If you’ve been poking around trading forums or scrolling through YouTube videos on making money from home, you’ve probably stumbled across something called a futures prop firm. And if you’re completely new to trading, your first reaction might be, “Hold up… are these guys even interested in beginners like me, or is this just for market pros?”
It’s a fair question. After all, the word “prop firm” has this intimidating ring to it — like it’s a secret club for people who wear three-piece suits and say things like “I’m short the ES at 4380” without blinking.
But here's the thing: futures prop firms do deal with newbies — in many instances, they actually prefer doing business with them. But (and there's always a "but" in trading), it's not just a matter of signing up, getting funded, and seeing the profits flow in.
Let's pull back the curtain and discuss how it really operates, what you need to know if you're new to it, and whether this whole prop firm business is worth your while.
What Even Is a Futures Prop Firm?
A futures trading prop firm, or a "prop firm" for short, is essentially a firm which allows you to trade their money rather than your own. They profit by taking a portion of your profits from trading — typically anywhere from 10% to 50% — and you get to keep the rest.
In exchange, they provide you with access to a funded account after you've passed their assessment. That is, you don't have to risk blowing your own savings while you learn how to do things.
Before they give you the keys to that account, they want evidence that you can manage risk, take orders, and not blow up their money as well.
That's why most prop firms have an evaluation period (occasionally referred to as a challenge or audition). You pay an entry fee, trade according to their rules, and reach certain profit goals without exceeding their risk parameters. Pass, and you're in. Fail, and… you try again (and yes, that typically means another fee).
Do They Actually Work with Beginners?
yes but with caveats.
Some futures prop firms actually market themselves to newbies, and they even offer training materials, mentorship schemes, and more relaxed evaluation goals to make it friendlier to newbies. Others? Not really — they want you to already know how to handle trades like a pro.
Think of it in terms of getting a job. Some firms are willing to take on futures trading for beginners and teach them from the ground up. Others only accept candidates with "three years of experience" (which, as we all know, is the secret language for "don't waste our time unless you've already done this").
Why Futures Prop Firms Like Beginners (Sometimes)
No bad habits yet
Experienced traders tend to bring their own set of habits with them — not necessarily all good. Newbies, on the other hand, are like a clean slate, less difficult to train and shape according to the firm's trading style.
High motivation
A new trader who views prop trading as a career-altering experience is usually hungrier and more motivated to put in the effort than a cynical trader who's "been there, done that."
Volume counts
Most prop firms earn part of their revenue from commissions and data charges. More traders — even newbies — equal more trades, and therefore more money.
Why They Don't Like Beginners (Sometimes)
They blow accounts quickly
Let's be honest — newbies tend to make rookie mistakes such as over-leveraging, revenge trading, or not paying heed to stop-losses. To a prop company, that's just money going up in flames.
The learning curve is steep
Futures markets move fast. A beginner can go from “I think I’m doing okay” to “Oh no, what just happened?” in seconds. Firms have to factor in that risk.
Time equals money
Some firms don’t have the resources to handhold every trader through the learning process. If they spend too much time babysitting beginners, it eats into their bottom line.
What a Beginner-Friendly Futures Prop Firm Looks Like
Not every prop firm is created equal, so if you're just beginning, you'll need to look for one that checks a few of the boxes:
Simple and clear rules
Steer clear of firms with 15 different rule infractions you can easily stumble over. Opt for ones with easy-to-understand daily loss limits, total drawdown limits, and a distinct profit target.
Educational resources
Some companies have training in-house, live webinars, or suggested courses. Although they're not necessarily free, they can pay for themselves in terms of avoiding a lot of trial and error.
Fair evaluation fees
You may fail the first (or third) time as a novice. Pick a company whose evaluation fees won't leave you broke if you need to retake.
Scalable funding
Seek companies that allow you to begin small (e.g., a $25k or $50k account) and grow as you gain credibility.
Strong community support
Having a Discord group, Slack channel, or private forum can be a tremendous help. Getting advice from other traders' experiences is like having free mentorship.