Best Options Prop Trading Firms 2024 – Modest Money

As a seasoned options trader, you’ve decided it’s time to up your game by joining a proprietary trading firm. The appeal is evident: prop trading firms provide the capital to fund your trades, potentially giving you access to significantly more capital than you currently have. In exchange, they take a portion of your profits, making it a potentially lucrative stepping-stone in your trading journey.

Top Options Prop Trading Firms

Maverick Trading

Maverick Trading has earned its reputation as one of the premier proprietary trading firms, particularly known for its emphasis on education, risk management, and trader development. Unlike other firms that may prioritize rapid growth or volume of traders, Maverick takes a more refined approach, focusing on cultivating a community of well-trained, knowledgeable, and disciplined traders.

At Maverick, the journey begins with a structured training and mentoring program, making it an ideal choice for both new traders and those looking to refine their skills. This program covers everything from the basics of trading to advanced strategies, ensuring that traders are well-prepared to navigate the complexities of the financial markets.

The firm’s comprehensive approach to education is unmatched, offering traders the tools they need to not only succeed but to thrive in the competitive world of trading.

Full Maverick Trading Review

What sets Maverick apart is its commitment to risk management. The firm’s unique risk management model ensures that traders operate within well-defined parameters, minimizing potential losses and promoting sustainable trading practices. This approach not only protects the firm’s capital but also instills a disciplined trading mindset in its traders—something that is crucial for long-term success.

Maverick offers opportunities in both options and equities trading, providing a diverse range of trading avenues. Those who successfully navigate Maverick’s rigorous evaluation process are welcomed into a supportive environment that fosters growth, camaraderie, and continuous learning.

With a strong focus on integrity and transparency, Maverick Trading truly stands out as the best choice for those serious about excelling in the prop trading industry. Click here to get started with Maverick Trading.

TradeFundrr

TradeFundrr has positioned itself as an innovative player in the proprietary trading landscape, particularly with its unique approach to capital allocation and trader development. Unlike more traditional prop firms, TradeFundrr operates with an open-door policy, welcoming traders of all experience levels. This inclusive model, however, comes with its own set of challenges.

While TradeFundrr’s model is built on trust and empowerment, providing traders with access to firm capital from the outset, it may not always translate into long-term success. The lack of a stringent evaluation process could mean that traders are not as rigorously prepared as they would be in other firms, potentially leading to higher failure rates.

On the plus side, TradeFundrr offers a wide range of trading opportunities, including equities and forex, ensuring that traders can diversify their portfolios. Their state-of-the-art trading platform and access to global markets keep traders connected to the latest market trends.

However, the firm’s heavy reliance on continuous learning and mentorship, while beneficial, may not be sufficient for traders who need more structured guidance to achieve consistent profitability.

In summary, while TradeFundrr’s trust-based capital allocation and diverse trading opportunities are appealing, the lack of a rigorous selection and evaluation process may not be ideal for all traders. Those looking for a more structured and disciplined approach to trading may find Maverick Trading to be a better fit.

T3 Trading Group

T3 Trading Group prides itself on being a hub for elite traders, offering access to firm capital, great locates for short selling, and a competitive trading environment. However, this elite status comes with significant barriers to entry that may not be suitable for everyone.

To start with, T3 Trading requires traders to pass the SIE and Series 57 exams, which can be both time-consuming and costly. While these exams ensure that traders have a solid understanding of the markets, the process can be daunting for those new to the industry.

Additionally, T3 Trading’s requirement for a minimum risk capital contribution of $7,500 places a significant financial burden on traders, making it one of the more expensive firms to join.

Once inside, traders benefit from a supportive environment, with access to one-on-one mentorship and group discussions. However, the lack of a straightforward evaluation program means that traders must prove themselves through other means, which can be a longer and more uncertain path to success.

While T3 Trading offers a comprehensive and supportive environment for those who can afford it, the high startup costs and rigorous entry requirements may deter many potential traders. For those seeking a more accessible and structured approach to prop trading, Maverick Trading presents a far more appealing option.

SMB Capital

SMB Capital is known for its highly selective recruitment process, making it one of the more exclusive prop trading firms. The firm offers opportunities in options trading, setting it apart from many others in the industry. However, this exclusivity comes at a price.

Unlike other firms that have established evaluation programs and onboard thousands of traders globally, SMB Capital takes a much more targeted approach, offering only a handful of seats on its trading desk. While this ensures that only the most promising candidates are accepted, it also means that many traders may never get the chance to join.

SMB Capital’s focus on trader development is commendable, providing an environment that nurtures traders from beginners to consistent profit-makers. But, the firm’s profit split of 20% trader versus 80% company is far from competitive, especially when compared to other firms that offer much more favorable terms. Additionally, the high desk fees further diminish the attractiveness of this firm, particularly for those who are just starting out.

In conclusion, while SMB Capital’s emphasis on quality over quantity is admirable, the unfavorable profit split and high fees may outweigh the benefits for many traders. For those looking for a firm that offers both quality training and a fair profit-sharing model, Maverick Trading remains the top choice.

The Hurdle: Prop Trading Firms and Options Trading

However, your research might have hit a bit of a snag. Many of the well-known prop trading firms, such as FTMO, Surgetrader, TopStep, and Fidelcrest, appear to concentrate mainly on futures, forex, and equities trading.

Despite your demonstrated expertise and success in options trading, it seems this area doesn’t feature prominently in their offerings. You may be left wondering, why is this so?

Why Not Allow Options Trading?

First, let’s understand what options trading entails. As you know, options are derivative instruments that offer the potential for high returns due to their leveraged nature.

However, they also carry significant risk and require a solid understanding of the market, volatility, and time decay to be traded effectively. They are also complex instruments with many different strategies and risk/reward profiles.

Now, let’s look at why most funded trader programs do not allow options trading:

• Risk Management: Prop firms use their own capital to fund traders and therefore have stringent risk management practices. Due to the higher risk and potential for significant losses associated with options trading, prop firms may avoid these instruments to protect their capital.
• Lack of Standardization in Options Trading Strategies: While the basics of options are standardized, the strategies that can be used with options are not. There are a wide variety of options strategies, each with their own risk and reward profiles. This lack of standardization can make it difficult for a prop firm to effectively monitor and manage risk.
• Complexity: Trading options requires a deep understanding of a range of factors, including the Greeks (delta, theta, vega, and rho), implied volatility, and how these elements interact with each other. While you may have mastered these complexities, from the prop firm’s perspective, not all traders have the necessary knowledge to handle these intricacies effectively, which can result in amplified risk.
• Scale and Liquidity: Prop firms often need to manage large amounts of capital, and thus, they typically choose markets that offer high liquidity and the ability to scale positions easily. Options, especially those written on less liquid underlying assets or with near expiry dates, may not offer the same level of liquidity.
• Regulatory Hurdles: Offering options trading could mean dealing with additional regulatory and compliance requirements. This is an added complexity that many prop firms might choose to avoid.

However, this is not to say that opportunities do not exist. Some traditional prop trading firms do allow options trading, though their business model differs. These firms may require you to contribute a portion of your own capital and undergo a rigorous vetting process. Continue reading to see these firms highlighted below.

Trading with Leverage

While options trading and leveraged trading via a prop firm are different, both allow traders to control a larger position with a smaller amount of capital.

Understanding the Basics

In options trading, you pay a premium to control a certain amount of an underlying asset until the option expires. The leverage here comes from the ability to potentially profit from a large quantity of the underlying asset while only investing a fraction of its actual value.

On the other hand, in prop trading with leverage, the firm allows you to trade with more capital than you’ve deposited. Here, the leverage refers to using borrowed money to increase potential returns.

Options Traders and Leverage

Traders who have been successful in options trading might find they can also be successful in leveraged trading through a prop firm. Many of the skills required are the same: understanding market trends, managing risk effectively, and making educated decisions about entry and exit points.

If you, as an options trader, are considering making the transition, it’s crucial to understand that while the potential for increased profits is there, so is the risk. Trading with leverage means that you can lose more than your initial deposit if a trade goes against you.

Strategies and Learning Curve

It’s also worth noting that the range of strategies available in leveraged trading might be different from options trading. While options strategies can be built around volatility, time decay, and other factors, leveraged trading is usually more straightforwardly focused on the underlying asset’s price movement.

Lastly, though there’s a learning curve when transitioning from options trading to leveraged trading, many prop firms offer educational resources, mentoring, and a trading community, which can all aid in your journey.

Breaking Down Prop Trading Firms

First off, what exactly are options prop trading firms? Put simply, these are firms that provide skilled traders with access to funding for some form of flat fee and/or small share in your profits.

Here are some important aspects of the best prop trading firms to consider:

• Trading platform – Some options prop trading firms allow you to trade directly on their platform or through an integration with a number of brokers, while others don’t have such support. It’s a good idea to ensure your prop firm of choice has the trading capabilities you prefer.
• Minimum deposits – The whole point of prop firms is to help traders get access to tradeable funds. So, a high minimum deposit pretty much defeats the purpose. If you are hoping to get started without breaking the bank, be sure to consider any minimum deposit requirements.
• Trading capital – Some options prop trading firms will provide you with $10,000, while others may fund traders all the way up to $1 million or more. Depending on your comfort level with managing large sums, you may prefer certain options prop trading firms over others.
• Educational resources – Many options prop trading firms provide comprehensive educational platforms, including forums and even ebooks nad webinars. Others, however, may offer little to no educational resources. If you’re more of a beginner or intermediate trader, it might be a good idea to pick a platform that helps you learn.
• Profit targets – Most prop firms require you to meet a given profit goal in a given timeframe. If you don’t, then you can’t secure funding. It’s a good idea to aim for a reasonable profit target through many small wins, rather than shooting for the moon on every trade.
• Daily loss limits – When using an options prop firm, make sure to track your loss limits. If you don’t follow them properly, you can lose your funding.

What to look for in options prop trading firms

In addition to the above features, here are a few more aspects to consider when it comes to choosing the right prop trading firm for you(or options prop firm):

• Track record – You can rest easy with some options prop trading firms as they have excellent ratings on sites such as TrustPilot. This can give you some measure of confidence in their track record.
• Withdrawal policies – You want access to your trading profits, right? Yeah, that’s what we figured. Different funded accounts have different policies in terms of withdrawal, so make sure you understand the policy before signing up.
• Support – Is there a live chat option for quick help? Is there email only? Can you call and speak with a human being? Depending on your preferences, it’s a good idea to see what level of customer support they have.
• Fees – When it comes to fees for prop firms, you should be keeping most of the profits, as in 80-90+%. Ideally, the monthly fee and any other fees will be low as well.

Top Options Prop Trading Firms – Final Thoughts

Choosing a suitable proprietary trading firm as an options trader can be a tasking process due to the peculiarities of options trading and the relative scarcity of prop firms that cater specifically to this niche. However, with the right research, it is possible to find a firm that aligns with your trading style, risk tolerance, and goals.

While the pickings may seem slim in the world of options trading-focused prop firms, you shouldn’t discount the benefits of joining a more generalized prop firm that, while not specializing in options, could provide you with numerous advantages (highest paying prop trading firms).

These firms may offer more extensive funding, a broader trading community, comprehensive educational resources, and rigorous evaluation programs, all of which can help you refine your trading strategies and elevate your trading acumen.

• Broadening your skillset: By choosing to work with a prop firm that trades in different instruments such as futures, forex, and equities, you open yourself to the opportunity of learning new trading strategies, thereby broadening your skillset. This diversification could potentially be beneficial in mitigating risk and maximizing your earnings.
• Funding: While some prop firms that focus on options trading may offer a decent amount of funding, it is often the case that firms focusing on futures, forex, and equities offer more extensive funding options. This increased access to capital could exponentially increase your earning potential.
• Education: General prop firms often have a wide range of educational resources. By joining such a firm, you can learn from a diverse group of seasoned traders and gain insights into different markets. This knowledge can be instrumental in making more informed trading decisions.
• Evaluation: One of the key aspects of prop trading firms is their evaluation process. Prop firms usually have specific evaluation programs in place that traders need to pass to become funded traders. While these evaluations can be challenging, they can also provide valuable feedback on your trading strategies and help you identify areas for improvement.

While there may not be a plethora of prop firms specializing in options trading, this doesn’t mean there are no opportunities available to you. By considering firms that deal in different financial instruments, you could diversify your trading strategies, access more funding, benefit from a wealth of educational resources, and potentially unlock greater earning potential.

Always remember that successful trading is not just about picking the right instruments but also about continuous learning, prudent risk management, and adaptability in a dynamic market.

Choosing the Best Options Prop Trading Firms

The best options prop trading firms will have a reasonable onboarding process and allow traders to keep at least 80-90% of the profits. Fortunately, as shown above, there are many reputable companies that you can trade with. Ultimately, the best options prop trading firm for you will depend on your specific trading goals and preferences