Best Crypto Prop Trading Firms (2024)

Benzinga readers often choose E8 Funding or SurgeTrader as the best crypto prop trading firms.

Crypto prop trading firms are solid options for those looking for high earnings with low risk. They allow selected traders to earn revenue using “house money” — bankrolling the investments with the firm’s funds and sharing a certain percentage of the profits with the company.

Prospective partners must go through an evaluation before receiving their first flush of investing capital. Those who make it through could realize surprisingly high profits with little or no risk to their funds.

Here are Benzinga’s top trading firms for crypto prop transactions.

Quick Look: Best Crypto Prop Trading Firms

• Best for Flexibility: E8 Funding
• Best for Asset Variety: The Trading Pit
• Best for Higher Available Capital: SurgeTrader
• Best for Consistent Scalability: FTMO
• Best for Low-Pressure and Beginning Traders: Funded Trading Plus

Best Crypto Proprietary Trading Firms

Benzinga considers these five firms beneficial for specific purposes and investor types:

Best for Flexibility: E8 Funding

Founded in 2021, E8 Funding has emerged as a major player in prop trading. The firm offers access to multiple cryptocurrencies, giving traders more strategies from which to choose.

E8 Funding puts trader applicants through a two-stage evaluation process. Once they pass, they’re eligible to start trading immediately. E8 offers two account types: the classic E8 and the more advanced ELEV8. Its profit-sharing margins are generous — traders in the classic E8 can keep up to 80% of their profits, and those in ELEV8 can earn up to 90%.

E8 Funding emphasizes risk management through the deployment of stop-loss trading and appropriate position sizing. Its initial fees are reasonable, and account balances can scale up to $1 million.

Best for Asset Variety: The Trading Pit

The Trading Pit is considered to be a top multiasset prop trading firm offering access to several financial instruments. Traders are accepted after mastering certain “challenges,” after which they’re rewarded a profit split of between 50% and 70%. Profit-sharing is scalable up to 80%.

The Trading Pit’s versatility gives traders the ability to grow their skills. Its risk-management philosophy is reflected in its Daily Drawdown and Maximum Drawdown rules governing the maximum loss traders can incur in given time frames or situations.

The Trading Pit is especially known for its advanced technology and High-Frequency Trading methods. For its efforts, the Trading Pit received Trading.live’s Visionary Proprietary Trading Firm award in 2023. Leading review site Traders Union gives the Trading Pit a 9.65 rating out of 10.

Best for Higher Available Capital: SurgeTrader

SurgeTrader won the award for Benzinga’s Best Overall Prop Trading Firm in 2023. The Florida-based firm is supported by a lot of venture capital funding, giving it the ability to offer higher capital amounts to qualified traders. SurgeTrader allows traders to make a living with full-time prop trading by providing a substantial virtual balance.

SurgeTrader offers a 75%-25% profit split, scalable up to 90%-10% with add-on purchases. The Audition process is markedly quicker than other firms; auditioners must earn a 10% profit before drawdown limits kick in. Once approved, a trader can get up to a $1 million balance.

SurgeTrader is relatively low risk — the firm covers losses if maximum loss (up to 4%) and drawdown limits (no more than 5%) are met. Its current leverage ratio for crypto is 10:1.

Best for Consistent Scalability: FTMO

FTMO is a veteran proprietary trading company founded in the Czech Republic in 2014. It puts prospective traders through a two-step test where they are challenged to earn at least 10% of their balance within one month. After meeting that threshold, FTMO gives traders $400,000 and an 80% payout on profits.

FTMO’s Scaling Plan allows traders to gradually build up from their starting balance until they reach a goal. The Scaling Plan encourages traders to exhibit earning consistency, moving their profit-sharing split toward 90%-10% over time. Successful traders can scale up by 25% every quarter.

Best for Low-Pressure and Beginning Traders: Funded Trading Plus

Those who want a relatively easy introduction to crypto prop trading may like Funded Trading Plus. It allows new trading talents to unlock their simulated trading skills with few financial limits.

Applying traders face a two-phase evaluation powered by a simulated trading session. Unlike other firms, Funded Trading Plus doesn’t enforce a deadline to complete the challenge. Once they pass, traders can choose one of three programs that offer an 80%-20% profit split, scalable to 100% if they meet certain benchmarks.

Users trust Funded Trading Plus because they appreciate its generous payouts and scalability of up to $2.5 million.

Understanding Crypto Prop Trading

In proprietary or prop trading, a financial institution uses its capital for transactions — as opposed to regular exchanges that use their clients’ money — to generate bigger returns at an institutional level. In crypto prop trading, investors buy shares in cryptocurrencies.

Prop traders take on all the profits from successful transactions and keep it for themselves and whatever trading partners they may have. They also absorb all the losses. Because exposure to commodities in prop trading is limited to the financial institution’s capital, many prop traders are willing to take on elevated risks and strategies.

Factors to Consider When Choosing a Crypto Prop Trading Firm

Here are some of the factors of crypto prop trading firms to examine closely.

Profit-Sharing Structure

There is no set profit-splitting percentage across the industry, but firms commonly agree to 70-30 or 80-20 splits that favor the partners. For example, in an 80-20 split, the individual trader would receive 80% of the profits, and the firm would get the remaining 20%.

Reputation

A well-regarded firm is easier for partners and investors to trust and is more enticing to traders and financial professionals. Successful crypto prop traders are transparent, have a solid performance record and maintain compliance. Avoid firms with limited marketplace access, legal problems and failing fundamentals.

Security and Compliance

Crypto prop trading firms must keep security measures and regulatory compliance top of mind. The industry is subject to heavy regulation, so crypto prop trading firms need to stay on top of the latest regulatory requirements.

There are specific regulatory frameworks that reflect common industry initiatives, including know your customer (KYC) and anti-money laundering (AML) efforts. Firms should also manage their compliance with regulations addressing data protection, tax compliance, accounting practices and risk management.

Trading Fees

A crypto trading firm may charge a fee for every transaction by a fixed amount or a percentage of the total trade value. Many also work on commission for each trade. Firms might charge management and risk mitigation fees or fees for attaining certain benchmarks. Check with your firm to learn what kinds of fees it charges.

Capital Allowance and Leverage

Capital allowance refers to how much of a tax deduction a firm can make in certain assets or investments. Firms must be aggressive about tax planning and record keeping to administer capital allowance in crypto. Leverage refers to using borrowed funds or financial resources to boost certain trading positions beyond the trader’s capital. It helps firms amplify profits, but traders stand to absorb greater losses than if they had no leverage.

Training and Resources

Professional firms offer access to training programs that help partners navigate the cryptocurrency landscape and discover new strategies. They offer unique tools like simulated trading environments, technical analysis tools and personal development training.

Being aligned with a solid firm makes it easier to network with other traders to share ideas and insights.

Crypto Prop Trading Firms: New Ways to Prosper

Crypto prop trading firms further the cause of novel investment structures in the 21st century. With due diligence, serious consideration and a commitment to hard work and analysis, they can provide unexpectedly strong financial results.

Frequently Asked Questions