Best Crypto Prop Trading Firms

Crypto prop trading firms are solid options for those looking for high earnings with low risk. They allow selected traders to earn revenue using “house money” — bankrolling the investments with the firm’s funds and sharing a certain percentage of the profits with the company.

You'll have to go through an evaluation before receiving your first flush of investing capital. But those who make it through could realize surprisingly high profits with less risk to their funds.

Here are some of the top trading firms for crypto prop traders that reside within the U.S and internationally.

Quick Look: Best Crypto Prop Trading Firms

• Best for No Time Limit Challenges: FundedNext
• Best for Multi Asset Traders: The Trading Pit
• Best for Instant Funding: FTUK
• Best for Demo Accounts: City Traders Imperium
• Best for Fast Payouts: FXIFY

Best Crypto Proprietary Trading Firms

The following crypto prop firms are beneficial for specific purposes and investor types:

1. Best for No Time Limit Challenges: FundedNext

FundedNext is a proprietary trading firm offering financial backing to traders through various account plans, allowing up to 95% profit splits. The platform caters to a global audience with services like news trading, TradingView integration, and balance-based drawdowns, ensuring flexibility and trader-friendly conditions.

Why We Picked It: It offers multiple account packages, from beginner-friendly to advanced, with challenges and competitions that reward success. FundedNext emphasizes transparency, rapid payouts, and community engagement, positioning itself as a reliable partner for aspiring and experienced traders.

2. Best for Multi Asset Trading: The Trading Pit

The Trading Pit offers multi-asset trading, including CFDs, futures, and cryptocurrencies. The firm provides robust educational resources, such as webinars, ebooks, and podcasts, to help traders develop their skills.

Why We Picked It: The platform emphasizes transparency and global accessibility, with support for multiple languages and payment options. It has earned recognition for its transparency, educational tools, and cutting-edge technology.

3. Best for Demo Accounts: City Traders Imperium

City Traders Imperium (CTI) offers various funding programs designed to support traders by providing access to capital. With flexible plans, traders can progress through step-based evaluations, aiming to earn up to 100% of simulated profits.

Why We Picked It: CTI stands out by offering unlimited time to meet profit targets, minimal restrictions, and the potential for a monthly salary. They also provide educational resources and a supportive community for both novice and experienced traders. Highly rated for reliability, it attracts traders looking for a scalable funding solution.

4. Best for Instant Funding: FTUK

FTUK provides traders with instant funding and one-step evaluation programs, allowing access to capital for trading without the need to risk personal funds. They offer accounts with scaling potential up to $5.76 million and allow traders to keep up to 80% of their profits.

Why We Picked It: Traders can choose between an instant funding option or a low-fee evaluation process to prove their skills. FTUK supports both novice and experienced traders with no time limits and flexible trading conditions.

5. Best for Fast Payouts: FXIFY

FXIFY features a straightforward scaling system, allowing traders to manage accounts with capital provided by the firm. Profit-sharing starts at 50% and can go up to 80% based on performance.

Why We Picked It: FXIFY emphasizes low-risk trading, with clear rules regarding drawdowns and profit targets. Its services cater to both new and experienced traders, providing access to institutional-grade tools, educational resources, and a strong support team.

Understanding Crypto Prop Trading

In proprietary or prop trading, a financial institution uses its capital for transactions — as opposed to regular exchanges that use their clients’ money — to generate bigger returns at an institutional level. In crypto prop trading, investors buy shares in cryptocurrencies.

Prop traders take on all the profits from successful transactions and keep it for themselves and whatever trading partners they may have. They also absorb all the losses. Because exposure to commodities in prop trading is limited to the financial institution’s capital, many prop traders are willing to take on elevated risks and strategies. 

Factors to Consider When Choosing a Crypto Prop Trading Firm

Here are some of the factors of crypto prop trading firms to examine closely.

Profit-Sharing Structure

There is no set profit-splitting percentage across the industry, but firms commonly agree to 70-30 or 80-20 splits that favor the partners. For example, in an 80-20 split, the individual trader would receive 80% of the profits, and the firm would get the remaining 20%.

Reputation

A well-regarded firm is easier for partners and investors to trust and is more enticing to traders and financial professionals. Successful crypto prop traders are transparent, have a solid performance record and maintain compliance. Avoid firms with limited marketplace access, legal problems and failing fundamentals.

Security and Compliance

Crypto prop trading firms must keep security measures and regulatory compliance top of mind. The industry is subject to heavy regulation, so crypto prop trading firms need to stay on top of the latest regulatory requirements. 

There are specific regulatory frameworks that reflect common industry initiatives, including know your customer (KYC) and anti-money laundering (AML) efforts. Firms should also manage their compliance with regulations addressing data protection, tax compliance, accounting practices and risk management.

Trading Fees

A crypto trading firm may charge a fee for every transaction by a fixed amount or a percentage of the total trade value. Many also work on commission for each trade. Firms might charge management and risk mitigation fees or fees for attaining certain benchmarks. Check with your firm to learn what kinds of fees it charges.

Capital Allowance and Leverage

Capital allowance refers to how much of a tax deduction a firm can make in certain assets or investments. Firms must be aggressive about tax planning and record keeping to administer capital allowance in crypto. Leverage refers to using borrowed funds or financial resources to boost certain trading positions beyond the trader’s capital. It helps firms amplify profits, but traders stand to absorb greater losses than if they had no leverage.

Training and Resources

Professional firms offer access to training programs that help partners navigate the cryptocurrency landscape and discover new strategies. They offer unique tools like simulated trading environments, technical analysis tools and personal development training. 

Being aligned with a solid firm makes it easier to network with other traders to share ideas and insights.

Crypto Prop Trading Firms: New Ways to Prosper

Crypto prop trading firms further the cause of novel investment structures in the 21st century. With due diligence, serious consideration and a commitment to hard work and analysis, they can provide unexpectedly strong financial results.

Frequently Asked Questions