You might be an excellent options trader, but if you are trading with small sums of money, it can take a long time to amass significant wealth. For instance, a 200% return on $20 turns into $60, whereas a 200% return on $20,000 gives you $60,000. It would be pretty great to have $40k rather than $4k, wouldn’t it?
Fortunately, options prop trading firms can let you trade options with a funded account. These prop firms help skilled traders turn bigger profits and become successful options traders.
But what are the best options prop trading firms? There are many out there, and the last thing you want to do is waste your time and money.
So, to help you figure out which one (or ones) might be best for you, this article will run down seven of the best options prop trading firms. After a quick read, you should be well on your way to getting started with a funded account for options trading.
Breaking Down the Best Options Prop Trading Firms
First off, what exactly are options prop trading firms? Put simply, these are firms that provide skilled traders with access to funding for some form of flat fee and/or small share in your profits.
Options prop trading firms can vary a lot, but they often o share many common features as well. Here are some important aspects of the best options prop trading firms to consider:
Trading platform – Some options prop trading firms allow you to trade directly on their platform or through an integration with a number of brokers, while others don’t have such support. It’s a good idea to ensure your prop firm of choice has the trading capabilities you prefer.
Minimum deposits – The whole point of prop firms is to help traders get access to tradeable funds. So, a high minimum deposit pretty much defeats the purpose. If you are hoping to get started without breaking the bank, be sure to consider any minimum deposit requirements.
Trading capital – Some options prop trading firms will provide you with $10,000, while others may fund traders all the way up to $1 million or more. Depending on your comfort level with managing large sums, you may prefer certain options prop trading firms over others.
Educational resources – Many options prop trading firms provide comprehensive educational platforms, including forums and even ebooks nad webinars. Others, however, may offer little to no educational resources. If you’re more of a beginner or intermediate trader, it might be a good idea to pick a platform that helps you learn.
Profit targets – Most prop firms require you to meet a given profit goal in a given timeframe. If you don’t, then you can’t secure funding. It’s a good idea to aim for a reasonable profit target through many small wins, rather than shooting for the moon on every trade.
Daily loss limits – When using an options prop firm, make sure to track your loss limits. If you don’t follow them properly, you can lose your funding.
What to look for in options prop trading firms
In addition to the above features, here are a few more aspects to consider when it comes to choosing the right options prop trading firm for you:
Track record – You can rest easy with some options prop trading firms as they have excellent ratings on sites such as TrustPilot. This can give you some measure of confidence in their track record.
Withdrawal policies – You want access to your trading profits, right? Yeah, that’s what we figured. Different funded accounts have different policies in terms of withdrawal, so make sure you understand the policy before signing up.
Support – Is there a live chat option for quick help? Is there email only? Can you call and speak with a human being? Depending on your preferences, it’s a good idea to see what level of customer support they have.
Fees – When it comes to fees for prop firms, you should be keeping most of the profits, as in 80-90+%. Ideally, the monthly fee and any other fees will be low as well.
7 Top Options Prop Trading Firms
Even the best beginning options traders who excel at making profitable trades will be limited by a lack of capital. Fortunately, there are funded trading platforms, also known as prop firms, that provide capital to talented traders.
Here are seven of the top options prop trading firms around.
TopStepTrader offers funded accounts to options traders all around the world. Many traders are finding success with TopStep, as more than $2 million in profits was withdrawn in 2020.
While some prop firms don’t have strong track records, TopStepTrader has a 4.5/5 rating on Trustpilot (1,500+ reviews), so you can rest assured this is a legitimate service.
To use prop firms such as TopStepTrader, you’ll have to go prove your ability to earn consistent profits as a day trader. So, depending on your ability level, you may need to educate yourself and learn effective trading strategies first.
Click here to check out TopStepTrader for yourself and start a 14-day free trial.
SurgeTrader is our next options prop trading firm, and it has simple rules and a streamlined process for funded options trading. Compared to some of its competitors, which require more complicated trials, SurgeTrader offers a simple, one-step process. Plus, it permits nearly any type of trading activity, including forex and many other assets.
The SurgeTrader platform provides a profit split of up to 90% and there’s also no minimum trading days requirement, which is helpful for traders who can’t commit to trading each and every day.
SurgeTrader keeps things simple across the board, with a 4% daily loss limit, 5% maximum drawdown, and 10% profit target, no matter your account level. This makes it a breeze to use.
Next up is FTMO, a well-known prop firm that provides funded trading accounts to eligible traders. The process to gain eligibility involves two parts.
To get your funded account, you must first pass the FTMO Challenge. It works by asking you to prove your trading abilities with a simulated account. You then move onto a live account in order to pass the Verification phase.
One excellent feature of FTMO is its emphasis on trading the news, which can be huge for options traders. “Trading the news” is helpful when aiming to profit off short-term market movements and volatility, and FTMO helps its traders embrace this strategy.
Finally, FTMO boasts a strong track record, with repeated placement among Deloitte’s Technology Fast 50. If you want to explore FTMO’s offerings and take advantage of a free trial, simply click here.
OneUp Trader is a fast-growing provider of funded accounts, with accounts ranging from $25,000 to $250,000.
While many funded account providers require a two-part or three-part process, OneUp Trader has a simple one-step process. This allows eligible traders to get started quickly. Once you start trading, you must trade at least fifteen days to meet your profit target. After that, you’ll get placed with one of their funding partners.
Some benefits of OneUp Trader are its advanced analytics, its support for various trading platforms, and its lack of data fees (which are fairly common with prop firms).
While many prop firms don’t have a great track record, that’s not the case with OneUp Trader. Currently the owner of a 4.7/5 score on TrustPilot, OneUp Trader is a legitimate service.
Fidelcrest is another options prop trading firm that allows traders to access a huge variety of assets, including stocks, indices, commodities, and forex.
To get into Fidelcrest’s Pro Trader Program, you must show your trading skills by completing a two-step process. First, there’s the Fidelcrest Trading Challenge, which is a 30-day trial period. After that, you move on to the Verification phase, which is similar but requires 60 days.
Another great aspect of Fidelcrest is flexibility. Traders can also start off with the Micro Trader Program. This allows newer traders to test their skills before taking on a larger account. These accounts span from $10,000 to $50,000, while the Pro Trader accounts span from $150,000 all the way up to $1 million.
City Traders Imperium
City Traders Imperium is another top prop firm when it comes to funded options trading. While many prop firms play into the idea of getting rich quickly to entice new traders, City Traders Imperium offers robust educational resources and is straightforward about what to expect.
The first step to trading with City Traders Imperium is to go through one of its evaluation programs, like the Day Trading Challenge (for forex, indices, and commodities). Or, you can pay a larger sum to receive direct funding immediately. This may be a good option for experienced traders who have more capital and have faith in their ability to earn profits immediately.
Another way that City Traders Imperium stands out is through their free consultation call. This call provides traders with access to a professional who will study your trading approach and psychology to see how you can improve on your profitability.
Best suited for professional traders with a good understanding of risk management, Earn2Trade offers two paths to funding (both can technically be completed in as little as 15 days!).
Founded in 2016 and currently boasting a score of 4.8/5 on Trustpilot, Earn2Trade provides traders with a streamlined path to funded options trading.
Choosing the Best Options Prop Trading Firms
The best options prop trading firms will have a reasonable onboarding process and allow traders to keep at least 80-90% of the profits. Fortunately, as shown above, there are many reputable companies that you can trade with. Ultimately, the best options prop trading firm for you will depend on your specific trading goals and preferences.
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