Are There Any Prop Firms/Funded Trader Programs For Options Traders?

minmike said:
Options are tough for prop. Either you are well capitalized with an expensive set up for market making, or you are position trading them. The low frequency of position trading makes it hard to accumulate statistical significance.
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Yeah all good points I agree with. Although I suppose the angle is if you have a decent handful of directional options traders as a portfolio build a statistical significance
 
You could do an IB friends and family account that lets you trade 15 accounts from a master account and charge them a share of the profits.
 
tommo said:
https://daytradingz.com/best-funded-trader-program/

This article lists a few
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Thank you, but I would not exactly say that those firms actually fund traders. At best, they give you $5K of margin.

Could be worthwhile for someone who's completely new to the business as an alternative to pure simulator trading. Or for someone who's so broke that they literally only have $350 to their name.

If not - no reason to not put up $5K to trade your own account, IMO.
 
Laissez Faire said:
Thank you, but I would not exactly say that those firms actually fund traders. At best, they give you $5K of margin.

Could be worthwhile for someone who's completely new to the business as an alternative to pure simulator trading. Or for someone who's so broke that they literally only have $350 to their name.

If not - no reason to not put up $5K to trade your own account, IMO.
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Hmm If that’s the case then I agree no point. But was under the impression they can back you up to a couple hundred grand based on hitting their performance thresholds
 
tommo said:
Hmm If that’s the case then I agree no point. But was under the impression they can back you up to a couple hundred grand based on hitting their performance thresholds.
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False advertisement I'm afraid. There firms have been thoroughly exposed on this forum through various threads.

They call it a $150K account, but the maximum drawdown is $5K. Usually, there's a scaling plan, too. Meaning you can't start trading more than 3-5 contracts on your live account. So, basically they're giving you $5K to trade with. If you lose that or break a rule you're done - regardless of your results in the evaluation. They'll be happy to let you try again for $350, though.

I reasoned that maybe eventually such a firm would truly stake you if you show yourself to be a good trader with the live account, but I've seen no proof of that and sincerely don't believe that to be the case. It's basically a modern day bucket shop.

Let's get back on topic.

Do you have any capital to put up yourself?

I was recommend to check out T3 Trading Group by a friend. He uses some of their services, but have no experience with the get-funded part of the company. Neither have I. But I did talk with them briefly about it and they seemed like good people. Basically, you have to put up your own money, unless you have a track record to show them.

I now see that they offer options, too. I have no idea if they're legitimate and at this point I'm starting to think that everyone in this business are charlatans, but who knows... :)

If you reach out to them - it would be nice to hear how it goes. I declined their offer at the time being and am currently trading my own capital strictly, but I don't rule out trading with them eventually.

https://www.t3trading.com/

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I know that list of firms.
https://www.traderslog.com/proprietarytradingfirms

Mostly this firms are something around liquidity providing on US stocks, US futures or EU stocks/futures markets.
So probably you can be EMPLOYED here as a good quant, data engineer, software engineer or may be a trader with math/statistics skills. So it's not a pure capital raising...
 
Last edited:
In response, I would like to ask the following question...
If I coming to some prop firm (in US or in London for example) with "non-standard" idea
to trade something in derivatives on emerging market exchanges (for example India, Korea, Brazil and etc.) or even crypto exchanges...
Then what is expected annual return from this adventure should be,
that prop firm holders can think about opening this line?

1m$ annually? 10m$ annually? 100m$ annually?
or even less than 1m$ annually?

I really don't know how economics of this process
are looks like for firms, will be happy for your advices
 
spriteork said:
In response, I would like to ask the following question...
If I coming to some prop firm (in US or in London for example) with "non-standard" idea
to trade something in derivatives on emerging market exchanges (for example India, Korea, Brazil and etc.) or even crypto exchanges...
Then what is expected annual return from this adventure should be,
that prop firm holders can think about opening this line?

1m$ annually? 10m$ annually? 100m$ annually?
or even less than 1m$ annually?

I really don't know how economics of this process
are looks like for firms, will be happy for your advices
More...

Generally prop firms wouldn’t consider someone joining that wanted to trade on markets or exchanges they weren’t already familiar with. The turnover of people coming in to prop firms with grand ideas that don’t end up making money means it’s just not worth their time and effort getting access to various new exchanges, the risk of trading a market they aren’t familiar with etc.

If however you approach them with a successful track record trading a new market and offer to fund the initial risk and setup they will welcome you with open arms as it’s a new way for them to diversify. But I think you would need to have shown in excess of $200k in profits a year for someone to take you on trading a new market.

But if you were looking to join a firm trading traditional markets that’s very different. Entry requirements much lower.
 
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