Best Crypto Prop Trading Firms 2023: A Complete Review
The crypto market has boundless opportunities for traders to enjoy high profits. However, with high rewards come high risks. Not every trader has the risk appetite or the capital to venture into cryptocurrencies. This is where a crypto proprietary trading firm comes in as a bridge that connects the potential of crypto markets for both beginners and professional traders. We have evaluated the best crypto prop trading firms available in the market, breaking down their features, functions, evaluation process, fees, pros and cons, and more.
List of the Best Crypto Prop Trading Firms 2023 – Our Picks:
- The Trading Pit – Best for Multi-Asset Trading
- Crypto Fund Trader – Ideal for Crypto futures enthusiasts
- FTMO – Most Reliable Crypto Trading Firm
- Myfundedfx – The Most Trader-Friendly Prop Firm
- Lux Trading Firm – Best for Crypto Traders
Top Prop Trading Firms for Crypto 2023 – Detail Review
1. The Trading Pit
Trading Pit is one of the best crypto proprietary trading firms, progressively widening its scope for high crypto engagement. Based in Liechtenstein and operating from offices in Canada, Cyprus, and Spain, the Trading Pit has a one-step trading challenge and keeps up to 80% of the profits. It is esteemed to provide trading opportunities across various trading assets, including cryptocurrencies. With its risk management tools and strategic approach, the Trading Pit aims to generate stable profit targets for beginners and seasoned traders seeking flexibility and an array of advanced trading tools such as StereoTrader, Squawkbox, Economic Calendar, and CME Heatmap.
Features
- Profit split – up to 80% profit share
- Registration fees – Minimum registration fee of $99 for a Lite account
- Evaluation – Register, choose a challenge, and show trading skills as crypto prop traders
- Supported cryptocurrency – Bitcoin, Litecoin, Ripple, Bitcoin Cash, Dash Cash, Ethereum, Cardano, Polkadot, Chainlink, EOS
- Leverage for Crypto – 1:30
- Max Capital – $5,000,000
- Price compared to another platform – Low
Pros
- Objectively reasonable challenges starting at $99
- Power of multi-asset trading, including CFDs, futures, and crypto
- Low entry threshold, offering favorable cooperation conditions
- Lots of educational articles, webinars, and guides
- Essential trading tools, including a calculator, economic calendar, and more
Cons
- Lack of free plans or demo trading accounts
- High experience and qualification requirements in challenges for experienced traders
2. Crypto Fund Trader
Crypto Fund Trader is one of the best prop trading firms that supplies required capital to professional traders and shares their profits. Funded traders can trade across multiple markets, including forex, crypto, commodities, stocks, and indices, with their demo funds and still make a profit. The crypto proprietary trading firm focuses on evaluating the capabilities of every new and experienced trader and helping them witness professional growth through crypto trading. Crypto Fund Trader funds talented traders with up to $200,000, out of which they can earn 80% of the profits.
Features
- Profit split – 80%
- Registration fees – One-time registration fee
- Evaluation – Two Funded Trader Programs having one/two phases during which the ability is confirmed
- Supported cryptocurrency – 28 cryptocurrencies, including Bitcoin, Polkadot, Bitcoin Cash, and Dogecoin
- Leverage for Crypto – 1:100
- Max Capital – $200,000
- Price compared to another platform – Low to Moderate
Pros
- Low funding barriers with a $50 registration fee and $5000 funding capital.
- Retains only 20% of the profits and shares 80% with crypto traders.
- No time restriction for evaluation
- KYC verification via CoilScope ensures security and responsible crypto and forex trading
- Freedom of crypto news trading
- No recurring trading fees
Cons
- Lack of important advanced tools and scaling options for skilled traders
- A relatively new proprietary firm in the prop trading industry
FTMO is one of the best proprietary trading firms used by hundreds and thousands of successful traders who can initiate their trading career with a maximum capital of $400,000 and a maximum leverage of 1:100. It supports a wide range of trading platforms, payment systems, crypto assets, and trading instruments. Both challenge and verification stages are essential to gauge the potential of prospective traders. The business model of FTMO is essentially based on successful traders – the more profits generated, the more revenue the firm makes through shared profits.
Features
- Profit split – Up to 90%
- Registration fees – one-time fees, $155 refundable for FTMO Challenge
- Evaluation – FTMO Challenge, Verification, FTMO Trader earns real money
- Supported cryptocurrency – Bitcoin, Ethereum, Litecoin, Ripple, and Dash
- Leverage for Crypto – 1:100
- Max Capital – $400,000 per strategy/trader
- Price compared to another platform – Moderate
Pros
- Multiple available cryptocurrencies and fiat currency
- Shares 90% of profits with a revenue share model
- A refundable fee after the evaluation process
- Offers valuable support and educational resources to achieve financial success
Cons
- Investors need to complete two stages for the evaluation process and verification.
- Not suitable for derivatives, stocks, and futures trading
4. Myfundedfx
Crypto and forex traders looking for a good prop firm in the prop trading arena can check out MyFundedFX and access considerable capital with maximum offerings of $600,000 and profit sharing of 80%. MyFundedFX prop trading firms offer a two-step challenge, including the evaluation and funded phases. Unlike other crypto trading prop firms, MyFundedFX has no minimum trading day requirement. This gives unlimited time for traders to reach targets. The platform has simple trading rules suitable for various trading styles, including swing and news trading.
Features
- Profit split – up to 80%
- Registration fees – Refundable registration fee of $50
- Evaluation – Take the challenge, get verified, and give a live simulated account
- Supported cryptocurrency – 20 crypto coins including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Stellar Lumens, Avalanche, Polkadot, Chainlink, Solana, and Uniswap
- Leverage for Crypto – 100:1
- Max Capital – $600,000
- Price compared to another platform – Medium to High
Pros
- Fast funding in a single process
- Advanced trading platforms for crypto trading with EightCap
- Up to $1.5 million in capital
- Generous profit split of 80%
- Excellent reputation with minimum negative reviews
Cons
- Limited educational resources
- No demo or free trial feature
5. Lux Trading Firm
Lux Trading Firm is a career training program that exposes every trader to the crypto market and teaches them how to trade responsibly. Users can trade their fully funded accounts with a maximum capital of $10,000,000. The proprietary trading software offers a free trial. With three simple steps, users can get funded without any time limits. The programs include educational resources on crypto and other financial instruments and mention the rules of engagement with profit sharing of up to 75%.
Features
- Profit split – up to 75%
- Registration fees – 50% refund fee for the demo account
- Evaluation – Performed on the demo account
- Supported cryptocurrency – Over 500 supported crypto, including Bitcoin, Ethereum, Litecoin, USD Tether, and more
- Leverage for Crypto – 1:5
- Max Capital – $10,000,000
- Price compared to another platform – High
Pros
- A huge amount of capital of up to $10 million
- Open an account with $200,000 and perform quick scaling in six stages
- An array of tradable assets, including stocks, bonds, crypto, CFDs, and other financial instruments
- No time limit to hit profit targets
- Multiple trading platforms, including TradingView, Trader Evolution, and MetaTrader 4
Cons
- High refundable fees
- 75% profit splits lower than industry-average
- No current promotions or discounts
What Are Crypto Prop Trading Firms?
Crypto prop firms is a facilitator that allows professional traders a path to navigate the dynamic crypto markets. Many prop trading firms in crypto provide attractive propositions by allowing traders to amplify their profits and minimize personal risk. Through this, crypto prop trading earnings are generated from the trades executed on the best crypto prop trading platforms. These firms differ from traditional forex prop trading firms as they focus on the cryptocurrency market that operates 24×7 and is popular for its high volatility.
On the other hand, the traditional prop trading domain involves trading forex funds, stocks, and other financial assets with variable volatility levels and regular market hours.
How Do Prop Firms for Crypto Work?
Crypto prop trading firms provide access to crypto funds, resources, and innovative trading tools to thrive in the crypto market and allow them to make rational trading decisions and maximize profits. Prop firms that offer crypto lend large amounts of cryptocurrency and allow them to make use of market opportunities to make profits that would otherwise not be accessible using their personal funds. Using the company’s capital helps traders eliminate risks and employ strong risk management strategies.
Benefits of Working With a Crypto Prop Trading Firm
Proprietary trading firms in the cryptocurrency market provide many benefits to crypto prop traders, some of which have been discussed below –
- Access to capital and trading infrastructure
One of the main benefits of working with a crypto prop trading firm to trade crypto is easy access to crypto and forex funds for trading activities. This allows traders to leverage large positions and maximize profits without capital risk.
- Reduced trading risks and expertise in risk management
Using a company’s capital and crypto and forex funds helps traders reduce their trading risks since the company mostly takes care of the losses instead of their personal money.
- Opportunities for professional development and mentorship
Successful crypto traders at a crypto prop trading firm may have various avenues for growth and development within the crypto market, including access to increased profit shares, potential career advancement, and crypto and forex funds. This creates a pathway for professional development and mentorship.
- Potential for higher earnings and profit-sharing arrangements
Prop traders can access additional money with a funded account, having more purchasing power to take larger positions and potentially earn larger profits.
Risks Associated With Crypto Prop Trading Firms
Using a crypto prop trading firm has various benefits for traders, but potential risks are also involved.
- The volatility of cryptocurrency markets and the potential for significant losses
A major concern is The chance of experiencing high financial losses while working with crypto prop trading firms. Even after employing effective risk management and trading strategies, there is a possibility for significant losses as the crypto market is highly volatile.
- Exposure to counterparty risk and potential for fraud
There is also a probability of experiencing counterparty risk that leads to default transactions on the contractual obligation. Different degrees of counterparty risk may exist where individuals and companies cannot make their payments on debt obligations.
- Reliance on the firm’s trading expertise and risk management practices
With the lack of any coherent regulations surrounding crypto, there are few protections against unethical or deceptive management practices. Moreover, the crypto market is relatively new, and these prop trading firms are mostly at their infant stage. Therefore, traders may need to employ proper risk management strategies such as continuous risk monitoring and assessment, loss reduction and prevention, and more.
Tips for Choosing the Right Crypto Prop Trading Firm
Before traders choose a crypto prop trading firm, it is important to consider many factors that may significantly affect the overall trading journey. Here are essential considerations that traders need to keep in mind while choosing the best prop trading website for trading cryptocurrencies –
- Track record of performance and transparency
Conduct extensive research on the track record and reputation of the chosen firm. Select a prop trading website that performs well and has a long history of excellent reviews and successful trading.
- Regulatory compliance and licensing status
There are thousands of liquidity providers in the market, but not all are trustworthy and reliable. Choose a well-equipped crypto property firm that complies with the regulations of its jurisdiction and is regulated and licensed by a well-known regulatory body.
- Reputation within the crypto community and industry recognition
Join a crypto prop trading firm that fosters a sense of community and has a great reputation in the industry. This facilitates easy networking opportunities with other professional traders and allows them to engage with the crypto community of like-minded people who can provide support, valuable insight, and opportunities for further collaboration.
- Trading platform and technology infrastructure
A good prop trading firm will have all the required risk management strategies and tools crucial for trading cryptocurrencies. Consider a firm’s trading platforms and its approach toward risk management to determine whether they align with the trading style of the funded traders.
- Compensation structure and profit-sharing model
Assess the crypto trading firm’s compensation structure and profit targets. Different companies have varied expectations of all performance goals traders expect to achieve.
Is Crypto Proprietary Trading Legal?
The legality of crypto prop trading requires careful understanding and consideration since the answer may vary based on the traders’ jurisdiction. While crypto prop trading is usually considered legal in several countries, it is subject to specific laws and regulations governing crypto trading in a particular region.
How to Stay Safe When Trading With a Crypto Prop Firm
While trading with crypto prop trading firms, it is important for traders to remain safe by carrying out extensive research, understanding the risks involved, setting limits, being wary of the promises of getting high potential returns, and monitoring the trading account. To stay safe, traders must also choose a firm with an excellent track record, examine their liquidity, understand the minimum trading days and trading strategies, and learn about the fees involved.
Conclusion
To conclude, cryptocurrency prop trading firms are the trading desks of the future that merge traditional trading knowledge with cryptocurrency dynamism. Regarding potential returns, the sky’s the limit. Still, it is essential to carry out meticulous research, have grounded expectations, and be committed to learning about crypto trading before using a prop trading firm.
Prop Firm Evaluation: Delving into Our Methodology
- Difficulty: Challenges or evaluations are relatively easier for beginners, requiring only a few simple steps such as registration, performing a few skill-based tasks, and verification.
- Trading platforms: Our list of crypto prop trading forms supports several trading platforms, such as MetaTrader 4 & 5 and proprietary crypto web/mobile trading platforms.
- Customer support: The top prop firms mentioned above have efficient and responsive customer support that provides assistance via live chat and other channels.
- Profit split: Most of the firms in our list of crypto prop firms have a profit split ranging between 75% and 90%.
- Instruments: Traders can use many financial instruments, including forex, crypto, indices, commodities, stocks, CFDs, derivates, etc.
- Cost: On average, a crypto-funded account costs range between $100 to $1000.