The world of options is a really exciting one for traders due to the ability to leverage accounts of smaller levels of capital to control much larger positions. This can lead to significant profits regardless of the market sentiment. Traders must first be aware of what options prop firms - the providers of these funded options trading accounts before we can proceed with this article.
Our capital, your skills
Options prop firms are business institutions that have focused on providing traders the ability to trade options contracts using the firm's capital. Options contracts, while similar to futures contracts have one significant difference. Futures contracts are based on the obligation to buy a particular underlying asset at a given date and price. Options contracts on the other hand give buyers the option but no obligation to purchase the said asset in the future. Most options based prop firms have very strict rules in place and do not usually have a common evaluation system for traders before granting them the funded options trading account.
There are several reputable options prop firms that have gained recognition for their structured evaluation processes and opportunities for funded accounts. Here are a few of the best options for securing a funded options trading account:
1. Maverick Trading: Maverick Trading is well-regarded for its extensive training and support for options traders. Maverick Trading requires traders to complete a comprehensive training program, and upon successful completion, traders can access accounts with a competitive profit split of 70% to 80%
2. SMB Capital: SMB Capital emphasizes education and mentorship. This firm provides capital for both new and experienced traders, focusing on options and equities. Traders benefit from rigorous training, and the firm fosters a collaborative environment
3. T3 Trading Group: T3 offers a flexible trading environment, allowing traders to choose between remote or in-office trading. With access to various platforms and a profit share ranging from 50% to 90%, T3 supports a diverse range of trading strategies
While options based prop firms do have significant advantages in the form of high profit sharing ratios and significant, They do come with several drawbacks. The majority of the options based prop firms offer the funded options trading account only after a very rigorous evaluation phase which can even go up to 6 phases including interviews and drawn out screening procedures. Traders are forced to create a fixed trading plan and, in some cases, must submit applications to make changes to these plans otherwise they risk losing their accounts. There is no clear cut profit target and drawdown limits (What is a drawdown in trading) and hence traders are left unaware of what they are truly getting into. Several of these firms also insist on mandatory training courses and force traders to make routine payments for this service. These are just a few of the restrictions placed by these options based prop firms.
Does the above section make you second guess seeking a funded options trading account? Do not worry, you are not alone, these feelings of uncertainty have been faced by several prospective traders in the past. Traders who are adamant that options trading is right for them should probably look for a funded options trading account with one of the above options firms. For the rest, perhaps a regular prop firm like Axe Trader might provide a better fit! The rules here are simple- Hit the profit target (eg.8% for two phase account) before you hit the drawdown limits(5% daily and 10% maximum for two phase account). Furthermore, Axe Trader only seeks a small one time fee as payment which can be as little as $48. Other advantages include the Double Axe account which allows traders to gain a free second life in case they fail the evaluation phase, there are no minimum or maximum trading days and traders have perfect clarity over what exactly their targets are with no ambiguity. Traders are also given options between the account types of their choice – Single axe, double axe, funded axe. Further options also include the two step or the one step account.
Several options prop firms restrict traders whereas Axe Trader aims to liberate them!
So, are you Ready to take your trading to the next level? Traders get the funding you need with Axe Trader. Follow us on our socials to keep upto date with promos, and new updates to our business operations. Here’s all our Axe Trader social handles:
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Axe Trader Ltd. offers fee-based assessment services and facilitates connections with third parties for Potential Traders who meet specific criteria defined by Axe Trader (“Eligible Traders”). Our services involve evaluating the simulated trading performance and results of Potential Traders in certain virtual off-exchange foreign currency instrument pairs (“Forex”) and/or selected virtual contracts for differences (“CFDs”). We conduct data analysis based on simulated trading activities in demo accounts traded by Potential Traders through Axe Trader’s platform, utilizing data provided by a third-party broker. Our methods and techniques are established and maintained by Eligible Traders.
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