Top Prop Firms for Options and Futures Trading: A Buyer’s Guide

Best Prop Firms That Support Options and Futures Trading (What’s Actually Allowed)

If you’ve ever typed “Prop Firms That Support Options and Futures Trading” into Google and ended up frustrated, you’re not alone. Many traders find the landscape confusing, especially when evaluating the real opportunities that exist under funded or backed accounts. With my experience evaluating dozens of firms for myself and the traders I coach, I’ve realized that very few outfits actually allow options, particularly options on futures. This guide cuts through the noise and provides clarity on what’s really allowed, what it costs, the platforms you’ll use, and how to choose a firm that aligns with your trading strategy.

What follows isn’t hype but a practical buyer’s guide from a trader’s perspective, packed with specific examples, real-life risk rules, and essential questions to ask before making a commitment.

Introduction

Proprietary trading firms (prop firms) provide traders with access to capital, technology, and risk management in exchange for a share of profits and adherence to firm rules. However, they are not all the same. Some are true broker-dealer or FCM-affiliated professional shops with licensing requirements, while others are retail “evaluation” companies offering simulated challenges and backed sub-accounts for exchange-traded futures.

When it comes to trading options and futures, selecting the right firm is critical. Many futures evaluation programs don’t allow any options at all, while some equity prop firms do permit options but often require professional licensing, capital contributions, and greater oversight.

This article serves as a definitive guide to Prop Firms That Support Options and Futures Trading, detailing what each firm allows, the associated costs, and how to tailor your trading approach to the right platform and rule set.

Understanding Options and Futures Trading in Prop Firms

Definitions and Key Differences

• Equity and index options vs. options on futures:

  • Equity options are contracts based on individual stocks (e.g., AAPL), ETFs (e.g., SPY), or cash-settled indexes (e.g., SPX). SPX Options are European-style and cash-settled, while SPY options are American-style and physically settle into shares.

  • Options on futures are traded on futures exchanges (e.g., ES options on the CME for S&P 500 futures) and settle into the underlying futures contract, often with extended trading hours and futures-style margining.

• Futures contracts:

  • Standardized agreements to buy or sell an asset at a future date/price. Common futures include CME E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and treasury futures. Read more about futures contracts on Investopedia.

  • Micro futures (MES, MNQ, M2K, etc.) offer smaller notional values for finer risk control.

Day-to-day differences for traders include:

• Trading hours: Futures and their options typically trade nearly 23 hours a day, while equity options adhere to regular hours with some extended sessions.

• Margin models: Equity options often utilize Reg-T or portfolio margin, whereas futures and their options apply SPAN/ICE Risk, now evolving towards CME’s SPAN 2/VAR models.

• Settlement and assignment risk: Equity options can assign into shares, while futures options assign into futures contracts.

Why Choose a Prop Firm for Options and Futures?

• Capital and leverage: Access to substantial leverage and buying power allows for broader strategic possibilities, particularly in portfolio-margin-style options or complex multi-leg spreads.

• Professional tools and data: Prop firms provide access to direct-market access (DMA) platforms, professional market data, and analytical tools that retail traders might not afford.

• Risk management and mentorship: Prop firms typically establish guardrails such as loss limits and have desk oversight to encourage disciplined trading. Many also offer ongoing training, community support, and playbook reviews.

• Operational advantages: Benefits include centralized commissions, institutional routing, and potential borrowing advantages on equities, as well as streamlined reporting.

I’ve observed that traders who were previously profitable on small retail accounts become consistently successful with appropriate prop infrastructure, while others falter by choosing firms whose rules conflict with their strategies. Finding the right fit is crucial.

Criteria for Choosing a Prop Firm

Types of Options and Futures Allowed

• Scope of products:

  • Futures-only: Many evaluation firms support CME, CBOT, NYMEX, and COMEX futures but prohibit options. Learn more about futures markets.

  • Options on futures: Very few firms allow these products for backed traders. Always confirm, never assume.

  • Equity/index options: Professional broker-dealer prop firms and options-centric prop firms generally permit these, although there may be restrictions based on strategy during the initial stages.

• Strategy permissions:

  • Some firms only allow risk-defined options such as debit/credit spreads, butterflies, and iron condors. Naked short options may be restricted until the trader obtains a demonstrated track record of profitability.

Fee Structures

Be prepared for multiple layers of costs:

• Commissions: Futures often charge per contract per side plus clearing fees; options are charged per contract as well, often varying by volume and routing.

• Market data fees: Futures can range between non-pro fees and vastly higher professional charges. Options market data fees vary by exchange and pricing structure, as detailed by the CFTC.

Risk Management and Rules

• Loss limits:

  • Most firms implement daily loss limits alongside total drawdown restrictions. Futures evaluation firms may use a trailing drawdown that narrows as profits accumulate.

• Position rules:

  • Rules concerning overnight positions differ widely; intraday-only firms may require flattening by a specific cut-off, as outlined by the NFA.

Regulatory and Geographic Considerations

• Licensing and eligibility:

  • US professional broker-dealer prop firms typically require SIE + Series 57 (or Series 7 + 63) for registered representatives. Non-US residents may have separate onboarding processes. For more details, see the FINRA website.

• Tax implications:

  • Options on futures and many index options (such as SPX) are classified as Section 1256 contracts with 60/40 blended tax treatment in the US; equity options are subject to regulations governing tax as securities with short/long-term holding rules. Consult with a tax professional.

Top Prop Firms for Options and Futures Trading

The following five well-known firms represent major avenues traders can explore, based on the specific paths of opportunity with options or futures. Two firms are futures-focused evaluation firms (no options) while three support options (equity/index), often with professional licensing or structured programs. I’ve prioritized transparency regarding what is allowed so you can select a firm that aligns with your strategy.

Top Prop Firms for Options and Futures

The following list prioritizes transparency regarding what is actually allowed.

1. Maverick Trading (Options-Focused)

• Best For: Traders seeking a structured path to trading Equity and Index Options.

• Overview: Maverick is one of the few firms explicitly designed for options traders. They emphasize risk-defined strategies (spreads, condors) and offer a comprehensive training program.

• Key Feature: Capital allocation increases gradually based on performance metrics.

• Website: Maverick Trading

2. T3 Trading Group (Professional BD)

• Best For: Career traders wanting Equities and Options with true DMA.

• Overview: T3 is a registered broker-dealer and member of FINRA/SIPC. This is a "prop" job in the traditional sense: you must be licensed (Series 57) and typically make a capital contribution.

• Key Feature: Access to institutional leverage and legally compliant professional trading infrastructure.

• Website: T3 Trading Group

3. SMB Capital (Professional Options Desk)

• Best For: Elite training and an institutional Options Desk environment.

• Overview: Famous for their "Shark Tank" style training, SMB has a dedicated options desk. They focus heavily on playbook development and real-time mentorship in NYC.

• Key Feature: World-class education and a culture of high-performance team trading.

• Website: SMB Capital

4. Topstep (Futures Evaluation)

• Best For: Traders focused strictly on Futures (ES, NQ, CL) without options.

• Overview: A pioneer in the "Combine" model. You trade in a simulated environment; if you follow the rules and hit profit targets, you earn a funded account.

• Constraint: Topstep generally does not support options trading on their funded futures accounts.

• Website: Topstep

5. Apex Trader Funding (Futures Evaluation)

• Best For: High-volume Futures traders looking for multiple accounts.

• Overview: Known for varied account sizes and frequent sales. Like Topstep, they offer a path to funded futures sub-accounts.

• Constraint: Strictly futures contracts. Options on futures are not typically supported on their Rithmic/Tradovate connections for funded traders.

• Website: Apex Trader Funding

Conclusion

Navigating the prop firm landscape requires honesty about your strategy.

• If you trade SPX Spreads, look at Maverick or professional BDs like T3.

• If you trade ES/NQ Directional, evaluation firms like Topstep or Apex are the most efficient path.

• Caution: If you specifically want to trade Options on Futures, your choices are extremely limited in the retail prop space due to risk modeling complexity.

Next Step: specific firm policies change often. Before signing up, I recommend emailing the firm's support desk with this exact question: "Does your funded account explicitly allow trading options on futures (e.g., options on /ES), or is it restricted to the futures contracts only?"

Always insist on obtaining your chosen firm’s written fee structures, platform demonstrations, and explicit policy language surrounding options and risk controls. Taking these steps will protect you against the common pitfalls that catch many traders off-guard.

Frequently Asked Questions (FAQs)

1. Do any evaluation firms allow options on futures?
   Most standard evaluation firms (Topstep, Apex, MyFundedFutures) are "Futures Only" and do not support options on futures due to the difficulty of calculating real-time risk on illiquid option strikes. Always check directly with support.
   
   

2. What license do I need for T3 or SMB Capital?
   These are professional broker-dealers. You generally need to pass the SIE (Securities Industry Essentials) and the Series 57 (Securities Trader) exam.
   
   

3. Can I trade SPX options at Topstep?
   No. SPX is an index option traded on CBOE. Topstep is a futures firm (CME/CBOT). You would trade ES (E-mini S&P 500) futures, but not SPX options.
   
   

4. What is the "Trailing Drawdown" in futures prop firms?
   It is a dynamic loss limit that moves up as your account balance grows (unrealized or realized). If your peak balance is $53,000 and the drawdown is $2,000, your liquidation point moves up to $51,000.
   
   

5. Are prop firm profits taxed as capital gains?
   For "backed" retail accounts (simulated-to-live), profits are often paid as "independent contractor income" (1099-NEC in the US), taxed at ordinary income rates. Professional BD traders (T3/SMB) may have different tax structures. Consult a CPA.
   
   

6. Why do firms restrict holding positions overnight?
   Overnight sessions have lower liquidity and high "gap risk" (price jumping instantly). Firms restrict this to protect their capital from unmanageable losses while you sleep.
   
   

7. What is the difference between SPY and /ES?
   SPY is an ETF traded on stock exchanges (equity). /ES is a futures contract on the S&P 500 traded on the CME. /ES offers significantly higher leverage and 23-hour trading.
   
   

8. Do I need my own software (e.g., TradingView)?
   Most firms provide a license for a specific platform (e.g., Tradovate, Rithmic, Sterling). Some allow you to connect TradingView to these data feeds, but you usually must use their approved risk engine.
   
   

9. What is a "Capital Contribution"?
   Professional firms (like T3) often require you to deposit some of your own capital (risk deposit) to ensure you have "skin in the game." This allows them to legally offer you high leverage as a professional trader.
   
   

10. Is market data free?
    In evaluation phases, data is often included or cheap. Once funded, you are classified as a Professional, and monthly data fees for CME or CBOE can range from $100 to $300+ depending on the firm.