If you’ve ever wondered whether proprietary trading firms (prop firms) can actually fund your journey in stocks, futures, or crypto, you’re not alone. There’s a wild array of prop firms out there, and figuring out which ones specialize in which asset classes can be confusing—especially when you want to avoid firms with vague promises or unclear funding criteria. In this article, I’ll untangle the landscape, draw on both personal experience and expert commentary, and even dissect some regulatory fine print. Plus, I’ll compare how “verified trade” standards differ across countries, which is crucial if you’re hoping to take your funded trading international.
A couple of years ago, I set out on a mission: I wanted to trade US equities with significant capital, but my own portfolio was, frankly, embarrassing. So, I started researching prop firms. The first surprise? Many firms had splashy websites but were either forex-only or offered “paper trading” with no real capital at risk. I got burned once—after passing a long challenge, the “live account” was just another demo. Lesson learned: Not all prop firms are created equal, and the asset class focus is key.
Here’s where things get interesting. The best prop firms tend to specialize. Let’s look at some major players in each space, their regulatory backgrounds, and what you can expect if you want to get funded.
Pro tip: In the US, most prop stock firms require you to register as a professional because of SEC and FINRA rules (see FINRA Rule 1021). This means passing qualification exams and accepting stricter oversight.
Regulatory watch: US futures prop firms must comply with CFTC and NFA rules. The National Futures Association keeps a public register of member firms.
Personal note: Crypto prop firms are riskier—regulation is thin, and some operate in a legal gray zone. Check for FCA, SEC, or FINMA registration if you’re serious about compliance.
If you’re trading internationally, you’ll encounter the concept of “verified trades”—basically, proof that your trades are real and compliant with local laws. Here’s a quick comparison table across major jurisdictions:
| Country | Standard/Definition | Legal Basis | Enforcement/Verification Body |
|---|---|---|---|
| USA | Trades must be verified through registered clearinghouses (DTCC for stocks, CME Clearing for futures) | SEC Regulation SHO (stocks), CFTC Part 1 Regs (futures) | SEC, FINRA, CFTC, NFA |
| UK | All trades must be reported to FCA-approved repositories; MiFID II applies | FCA Handbook, MiFID II | FCA, PRA |
| EU (Germany) | “Verifiable” means cleared through BaFin-licensed CCPs (e.g., Eurex Clearing) | MiFIR, BaFin Rules | BaFin, ESMA |
| Switzerland | Strict verification for crypto trades—FINMA-licensed exchanges only | Swiss Financial Market Infrastructure Act | FINMA |
| Singapore | “Verified” trades must pass through MAS-approved venues | Securities and Futures Act | MAS |
For more detail, check the SEC’s Final Rule on trade verification and the ESMA guidelines.
Let me tell you about a friend, “Sam,” who tried to get funded by a UK-based prop firm while living in Singapore. After smashing the trading challenge, Sam’s payout was delayed for weeks. The reason? The UK firm needed to prove the trades were “real” under MiFID II, but Singapore’s MAS required its own set of confirmations. The two agencies disagreed on what counted as a verified trade. In the end, Sam had to provide detailed order routing reports and broker statements, which the UK firm finally accepted. But it ate up a month and a lot of his patience.
I once attended a webinar hosted by Mike Bellafiore, co-founder of SMB Capital. He summed it up perfectly: “The best prop firms are transparent about risk controls, offer real capital, and are subject to meaningful regulation. If a firm avoids answering questions about licensing or profit splits, walk away.”
His point rings true. In my own journey, the most reliable prop firms always provided clear, written agreements and weren’t shy about their regulatory status (you can check SMB’s FINRA listing here).
Screenshots wouldn’t do it justice here, but I kept a running log for each step. The key is: always document your trades and communication.
Prop trading can be a fantastic way to scale your trading career, but the details matter—especially when it comes to asset class, regulation, and cross-border payouts. My advice? Prioritize transparency and regulation over high leverage or low fees. I learned this the hard way, and so did Sam. If you’re trading across borders, expect extra paperwork and delays around trade verification.
If you’re just starting, try a reputable futures prop firm like Topstep or Earn2Trade for the clearest onboarding process. For stocks, SMB Capital is my top pick, especially if you value mentorship. For crypto, tread carefully—always check for real regulatory oversight.
For further reading, see the CFTC’s primer on crypto regulation and the FCA’s guidance on cryptoassets.
In the end, finding the right prop firm is a personal journey—with plenty of pitfalls, paperwork, and, if you’re lucky, a payout at the end.