The US is home to the world’s most traded currency and its second-biggest Forex market. Some US prop firms deploy a monthly subscription plan for live capital in unleveraged trading accounts, while others follow the traditional retail model. How do you know when you’re dealing with trustworthy prop firms in the US?
Read my in-depth review of American prop firms, learn the pros and cons, and see my quick guide to choosing a prop trading account in the US.
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4.8/5The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.A maximum profit share of 90% & cryptocurrency withdrawalsA free $10,000 demo challenge to qualify for a paid-for evaluation 2 
4.7/5The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.A maximum profit share of 90% & cryptocurrency withdrawalsA free demo trial & DXtrade for US-based prop traders
- Sabiotrade, daily trading signals on the Quadcode platform and full-year mentorship.
- FTMO, the best prop trading firm with a genuine path for salaried prop traders.
Sabiotrade
In Summary daily trading signals on the Quadcode platform and full-year mentorshipTraders receive the Quadcode-powered trading platform, the one IQ Option offers, as a desktop platform, web-based alternative, and mobile app. It makes SabioTrade stand out since it does not offer algorithmic trading. It also differentiates itself from other retail prop trading firms by offering trading signals and a full-year mentorship. Therefore, I rank SabioTrade among the best prop firms in the USA.
SabioTrade offers five account plans from $20,000 to $650,000 for a one-time evaluation fee between $119 and $2,989. The maximum leverage is 1:30 with a 10% profit target, no minimum trading day requirements, and a maximum drawdown of 6%.
Pros & Cons
- Dashboard-integrated trading platform by QuadCode Markets
- Quick 1-step assessment
- Funded accounts $10,000-$200,000
- Profit share between 70% and 90%
- No weekend positions
FTMO
In Summary the best prop trading firm with a genuine path for salaried prop tradersI rank FTMO among the best prop firms in the USA as it offers traders a clear path to transition from retail to professional prop trading with a contract and a fixed salary. Prop traders can choose from five funded accounts starting at $10,000 with a one-time €89 evaluation fee and a maximum of $200,000 for €1,080. The maximum leverage is 1:100.
FTMO allows the usage of EAs, features a premium program, and requires traders to trade for at least four days during the evaluation. The two-step verification has a 10%-5% profit target with a maximum drawdown of 10%.
Pros & Cons
- Reasonable profit targets and generous maximum loss levels
- 80% to 90% profit share with a fast withdrawal process
- Customizable two-step evaluation period with free retrials where applicable
- MT4, MT5, and cTrader accounts with generous leverage
- No information about which broker or brokers FTMO uses
Is Forex Prop Trading a Good Idea in the US?
Every trader must answer the viability of prop trading based on their preferences, skills, and strategy. While prop firms in the US provide capital, they also implement strict risk management rules, potential consistency rules, strategy restrictions, or uncompetitive trading rules.
Rules and Regulations of Prop Trading in the US
Retail prop firms remain duly registered companies, but they are unregulated. They partner with regulated brokers that provide the trading infrastructure. The rules of prop trading depend on the prop firm but consist of strict risk management rules and trading strategy restrictions. Therefore, each potential prop trader must carefully evaluate the prop firm and conclude if it fits their strategy.
Pros and Cons of Prop Trading in the US The Cons of Prop Trading
Before paying for a funded account evaluation or monthly subscription, I advise traders to consider the pros and cons of prop trading in the US.
The Pros of Prop Trading
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with trusted brokers
The Cons of Prop Trading
- Unregulated business
- Time zone is not ideal for trading the London trading session
- Tight risk management rules
- Some consistency rules make select trading strategies uncompetitive
- Not all prop firms allow algorithmic trading
- Performance pressure
- Inexperienced traders rush to prop firms offering educational content
How to Choose a Prop Trading Account in the US
Many prop firms have similar core trading conditions, but differences exist. I recommend traders evaluate the trading conditions and risk management rules of prop firms in the US diligently.
Prop traders should ensure their prop firms excel in the following aspects:
1. Reputation - Prop firms are unregulated but duly registered businesses, and traders should avoid newly established ones.
2. Trading Costs - Traders must compare monthly subscription fees versus one-time evaluation fees and associated trading conditions. Trading fees depend on the partner broker of prop firms.
3. Trading Platform - Most prop firms in the US offer TradeLocker for algorithmic trading and DXtrade for manual traders.
4. Profit Split - Prop traders should only consider a profit split of 80%+.
5. Asset Selection - Most prop firms in the US allow Forex, cryptocurrencies, commodities, equities, and futures.
6. Trading Strategies - Trading restrictions that impact the viability of strategies exist at almost all prop firms in the US.
7. Support - Prop traders should ensure fast, responsive customer support, as trading with legitimate prop firms involves a contract and the receipt of payouts.
8. Payouts - The best prop firms in the US allow cryptocurrency transactions, but bank wires remain the primary option.
What Can You Trade with a Prop Firm in the US?
The best prop firms in the US offer Forex, cryptocurrencies, commodities, metals, equities, ETFs, and futures, but the asset selection always depends on the prop firms, their partner broker, and their trading conditions.
Bottom Line
The best prop firms in the US can assist skilled traders in transitioning to full-time trading, but they can also limit the successful execution of trading strategies based on their trading rules and restrictions. While most prop firms present themselves as professional businesses, prop traders must evaluate and understand the trading rules and restrictions.
Prop traders should also consider that most retail prop firms rely on evaluation fees or monthly subscriptions for their income. Regulators label it shadow trading or a trading game as no live trading occurs. Therefore, US-resident prop traders must carefully evaluate prop firms before applying for a fee-based evaluation.
