Today, the top prop trading firms (market-making companies that trade with the firm's own capital) are among the most influential players in global markets. In recent years, these tech-driven firms have surged in prominence. For example, analysts estimate Jane Street roughly doubled its revenue to about $20.0 billion in 2024, while Citadel Securities grew to around $10.0 billion. Industry data also show that non-bank trading firms collectively grew revenues by nearly 30% (to roughly $70 billion over three years).
It is important to note that top prop firms employ varied, data-driven strategies across asset classes. For example:
- Quantitative & Algorithmic Trading: Leading prop shops use complex models and machine learning, emphasizing research over intuition.
- Market-Making & Liquidity Provision: Many act as crucial liquidity providers in equities, options, ETFs and other markets.
- Multi-Asset Diversification: They often span multiple markets (stocks, bonds, FX, crypto) to spread risk and exploit arbitrage opportunities.
- Heavy Technology Investment: Firms like XTX Markets continually expand their computing power – for instance, XTX is building a €1 billion data center with thousands of GPUs to stay ahead.
These strengths help explain why a few firms dominate the prop trading landscape. The table below summarizes key facts for the top three.
Prop Trading Firms: Top Firms Snapshot
| Firm | Founded (HQ) | 2024 Results | Core Focus |
|---|---|---|---|
| Jane Street | 2000 (New York, USA) | ~$20B revenue; ~70% from proprietary trading | ETF arbitrage and market-making; global equities & bonds; crypto trading |
| Citadel Securities | 2001 (Chicago, USA) | ~$9.7B revenue; handles ~25% of US equity volume | Equities & options market-making; retail order flow (PFOF); fixed-income and FX |
| XTX Markets | 2015 (London, UK) | £1.28B net profit; ~$250B daily volume | Algorithmic market-making in FX and equities; expanding into crypto and commodities |
Top Prop Trading Firms: Jane Street Leads in 2025
Jane Street
Jane Street has emerged as a trading powerhouse. In 2024 the firm reported roughly $20.5 billion in revenue, capitalizing on market volatility and growing ETF adoption. Its exchange-traded fund (ETF) arbitrage business is massive – filings show Jane Street handled about 25% of all U.S.-listed ETF trading volume in 2024. In its own words, a "core part of our business is market-making and liquidity provision", underscoring its role in tightening spreads and improving market liquidity.
Indeed, industry insiders emphasize that deep analysis, not just speed, drives profits at these firms. As Jump Trading's David Olsen notes, they win trades thanks to "our research and quantitative horsepower" rather than luck. In other words, Jane Street's edge comes from sophisticated algorithms and robust analytics, not randomness. This focus on advanced modeling and continuous innovation has been key to Jane Street's rapid growth into 2025.
Citadel Securities
Citadel Securities is another giant in the prop trading world. Founded by Ken Griffin, it has become the dominant market-maker in U.S. equities and options. In 2024 Citadel handled about 25% of U.S. stock trades, far more than any competitor. Its trading revenue (~$9.7 billion) reflects expansion into ETFs, U.S. Treasuries and foreign exchange. Citadel's CEO Peng Zhao has remarked that the firm is reaching a scale where "staying under the radar is no longer an option". This comment underscores Citadel's emergence as a high-profile industry leader.
XTX Markets
XTX Markets illustrates Europe's rise as a prop trading hub. Founded in 2015 by Alexander Gerko, this London-based algorithmic firm posted record profits (£1.28 billion) in 2024 and reportedly trades about $250 billion per day. XTX focuses on tight price-making in currencies and equities, and it is rapidly expanding into crypto and commodities. The firm reinvests heavily in technology: its CTO Joshua Leahy says XTX is "building ahead of our needs" with a massive new GPU-powered data center.
Also, it is important to note that other quantitative firms remain influential. Hudson River Trading (HRT), Jump Trading and Optiver, for instance, are well-known market-makers on global exchanges. Each leverages high-end technology, diversified trading strategies, and rapid execution. Together, these firms reinforce a robust market ecosystem. In the words of an industry analyst, trading firms like these "create a robust and diversified market that facilitates reliable liquidity across asset classes and around the globe".
Conclusion
Proprietary trading firms have become financial industry powerhouses by melding cutting-edge technology, quantitative expertise and aggressive capital deployment. Jane Street, Citadel Securities and XTX Markets lead the way with eye-popping revenues and market share. Each exemplifies the prop model: they trade their own capital with sophisticated algorithms and take the other side of client flows, rather than relying on outside investor funds. This autonomy lets them pivot quickly during market swings and explore new asset classes.
Their success also reflects the regulatory landscape. As registered broker-dealers, these firms are not subject to the banking rules that limit traditional financial institutions – for example, the U.S. Volcker Rule does not bind independent prop shops. That regulatory freedom has fueled growth. At the same time, industry observers caution that trust and transparency matter: one expert warns clients will ultimately "vote with their feet" if they lose confidence in a trading counterparty.
Ultimately, the leading prop trading firms of 2025 demonstrate how data-driven innovation and strategic risk-taking can reshape markets. For finance professionals and market watchers, following these firms offers valuable insight into liquidity trends and the future of trading strategies.
FAQ
What is a proprietary trading firm?
A proprietary trading firm is a financial firm that trades securities or other assets using the firm's own capital, rather than money from external clients. All profits and losses accrue to the firm itself. These firms typically deploy automated algorithms and high-frequency strategies to capture trading opportunities and provide liquidity in various markets.
How do prop trading firms differ from banks or hedge funds?
Prop trading firms differ primarily in capital structure and regulation. They use only the firm's own capital (no outside investors), which gives them maximum flexibility and risk capacity. Banks and brokerages often face stricter trading constraints (for example, the U.S. Volcker Rule does not apply to independent prop firms). Hedge funds, by contrast, manage external clients' money under specific mandates, whereas prop firms keep 100% of their trading gains and losses. This structural difference shapes each firm's role in the markets.
How are top prop trading firms regulated?
Most large prop trading firms register as broker-dealers and comply with securities regulations. However, they are not subject to all the capital and risk rules that apply to banks. For example, post-2008 regulations like the Volcker Rule specifically restrict banks' proprietary trading activities – restrictions that do not bind independent prop shops. This regulatory framework grants prop firms greater leeway to pursue aggressive, high-frequency trading strategies with their own capital.