Best Stocks Prop Trading Firms: Trade Legit & Safe in 2024

A stock prop trading firm facilitates the trading of stocks and stands out by offering an exceptional overall package.

Which is the best stock prop trading firm?

Our top choice for the best stock prop trading firm is FTMO.

In our comparison, we present our evaluation criteria and our top 3 ranking, and show you how to find the best prop trading firm for stocks.

The Best Stock Prop Trading Firms (Top 3)
Firm	Evaluation	Profit Split	Accounts	Registration
FTMO	4 days	80%	up to 160,000€	Sign up now!
Lux Trading Firm	29 days	75%	up to $1,000,000	Sign up now!
FTUK	0 days	80%	up to $90,000	Sign up now!

Key Takeaways

The advantage of stock prop trading is that you have the freedom to pursue either a day trading strategy or a longer-term strategy
With the best stock prop trading firms, you will get access to up to 10,000 individual stocks and funds
In this review, I will introduce you to the best stock prop trading firms on the market in more detail, and I will also explore the advantages and disadvantages of trading with stocks

Top 3: Stock Prop Trading Firms

I’ll kick off this review by highlighting the top three stock trading prop firms in the market. These providers have all undergone rigorous testing by me and have proven themselves to be both reliable and commendable options for traders.

You can find the firms with the best overall offerings on our “Best Prop Trading Firms” page.

FTMO

FTMO Based on our extensive testing, FTMO, based in Prague, Czech Republic, is the best stock prop trading firm in the industry. With a solid foothold in the top tier, FTMO enjoys widespread recognition and a stellar reputation within the trading community. FTMO is well-positioned not only in the stock sector but also leads the ranking as the best prop trading firm in Europe.

Situated near the renowned Wenceslas Square in Prague, FTMO has been operating since 2014. The firm offers a variety of account sizes for traders to choose from, ranging from €10,000 to €160,000, showcasing the firm’s flexibility in catering to different trader needs. The evaluation fees, starting at €155, are refunded after the completion of the challenge phase. Prop trading at FTMO is possible with a range of financial instruments, including forex, commodities, indices, cryptocurrencies, stocks, and bonds.

Lux Trading Firm

Lux Trading Firm, a relatively new prop trading firm based in the UK, was established in 2021 by Petra Pirova. These online proprietary stock trading firms offer trading opportunities with CFDs, stocks, and cryptocurrencies. Notably, Lux Trading Firm has developed its own proprietary trading platforms while also integrating MetaTrader 5 for its users.

Lux Trading Firm’s potential starting capital spans from $50,000 to $1,000,000, indicating that Lux Trading Firm mainly targets experienced and advance prop traders. While their fees, ranging from £299 to £3,699, are comparatively high, Lux Trading Firm remains a recommended choice due to their generous 75% profit share for traders.

FTUK

FTUK FTUK, known for promoting responsible trading practices, is among the best stock prop trading firms. This US-based prop trading provider offers traders the flexibility to choose between direct entry (Direct Funding) or an evaluation path. FTUK, founded in 2021, is also one of the young companies on the market.

Trading at FTUK is done on the cTrader, DXtrade and Match-Trader platforms. You need to invest a minimum of $149 to start trading. With a profit share of 80%, FTUK stands out for its notably swift payouts, consistently processed within two days of a withdrawal request.

The Offer: Trading with Stocks

The top stock prop trading firms provide access to a vast portfolio encompassing virtually all renowned stocks globally. It’s essential for traders to develop an understanding of the stock markets to analyze the condition and manage risks well. Not every stock is really suitable for prop trading, as you have to think about profitability. To be among the profitable traders, you have to consider three factors: volatility, trading volume, and liquidity.

Volatile stocks are very suitable for day trading and exercising increased buying power due to price changes. However, it is true that stocks, in general, are a good long-term investment. In a certain way, this point is also reflected in prop trading.

Traders who do not choose individual stocks can select stock indices at the top prop trading firms, for example:

USA: S&P 500, Dow Jones, NASDAQ
Canada: S&P/TSX
United Kingdom: FTSE 100
Australia: ASX
Germany: DAX
Russia: RTS
France: CAC 40
Switzerland: SMI
Japan: Nikkei
Spain: IBEX 35
China: SCI
Brazil: Bovespa
Europe: Euro STOXX
Hong Kong: Hang Seng
India: Sensex
Singapore: Straits Times

Can you trade Stocks with all Prop Trading Firms?

A large portion of the prop trading firms on the market allow stock trading, but not all companies do. Some companies focus exclusively on Forex pairs or cryptocurrency trading. Top-tier stock prop trading firms often offer additional trading options alongside stocks, such as CFDs or commodities, giving traders more flexibility and diversification opportunities.

Our Evaluation Criteria at a Glance

How did I identify the best stock prop trading firm on the market for you? The fundamental requirement was the availability of stock trading. However, my assessment extended beyond that, including a detailed examination of several other key aspects. I have summarized the most important quality features for you below.

Application Process: Is there an evaluation, or does the firm allow you to engage in trading activities with real money immediately? How many stages are in the application process? Is a quick qualification within a few days possible?
Account Sizes: What account sizes are available? Some providers start at $10,000, but high trading accounts up to $400,000 are not uncommon.
Costs: What fees are incurred during the evaluation phase and later with the live funded account?
Challenge Rules: Are all rules and restrictions clearly communicated?
Trading Platforms: Which trading platforms can be used, such as NinjaTrader, Rithmic, MT4, or MT5?
Trading Instruments: What instruments can professional traders trade? Is trading limited to futures trading, or are there other products like Forex trading?
Broker: Which broker does the prop firm partner with for executing proprietary trades on the exchanges?
Customer Support: How and when you can contact customer service?
Payment Methods: What payment methods are accepted for the one-time payment or monthly costs?
Payout: How quickly is your share of the profits paid out? Are there deadlines, or does the prop trading firm pay the commission immediately upon request?
Training Programs: What assistance is available to professional traders worldwide to improve their performance?
Mobile App: Is there a mobile trader app?

For the challenge rules, we examined the following criteria:

Profit Target: What profit amount and percentage of the initial account balance must the prop trader gain during the qualification phase?
Profit Split: How is the profit divided between the trader and the firm? Is there an initial amount paid out exclusively to the prop traders without a split? Top firms work with a 95:5 ratio.
Trading Period: Is there a specified number of days within which the evaluation must be completed?
Minimum Trading Days: What is the minimum number of trading days required to complete the evaluation? When are successful prop traders granted access to funded accounts?
Maximum Daily Loss: Is there a maximum daily drawdown, and what is it?
Maximum Loss: What is the maximum drawdown that cannot be exceeded during the qualification phase?
Maximum Position Size: How many trades can be executed simultaneously? Does this limit increase as the account size grows?
Maximum Capital Allocation and Multiple Accounts: How many accounts can a trader have with the prop trading firm? What is the maximum capital that can be traded?
Types of Trading: Is only day trading allowed, or are other types of trading permitted? Which trading strategies are strictly prohibited?
Leverage: Is there leverage to increase the capital used for trades?
Trading Style: What additional regulations does the prop trading firm have regarding permitted or prohibited trading styles?
Trading Hours: What is the timeframe within which trading is allowed?
News Trading: Are trades allowed shortly before, during, or after a news event? Is trading based on news permitted?
Weekend and Overnight Trading: Can trades be held overnight or over the weekend? Are long-term trading systems allowed?
Expert Advisor: Can expert advisor programs, bots, or algorithms be used to execute trades?
Copy Trading: Is copy trading permitted on personal accounts or by emulating professional traders?

Prop Trading Firms by Categories

If you’re not specifically seeking the best stock prop trading firm, I have other categories available on my website for you to explore. Below, I’ve summarized the most relevant categories to assist you in your search:

Advantages of Prop Trading with Stocks

Forex, indices, commodities, futures, cryptocurrencies – all these things are often difficult for beginners to understand. Stocks are different as stocks and their trading on the stock exchange are understandable for “almost” everyone. You can trade shares of large, well-known companies.

Prop trading with stocks offers great opportunities for traders if you incorporate the latest economic news into your analysis or trades. As an investor and trader, you can choose from countless pieces of information daily that are relevant to your trading strategy. It is important to choose a stock prop trading firm that allows news trading. This allows you to trade just before, during, and right after news announcements.

Another plus is that the best stock prop trading firms use the MT4 and MT5 trading platforms. Both platforms are easy to use and suitable for beginners.

Disadvantages of Prop Trading with Stocks

A notable disadvantage of prop trading with stocks is the high risk of loss of money, particularly for those who engage in day trading. Rapid price fluctuations can be unpredictable and challenging to deal with. In some cases, stock prop trading might be likened to a lottery due to the uncertainty involved.

Even those opting for a long-term stock prop trading approach face inherent risks. Once a stock begins moving in a particular direction (either up or down), the trend tends to solidify, and quick reversals are rare. If your trades are based on the wrong market development, there’s little chance for correction.

Who should choose a Stock Prop Trading Firm?

A stock prop trading firm should be chosen by traders who possess a solid understanding of stock trading principles, not just prop trading in general. You will only be successful if you have a certain economic understanding and good risk management skills. It’s essential to grasp the factors that influence stock prices, such as economic news, company reports, general economic trends, market conditions, and the job market. If you understand the economy, a stock prop trading firm is the perfect place to leverage your knowledge to generate regular earnings.

How to find the Best Firm for Stocks

To find the best stock prop trading provider or verify if a company supports stock trading, you should always ask yourself a few key questions during your practical assessment of the providers:

Is stock prop trading offered as a trading method?
On which trading platforms are the trades executed? Are the access platforms provided free of charge by the stock prop trading providers?
Is there an evaluation phase, and if so, how is it designed – single-phase or two-phase?
Can stock prop trading occur directly on a funded account (without evaluation)?
Does the provider offer a free demo account for testing?
How and when is profit sharing done? Do I receive 100 percent of a fixed amount in the initial phase before profit splitting begins?
What account models and sizes are offered? What are the fees?
Are there only entry challenge fees, or are there monthly costs? Can my account be easily reset if I do not meet the profit targets?
Can I hold my stock prop trades overnight or over the weekend?
Is stock prop trading offered with leverage?
What is the maximum scaling amount?
Can I run multiple prop trading accounts to implement different strategies?
How quickly and frequently are payouts made?

Conclusion

In my view, stock prop trading is especially suitable for beginners. A wealth of information about stock prices is readily available online. You can incorporate these insights into your stock prop trading strategies in real time to capitalize on fleeting opportunities.

To our Top 3

A significant advantage of stock prop trading firms is the extensive range of trading options. You have thousands of stocks to choose from. With the right knowledge, you can capitalize on these opportunities. Another positive feature of reputable stock prop trading firms is their frequent use of the familiar MT4 and MT5 platforms. Additionally, many firms permit news trading, allowing traders to take advantage of market movements caused by news events.

Frequently Asked Questions

In the final Q&A section, I will answer some of the commonly asked questions about the stock prop trading firms.

Do all Prop Trading Firms offer stock trading?

No, not all prop trading firms offer stock trading as an option. However, you will find a sufficient selection of companies for stock trading when comparing prop trading firms. For more on this topic, go to the section called “Can you trade Stocks with all Prop Trading Firms?“.

What evaluation criteria are important for the best Prop Firms for stock trading?

The ability to trade stocks is just the foundation for finding top stock prop trading firms. The detailed evaluation includes numerous other quality features and criteria. To see what points I focused on in the evaluation, read “Our Evaluation Criteria at a Glance“.

Which Stock Prop Trading Firm is the best Provider on the market?

I currently consider FTMO from Prague to be the number one on the market. The prop trading firm has been active for around a decade. It has earned a very high standing in the prop trading scene. Why this is the case can be found in the section “FTMO“.

What are the disadvantages of Stock Prop Trading Firms?

The main disadvantage is that stock trading comes with a high risk of loss of money. Why this is the case is explained in the section “Disadvantages of Prop Trading with Stocks“.

Where can I find the best Stock Prop Trading Firms?

You can always find the best prop trading firms for stocks or the market leaders in the category on my website. The ranking is always updated to reflect the market conditions. Learn more from our “Top 3: Stock Prop Trading Firms” section.

Liam Matthews

Having more than eight years of trading experience, I know how hard it is to find a good and reliable Prop Trading Firm and not to choose the wrong one. With PropTradingScam.com I want to help you to pick the right one, stay safe, and share your experience.