5 Best Options Trading Firms in the USA

Institutional-level options traders often seek proprietary trading firms ("prop firms") that provide superior technology, large capital allocations, and robust risk management. These options prop trading firms allow experienced professionals to trade options (and often stocks or futures) with the firm's capital, in exchange for a share of the profits. Below we identify and evaluate the five best U.S.-based prop firms that allow options trading, focusing on their platforms, leverage, product range, risk controls, fees, payouts, training, and tech infrastructure. This list prioritizes firms headquartered in the USA (regardless of regulatory status) and catering to serious, professional traders.

Overview of 5 Best Options Trading Firms in the USA

Firm	Capital Requirements	Profit Split	Tradable Assets	Technology Level	Training Program
Funder Trading	No upfront capital Pass evaluation challenge	100% initially Then 80/20 (trader/firm)	US Stocks & Options No futures/forex	Advanced TrueEdge platform Limited API	✓ Live coaching Community support
Maverick Trading	Training fee required Performance bond	70-80% to trader Based on performance	US Stocks & Options Index options Separate FX/crypto division	Advanced Proprietary platform No advertised API	✓ Rigorous certification Ongoing mentorship
Jane Street	Employment model No trader capital needed	Salary + Bonus No traditional split	All assets: Options, stocks, ETFs, futures, bonds, crypto	Elite Proprietary systems Full API/automation	Minimal formal training Sink-or-swim culture
T3 Trading Group	$5,000-$7,500 Risk capital deposit	50-95% to trader Based on contribution level	Stocks, Options & Futures Multi-asset access	Elite Multiple platforms API + co-location available	Optional via T3 Live Minimal hand-holding
SMB Capital	No trader capital Firm provides all funding	40-60% initially Improves with performance	Stocks, Options & Futures Multi-asset specialization	Advanced Proprietary tools API for systematic traders	✓ Comprehensive SMB University Daily mentorship

Understanding Options Trading Prop Firms

An options trading prop firm is a proprietary trading company that funds traders to trade options contracts (and frequently other assets like equities or futures) using the firm's capital. In return, the firm takes a portion of the profits. Unlike retail trading accounts, prop traders benefit from institutional-grade resources – including higher leverage, advanced platforms, and risk oversight – but must adhere to the firm's rules and profit-sharing terms. Not all prop firms allow options; many top prop firms historically specialized in equities or futures prop firms for commodities trading. The firms below are notable prop firms that allow options trading, giving traders access to stock options, futures, and other instruments under one roof.

For an institutional trader, joining a stock options prop firm can offer advantages such as deeper liquidity access and professional risk management. However, it also means sharing profits and following the firm's strategies and limits. As Mike Bellafiore, co-founder of SMB Capital, put it: "A great trader is an elite performer... Every day we trade is an opportunity to learn from the market. My mistakes and those of other prop traders are just gifts from the market for us to improve." In the right prop firm, even experienced traders can continue to refine their skills and scale up with firm capital.

Top 5 Prop Firms for Options Trading in the USA

Below are five of the top prop firms in the U.S. that offer options trading. Each firm is evaluated on professional-grade platforms, leverage and capital access, range of products (options, stocks, futures), risk management policies, commission structure and profit splits, payout frequency, training programs, and technology/API access.

1. Funder Trading – Options Funding Specialist

Funder Trading is a U.S.-based options prop firm known for its unique funding program. It requires no upfront capital or certification exams to start – traders can be funded after passing a trading evaluation (the "TrueEdge Challenge"). Funder is focused on U.S. stock and options markets and provides live coaching support. Traders initially keep 100% of profits until a certain fee is covered, after which an 80/20 profit split applies in the trader's favor. This model allows skilled options traders to access significant buying power quickly.

Key Highlights:

Platform & Technology: Funder offers the TrueEdge proprietary trading platform with advanced tools and real-time market data. Traders get professional-grade software with automated risk management features to protect accounts.

Capital & Leverage: Traders do not need to put up personal funds – Funder covers all trading losses once you're funded, providing leverage beyond a typical retail account. This allows experienced options traders to scale strategies with the firm's capital.

Tradable Instruments: Funder Trading supports U.S. equities and options trading (both single-leg and multi-leg options strategies). It does not currently fund futures or forex trading, so its focus is on stock and options markets.

Risk Management: The firm enforces strict risk rules during the evaluation and funded stages. There are daily loss limits and drawdown caps automated into the TrueEdge platform to manage risk in real time. This disciplined approach helps prevent catastrophic losses.

Commissions & Profit Split: Funder's commission structure is competitive, with traders paying standard market rates on stock and option trades. Importantly, traders retain 100% of profits initially (until program fees are recouped), then an 80/20 split (trader/firm) applies thereafter. There are program fees for the evaluation and monthly platform fees, which are the main costs.

Payouts: Payouts are typically done on a monthly cycle. Once funded, traders can withdraw profits monthly (subject to any minimum profitability requirements). The profit split is applied only after the trader has earned back the one-time startup fee.

Training & Mentorship: Funder includes live coaching and online education as part of its program. Traders have access to webinars, one-on-one mentorship, and a community chat to discuss trades. This support is valuable for honing options strategies under an experienced eye.

API & Tools: TrueEdge is a modern platform but is primarily designed for manual or semi-automated trading via its interface. At this time, API access for fully automated strategies is limited; the firm's model is geared toward active discretionary trading with risk controls.

2. Maverick Trading – Education-Focused Prop Firm

Maverick Trading is an established prop trading firm that heavily emphasizes trader education and support. Based in the U.S. (headquartered in Utah), Maverick has been operating for over a decade. It has two divisions: one for stock/options trading and another for FX/crypto trading. Options traders at Maverick go through a rigorous training and certification program before trading firm capital. The firm offers a professional trading platform and a robust support network of coaches and fellow traders.

Key Highlights:

Platform & Technology: Maverick provides an advanced proprietary trading platform for stock and options trading. The platform is designed for U.S. markets and includes professional tools for options strategy modeling and risk tracking. While primarily a manual trading platform, it is stable and suitable for high-volume options trading. API connectivity is not advertised, as Maverick's approach is more hands-on and mentorship-driven.

Capital & Leverage: After successfully completing training and meeting performance criteria, traders are given a substantial capital allocation. Maverick backs its traders with firm capital to maximize profit potential. Leverage is generous for both intraday and swing trading, though the firm sets position limits based on experience and risk management approval. As traders grow and retain profits, their buying power can be increased incrementally.

Tradable Instruments: Maverick traders can trade U.S. stock options and equities on major exchanges. The firm's options prop program encourages a variety of strategies (spreads, straddles, etc.) on stocks and ETFs. Some index options trading is allowed as well. (Maverick also has a separate division for forex and crypto, but its stock options prop firm division does not cover futures contracts – it stays within equity and options markets.)

Risk Management: Maverick has a strong risk management culture. Each trader works with a risk manager who monitors positions and provides guidance (especially to new traders). The firm imposes max loss limits, strict overnight position rules, and uses stop-loss discipline to protect against outsized losses. As one executive noted, risk management is considered "the true secret to trading success" and is reinforced at every step.

Commissions & Profit Split: Commission costs at Maverick are passed through at competitive rates (similar to direct-access brokers). Maverick's profit-sharing is structured so that traders keep 70% to 80% of generated profits from trading the firm's capital. The exact percentage depends on the trader's level and performance. Notably, Maverick's model is not about charging per-trade fees or spreads; the firm's profits come mainly from its share of trader profits, aligning its interests with the traders. There is typically an upfront training fee or "performance bond" which serves as a trader's stake and commitment.

Payouts: Maverick issues payouts on a monthly basis. Traders receive their profit share each month, while the firm retains its portion. This monthly payout schedule allows for regular income, which is valuable for professionals. Maverick highlights that traders can "trade our capital and keep 65–90% of the profits – get paid out every month". Higher-performing traders can qualify for the upper end of that profit split range over time.

Training & Mentorship: Training is Maverick's hallmark. New traders must go through the Maverick Trader Certification Program, which covers options strategies, risk management, and the firm's trading methodology. Ongoing mentorship is provided via live classes, daily market recaps, and a community forum. The CEO of Maverick Trading, Darren Fischer, emphasizes a holistic approach, saying "We incorporate traders' psychology aspect into our coaching and live trading to ensure a holistic approach to the business of trading.". This reflects Maverick's view that psychology and discipline are as important as strategy. Even experienced traders joining Maverick benefit from access to this community and coaching resources.

API & Tools: Maverick's focus is on discretionary trading education, so it does not advertise API access for automation. However, the provided platform is equipped with scanning tools, options analytics, and risk monitors. Traders also gain access to Maverick's proprietary screening and research tools, plus a network of other traders to share ideas. The technology infrastructure is robust enough for most options trading styles (market-making style HFT is outside the scope here), and remote traders connect via a secure desktop platform.

3. Jane Street – Elite Quantitative Trading Firm

Jane Street is a legendary name in proprietary trading, known for its quantitative approach and dominance in global ETF and options markets. Headquartered in New York City, Jane Street is a top prop firm that trades a wide range of assets – options, equities, futures, bonds, and more – deploying advanced algorithms and statistical strategies. Unlike the other firms on this list, Jane Street does not have a profit split model; instead, it hires traders as full-time employees. This firm is highly selective, recruiting only top talent (often with strong math/programming backgrounds) through a rigorous interview process. For experienced institutional options traders, Jane Street offers access to unparalleled capital and technology, but only via an employment route.

Key Highlights:

Platform & Technology: Jane Street is renowned for its cutting-edge trading technology and infrastructure. Traders at Jane Street use internally-developed proprietary trading systems and coding libraries to execute strategies with microsecond-level latency. The firm invests heavily in technology and proprietary algorithms to price and trade options and other derivatives. API access and automation are essentially the norm – most Jane Street traders are writing code (in OCaml, the firm's favored language) to interact with markets. The tech stack and data feeds are truly institutional-grade, giving Jane Street traders a significant edge in speed and complexity of trades.

Capital & Leverage: As one of the world's largest liquidity providers, Jane Street offers its traders massive capital access and leverage. Traders don't have personal accounts; they trade the firm's capital directly, often in very large sizes. The firm's risk managers set risk limits tailored to each strategy, but those limits are far beyond what any individual could access on their own. Overnight and intra-day leverage are provided when strategies justify it. Essentially, if you have a profitable strategy in options or other instruments, Jane Street ensures you are not capital-constrained. Compensation is tied to performance, but the firm absorbs losses, which underscores the robust risk culture.

Tradable Instruments: Jane Street's trading scope is broad. Within options, they trade equity options, index options, options on futures, and even complex OTC derivatives. They are active on all major U.S. options exchanges and many international ones. Beyond options, Jane Street is active in stocks, ETFs, futures, bonds, commodities, and crypto. This multi-asset capability means a trader can express views across markets. Options traders often work on volatility trading, market-making, and arbitrage strategies across different products. The firm's institutional focus allows strategies like index arbitrage or cross-asset options strategies that smaller firms might not touch.

Risk Management: Risk management at Jane Street is quantitatively driven and deeply embedded. Proprietary risk models monitor each trader's portfolio in real time, and the firm's partners oversee risk at a high level. Traders are expected to understand and control their risk exposures (Greeks, VAR, etc.). Given the scale of positions, strict risk limits and scenario tests are in place. The culture emphasizes not blowing up – risk managers can reduce positions if they see unacceptable risks. However, Jane Street's tolerance for sophisticated strategies is high, provided they are backed by data and sound models.

Commissions & Profit Split: Jane Street does not operate on a commission-per-trade model for its traders; all trading costs (exchange fees, clearing, etc.) are borne by the firm as part of its operation. There is no profit split in the traditional sense – traders are salaried employees and also receive performance-based bonuses. Essentially, if the firm and your desk are profitable, your bonus reflects that performance (similar to a hedge fund model). This structure means a trader's upside is substantial, but there's also a stable base compensation. It aligns traders with the firm's long-term interests rather than short-term trade-by-trade profit sharing.

Payouts: As employees, Jane Street traders receive a regular salary (usually bi-weekly or monthly paychecks like any job) and then annual (or sometimes semi-annual) bonuses based on performance. This bonus can be a significant portion of total compensation for a good year. There isn't a concept of withdrawing trading profits monthly; instead, your "payout" comes as bonus compensation. This suits institutional professionals who value stability and high earning potential over immediate profit withdrawals.

Training & Mentorship: Jane Street does not provide formal training programs for newcomers in the way firms like Maverick or SMB do. They hire experienced traders or brilliant new grads and put them through an intensive on-the-job training. New hires often rotate with senior traders to learn the firm's systems and culture. Mentorship is informal – you learn by working alongside top traders. There is an expectation that you already bring a lot to the table (in terms of quantitative skills or trading experience). This "sink or swim" environment is part of Jane Street's competitive culture. For an institutional trader with a proven track record, the firm offers an environment to collaborate with some of the best minds in the trading world.

API & Tools: As mentioned, Jane Street's entire operation is API and automation-centric. Traders can directly code strategies, access extensive historical data, and leverage the firm's simulation/testing frameworks. The firm even has its own development of programming tools (for example, their use of OCaml and specific libraries) that are far beyond retail trading tech. This is ideal for quants and technologists in trading. The technology infrastructure includes co-located servers on exchanges, custom hardware for speed, and sophisticated software for pricing models – all maintained by Jane Street's engineering teams.

4. T3 Trading Group – Flexible Professional Trading Network

T3 Trading Group is a U.S. proprietary trading firm known for its flexibility and broad network of traders. Based in New York, T3 is a registered broker-dealer that offers multiple ways to be a prop trader: you can trade remote or on-site, and either solo or as part of a team. T3 supports equity, options, and futures trading, making it one of the more versatile prop firms. Traders at T3 are typically required to contribute a risk capital deposit (often around $5,000–$7,500) which acts as a first-loss buffer, and in return they receive high profit splits and access to greater leverage and professional tools. This firm appeals to experienced traders who want professional infrastructure without a rigid training program.

Key Highlights:

Platform & Technology: T3 gives traders access to multiple trading platforms – popular choices include Lightspeed, Sterling Trader, and RealTick – depending on trader preference. They also provide direct market access with smart order routing (for example, options orders route via Dash technology). The firm's tech offering is a strong point: API access is available for algorithmic traders, and T3 even offers co-location services in major data centers for low-latency trading. This means algorithmic options strategies or high-frequency approaches can be deployed at T3. The infrastructure is on par with institutional brokerages, including direct connectivity to exchanges, dark pools, and high-speed market data.

Capital & Leverage: Upon joining T3 and making the required capital contribution (e.g. ~$7,500), traders receive access to significant firm capital and superior leverage both intraday and overnight. T3's philosophy is that "no profitable trader should be held back because of a lack of capital" – as you prove consistency, the firm will increase your buying power. This can mean leverage multiples far above retail margin (subject to risk manager approval). For instance, an equity options trader at T3 might start with moderate size limits, but if they show a profitable strategy (e.g. market-neutral options spreads or volatility trades), T3 can allocate much larger capital so the trader can scale up. The firm's capital backing is one reason it attracts professionals who have strategies that could earn more with additional funding.

Tradable Instruments: T3 supports a wide range of asset classes. Traders can engage in equities trading, equity options trading, and even futures trading (through the firm's clearing relationships). This multi-asset access is valuable for options traders who may also hedge with stock or want to trade index futures alongside options. T3 allows multi-leg options strategies (spreads, straddles, etc.) and even encourages hedging strategies for options positions. With the correct licenses (T3 sponsors traders for the Series 57 if needed), one can trade virtually any U.S. exchange-traded product under T3's umbrella.

Risk Management: Risk management at T3 is a balance of trader autonomy and firm oversight. Since traders put in a capital contribution, they have "skin in the game," and are expected to manage day-to-day risk prudently. The firm sets risk limits such as daily loss limits proportional to account size and requires traders to cut losses at certain thresholds. A risk team monitors positions (especially for options traders, ensuring that complex strategies are within approved risk parameters like notional value or short-gamma exposure). Notably, T3 reviews and approves advanced options tactics – for example, allowing multiple-leg options spreads only after compliance/risk approval. This ensures traders maintain strategies that the firm understands and can manage. Overall, T3's risk policies are strict enough to protect the firm, yet flexible to accommodate various trading styles.

Commissions & Profit Split: As a broker-dealer, T3 charges commissions on trades, but they advertise transparent cost structures and competitive rates. Commissions might be per share or per contract for options, often at institutional-level pricing. Traders also typically pay for data/exchange fees and a monthly desk fee. In return, T3 offers one of the industry's highest profit splits: traders can keep anywhere from 50% up to 95% of profits, depending on their contribution level and performance. For example, a higher initial capital contribution or consistent profitability can move a trader to a payout tier where they keep 90-95%, while the firm's take could be as low as 5-10%. This model rewards profitable veteran traders, effectively making T3 a low-cost trading backbone rather than a traditional profit-sharing firm. (By contrast, firms that provide training or take novices, like SMB, start with a larger firm profit share.)

Payouts: T3 traders typically operate their accounts similar to an independent trading business. Payouts of profits can be taken monthly or left in the account to grow equity (which can then support larger positions). Since traders deposit capital and trade firm capital combined, profit withdrawal schedules are often at the trader's discretion after month-end accounting, though some may keep a buffer to meet margin requirements. T3's back-office handles payouts efficiently, and because it's a registered firm, everything is tracked and compliant with broker-dealer regulations. Many traders at T3 treat their accounts like a business where they might draw a "salary" monthly from profits.

Training & Mentorship: Compared to education-centric firms, T3 is more geared toward experienced traders, but it does have resources available. Through its affiliate T3 Live, the firm offers optional training programs on technical analysis, trading strategies, etc. for those who want it. New traders can access Virtual Trading Floors and educational content. T3 also sponsors new traders for required licensing exams like the SIE and Series 57, demonstrating a commitment to proper onboarding. However, day-to-day, hand-holding is minimal – traders are expected to be self-sufficient or seek out learning via T3 Live. The benefit of this approach is that skilled institutional traders won't be micromanaged; they get the freedom to implement their strategies within broad risk limits.

API & Infrastructure: T3 shines in technology infrastructure. They provide API access to multiple platforms and even co-located server options for algorithmic traders. The firm has experience supporting black box and automated trading over decades, meaning if you are a systematic options trader (e.g. running a market-making algorithm), T3 can accommodate your needs. This is a key differentiator from smaller prop outfits. Additionally, T3's traders have direct market access with ultra-low latency, connecting to exchanges and dark pools without the delays of retail brokerage routes. In summary, the tech and connectivity at T3 are at an institutional level – ideal for professionals who might otherwise have to build that infrastructure on their own.

5. SMB Capital – Comprehensive Training Prop Desk

SMB Capital is a proprietary trading desk in New York City (Midtown Manhattan) known for its extensive trader training and development program. Co-founded by Mike Bellafiore and Steve Spencer, SMB Capital gained fame through Bellafiore's books One Good Trade and The PlayBook, which detail the firm's trading principles. SMB operates a multi-asset prop desk – traders at SMB can trade equities, options, and futures with the firm's capital. The firm's approach is to nurture elite traders by providing capital, proprietary technology, coaching, and mentoring in a structured environment. For an institutional-level trader, SMB offers a competitive but supportive setting to sharpen skills and potentially generate significant profits (with the firm as a partner).

Key Highlights:

Platform & Technology: SMB provides its traders with proprietary tools and access to state-of-the-art trading platforms. They have an in-house developed trading platform and analytics (resulting from 30+ years of collective experience) to help identify opportunities. Traders utilize direct market access platforms (SMB has historically partnered with technology like Sterling or Lightspeed for execution, integrated with their own risk systems). Both discretionary and automated trading are supported at SMB – the firm explicitly funds systematic "black box" traders as well as discretionary ones. This implies API access or the ability to plug in custom algorithms to the trading system. The tech infrastructure is robust, ensuring fast execution and real-time risk monitoring. SMB's emphasis on technology is to give traders an edge in spotting and exploiting market patterns.

Capital & Leverage: SMB Capital fully backs its traders with firm capital once they are accepted into the firm. New traders usually start with modest capital and risk limits, but as they demonstrate consistency, SMB increases their buying power. The leverage provided is enough to trade sizable positions in stocks or options beyond retail pattern day trading limits. SMB's model is to scale up traders who prove they can handle it – top traders at SMB may run very large books (millions in positions) across equities or options, with proportionate risk controls. Importantly, SMB does not require any capital contribution from traders; it's a true prop shop where the firm's money is at risk. This aligns with attracting serious talent who might balk at paying upfront. However, in exchange, the firm typically keeps a larger share of junior traders' profits initially (to recoup training investment, etc.).

Tradable Instruments: SMB is quite broad in terms of products: traders can focus on day trading equities, swing trading, equity options strategies, and even index futures or commodities futures. The firm fosters specialization – some of its traders become options specialists (like running volatility strategies on indexes or stocks), while others focus on intraday equity momentum, and others on futures intraday trading. An options trader at SMB might, for example, employ complex strategies like iron condors or volatility spreads on SPX, under the guidance of the Options Desk. Having equities and futures desks in-house means an options trader can collaborate with other specialists (e.g., hedge an options play with futures if needed). SMB's training programs (like their Options Tribe) further underscore their commitment to supporting multi-product traders.

Risk Management: SMB Capital is known for a strict risk management policy. The firm imposes tight controls on position size, exposure, and drawdowns, especially for newer traders. If a trader hits a daily loss limit, they are done for the day – discipline is enforced. As traders gain trust, limits can be expanded, but the oversight remains heavy to protect both the trader and firm capital. SMB's partners and risk managers actively review trades and provide feedback. This environment can be "stressful and demanding," as noted, because traders are held accountable to risk rules in a very transparent way. However, this rigor is exactly what often turns capable traders into consistently profitable ones. The culture is that risk comes first; opportunities are endless but surviving to capture them is key.

Commissions & Profit Split: SMB's commission structure is generally at institutional rates since they often clear through a major broker. Traders pay per-share or per-contract fees that are competitive. The profit split at SMB typically starts in the firm's favor for new traders – e.g., a junior trader might keep 40% of profits while the firm takes 60%. This accounts for the heavy investment SMB makes in training, the provided capital, and infrastructure. As traders mature and become consistently profitable, their profit split can improve (some senior traders may negotiate much higher splits). The firm also has agreements for draws or even a base pay for some traders in training, which is unusual for prop firms but part of SMB's approach to cultivating talent. In essence, SMB's profit-sharing rewards longevity and performance – if you become a top trader, you'll get a significant share of what you make, but in the early stages the firm's share is the "tuition" for world-class training.

Payouts: SMB pays out profits typically on a monthly or quarterly basis. Traders often build up their account (the firm tracks each trader's P&L internally) and can withdraw their portion of profits at set intervals. Many traders choose to leave some profits in to increase their trading capital (since the firm may allow larger positions if your account is growing). SMB's back office ensures payouts and accounting are handled so traders can focus on trading. The payout frequency is not as immediate as some retail funding programs, but it is regular and reliable – reflecting the firm's more professional employment-style relationship with traders.

Training & Mentorship: Training is the cornerstone of SMB Capital's identity. New traders (even experienced ones) at SMB go through a comprehensive development program. This includes classroom-style training on trading fundamentals, daily review sessions, and close mentoring by senior traders. SMB literally wrote the book on prop trading – One Good Trade outlines the principles they instill, such as preparation, discipline, and review. Traders are taught to build detailed playbooks of setups and are coached on everything from reading the tape to options Greeks management. The firm runs an SMB University and often has trainees spend months in simulation before risking real capital. Even after going live, traders regularly meet with mentors to discuss their trades. The environment encourages sharing of best practices; top traders often give presentations to the team. This culture has yielded a proven track record of producing profitable traders over the years. For institutional-level professionals, SMB's value is in refining one's edge – you might already be good, but SMB aims to make you world-class through iterative learning.

API & Tools: SMB supports automated trading — they have had notable algorithmic traders on their desk — which means they likely allow API connections or provide a framework for automated strategies. However, most of SMB's traders are discretionary (human decision makers) aided by tools. The firm provides numerous proprietary scanners, indicators, and analytical tools to help identify trades. For example, an options trader might use SMB's custom scanning tool to find unusual options activity, or an equity trader might use their filters for stocks in play. SMB has a partnership with technology providers to ensure traders have fast execution and reliable platforms. While not as technology-driven as Jane Street, SMB's tech is more than sufficient for active trading; the difference is that tech is in service of the trader's decision-making process. Given their focus on learning, they also record and replay trading scenarios for training purposes, leveraging technology for mentorship.

Conclusion: Choosing the Right Prop Firm for Options Trading

Selecting the best prop trading firm as an institutional-level options trader comes down to matching the firm's strengths with your professional needs and trading style. Each of the five firms above excels in certain areas:

If you value no-capital-required funding and 100% initial profit retention, a firm like Funder Trading offers a unique gateway to leverage with supportive coaching.
For those who prioritize structured training and a community, Maverick Trading and SMB Capital provide intensive development and mentorship – ideal if you want to continually sharpen your edge within a collaborative environment.
Traders seeking a cutting-edge technological edge and deep liquidity might gravitate to Jane Street, where you essentially join an elite trading team with massive resources and don't mind earning via salary/bonus instead of direct profit splits.
If your goal is a flexible, high-payout arrangement to run your proven strategies with institutional infrastructure, T3 Trading Group's model of high profit splits and multiple trading platforms stands out.

In all cases, consider factors like how much capital you need, whether you want guidance or full independence, and how important things like API access or exam licensing are for your situation. An institutional-level trader likely already appreciates the importance of risk management, technology, and discipline – a good prop firm will reinforce those values. As Darren Fischer of Maverick Trading observed, succeeding in this business requires a holistic approach that combines strategy with psychology and risk control.

Ultimately, prop trading can be highly rewarding for options traders who choose the right firm. The best firms not only provide capital and tools, but also an environment where talented traders can thrive. By aligning with a prop firm that fits your style – whether it's a hyper-competitive quant shop or a nurturing training desk – you gain a partner invested in your success. This symbiotic relationship can amplify your trading career, making the pursuit of profits a shared mission and potentially elevating your performance to new heights.

FAQs

Is prop trading worth it for an experienced options trader?

For many experienced traders, prop trading can be worth it if the additional capital and resources significantly boost their earning potential. In a prop firm, you gain access to leverage, professional platforms, and sometimes mentorship or data feeds that might be too costly to obtain on your own. The trade-off is sharing profits and adhering to the firm's rules. For an options trader with a proven strategy, joining a prop firm can amplify returns (due to more buying power and better execution) and provide risk management support. However, if you already have substantial capital and infrastructure, the benefit might be marginal. It comes down to whether the value-added services – capital, technology, risk control, community – outweigh the costs (profit splits, fees, less autonomy). Many institutional-level traders find that being in a top prop firm pushes them to perform better and access opportunities (e.g. specific market access or higher size) they wouldn't have solo. In short, prop trading is "worth it" if the partnership with the firm enables you to earn more (or learn more) than you could alone.

What profit splits and fees do prop firms offer?

Profit splits vary widely across prop firms. Generally, firms that provide extensive training or risk capital (and take on more novice traders) will initially take a larger share of profits, whereas firms catering to already-successful traders offer higher payouts to the trader. For example, a firm like SMB Capital might start a new trader at a 40% payout to the trader (60% to firm), and then increase the trader's share as they become consistently profitable. In contrast, T3 Trading Group often lets traders keep 90–95% of profits if they put up a capital contribution, with the firm taking as little as 5–10%. Maverick Trading typically has the trader keep 70–80% of profits earned, and Funder Trading allows 100% of initial profits until certain fees are covered, then moves to an 80/20 split favoring the trader. Fees can include platform fees, data/exchange fees, and sometimes a training or evaluation fee. Some firms also require a one-time or monthly risk deposit/desk fee (for instance, T3 has a capital contribution and monthly seat fees). It's crucial to compare the full fee structure: a higher profit split might come with higher monthly fees. Ultimately, the best arrangement is one where the incentives are aligned – the firm only makes money when you do, which motivates them to support your success.

Can I trade futures and stocks at an options prop firm?

Yes, many options-focused prop firms also allow trading in other asset classes like stocks and futures – though it varies by firm. For instance, SMB Capital and T3 Trading Group both support equities, options, and futures trading on their desks. This means you could be primarily an options trader but also take positions in stock or futures for hedging or diversification. Maverick Trading is mainly focused on equities and options (with a separate division for forex/crypto), but does not cover futures within its stock/options division. Funder Trading limits traders to U.S. stocks and options only (no futures or forex are funded there). Jane Street, being a large multi-asset firm, trades everything – options, stocks, ETFs, futures, bonds, etc. In summary, if cross-asset flexibility is important, choose a prop firm that is structured as a multi-asset trading firm (like T3 or SMB). These firms often evolved beyond just being futures prop firms or stock shops; they understand that sophisticated strategies might involve multiple instruments. Always verify with the firm – some smaller prop firms that "allow options trading" might still be specialized and not offer, say, futures. But the top firms typically provide a broad market access to their traders.

What are the requirements to join a prop trading firm for options?

Requirements differ by firm, but generally an options prop firm will look for a combination of experience, skill, and sometimes licensing. Many U.S. firms (like T3 Trading Group and SMB Capital) require you to have or obtain a FINRA license (Series 57 or 7) because you'll be trading firm capital – these firms often sponsor candidates for the exam. In terms of experience, firms like Jane Street seek top-tier trading or quantitative backgrounds and put candidates through a rigorous interview/testing process. Maverick Trading and SMB Capital might accept less-experienced traders but will require completion of their training programs; essentially your "requirement" is to pass their training and simulation benchmarks to go live. Funder Trading has an open policy (even beginners can attempt their trading challenge), but you must pass their evaluation (challenge) to prove your proficiency before getting a funded account. Almost all prop firms will require a track record or demonstration of skill – whether via previous account statements, a trading simulation, or an interview process. Additionally, there may be capital or fee requirements: some firms require a capital contribution or enrollment fee (e.g., T3's deposit, Maverick's program fee). Finally, being an options trader, you should be familiar with options trading rules (like pattern day trading rules if applicable, though in a prop account those may not apply) and platform use. In short, be prepared to show trading competency, meet any regulatory/licensing rules, and have some financial stake (either a deposit or paying for training) when applying to a prop firm for options trading.

How do prop trading firms manage risk for options traders?

Prop firms put a strong emphasis on risk management, especially for the inherently leveraged and volatile world of options. Here are common ways they manage risk for options traders:

Strict Loss Limits: Firms set daily and sometimes intraday loss limits. For example, a trader might be maxed at a -$X loss in a day; hitting that triggers an account lock for the rest of the session. This prevents a bad day from snowballing. SMB Capital is known to enforce such stop-loss limits to protect traders.

Position and Leverage Caps: Risk managers impose position size limits (e.g., maximum number of contracts, or a maximum notional value) and margin usage limits. They often start you small and increase limits as trust grows. For options, firms closely watch short option positions since they carry high risk; they may limit naked short puts/calls or require spreads to cap risk.

Real-time Monitoring: Proprietary risk software will monitor Greeks (delta, gamma, vega) and VAR (Value at Risk) in real time. If your portfolio's risk metrics breach defined thresholds, the risk team might intervene or issue a warning. Sophisticated firms like Jane Street have automated systems to adjust or cut positions if needed.

Pre-Trade Risk Checks: Many firms build risk checks into the trading platform – for instance, you can't send an order that would exceed your buying power or open risk beyond set parameters. T3 Trading Group's systems, for example, won't allow trading beyond the allocated capital or certain complex option strategies without prior approval.

Risk Manager Oversight: Human risk managers often review the portfolios especially of options traders. They might have a morning meeting with traders to discuss overnight exposure or upcoming volatile events (like earnings, Fed meetings) and adjust limits accordingly. They are there to save traders from catastrophic errors, as well as to ensure the firm's capital is safe.

Gradual Scaling and Reviews: Firms manage risk by not giving a new trader too much rope. They'll scale you up gradually. Regular performance reviews are conducted – if a trader has a string of losses, they may be asked to reduce size or take a step back to paper trading (this happens at training-focused firms like SMB). The goal is to catch issues early.

Hedging Policies: For options, some prop firms require or encourage hedging when appropriate (for instance, if you sell a lot of calls, they might require you to hedge delta with stock or spreads). They might restrict certain high-risk strategies altogether for less experienced traders (like selling deep out-of-the-money options close to expiration, which can be like "picking up pennies in front of a steamroller").

In essence, prop firms create a controlled trading environment: you get freedom to trade, but within risk parameters that protect you and the firm. This safety net is a key benefit of prop trading – it's structured so that traders survive and learn to manage risk as second nature. As the saying goes, the first rule of trading is to protect your capital, and prop firms enforce that rule diligently.