees–so you get to keep all the profits.
OneUp Trader also boasts the “Drawdown Reimbursement Program.” This program allows traders who experience significant drawdowns to receive a reimbursement for their trading losses. It’s an added layer of protection and gives the trader greater peace of mind.
Jane Street
Jane Street is an independent prop trading firm that specializes in ETFs and equities.
The firm employs over 1,200 people and operates in New York, London and Hong Kong. Jane Street is known for its quantitative and technology-driven approach to trading.
Due to their extensive research, Jane Street’s traders have been able to come up with consistently impressive trading strategies over the years. Their expertise in ETFs has also given them a clear advantage in the market. In 2019, Jane Street traded over $800 billion in ETFs, making it one of the largest ETF traders in the world.
The firm also boasts an impressive tech team that has developed an in-house trading platform, optimization algorithms and real-time risk monitoring systems.
Thanks to these technological advancements, Jane Street has been able to maintain an outstanding reputation in the trading industry.
DRW Trading
DRW Trading is an independent proprietary trading firm that operates out of Chicago. The firm started in 1992 with a focus on trading treasury bonds, and eventually evolved to also trade in futures, equities and options.
The company has around 900 employees, with the majority located in Chicago, and also has offices in Austin, New York, London, Hong Kong and Montreal.
DRW Trading’s success can be attributed to its proprietary algorithmic trading platform called Vela. Vela is an advanced trading system that allows traders to execute trades using real-time data and analytics. It also has an intuitive reporting system, providing transparency and traceability for the firm’s trades.
DRW’s highly skilled traders also have access to an array of sophisticated tools and resources, including a high-performance computing infrastructure.
TopStep Trader
Founded in 2012 by Micahel Patak, TopStep Trader is one of the most popular firms on the market today–recently joining the ranks of America’s 5,000 fastest growing companies.
The company’s concept is rather simple and attractive. Traders who qualify are enabled to trade with TopStep’s capital and keep the first $5,000 in profits and 90% of the profits after that.
You can begin with a 14-day trial period in which you have a practice account with $150,000 or, if you believe you have what it takes, you can enter TopStep’s Trading Combine to be evaluated for a funded stock account.
When entering the Trading Combine, you will have the choice of choosing between three simulated funds–$50K, $100K or $150K. Each comes with it’s respective monthly subscription.
FTMO
As with TopStep, FTMO is another popular prop trading firm that comes to mind when dicussing the best funded forex trading accounts. But it also places great emphasis on futures trading accounts.
Founded in the Czech Republic in 2014 and, like any prop trading firm worth your time, FTMO provides traders with a two-step evaluation phase in which FTMO gives you $400,000 to trade with. The payout is 80% after the first stage and you are eligible for the 90% profit split once you have reached the scaling plan.
The funded trading accounts FTMO offers vary from $10,000 to $200,000.
Best Prop Trading Firms: Final Thoughts
Prop trading firms offer traders an excellent opportunity to earn sizable profits while pushing the boundaries of trading technologies and strategies.
The firms listed above are just a few of the best proprietary trading firms globally, well-equipped with some of the most significant technological advancements.
Whether you’re just starting out or are already an experienced trader, these firms offer an excellent launching pad for developing trading skills and positioning yourself for success in the trading industry.