Curious about which proprietary trading firms focus on stocks, futures, or crypto—and how to actually get funded for trading them? This article breaks down real-world experiences, regulatory context, and the nuanced differences between global standards. I’ll take you through live examples, a snapshot of the application journey (with the inevitable stumbles), and even compare how different countries handle “verified trade” for prop traders. The goal is clear: help you pick the right prop firm for your market, without the fluff or recycled advice.
Let’s get straight to it: finding a prop firm that matches your trading style isn’t just about passing a challenge or hitting a profit target. It’s about understanding what you’ll actually be allowed to trade, the legal backdrop, and what happens when things go sideways—say, when you’re trading crypto and a regulator knocks on the door. I’ve navigated this maze myself, sometimes with a few bruises, and I’ll share both the wins and the not-so-glamorous mistakes.
The term “prop firm” gets tossed around a lot, but in practice, firms tend to specialize: some are strictly stocks, others are futures, and a smaller group are leaning into crypto. This isn’t just preference—it’s often tied to legal and regulatory rules. For example, firms like Topstep focus exclusively on futures, while FTMO made its name with forex and now supports indices, but doesn’t touch US stocks directly due to SEC licensing headaches.
Meanwhile, crypto prop firms are a newer breed, often registered offshore to dodge Western regulators (see: CryptoFunding.com for an example). You have to ask: is this “funding” actually meaningful, or just demo trading with profit splits?
Let’s walk through a live example. When I signed up for Topstep, the process looked like this:
It’s deceptively simple. My first run, I broke the daily loss limit on day three—game over. No warning, just locked out. It’s a common pitfall, especially with futures where tick value and leverage can trip you up fast.
With stock-focused firms (e.g., Earn2Trade for futures, Kershner Trading Group for equities), the onboarding often involves providing ID, W-8/W-9 forms, and sometimes even a video interview. Crypto firms like TraderSeed are more lax, but that comes with its own risks: withdrawals can be slow, and dispute resolution is…let’s say “flexible.”
Here’s something most influencers skip: the legal side. In the US, proprietary trading is monitored by the SEC, CFTC (for futures), and FINRA. In the EU, it’s the ESMA. For crypto, things get murky fast—some firms operate out of the Seychelles, Cayman Islands, or Estonia to avoid direct oversight.
Let’s compare how different countries verify and regulate prop trading, especially around the concept of “verified trade.” Here’s a breakdown:
| Country | Name/Definition | Legal Basis | Enforcement Agency |
|---|---|---|---|
| USA | Proprietary Trading (Rule 15c3-1) | SEC, CFTC (for futures), FINRA rules | SEC, CFTC, FINRA |
| EU | Proprietary Trading Exemption (MiFID II) | ESMA, local financial authorities | ESMA, national authorities |
| UK | Prop Trading (FCA Handbook) | FCA rules, post-Brexit | FCA |
| Singapore | Proprietary Trading License | MAS regulations | Monetary Authority of Singapore (MAS) |
| Offshore (Cayman, Seychelles, etc.) | None/Unregulated | N/A | N/A |
Sources: SEC Rule 15c3-1, ESMA MiFID II, MAS Capital Markets
Let’s imagine two traders: Alex in New York and Chen in Singapore. Alex applies to a US-regulated prop firm (say, SMB Capital) to trade equities. SMB requires Series 57 registration, background checks, and reports all trades for compliance. Chen, meanwhile, signs up with a Seychelles-based crypto firm, gets funded in USDT, and faces no real KYC. The upside? Freedom and speed. The downside? If the firm “disappears,” there’s no recourse.
During an industry roundtable I attended in late 2023, a compliance officer from a US prop firm put it bluntly: “If you want legal protection and a real trading record, work with regulated firms. For crypto, you’re mostly on your own.” (Source: Traders Magazine)
I’ve tried both classic and “new wave” prop firms. With Topstep, I learned the hard way that risk rules are absolute—no appeals, no slack. With a crypto firm (which I won’t name here; let’s just say their website vanished in mid-2022), my “profits” became digital dust. Lesson: always check if the firm has a verifiable address, clear withdrawal policy, and ideally, some kind of regulatory footprint.
One more tip: look for real trader reviews on forums like EliteTrader or Trustpilot. Ignore influencer hype—dig for negative reviews and see how the firm responds.
In summary, yes, there are prop firms specializing in stocks, futures, and crypto. The best choice depends on what you want to trade, your risk tolerance, and how much regulatory protection you need. If you want structure and safety, firms like Topstep (futures) or Kershner (stocks) are solid. For crypto, be wary—do your homework and expect a rougher ride. Always read the rules, check public records, and test with small amounts first.
My advice? Start with a regulated, established firm to build discipline and a track record. Only after mastering that, consider “frontier” firms for crypto or exotic markets—and do so with eyes wide open. The prop trading world is full of opportunity, but also plenty of hidden traps. If you want to deep-dive into specific firms or see application screenshots, let me know—I’m happy to share!