Proprietary trading firms were more common in Forex trading than in the Crypto world. But as cryptocurrencies gained popularity, these crypto prop firms started becoming more and more popular in the crypto market. Now, there are a lot of choices for traders like you. However, the tricky part remains: how do you pick and trust the right one? First, let’s discuss why opting for a funded trading account might be a good choice for you.
What are the benefits of proprietary trading firms?
Cryptocurrency propriety trading firms offer traders a major advantage: they provide large sum of money to trade with. As a beginner trader, you can make good profits from your trades without needing to gradually grow your small account.
To join these firms, traders usually need to make a profit of 12-15%. If they succeed, they can get a big amount of money, like $100,000, to trade within 1 to 4 months, depending on how they trade. If they achieve a profit of 10% after verification, they could pocket around $7,000-9,000 as their first paycheck from trading.
But here’s the thing: Before you try to join these firms, you should already be good at making money and feel really confident in your trading skills. The tricky part is that propriety firms mostly make money by selling funded account challenges to traders. So, keep in mind that some people end up paying for these challenges but never get the money to trade. To really make the most of these firms, you have to be a great trader with a solid strategy and know how to manage risks well.
How to choose the right prop trading firm for you?
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Trading conditions
Assess the terms and conditions offered by each firm. Check their profit targets, verification process, and any restrictions or requirements they impose on traders. Additionally, it’s crucial to read all trading regulations and limitations that are in place. Many prop firms have a gambling policy in place that should not be overlooked. Understanding profit-sharing models, fee structures, evaluation timelines, and prospects for progression within the firm is pivotal.
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Funding structure
Understanding how funding operates involves key components: the time it takes for funding approval after hitting profit targets or verification, the initial capital provided, and the criteria for increasing funding. This means understanding how long it takes the firm approves funding, whether they offer a fixed amount or adjust funded account capital based on performance. You can often find this information on the prop firm’s website, under their scaling plan. Another crucial factor is the profit split—whether it remains fixed or increases over time. These aspects significantly influence potential payouts for traders and are essential considerations when selecting a prop trading firm.
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Transparency and Legitimacy
Ensure the firm is transparent about its operations, fees, and terms. Most traders do not care if they are on demo or live account but we would like to disagree on this. Since we saw that this business setup -paying profitable traders from challenges does not work. It is important to have a prop firm that puts traders eventually on real accounts/ copy-trade them and is transparent about its practices. Explore their track records, reviews, and reputation within the trading community to make a whole picture about prop firm.
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Community and Culture
Consider the community aspect. Some of these firms cultivate active and engaging trader communities, creating a supportive environment where traders can share insights, seek advice, and collaborate. These communities serve as valuable platforms for learning, enabling individuals to interact with like-minded peers, gain diverse perspectives, and potentially enhance their trading strategies through shared knowledge and experiences.
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Personal Fit
Lastly, consider your own trading style, goals, and preferences. Choose a firm that aligns with your trading approach and offers the best fit for your needs.
3 Best Crypto Prop Trading Firms
HyroTrader
HyroTrader offers traders the unique opportunity to utilize real capital on a ByBit sub-account, providing access to a diverse range of crypto pairs. What distinguishes them from other prop firms is their competitive fees and spreads, which are among the best in the market due to direct trading on ByBit. With HyroTrader, traders can begin trading on accounts featuring up to $100,000 in capital and retain 70% of their profits. Furthermore, their scaling plan extends impressively up to $1 million. Finally, they enable funded traders to incrementally increase their profit split up to 90%
FTMO
FTMO stands out as a premier crypto proprietary trading firm for several reasons. With an exceptional reputation, they’ve been a distinguished prop firm since 2015. They provide personalized coaching to their funded traders, aiming to enhance their performance. What truly distinguishes FTMO is its capacity to provide substantial funding, with amounts reaching up to $400,000 for successful traders. They offer a wide variety of cryptocurrencies for trading, including popular options like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Polkadot (DOT), and Dogecoin (DOGE), showcasing their commitment to meeting diverse trader needs and solidifying their status as a top-tier crypto prop trading firm.
Bright Funded
Bright Funded offers its own trading platform and a mobile app, allowing traders to stay connected on the go and conveniently adjust their trades. Moreover, they provide the Trade2Earn Program, a pioneering initiative that rewards funded traders based on both their profits and overall trading activity. With a current offering of approximately 25 crypto pairs, Bright Funded also presents a scaling plan and profit split that extends up to $1,120,000.
Summary Table of Crypto Prop Trading Firms
| Prop Firm | Trading platform | Available crypto pairs | Evaluation Target | Refundable registration fee | Profit split | Price | Maximum capital | Known CEO
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| HyroTrader
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By-bit/ Hyrotrade | 100+ | 15% | Yes | 70-90% | 546e | 100 000$ | Yes |
| FTMO | MetaTrader 4/ MetaTrader 5 /Dxtrade/ cTrader | 5 | 15% | Yes | 80-90% | 1080e | 200 000$ | Yes |
| Bright Funded
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BrightFunded | 25 | 13% | Yes | 80-100% | 975e | 200 000$ | Yes |
| Breakout
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Breakout | 50+ (3:1 leverage) | 15% | Yes | 80-95% | 661e | 100 000$ | Yes |
| Crypto Fund Trader | CFT/ MetaTrader 5 | 30+ | 12% | NO | 80% | 910e | 200 000$ | NO |
Have you found the right Crypto Prop Trading Firm for you, or are you still deciding?
Explore HyroTrader funded accounts and start your crypto trading journey now.