What You Really Need to Know About Applying to the Best Prop Trading Firms
If you’re considering joining a top proprietary (prop) trading firm, you’re probably wondering: what does the application process actually look like, and what hoops will you have to jump through? This article is your practical roadmap—based on firsthand experience, expert interviews, and real-world data—to help you understand, prepare for, and (hopefully) ace the journey from applicant to funded trader. I'll also share a few unexpected pitfalls and how I dealt with them myself. Let’s get into it.
Why This Article Will Help You
Forget the generic advice. Here, you’ll get a behind-the-scenes view of how the best prop trading firms—think Jane Street, Optiver, and FTMO—actually vet new traders. We’ll walk through their typical multi-stage process, flag key requirements, and share actionable tips (plus a few blunders I made along the way). I’ll also compare how different countries regulate and certify prop trading, referencing actual legal texts and authority websites where possible.
The Prop Firm Application Process: Step by Step (With Real-World Hiccups)
1. Online Application & Pre-Screening: The First Gate
Most prop firms start with a deceptively simple online form. Expect to enter your trading background, education, and sometimes your track record. Some firms, like Topstep or FTMO, ask for links to your trading accounts or trading journals. I remember rushing through one of these forms for Audacity Capital, only to realize later I’d listed the wrong platform—rookie mistake! Double-check all entries.
According to Optiver’s official careers page, they’re looking for “evidence of curiosity, problem-solving, and quantitative skills” even at the first step.
Sample prop firm application form (screenshot from proprietary trading subreddit)
2. Aptitude & Numerical Reasoning Tests: Where Many Drop Off
This is where things get real. Firms like Jane Street and IMC will send you timed math, logic, and pattern recognition tests. FTMO gives you demo trading challenges instead. It’s brutal—many applicants don’t make it past here.
For instance, Jane Street’s online tests are legendary for brain teasers—one I got was about calculating probabilities under time pressure. I totally bombed my first attempt because I froze up seeing a question about dice rolls. Practicing on free sites like Brainzilla or HackerRank’s Statistics challenges can help.
3. Trading Simulation or Challenge: Prove You’re Not Just Book-Smart
Most top prop firms now require a “challenge” phase—simulated trading in real or demo environments. FTMO and The5ers are famous for this. You get a set capital, strict risk rules, and a limited time (usually 1-3 months) to hit profit targets without blowing up.
Actual FTMO rules are public: you can find them here. For instance, you must not lose more than 10% of the initial capital, and you need to hit a 10% profit target. Here’s a screenshot from my own FTMO dashboard after a rare good day:
FTMO challenge dashboard showing daily loss and profit targets
Funny story: I forgot to account for overnight swap fees once and tripped the daily loss limit. It was a hard lesson—review all the fine print, not just the headline numbers.
4. Interviews & Behavioral Assessments: Are You a Good Fit?
If you pass the challenge, you’ll usually have one or more interviews. Expect a mix of technical questions (“How would you arbitrage this futures trade?”), market scenarios, and behavioral assessments (“Describe a time you managed risk under pressure”). Some firms use group interviews or even “trading games” with other candidates.
Industry recruiter Sarah Lin, in a WallStreetOasis prop trading Q&A, says: “We’re not just looking for math whizzes. We want people who can keep their cool, ask questions, and learn from mistakes.”
I once got tripped up by a question about handling a losing streak. My advice? Be honest, show how you analyze your own errors, and don’t just blame the market.
5. Legal, Compliance, and Funding Agreements: The Paperwork Stage
Once you’re accepted, you’ll sign a trading contract. This lays out your profit split, risk controls, and compliance requirements.
Regulations can vary a lot here. In the US, prop firms must register with the CFTC and NFA if they trade client funds (see NFA regulations). In the UK, the FCA has guidelines for “principal trading firms” (see FCA official site). Some EU countries require MiFID II compliance. If you’re outside the US/EU, check your local rules—there are some notorious scams in lightly regulated regions.
Sample contract from a prop firm (details redacted)
How “Verified Trade” Standards Differ by Country
| Country/Region | Name of Standard | Legal Basis | Enforcing Agency |
|---|---|---|---|
| US | CFTC/NFA Prop Trading Regulation | Commodity Exchange Act; NFA Rulebook | CFTC, NFA |
| EU | MiFID II (Markets in Financial Instruments Directive) | Directive 2014/65/EU | National Regulators (e.g., BaFin, AMF) |
| UK | FCA Principal Trading Firm Guidelines | Financial Services and Markets Act 2000 | FCA |
| Australia | AFS License for Market Participants | Corporations Act 2001 | ASIC |
| Singapore | CMS License for Proprietary Trading | Securities and Futures Act (Cap. 289) | MAS |
Sources: CFTC, ESMA, FCA, ASIC, MAS
Case Study: US vs. EU Prop Firm Certification
Let’s say you’re applying to a US-based firm (call it Firm A) and an EU-based firm (Firm B). Firm A requires you to complete a W-9 form and run a background check against the CFTC database. Firm B, based in the Netherlands, asks for proof of MiFID II compliance and an EU passport or residency permit.
I once tried to onboard with a Dutch prop firm and got stuck on the MiFID II “fit and proper” test. Their compliance officer grilled me on my understanding of market abuse laws, referencing ESMA’s guidelines (see ESMA). Meanwhile, my US application was all about anti-money laundering (AML) paperwork and tax forms.
Industry expert Tom Woods (ex-Optiver) told me in an interview: “The EU is obsessed with process—document everything, tick every box. The US cares more about your tax and criminal record. Both want to avoid scandals, but the paperwork focus is very different.”
Final Thoughts: What I Wish I’d Known Before Applying
Applying to a top prop trading firm is a marathon, not a sprint. Expect to face tough tests, demanding interviews, and a lot of compliance paperwork—especially if you’re crossing borders. Don’t be discouraged by setbacks; use them as learning opportunities (like I did after blowing a challenge with a fat-finger trade).
My biggest takeaway? Prepare for the tests, but don’t underestimate the paperwork and regulatory quirks. If you’re aiming for a global firm, read up on both local and international standards—official sites like OECD, WTO, and WCO Verified Trader Programme are good starting points.
If you’re just starting out, my advice is: practice your math, keep detailed trading records, and be ready to explain your thinking—mistakes and all. And if you get stuck, reach out to real traders on forums or LinkedIn. Most are surprisingly helpful (just don’t spam them).
Next steps? Pick a firm, study their process, and start practicing. And if you blow a challenge or flub an interview—join the club. Just get back up and try again.