How to Join a Futures Trading Prop Firm with Low Fees

Joining a proprietary (prop) trading firm for futures trading can be a lucrative way to grow your career  in  the financial markets. Prop firms provide traders with capital, allowing them to trade futures contracts without risking their own funds. In return, they typically take a percentage of the profits. However, not all prop firms are created equal—especially when it comes to fees. In this blog, we’ll explore how to join a futures trading prop firm with low fees and what to consider when choosing the right firm.

What Is a Futures Trading Prop Firm?

A futures trading prop firm provides traders access to a larger pool of capital to trade futures contracts. Traders use the firm's capital to trade and share the profits according to a pre-determined agreement. These firms look for skilled traders, and the better your performance, the more capital you're typically allocated. One of the benefits of trading with a prop firm is that you don’t need to risk your own money, but the fees charged by some firms can significantly impact your profits.

Why Do Fees Matter?

Fees can eat into your profits quickly if you're not careful. They can come in the form of platform fees, commission costs, profit splits, or capital access fees. If you’re looking for long-term profitability, it’s important to find a firm with low fees or a fee structure that aligns with your trading style. Some firms offer low upfront costs but may charge high fees on profits, while others may offer favorable profit splits but require higher platform or training fees.

Top 2 Prop Firms with Low Fees

1. Apex Trader Funding
2. My Funded Futures

Two of my favorite prop firms for futures trading are Apex Trader Funding and My Funded Futures, each offering unique advantages depending on your trading style and goals. Apex Trader Funding stands out with its low entry cost, making it affordable to open multiple accounts if needed, especially if you encounter setbacks. However, one downside is the trailing threshold, which can limit your ability to lock in profits as your account grows. On the other hand, My Funded Futures offers the benefit of no trailing threshold, allowing more flexibility in managing your trades. Plus, once you pass the evaluation phase, there are no additional fees to move into a funded account, which is a huge advantage for those looking to minimize ongoing costs.

Steps to Join a Futures Trading Prop Firm with Low Fees

1. Research and Compare Firms

The first step in joining a futures trading prop firm is research. Not all firms are transparent about their fees, so it’s important to dig deep and compare the fee structures of various firms. Look for firms that clearly state their fees upfront, including any hidden costs that may emerge later.

Some of the factors you should consider when comparing prop firms include: 

• Platform fees: Many prop firms charge fees for using their trading platforms. Look for firms that offer low or no platform fees.
• Commission structure: Futures trading can involve high trading volume, so commission costs can add up. Make sure the firm offers competitive commission rates.
• Profit splits: Some firms may charge lower fees upfront but take a larger cut of your profits. Make sure the profit split aligns with your profit potential.
• Training or evaluation fees: Many prop firms require traders to go through an evaluation process or training program. Some firms charge for this, so be sure to understand the cost before committing. 

2. Apply to the Right Prop Firm

Once you’ve narrowed down your list to firms with reasonable fees, the next step is to apply. Most prop firms require you to fill out an application, which may include your trading history, strategies, and performance metrics. They’ll want to ensure you have a solid understanding of futures markets and a profitable track record.

Many prop firms will require you to pass an evaluation or test phase before you can start trading their capital. During this phase, you’ll trade on a simulated account, and the firm will assess your performance. Keep in mind that some firms charge fees for this evaluation, so it’s important to consider these costs when choosing a firm.

3. Pass the Evaluation and Prove Your Skills

To access the firm's capital, you’ll need to prove that you’re a skilled trader who can consistently make profits. Each firm has its own criteria, but most will require you to follow risk management guidelines, hit specific profit targets, and avoid exceeding loss limits.

Be sure to follow the firm’s rules closely during the evaluation. Some firms may penalize you for violating risk management guidelines, and this could result in disqualification. Firms that charge low fees are often highly selective, so proving your skills is critical.

Watch me get funded in 1 day.

4. Understand the Firm’s Capital Allocation Model

After passing the evaluation, you’ll be allocated capital to trade futures contracts. Prop firms generally use a tiered system, where they increase your capital allocation as you prove your profitability. Initially, the firm may give you a modest amount of capital, but as you demonstrate consistent success, you’ll receive more capital to trade larger contracts. 

Low-fee firms often rely on this performance-based model. The key to success is to grow your capital allocation while minimizing losses, as this will maximize your profits over time.

5. Stay on Top of Ongoing Fees and Adjustments

After joining the firm, keep track of any ongoing fees, such as monthly platform costs or data fees. Make sure you understand how the firm adjusts fees based on your performance. Some firms may lower your fees as you become more profitable, while others may introduce additional costs once you reach certain milestones.

Additionally, many prop firms offer traders the opportunity to renegotiate their profit split after proving themselves. As you grow in skill and experience, you may be able to negotiate better terms, further increasing your earning potential.

Tips for Choosing the Right Prop Firm with Low Fees

• Low commission rates: Futures traders often place many trades in a day, so low commissions are essential.
• No hidden fees: Be cautious of firms that aren't transparent about their fee structure. Hidden fees can erode your profits.
• Flexible withdrawal options: Choose a firm that allows frequent and hassle-free profit withdrawals.
• Good support: Low fees are great, but the firm should also offer strong trader support, whether that’s through customer service, educational resources, or access to professional traders.
• Risk management tools: Some firms provide tools to help you manage risk, which is crucial when trading with leverage in the futures market.

Final Thoughts about Joining a Futures Trading Prop Firm with Low Fees

Joining a futures trading prop firm with low fees can be a great way to boost your trading career without risking your own capital. The key to success lies in doing thorough research, applying to the right firm, and proving your skills through the evaluation process. By choosing a firm with a fair fee structure and focusing on consistent profitability, you can maximize your earning potential in the futures market.