List Of Prop Trading Firms in London (Plus FAQS) (2024)

Proprietary trading is a type of trading, in which a company or institution invests its own money in stocks, commodities, bonds, and other financial instruments.

A prop trading firm invests for direct market gain rather than generating commission dollars by trading on behalf of clients.

Prop trading is a great option for beginners with small funds. It provides a cost-effective way to study, practice, and finally become a professional. Some of the prop trading firms require the trader to provide some or all of their initial investment.

Some prop trading firms stand out in certain strategies or products more than other firms. For futures traders, one prop trading firm may offer excellent infrastructure and risk measures, while other firms might have that for experienced stock traders.

So, regardless of what you want to trade or how you want to trade, we have compiled a list of prop trading firms in London that are good.

  • Lux Trading Firm
  • Ronin Capital
  • Liquid Capital
  • DRW Trading
  • Principle Trading
  • Rosiem Capital
  • Maven
  • Top Step Trader
  • Winchmore Capital
  • Bluefin
  • GHCO
  • CTC Trading
  • ADG
  • Jane Street

Contents

  • 1 What Are The Best Prop Trading Firms?
  • 2 What Do Trading Firms Do?
  • 3 How Much Do Trading Firms Pay?
  • 4 Are Forex Prop Firms Legit?

What Are The Best Prop Trading Firms?

The amount you get from prop trading is entirely dependent on the level of risk you take. The higher the risk, the higher the profit. It is one of the primary reasons why some people invest in prop trading while others refuse to.

The risk of proprietary trading is high, as is the possibility for profit. Choosing a Proprietary Trading Firm is never simple, especially if you are a beginner looking to make the most out of your money.

List Of Prop Trading Firms in London (Plus FAQS) (1)

Since there are so many prop trading groups out there, we have compiled a list of the best paying and no evaluation prop trading firms to make your process of finding the greatest proprietary corporation online much easier and you may want to join even if you are a complete newbie.

The following is a list of the top proprietary trading firms, along with their most popular features:

  • Surgetrader – Best overall.
  • MyForexFunds – Best for those who want to skip evaluation.
  • Fidelcrest – Best for crypto experts.
  • FTMO – Most secure platform.
  • TopStepTrader – Best for Futures traders and Forex.
  • City Traders Imperium – Best for gold, Forex, and indices.
  • Lux Trading Firm
  • Leeloo Trading
  • Jane Street
  • The 5%ers

The above mentioned prop trading firms are popular among most traders. These prop trading firms are the ideal alternative if you have a great plan and want to put it into practice on the market without risking real money.

You can use your trading abilities to make passive money by using their 5K, 10K, 25K, 50K, or even 100K plans.

What Do Trading Firms Do?

Prop trading is a type of trading in which a financial business decides to profit from market activities rather than thin-margin commissions earned from client trading. Stocks, bonds, commodities, currencies, and other items may be traded in proprietary trading.

Traders can trade with a pool of capital rather than their own money, and they get a portion of the profits. Working for one of these “proprietary trading” or “prop” firms can be a rewarding job.

This is a form of trade that banks and other financial institutions engage in to make extra money. In terms of market information, such firms frequently have an advantage over the average investor. Another benefit is the availability of advanced modeling and trading software.

List Of Prop Trading Firms in London (Plus FAQS) (2)

To optimize returns, prop traders use tactics like index arbitrage, merger arbitrage, global macro-trading, and volatility arbitrage. Private traders have access to sophisticated tools and data pools to aid them in making important judgments.

Traders are in charge of setting pricing and executing trades in shares, bonds, commodities, and foreign exchange, usually for the benefit of or on behalf of investment banks.

Although prop trading is commonly considered risky, proprietary trading is often one of the most profitable options for a commercial or investment bank.

How Much Do Trading Firms Pay?

Prop trading is considered one of the highest paying professions. In London, with more than 10 years experienced trader makes an average of £400,000 to £700,000 per year, whereas a beginner trader with almost two years of experience earns £49,000 to £90,000 per year, depending on their performance.

Prop traders’ earnings in the United States vary from $42,373 to $793,331 per year, with a typical of $203,679 per year. 57% of the middle prop traders earn between $203,679 and $400,084, while the top 86% prop traders earn about $793,331.

Simply put, every trader is given a base pay, which is often quite low at the entry level, around $40,000. Later, when the trader is experienced, they will be profiting more.

List Of Prop Trading Firms in London (Plus FAQS) (3)

There are also chances of getting a great number of bonuses depending on your performance. The better your performance, the higher the bonus.

Sometimes your bonus can easily be 2 or 3 times your base pay, which will be the meat of your pay. On the other hand, your bonus could be absolutely nothing.

Are Forex Prop Firms Legit?

The short answer is yes!

Prop trading is a legitimate business. A good trader can pass an evaluation, pay a one-time charge, receive a funded account, and gain access to the capital of a prop trading firm.

If they continue to trade profitably, they will be given more funds to trade with (up to $2 million in many cases) and will be able to keep a large share of the gains.

List Of Prop Trading Firms in London (Plus FAQS) (4)

Prop trading businesses are not a fraud, and they can help traders grow their capital and transition from a pastime to a profession. Having said that, obtaining funding from a prop firm is difficult, and the majority of traders would fail.

Prop trading firms are always looking for traders to trade commodities, forex, crypto currencies, and other assets. You must finish a two-phase evaluation program to become a Fidelcrest trader. Micro Trader and Pro Trader are the two trading systems available.

Most prop traders profit by receiving a percentage of the profits generated by trading on behalf of a prop trading firm.

List Of Prop Trading Firms in London (Plus FAQS) (2024)

FAQs

What percentage of traders pass prop firm challenge? ›

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

How much does the average prop firm trader make? ›

The salary of a prop trader can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.

What are the negatives of prop firms? ›

Among many other potential factors, the main disadvantages of prop trading arise from being classified as a market professional, unfavorable profit sharing, and whether your net trading profits are taxed as capital gains or ordinary personal income.

Is it hard to get funded by a prop firm? ›

Becoming a funded trader with a prop firm involves showcasing your trading skills and adherence to risk management during an evaluation process. While the difficulty can vary, it's achievable with consistency, dedication, and a solid trading approach.

What if a prop trader loses money? ›

Profits from trades are generally divided between the firm and the prop trader; however, the risk distribution is asymmetric. This means that in the event of a loss, the trader bears 100% of the losses, while they don't receive 100% of the profits.

Which prop firm has the fastest payout? ›

Who offers the quickest payouts among prop trading firms? FunderPro stands out for its rapid payouts in the prop trading industry. With some competitors taking weeks to process payouts, FunderPro prioritizes swift transactions, ensuring traders receive their earnings promptly.

How many hours do prop traders work? ›

Typical Workweek. Overall, prop traders can expect to work around 50 hours per week, with some days stretching to 12-14 hours. Ultimately, the primary concern for prop trading firms is the profit and loss ratio. If traders consistently produce positive results, the exact number of hours worked becomes less significant.

How stressful is prop trading? ›

Prop trading can be highly stressful due to the fast-paced nature of markets and the pressure to make split-second decisions.

Can you make a living trading for a prop firm? ›

As a result, anyone can be profitable as a prop trader because profitability is linked to their experience and skills, strategy, and ability to generate gains by trading in the market with the firm's capital.

How is prop firm income taxed? ›

As independent contractors, prop traders are subject to self-employment tax, covering Social Security and Medicare contributions.

Do you have to pay a prop firm back? ›

When you are trading with a prop firm, your losses are usually limited to the foregone risk of your challenge/account fee. You are generally not liable for the prop firm's lost funds.

Why is proprietary trading bad? ›

Personal Risk: One of the significant drawbacks of prop trading is the potential personal financial risk. If a trader doesn't perform well, they may lose their deposit, and in some cases, their job. Loss Limitations: Prop firms often implement daily loss limits to protect their capital.

Which prop firm is better than FTMO? ›

FTMO 's top competitors in July 2024 are: FunderPro, the5ers and more. FunderPro is currently rank as the number one on the list of top Forex Prop Firms.

Do prop firms really pay out? ›

Statistics on Average Trader Payouts

Profit Split: The average prop firm will offer a 80-20 profit split once you become a funded trader. TFT, on the other hand, gives up to a 90% split, — even as high as 95% in some promotions — the highest in the industry.

Is FTMO trustworthy? ›

Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.

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