The US Prop Trading Landscape
US traders face a unique situation in the prop trading world. While prop trading has exploded globally since 2020, American traders have fewer options due to strict regulatory requirements from the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA). However, several excellent prop firms do accept US traders, primarily focusing on futures markets where regulatory pathways are clearer.
The US prop trading market is dominated by futures-focused firms because futures trading has established regulatory frameworks. Firms like Apex Trader Funding, TopStep, and My Funded Futures have built their business models around serving US traders, offering flexible rules and competitive profit splits despite the regulatory challenges.
Understanding the regulatory landscape is crucial for US traders. The CFTC requires firms offering futures trading to US residents to be registered, which creates barriers for many international prop firms. This has led to a bifurcated market: US-focused firms that comply with regulations, and international firms that restrict US access to avoid regulatory complexity.
In this comprehensive guide, we'll explore everything US traders need to know: which firms accept US traders, why some firms restrict access, how to navigate tax requirements, and how to choose the best prop firm for your trading style.
Why Some Prop Firms Restrict US Traders
Regulatory Complexity
The US has some of the strictest financial regulations globally. The CFTC and NFA require extensive registration, compliance, and ongoing reporting for firms offering futures and forex trading to US residents. Many international prop firms choose to restrict US access rather than navigate this complexity.
CFTC Registration Requirements
The Commodity Futures Trading Commission (CFTC) requires firms offering futures trading to US residents to register as either:
- •Commodity Trading Advisors (CTAs): Firms that provide trading advice or manage accounts
- •Futures Commission Merchants (FCMs): Firms that execute trades on behalf of clients
Registration requires significant capital, compliance infrastructure, and ongoing reporting. Many international prop firms find this cost-prohibitive.
NFA Compliance
The National Futures Association (NFA) enforces CFTC regulations and requires:
- •Minimum capital requirements ($1-5 million for FCMs)
- •Regular audits and compliance reporting
- •State-by-state licensing in some cases
- •Anti-money laundering (AML) compliance
Top Prop Trading Firms for US Traders
After extensive research and feedback from US traders, here are the prop firms that offer the best experience for American traders:
Apex Trader Funding
#1 Choice for US Futures Traders
Apex Trader Funding is arguably the most popular prop firm among US traders. They specialize exclusively in futures trading (ES, NQ, Gold, Oil, etc.) and have built their entire business model around serving US traders. Their one-step evaluation, lack of daily drawdown limits, and 100% profit split on the first $25,000 make them extremely attractive.
Apex uses Rithmic and NinjaTrader platforms, both of which are familiar to US futures traders. They offer accounts from $25,000 to $300,000, with scaling programs available. The firm frequently runs promotions with discount codes, making challenge fees more affordable.
TopStep
Established Leader | CFTC-Regulated
TopStep is one of the oldest and most established prop firms serving US traders. They're properly registered with the CFTC and NFA, giving US traders confidence in their regulatory compliance. TopStep offers both futures and forex trading, though futures is their primary focus.
Their evaluation process is more traditional (two-phase), but they offer excellent educational resources, a supportive community, and reliable payouts. TopStep is ideal for traders who want the security of working with a fully regulated, established firm.
My Funded Futures
Flexible Rules | Weekend Holding
My Funded Futures offers some of the most flexible rules for US traders. They allow weekend holding, have no daily drawdown limits (only overall), and focus exclusively on futures. This makes them ideal for swing traders who want to hold positions over weekends.
Take Profit Trader
Fast Growing | Simple Rules
Take Profit Trader is a newer prop firm that has quickly gained popularity among US traders. They offer a simple one-phase evaluation, competitive profit splits, and focus on futures trading. Their rules are straightforward and trader-friendly.
US-Friendly Prop Firms Comparison
| Prop Firm | Max Funding | Profit Split | Evaluation | Markets | Best For |
|---|---|---|---|---|---|
| Apex Trader Funding | $300,000 | 100% first $25K, then 90% | 1-Phase | Futures | Most US Traders |
| TopStep | $150,000 | 90% | 2-Phase | Futures, Forex | Regulated Security |
| My Funded Futures | $200,000 | 80% | 1/2-Phase | Futures | Swing Traders |
| Take Profit Trader | $150,000 | 90% | 1-Phase | Futures | Simple Rules |
IRS Tax Requirements for US Prop Traders
Important Tax Disclaimer
The information below is for general guidance only. Tax laws are complex and subject to change. Always consult a qualified tax professional or CPA familiar with trading income for advice specific to your situation.
How Prop Trading Income is Taxed
- •Prop trading profits are typically reported as business income (Schedule C) if you trade frequently, or capital gains (Schedule D) if you're classified as an investor
- •Trader Tax Status: If you qualify (meet IRS criteria for frequency and intent), you can deduct trading-related expenses
- •Section 475 Election: Professional traders can elect mark-to-market accounting, converting capital gains to ordinary income but allowing loss deductions
- •Must report all income, including prop firm payouts, regardless of payment method
Deductible Expenses
- •Challenge/evaluation fees paid to prop firms
- •Trading software and platform subscriptions (TradingView, NinjaTrader, etc.)
- •Data feed subscriptions (real-time market data)
- •Home office expenses (if trading from home and qualify)
- •Internet and computer equipment (proportional to trading use)
- •Trading education and courses (if business-related)
2026 Tax Brackets for Reference
| Taxable Income (USD) | Tax Rate |
|---|---|
| $0 - $11,000 | 10% |
| $11,001 - $44,725 | 12% |
| $44,726 - $95,375 | 22% |
| $95,376 - $182,050 | 24% |
| $182,051 - $231,250 | 32% |
| $231,251 - $578,125 | 35% |
| $578,126+ | 37% |
Receiving Prop Firm Payouts in the US
Bank Wire Transfer
Direct ACH or wire transfers to your US bank account. Most US-friendly prop firms offer this method. Processing typically takes 1-3 business days.
• Processing: 1-3 business days
• Best for: Regular payouts
ACH Transfer
Automated Clearing House transfers are faster and cheaper than wire transfers. Many US prop firms use ACH for domestic payouts.
• Processing: Same day or next day
• Best for: Fast, low-cost transfers
Check/Mail
Some firms offer physical check payments via mail. Slower but reliable for those who prefer traditional methods.
• Processing: 5-10 business days
• Best for: Large payouts
Unique Challenges for US Prop Traders
Limited Firm Options
US traders have significantly fewer prop firm options compared to international traders. Popular firms like FTMO, FundedNext, MyFundedFX, and others have restricted US access.
- •Fewer firms to choose from (10-15 vs 50+ for international)
- •Most US-friendly firms focus on futures only
- •Limited forex and crypto options
- •Smaller maximum account sizes in some cases
Regulatory Restrictions
US traders must navigate complex CFTC and NFA regulations that don't apply to international traders.
- •CFTC registration requirements limit firm options
- •Pattern Day Trader (PDT) rule for stock trading
- •State-by-state licensing variations
- •Tax reporting complexity
Prop Trading for US Traders
Understanding prop trading opportunities and challenges for US-based traders
Frequently Asked Questions
Do prop firms accept US traders?
Yes, many prop firms accept US traders, though some have restrictions due to CFTC regulations. Firms like Apex Trader Funding, TopStep, My Funded Futures, and Take Profit Trader accept US traders. However, some popular firms like FTMO and FundedNext have restricted US access.
Why are some prop firms banning US traders?
Some prop firms restrict US traders due to CFTC (Commodity Futures Trading Commission) regulations. The CFTC requires firms offering futures trading to US residents to be registered as CTAs or FCMs, which is expensive and complex. Some firms choose to restrict US traders rather than comply with these regulations.
Which prop firms accept US traders?
Prop firms that accept US traders include Apex Trader Funding (futures), TopStep (futures/forex), My Funded Futures (futures), Take Profit Trader (futures), and several others. Always verify current acceptance status as policies can change. Check each firm's terms of service and geographic restrictions before signing up.
Do US traders pay taxes on prop firm profits?
Yes, prop trading profits are taxable income in the US. Trading income is typically reported on Schedule D (capital gains/losses) or as business income on Schedule C, depending on your trading frequency and classification. Keep detailed records of all trades and payouts. Consult a tax professional for specific guidance.
Can US traders trade forex with prop firms?
Forex access for US traders through prop firms is limited. Most US-friendly prop firms focus on futures trading. Some firms like TopStep offer forex, but options are fewer than for international traders. The CFTC and NFA regulations make forex prop trading more complex for US residents.
Are there CFTC-regulated prop firms?
Yes, some prop firms are registered with the CFTC, particularly those focusing on futures trading. TopStep is a notable example of a CFTC-registered prop firm. Apex Trader Funding and other US-friendly firms work within regulatory frameworks, though specific registration status varies.
Related Resources
Trading & Finance Hub
Explore all our trading resources
Prop Firms Guide
Complete guide to proprietary trading
Futures Prop Firms
Best firms for futures trading
UK Traders Guide
Prop firms for UK-based traders
Canadian Traders Guide
Prop firms for Canadian traders
Compare Prop Firms
Side-by-side firm comparison