US Based Prop Firms 2026: American Proprietary Trading Companies
Discover US-based prop firms headquartered in the United States in 2026. This comprehensive guide covers American proprietary trading companies, their regulatory framework, operations, and how they differ from international prop firms operating from other jurisdictions.
Proprietary trading firms headquartered in the United States. Source: Unsplash
Understanding US-Based Prop Firms
US-based prop firms are proprietary trading companies headquartered in the United States and operating under US financial regulations. These firms are subject to CFTC (Commodity Futures Trading Commission), NFA (National Futures Association), and SEC (Securities and Exchange Commission) oversight, providing regulatory protection but also operational restrictions.
Key characteristics of US-based prop firms:
- US Headquarters: Companies based and registered in the United States
- US Regulations: Subject to CFTC, NFA, SEC oversight
- Futures Focus: Primarily offer futures trading (CFTC regulated)
- Limited Forex: Typically don't offer forex due to US restrictions
- Regulatory Protection: Consumer protections under US law
There are relatively few US-based prop firms compared to international options. Most prop firms are based internationally (Europe, Asia, Caribbean) due to regulatory flexibility. US-based firms like TopStep focus on futures trading. Compare options using our prop firm comparison tool.
US-Based vs International Prop Firms
Key Differences
| Feature | US-Based Firms | International Firms |
|---|---|---|
| Regulation | CFTC/NFA/SEC (US) | Home jurisdiction |
| Forex Trading | Limited/Restricted | Widely Available |
| Futures Trading | Primary Focus | Available |
| US Traders | Fully Accepted | Varies (futures yes, forex no) |
| Regulatory Protection | Strong (US law) | Varies by jurisdiction |
Examples of US-Based Prop Firms
TopStep
TopStep is a prominent US-based prop firm, registered with the NFA (National Futures Association) and operating under CFTC regulations. TopStep focuses exclusively on futures trading, making it accessible to US traders while complying with US regulations.
TopStep's US-based advantages: NFA registration provides regulatory oversight, CFTC compliance ensures legal operation, US trader friendly (headquartered in US), educational resources and trader development, and proven track record with US regulations.
TopStep offers: accounts up to $150K, 90% profit split, futures trading (ES, NQ, YM, etc.), comprehensive educational resources, and professional platform support. As a US-based firm, TopStep provides regulatory protection and transparency.
US Regulatory Framework for Prop Firms
CFTC and NFA Regulation
US-based prop firms offering futures trading are regulated by the CFTC (Commodity Futures Trading Commission) and must register with the NFA (National Futures Association). This regulation provides consumer protection, ensures compliance, and requires transparency.
CFTC/NFA benefits: regulatory oversight and compliance, consumer protection under US law, transparency requirements, dispute resolution mechanisms, and legal recourse for traders. However, regulation also creates operational restrictions and compliance costs.
Forex Trading Restrictions
US-based prop firms typically cannot offer forex trading due to CFTC regulations restricting retail forex trading in the US. This is why US-based prop firms focus on futures trading, which is fully regulated and legal in the US.
Forex restrictions: CFTC regulations limit retail forex trading, US-based firms cannot offer forex prop trading, international firms can offer forex to non-US traders, and US traders seeking forex must use international firms (which typically restrict US traders). This creates the futures-focused nature of US-based prop firms.
US-Based vs US-Friendly: Important Distinction
Understanding the Difference
US-based prop firms are headquartered in the United States and operate under US regulations. US-friendly prop firms accept US traders but may be based internationally. Many futures prop firms accept US traders (US-friendly) but are not necessarily US-based.
Examples: TopStep is US-based (headquartered in US, NFA registered). Apex Trader Funding is US-friendly (accepts US traders) but may be based internationally. My Funded Futures is US-friendly (accepts US traders) but operates from international base.
Both US-based and US-friendly firms can accept US traders, but US-based firms operate under stricter US regulations. US-friendly firms may offer more flexibility but less regulatory protection. Check our guide to prop firms for US traders for firms accepting US clients.
Why Few US-Based Prop Firms Exist
1. Regulatory Complexity
US financial regulations (CFTC, NFA, SEC) create significant compliance requirements and operational restrictions. This complexity makes it more challenging to operate US-based prop firms compared to international jurisdictions with more flexible regulations.
2. Forex Restrictions
US regulations restrict retail forex trading, limiting US-based prop firms to futures trading. Since forex is a major prop trading market, this restriction reduces the appeal of US-based operations for many firms.
3. Operational Costs
US-based operations face higher compliance costs, regulatory fees, and operational expenses compared to international jurisdictions. These costs make international operations more attractive for many prop firms.
4. Market Focus
Most prop firms focus on forex trading, which is restricted for US-based firms. This market focus naturally leads firms to base operations internationally where forex prop trading is fully legal and accessible.
Frequently Asked Questions
What is the difference between US-based and US-friendly prop firms?
US-based prop firms are headquartered in the United States and operate under US regulations. US-friendly prop firms accept US traders but may be based internationally. Many futures prop firms accept US traders (US-friendly) but are not necessarily US-based. US-based firms are subject to stricter US regulations.
Do US-based prop firms offer forex trading?
US-based prop firms typically do not offer forex trading due to CFTC regulations restricting retail forex trading in the US. US-based prop firms focus primarily on futures trading (regulated by CFTC/NFA) and may offer stock trading through regulated channels. Forex prop trading is primarily offered by international firms.
Are there many US-based prop firms?
There are relatively few US-based prop firms compared to international options. Most prop firms are based internationally (Europe, Asia, Caribbean) due to regulatory flexibility. US-based firms are typically focused on futures trading (regulated by CFTC/NFA) rather than forex, due to US regulatory restrictions on forex prop trading.