Differences Between Futures Prop Firms and Forex Prop Firms

Trading Instruments

• Futures Prop Firms:

  • Focus on futures contracts, which are agreements to buy or sell assets at a future date at a predetermined price.

  • Common assets include commodities (oil, gold), indices (S&P 500), and interest rates.

• Forex Prop Firms:

  • Specialize in foreign exchange (forex) trading, dealing with currency pairs like EUR/USD, GBP/JPY, etc.

Trading Platforms

• Futures Prop Firms:

  • Use platforms designed for futures trading, such as NinjaTrader, Tradovate, or Trading Technologies.

  • Platforms often have advanced features for analyzing market depth and order flow.

• Forex Prop Firms:

  • Commonly use platforms like MetaTrader 4/5 (MT4/MT5), cTrader, or web-based platforms.

  • Focus on technical analysis tools suitable for forex markets.

Evaluation Criteria

• Futures Prop Firms:

  • May have stricter rules on daily loss limits and position sizing due to the leveraged nature of futures contracts.

  • Evaluation might include maintaining consistency in trading futures contracts.

• Forex Prop Firms:

  • Often set profit targets and maximum drawdown limits.

  • May require adherence to specific trading days or minimum trading days.

Fees and Payout Structures

• Futures Prop Firms:

  • Evaluation fees might be higher due to the complexity of futures markets.

  • Profit splits can vary but are often competitive to attract skilled traders.

• Forex Prop Firms:

  • Typically offer a variety of account sizes with corresponding fees.

  • May offer higher profit splits to traders (up to 90% in some cases).