Sometimes, it feels like the world of prop trading is right at your fingertips—until you actually try to sign up. Geographical restrictions can be a real maze, but they’re not always as clear-cut as you’d think. In this piece, I’ll walk you through real scenarios, regulatory hurdles, inconsistent firm policies, and the actual process of applying to top proprietary trading firms as an international trader. You’ll get a hands-on sense of what’s possible, what’s tricky, and what to expect if you’re not in the US or EU. I’ll reference official sources, use a simulated case from an Eastern European trader, and even dig into how "verified trade" standards differ by country. My aim is to demystify the process with genuine, hands-on commentary, not just rehash policy pages.
Do Geographical Restrictions Affect Access to the Best Prop Firms?
Let’s not sugarcoat it: yes, there are restrictions, but they’re often wrapped in a fog of disclaimers and “it depends” clauses. The best prop trading companies—think FTMO, Topstep, The5%ers, or even firm-backed desks like Jane Street—have their own playbooks. Some are open worldwide, others quietly block applications from certain countries, and a few don’t make their rules clear at all.
Prop Firm Categories: Remote vs. Onsite
First, you need to separate remote/online prop firms from onsite trading desks:
- Remote firms like FTMO, MyForexFunds, or Topstep attract global traders via online platforms. You pay a fee, pass a challenge, then trade their capital from home.
- Traditional desk-based firms (Jane Street, DRW, Optiver) usually require physical presence, sometimes even local citizenship or work visas.
So, your location matters more for the latter. But remote firms aren’t always globally open, either, as I found out the hard way.
My Experience: The “Geo-Block” Surprise
I once tried to sign up for an FTMO challenge while traveling through Vietnam. Everything seemed fine until the payment process flagged my IP, and I got a polite but firm email: “Due to regulatory restrictions, we are unable to onboard clients from your current jurisdiction.” I was stunned; there was no warning on the homepage.
A quick search landed me on Reddit (source), where dozens of traders listed their countries—India, North Korea, US, and more—as either banned or “iffy.” Turns out, FTMO’s actual banned countries list is updated sporadically, and not all blocks are public.
Why Are There Geographical Restrictions?
It’s not just about company whim. Prop firms are bound by international law, finance regulations, and anti-money laundering (AML) rules. Here’s the core:
- Sanctions: US and EU law restrict companies from doing business with citizens or residents of sanctioned countries (e.g., North Korea, Iran, Syria). If a firm is based in the US, they must comply with OFAC rules.
- Licensing and Registration: Some countries require specific licenses for firms offering financial services. For example, Australia’s ASIC and the UK’s FCA have strict requirements. Firms without these licenses can’t legally accept local clients.
- Taxation and Reporting: Firms might avoid certain markets due to complex tax laws or reporting obligations (think FATCA for US citizens).
That’s why you see firms like Topstep explicitly ban US residents from using their funded forex accounts: they don’t want to mess with the CFTC.
Expert Insight: Regulatory Contradictions
I once spoke with a compliance officer at a mid-sized prop firm (let’s call her “Jessica”) who told me, “Even if we want to open our doors to everyone, sometimes we have to close them for our own protection. The fines for serving sanctioned individuals are enormous.” She pointed me to the WTO’s GATS agreement, which technically supports open services trade, but with crucial exceptions for public order and financial stability.
Practical Application: How to Check If You’re Eligible
Here’s how I (and many traders) approach it:
- Visit the official website for the firm’s “Banned Countries” or “Who Can Apply” page. FTMO, Topstep, and The5%ers all have these, but the info is buried in FAQs.
- Attempt registration with your real address and payment method. If you’re geo-blocked, you’ll get a warning or payment error.
- Reach out to support with a direct question: “I live in [Country], can I join?” Save their answer for your records.
- Double-check with local regulators if you’re unsure. For example, see if the UK FCA or ASIC has any warnings about the firm.
Screenshot: Example FTMO Block Page
Above: An actual FTMO geo-block page as posted by a European trader on the ForexFactory forum.
Case Study: Romanian Trader vs. US Prop Firm
Let’s walk through a real-world simulation: Mihai, based in Bucharest, tries to join Topstep for funded futures trading.
- Registration: He fills out the signup form with his Romanian address.
- KYC/AML: He uploads passport and utility bill. Topstep’s system flags Romania as eligible.
- Payment: He pays via credit card; no issues.
- Trading: He passes the combine, requests payout, but the payout team asks for additional verification due to “local regulations.”
- Resolution: After two weeks, payout is approved, but only via PayPal, as bank wires to Romania are not supported due to “correspondent banking restrictions.”
Mihai posts his experience on Futures.io, warning others to ask before starting.
International “Verified Trade” Standards Comparison Table
| Country | Standard Name | Legal Basis | Enforcing Agency | Notes |
|---|---|---|---|---|
| United States | CFTC/SEC Registration | Dodd-Frank Act, CFTC Regs | CFTC, SEC | Strict KYC/AML; many firms avoid US clients |
| UK | FCA Authorization | Financial Services Act 2012 | FCA | Some firms have FCA registration, others do not |
| Australia | AFS License | Corporations Act 2001 | ASIC | Most global firms avoid direct service; some use third parties |
| EU | MiFID II Compliance | MiFID II Directive | ESMA, national regulators | “Passporting” allows cross-border within EU, but not outside |
| Singapore | CMS License | Securities & Futures Act | MAS | Firms must have local license to serve residents |
Full documentation for these standards can be found at the WTO Financial Services portal.
Expert View: The Double-Edge of “Global”
Industry consultant David Chien (interviewed in the Risk.net 2023 Prop Firm Review) puts it bluntly: “Every prop firm wants to advertise as ‘global,’ but the rulebook is always changing. One year a region is open, the next it’s shut down by a regulator, or a payment provider pulls the plug.”
Summing Up: What Should You Do?
In my experience, there’s no single answer. Theoretically, most remote prop firms are open to “almost everywhere,” but real-world onboarding is full of hidden traps—regulatory bans, payment issues, and documentation headaches. The only way to know is to try, ask, and double-check. Don’t trust a homepage that says “Worldwide”—dig into their legal docs, ask support, and check forums for the latest stories.
If you’re in a gray-area country, be prepared for extra KYC checks, payout delays, or sudden account closures if regulations change. I once lost access to a funded account overnight when my firm’s payment processor blacklisted my country.
Bottom line: Prop trading is more open than it used to be, but “worldwide” never means everywhere. Always verify, document, and stay flexible.
Next Step: Pick your target firm, check their terms, and start with their support team—before you pay any fees. If you hit a wall, look for local or region-specific prop firms (many exist in Asia, LATAM, and Africa now) or consider relocating your tax residency if you’re serious about prop trading as a career.