What Is Futures Trading and How to Get Started with a Prop Firm?

What Is Futures Trading and How to Get Started with a Prop Firm?

Discover what futures trading is and how to get started with a prop firm. Learn the benefits, steps, and best firms to trade futures with funded accounts.

Futures trading has become one of the most dynamic areas in global financial markets. It offers traders the ability to speculate, hedge, and profit from the price movement of assets such as commodities, currencies, stock indices, and energy. With its high liquidity and leverage opportunities, futures trading attracts both beginners and professionals.

But for many aspiring traders, getting started in futures trading can feel overwhelming. This is where futures prop firms come in. Prop firms provide traders with capital, resources, and mentorship, making it possible to trade without risking large amounts of personal funds.

In this guide, you’ll discover what futures trading is, how prop firms work, and the steps you need to take to start trading successfully.

What Is Futures Trading?

A futures contract is a legal agreement to buy or sell an asset at a predetermined price and date in the future. These contracts are traded on regulated exchanges such as the CME Group. Unlike stocks, futures are derivatives, meaning they derive their value from the underlying asset.

Who Trades Futures?

• Hedgers: Farmers, manufacturers, and businesses use futures to protect against price fluctuations. For example, a farmer may sell wheat futures to lock in a profitable price before harvest.
• Speculators: Traders who want to profit from price movement without owning the asset.

Benefits of Futures Trading

• Leverage – Control larger positions with smaller capital.
• Liquidity – Assets like oil, gold, and the S&P 500 are highly liquid.
• Transparency – Futures are traded on centralized exchanges.
• Variety – Trade across commodities, currencies, indices, and bonds.

Why Choose Futures Over Other Markets?

Many traders prefer futures because of their high leverage, clear regulations, and global accessibility. Unlike forex or stock trading, futures often come with lower fees and tighter spreads, making them attractive to professionals.

What Is a Futures Prop Firm?

A futures prop firm funds skilled traders with company capital. In return, traders follow risk management rules and share a percentage of profits with the firm. This model reduces the financial risk for traders while giving them access to large accounts.

Some of the most popular futures prop firms include FundingTicks, which offers accessible evaluations, mentorship, and a fair profit-sharing model.

How Do Futures Prop Firms Work?

Joining a prop firm typically involves:

1. Evaluation Phase – You trade on a demo account under set rules. Examples include profit targets, maximum daily losses, and drawdowns.
2. Live Account – After passing evaluation, you’re funded with real capital. Many firms offer up to 90% profit splits.
3. Scaling – Consistent traders can scale their accounts to manage larger capital.

Learn more about prop trading opportunities at FundingTicks.

Benefits of Trading with a Futures Prop Firm

Working with a prop firm offers several advantages:

• Capital Access – Trade with firm funds instead of risking personal savings.
• Mentorship & Tools – Many firms provide educational content, analytics, and community support.
• Accountability – Risk management rules help traders stay disciplined.
• Professional Environment – Direct market access and advanced trading platforms.

Choosing the Right Futures Prop Firm

When selecting a prop firm, consider the following:

• Evaluation Rules – Check profit targets, risk limits, and drawdowns.
• Profit Split – Look for firms offering 80%–90% payouts.
• Fees – Compare evaluation costs and watch for hidden charges.
• Scaling Plans – Ensure the firm allows account growth.
• Community Support – A supportive trader network is invaluable.

Steps to Start Futures Trading with a Prop Firm

Step 1: Learn the Basics

Understand futures contracts, margin requirements, and trading hours. Study how assets like crude oil (CL), gold (GC), and the S&P 500 (ES) move.

Step 2: Practice on a Demo

Use a demo account to test strategies and build confidence.

Step 3: Choose a Prop Firm

Pick a firm that matches your trading style and goals. For beginner-friendly funding, consider FundingTicks.

Step 4: Pass the Evaluation

Trade with discipline, respect risk limits, and achieve profit targets.

Step 5: Go Live

Once funded, trade with real capital and begin earning a profit split.

Step 6: Scale Up

Grow your account by maintaining consistent performance.

Common Mistakes in Futures Prop Trading

Avoid these pitfalls to improve your success rate:

• Ignoring risk rules
• Overtrading during volatile markets
• Failing to manage emotions
• Not preparing with a trading plan. 

Futures trading is one of the most lucrative and fast-paced financial markets. Partnering with a futures prop firm makes it possible to trade with real capital, mentorship, and structure—without risking your own savings.

If you’re ready to take your trading journey to the next level, check out FundingTicks and start trading futures with confidence.