Futures vs forex prop firms: rules, costs and platforms compared

Same idea, different market

Both kinds of firm sell an evaluation and pay a share of the profits made on a funded account. Forex and CFD prop firms let you trade currency pairs, indices, metals and often crypto through CFDs. Futures prop firms give you exchange-traded futures contracts, such as stock-index, energy and metals futures. In both cases the accounts you trade are usually simulated: the firm pays you from its own funds under its own terms.

Where the rules usually differ

These are common patterns, not rules that every firm follows — always compare the exact terms.

• Pricing. Forex and CFD firms usually charge a one-time fee per attempt, sometimes refunded with the first payout. Futures firms often charge a monthly subscription during the evaluation, sometimes plus an activation fee when you pass.
• Targets and limits. Forex and CFD firms usually state them as a percentage of the account. Futures firms usually state fixed dollar amounts for each account size.
• Maximum loss. Forex and CFD programs often use a static limit, although some trail. Futures evaluations often use a trailing limit, frequently calculated at the end of the day.
• Platforms. Forex and CFD firms typically offer MetaTrader, cTrader, Match-Trader or TradeLocker. Futures firms typically offer NinjaTrader, Tradovate, platforms that connect through Rithmic, or their own software.
• Trading hours. Forex trades around the clock on weekdays, with weekend rules set by the firm. Futures follow exchange hours, and many firms require positions to be closed before the daily session break.

Costs work differently

A one-time fee is easy to compare between firms. A monthly subscription costs more the longer the evaluation takes, so slow, careful trading can become expensive — and an activation fee adds to the bill when you pass. Put both kinds of offer into the challenge ROI calculator over the same number of months.

Drawdown in dollars

Futures limits are usually stated in dollars: for example, a $2,000 trailing limit on a $50,000 account is 4%. Because each contract moves in ticks with a fixed dollar value, one contract can use up a large part of the limit on a volatile day. Check the dollar value per point of every contract before you size a position.

Which one to choose

Choose the market you already trade with a tested plan. A forex trader who switches to futures for a cheaper evaluation also has to learn contract specifications, exchange hours and a new platform — and that learning curve usually costs more than the difference in fees.