Prop Trading Firms Canada 2024 - ProprietaryFirms.com (2024)

FAQs

Are there prop firms in Canada? ›

Prop trading firms in Canada like E8, Audacity Capital, and Lark Funding are redefining opportunities for traders nationwide. However, there are more reliable firms accepting clients from Canada, allowing for profitable Forex prop trading.

Also known as “prop trading,” it offers higher earnings potential much earlier in your career than jobs like investment banking or private equity. It's arguably the most merit-based industry within finance: if you make millions of dollars for your firm, you'll earn some percentage of it.

It is not illegal to operate or trade with a prop firm. However, where most online prop firms come unstuck is in their business practices and terms of service. Some of the largest prop firms that I'm sure you would have heard of have fallen victim to these mistakes over the last few months.

FTMO (Funded Trader by MyOwn) is arguably the most well-known forex prop firm globally. Founded in Prague in 2017, it has funded over 60,000 traders worldwide with over $350 million. FTMO offers Canadian traders access to a pool of up to $200,000 to trade risk-free.

Yes, you can still earn a Funded Account as a Canadian. Many U.S. brokerage firms do not open Canadian accounts due to regulatory concerns. However, as a proprietary trader with Topstep, you would be trading on a sub-account of a master account; because of this distinction, it would be considered a U.S.-based account.

Funder Trading stands first in our list of the top prop trading firms in 2024 due to multiple reasons but notably it is the only prop trading firm that offers options funding and includes coaching for every trader signed up.

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.

The average prop trading salary in the USA is $210,000 per year or $101 per hour. Entry level positions start at $146,300 per year while most experienced workers make up to $250,000 per year.

Remote prop trading firms such as Apex Trader Funding or Leeloo Trading issue Form 1099-MISC to their independent contractors. Based on this, traders report their income on Schedule C of Form 1040 to report income or loss from a business you operated or a profession you practiced as a sole proprietor.

Do you need a license to be a prop trader? ›

Prop trading firms are less heavily regulated than regular brokerages and broker-dealers. However, if such laws apply, you must still properly register your business and get licensed.

The one prop firm that is safe and reliable for US clients: RebelsFunding. RebelsFunding is a prop firm that offers unique trading programs for forex traders. They provide traders with training accounts that they can use to trade and earn commission without the risk of losing their own funds.

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.

OneUp Trader

OneUp focuses trader education through their S3 Partners services. As one of the most affordable prop firms, OneUp Trader lowers barriers to trading with funded accounts. Between their proprietary analytics and educational emphasis, OneUp takes trader development seriously.

Base salary: Most prop trading firms offer their traders a base salary, which is usually paid on a monthly or annual basis. This salary can range from $50,000 to $100,000 for junior traders and can go up to $500,000 or more for senior traders.

A prop firm is a company offering prop traders an opportunity to use their skills to trade for them. The company provides traders capital that they can use to trade stocks, commodities, futures, derivatives, and currencies. This means that you have the freedom to choose what you want to trade as a trader.

In a typical challenge model, the prop firm will give the trader a certain amount of virtual money to trade with. The trader will then have to meet certain profit targets in order to pass the challenge. Once they pass the challenge, they will be given a funded account that they can use to trade with real money.

In most cases though one can expect to pay a flat monthly fee, set up fee and in some cases a fee per account. Once again, each software provider varies with their pricing with some only charging per demo. As a general rule one should expect to pay at least $50,000 to operate a prop firm for one year.