What is Futures Trading and How to Get Started with a Futures Prop Firm
5/7/2025, 7:32:30 AM
Learn the futures trading basics and how to join a futures prop firm. Discover strategies, risks, and how to trade with funded capital.
What is Futures Trading and How to Get Started with a Futures Prop Firm
Futures trading is one of the exciting corners of the financial markets. It’s fast, global and filled with plenty of opportunities. Future markets will let you trade with precision and control, whether you are a commodities, stock, or currency trader.
However, getting started looks overwhelming. That’s where futures prop firms jump in. These firms provide you with tools, resources and mentorship. You don’t need a hefty investment. You need skills and discipline.
In this guide, you’ll learn how futures trading works. You’ll also understand how to start with a futures prop firm and become a consistent trader.
Looking to trade futures with zero personal risk? Get funded by FundingTicks and trade real capital with confidence.
What is Futures Trading?
A futures contract binds buyer and seller to perform the transaction at a predetermined price at a specific future date. These contracts are standard and traded on exchanges like CME Group. They cover every market, including gold, oil, stocks, currencies, indexes, etc.
Futures are derivative products, unlike stocks. They represent the price move of underlying assets and their ownership. Both hedgers and speculators use futures trading. Hedgers want to protect their portfolios. For example, a farmer could sell wheat futures to lock in a price. Meanwhile, speculators may aim to profit from the price change. They do not care about owning the product; they only look for the price direction.
Key Features of Futures Trading
Futures contracts provide unique features, appealing to traders.
Leverage
You can control a bigger position with a smaller deposit, which means your returns and losses can be amplified. It’s critical to manage leverage.
Liquidity
Futures contracts like gold, oil, and stock indexes are highly liquid. You can make quick trades with tight spreads.
Transparency and Regulation
Futures trades are performed through a centralized exchange, which makes them transparent compared to the OTC markets. Each participant follows the same rules.
Variety
You can enjoy trading a variety of markets, such as currencies, stocks, indices, bonds, commodities, and more.
Want to trade all of these with funded capital? Join FundingTicks and skip the capital limitations.
Why Futures Over Other Markets?
Several traders prefer trading futures over spot markets. Here’s why:
You get access to extended hours. Futures markets operate twenty-four hours a day, five days a week. It helps you react to the global news.
Commissions and fees are generally lower compared to stock trading. Moreover, futures are highly regulated and offer tax advantages in some countries.
Futures are ideal for traders who love speed and efficient execution.
What is a Futures Prop Firm?
A futures prop firm provides traders who qualify with access to substantial account sizes and other resources. In return, the traders trade according to predefined rules and keep a hefty share of the profits. The firm covers the risk.
Prop firms are always on the hunt for skilful traders. They use evaluation programs to test your abilities. Once you qualify, you get a master account.
Instead of risking your money, you pay a small evaluation fee and prove your edge. Once passed, you must retain the risk limits and grow the account.
How Do Futures Prop Firms Work?
Here’s how the process usually works:
You start with a challenge phase, which is also called evaluation. Your objective is to meet profit targets without breaching the risk limits. These limits include daily loss limit, maximum drawdown, and trade duration.
Once you pass the evaluation, you get the master account. In this phase, you can earn a 90% profit split and get a payout every five days. If you are consistent, you can scale your account as well.
FundingTicks offers one of the most trader-friendly evaluations. Pass the test and access real capital with real support.
Pros of Trading with a Futures Prop Firm
You can enjoy many benefits working with a futures prop firm.
Capital Access
You don’t have to risk your hard-earned money. You can earn big with a prop firm’s resources if you have skills.
Mentorship and Tools
Prop firms like FundingTicks offer educational content, analytics and other resources to help you learn faster.
Accountability
You must follow specific rules and a predefined structure, which makes you disciplined. Traders who never break the rules tend to perform better.
Professional Environment
You enjoy direct market access, charting tools, analytics, etc. You trade like a pro from the very beginning.
Choosing the Right Futures Prop Firm
Not every prop firm is fair. Here’s what you need to look at before signing up.
Evaluation Rules
Always check the evaluation rules deeply. Look for drawdown, trailing drawdown and time limits. Do they look realistic, or are they designed to fail you?
Profit Split
Profit splits are usually high for all firms. Some provide an 80% share, and some up to 90%.
Fees
Evaluation fees vary a lot. Some firms have hidden charges as well. Read the terms thoroughly.
Scaling Plan
Check to see if your preferred provider provides a scaling plan. You deserve to level up your career and grow if you are consistent.
Platform Access
Look for the prop firm’s platforms. FundingTicks provides NinjaTrader, Tradovate and TradingView.
Community and Support
Firms with strong community and active support create better trust. Luckily, FundingTicks has a great Discord community and excellent support.
FundingTicks is built by traders, for traders. It has transparent rules, generous splits, and real support. Try us today.
How to Get Started with Futures Trading at a Prop Firm
Follow these steps to begin your journey.
Step 1: Learn the Basics
Learn how futures work before joining any prop firm. Understand margins, tick size, trading hours, instrument nature, etc. Know how contracts like GC, ES, CL, etc., behave. Study price action, read the economic calendar, and figure out how markets move.
Step 2: Practice on a Demo
Start with a demo account and track your results. Refine your strategy to level up your confidence.
Step 3: Choose a Prop Firm
Pick a prop firm that matches your objectives. If you prefer low drawdown and high profit splits, join a firm like FundingTicks.
Step 4: Pass the Evaluation
When you are in the evaluation phase, try to show maximum discipline. Avoid chasing markets. Follow rules and take small steps to stay on the right track.
Step 5: Go Live
Once you pass the evaluation, you move to the live environment. Now the profits are real. Manage risk and keep doing what works for you.
Step 6: Scale and Grow
You can scale up and manage even bigger accounts as you stay consistent.
Common Mistakes in Futures Prop Trading
Many traders fail as they do not follow a plan. Here are the key mistakes to avoid:
Never overtrade. Always stick to your plan.
Keep an eye on news/events as they trigger high volatility.
Prop firms have strict rules. Never overlook them.
Most traders don’t journal their trades. Reviewing your performance can help.
Never trade with emotions. Stick to logic.
Want to avoid these mistakes? FundingTicks offers coaching and community support to keep you sharp and focused.
Conclusion
Futures trading is lucrative as it is efficient, available 24/7, and has a high potential for profit and growth. Working with a futures prop firm requires discipline and consistency. However, you don’t need to invest capital. You only enter the evaluation phase, and once it is passed, enjoy the live trading environment and earn a 90% profit split.
Ready to get funded and trade with confidence? Start your journey today with FundingTicks. Your skill. Our capital. Let’s grow together.
