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For American traders seeking access to leveraged crypto trading, several leading prop firms offer perpetual futures evaluations. Top choices include Apex Trader Funding and Topstep, which provide access to crypto futures on regulated exchanges like the CME. These firms allow US citizens to trade funded accounts after passing an evaluation, offering a unique pathway to trading perpetuals with significant capital without risking their own.
Table of Contents
- What Are Perpetual Futures and Why Are They Popular?
- The Challenge for US Traders in Accessing Perpetual Futures
- Top Prop Firms Offering Crypto Derivatives for Americans
- Apex Trader Funding
- Topstep
- Firms Offering Crypto CFDs (A Note for Traders)
- How to Choose the Right Crypto Prop Firm
- The Evaluation Process: A Path to a Funded Account
- What Are the Risks Associated with Crypto Prop Trading?
- Is Trading Crypto with a Prop Firm a Good Idea for You?
- Frequently Asked Questions
What Are Perpetual Futures and Why Are They Popular?
Perpetual futures, often called “perps,” are a type of derivative contract in the cryptocurrency market that has become exceedingly popular among traders. Unlike traditional futures contracts, perpetuals have no expiration date. This key feature allows traders to hold a leveraged position for as long as they wish, provided they maintain the required margin. This structure simplifies trading strategies, as there’s no need to roll over contracts to a new month.
The popularity of perpetuals stems from two main advantages: high leverage and the ability to easily go long or short. Leverage enables traders to control a large position with a relatively small amount of capital, amplifying potential profits (and losses). The ability to short the market is equally crucial, allowing traders to profit from downward price movements. A funding rate mechanism ensures the contract price stays closely tethered to the underlying asset’s spot price, creating a balanced and liquid market.
The Challenge for US Traders in Accessing Perpetual Futures
For traders based in the United States, direct access to crypto perpetual futures on many popular global exchanges is restricted. The U.S. regulatory landscape, primarily governed by the Commodity Futures Trading Commission (CFTC), imposes strict rules on leveraged retail crypto products. This has led most major offshore exchanges that offer high-leverage perpetuals to block US-based customers from their platforms.
Proprietary trading firms present a legitimate and effective solution to this challenge. These firms operate under a model where they fund traders who can prove their profitability through an evaluation process. Technically, the trader is not trading their own retail account but is instead acting as an independent contractor managing the firm’s capital on a simulated account. The firm then mirrors successful trades in its own live account. This structure allows US citizens to legally trade instruments like crypto futures, as they are not the direct account holder on the underlying exchange.
Top Prop Firms Offering Crypto Derivatives for Americans
When searching for a prop firm, it’s vital to distinguish between those offering futures contracts and those offering Contracts for Difference (CFDs). Futures are traded on centralized, regulated exchanges (like the CME), while CFDs are contracts with a broker. Both allow for leveraged trading, but the underlying structure is different. Below are established firms that welcome US traders for crypto derivatives.
Apex Trader Funding
Apex Trader Funding is a dominant name in the futures funding space and is highly popular among US traders. While known for traditional markets, they provide robust access to crypto futures. Traders can access Bitcoin (BTC), Ethereum (ETH), and other crypto futures products offered on the CME Group’s exchanges. Apex is celebrated for its straightforward, one-step evaluation process.
The evaluation typically requires a trader to hit a specific profit target without hitting a trailing drawdown limit. There are no daily drawdown rules, which offers significant flexibility. Once passed, traders are eligible for a “Performance Account,” with a generous 90% profit split going to the trader for the first $25,000 earned, and 80% thereafter. Apex frequently offers discounts on their evaluation fees, making them one of the most accessible options.
- Instrument: Crypto Futures (CME)
- Evaluation: One-step
- Profit Split: Up to 90%
- Key Advantage: No daily drawdown, simple rules, frequent promotions.
Topstep
Topstep is one of the original and most reputable players in the funded trader industry. They have a well-defined career path for traders, starting with their signature “Trading Combine.” This evaluation is a two-step process where traders must demonstrate consistent profitability and risk management. Topstep provides access to CME crypto futures, including Bitcoin and Ethereum, through professional trading platforms like NinjaTrader and TradingView.
While the two-step evaluation is more rigorous than Apex’s single-step model, it is designed to build disciplined trading habits. Successful traders gain a funded account with a very clear and fast payout process. Topstep’s long-standing reputation for reliability and excellent trader support makes it a trusted choice for serious individuals committed to building a trading career.
- Instrument: Crypto Futures (CME)
- Evaluation: Two-step (Trading Combine)
- Profit Split: 90% of first $10,000, then 80%
- Key Advantage: Strong reputation, excellent educational resources, and a structured path for traders.
Firms Offering Crypto CFDs (A Note for Traders)
Many other prop firms, particularly those with roots in the forex market, also offer “crypto trading” to US clients. Firms like FTMO, The Funded Trader, and Funded Trading Plus typically provide access to crypto through CFDs, not futures. While this still allows for leveraged long and short trading, the execution environment and asset list can differ. CFDs are traded against the broker, and spreads can be wider than on futures exchanges. However, these firms often offer a much wider variety of crypto pairs beyond just Bitcoin and Ethereum, which can be an advantage for traders focused on altcoins.
How to Choose the Right Crypto Prop Firm
Selecting the best firm depends on your trading style, risk tolerance, and personal goals. A key part of your decision should be based on the rules of the evaluation, as this is the primary hurdle. Pay close attention to the profit target, maximum drawdown (especially whether it is static or trailing), and any rules regarding daily losses or holding positions overnight or over the weekend.
The table below compares key features of top firms offering crypto derivatives to US traders. Use this as a starting point for your own research.
| Feature | Apex Trader Funding | Topstep | Typical CFD Firm (e.g., FTMO) |
|---|---|---|---|
| Instrument | Futures (CME) | Futures (CME) | CFDs |
| Evaluation Steps | 1-Step | 2-Steps | 1 or 2 Steps |
| Max Drawdown Type | Trailing | Trailing or Static | Static or Trailing |
| Profit Split | Up to 90% | Up to 90% | Typically 80-90% |
| Crypto Assets | Limited (BTC, ETH, etc.) | Limited (BTC, ETH, etc.) | Often a wide variety of altcoins |
| Best For | Traders wanting simple rules and no daily drawdown. | Traders seeking a structured path with a reputable firm. | Traders wanting to trade a wide range of altcoins. |
The Evaluation Process: A Path to a Funded Account
The core of any prop firm experience is the evaluation or “challenge.” This is a paid test designed to verify your ability to trade profitably while managing risk. A typical one-step evaluation requires you to reach a profit target (e.g., 6%) without letting your account balance drop below a maximum drawdown limit. A two-step evaluation adds a second, often easier, phase with a lower profit target to confirm your consistency.
Successfully navigating these evaluations demands more than just a good strategy; it requires immense discipline and a precise analytical approach. The volatility of crypto markets can easily lead to rule violations. This is why many aspiring funded traders turn to advanced analytical tools. Platforms like prop firms perpetual futures provide a critical edge by offering real-time market data, institutional-grade analytics, and actionable insights. Using such a tool can significantly improve your ability to spot high-probability setups and manage risk according to the firm’s strict parameters, increasing your chances of passing the challenge.
What Are the Risks Associated with Crypto Prop Trading?
While prop firms offer tremendous opportunity, it is essential to be aware of the associated risks. The most immediate risk is the evaluation fee itself. These fees are non-refundable, and if you fail the challenge, the money is lost. Many traders require multiple attempts before passing, so it’s important to budget for this possibility.
Once funded, the primary risk is violating a trading rule, most commonly the drawdown limit. A single oversized loss or a string of bad trades can result in the forfeiture of your funded account, and you would need to start over by paying for another evaluation. Finally, the inherent volatility of the crypto market remains a constant risk. Even in a simulated environment, rapid price swings can trigger emotional decisions that lead to rule violations.
Is Trading Crypto with a Prop Firm a Good Idea for You?
This model is ideally suited for traders who have already developed and backtested a consistently profitable trading strategy but lack the personal capital to generate significant income from it. If you can confidently manage risk and follow a plan, a funded account provides the leverage needed to scale your earnings dramatically. It’s an excellent way to turn a proven skill into a profession.
Conversely, this path is not recommended for complete beginners. If you do not have a well-defined strategy or a solid understanding of risk management, you are very likely to fail the evaluation and lose your fee. It is wiser to first learn and practice on a personal demo account. Prop firm evaluations are not a learning ground; they are a testing ground for established skills.
Frequently Asked Questions
What is the difference between a static and trailing drawdown?
A static drawdown is a fixed amount based on your initial account balance. For example, on a $100k account with a 10% static drawdown, your account equity cannot drop below $90k. A trailing drawdown follows your account’s high-water mark. If your $100k account balance rises to $102k, a $5k trailing drawdown limit will move up to $97k. It’s crucial to understand which type a firm uses, as a trailing drawdown is generally considered more difficult to manage.
Do I need to complete KYC to join these prop firms?
For firms like Apex and Topstep that deal with regulated futures, you will likely need to complete Know Your Customer (KYC) verification before receiving a payout. This is standard practice for legitimate financial operations in the US. Some offshore CFD-based firms may have more lenient KYC requirements, but this can also be a red flag regarding the firm’s legitimacy.
Are the earnings from prop firms taxable in the US?
Yes. In the United States, traders for prop firms are typically classified as independent contractors. As such, any profits you receive as a payout are considered self-employment income. You will receive a Form 1099 from the firm (if it’s US-based) and will be responsible for reporting this income and paying the appropriate taxes to the IRS.
