Unsure whether to choose a Futures or CFD prop firm?
I'll explain the differences so you can choose what works best for you.
What is a Futures prop firm?
A Futures prop firm gives you access to an account for trading Futures contracts, based on organised exchanges such as CME or Eurex.
A Futures contract is an agreement to buy or sell an asset at a future date for a price agreed in advance.
Originally used for hedging, these contracts are also widely used for speculation.
Well-known Futures prop firms include Apex Trader Funding, Topstep and Bulenox.
See the full list of Futures prop firms.
What is a CFD prop firm?
A CFD prop firm lets you trade contracts for difference on many assets: Forex, indices, shares, commodities and crypto.
With a CFD, you never own the underlying asset. You speculate on its price movement.
For a long position, a rising price produces a gain and a falling price produces a loss.
Well-known CFD prop firms include FTMO, FundedNext and FundingPips.
See the full list of CFD prop firms.
An essential point they share
In the standard retail prop firm model, both CFD and Futures accounts are simulated, even when they use data and market structures from real markets.
On these simulated accounts, your orders are not sent to the market.
This is the usual starting model for prop firms.
They provide a simulation environment rather than committing the account's headline capital.
Because this model makes many traders sceptical, I discuss it in Are prop firms a scam or an opportunity?.
The main differences
Both types let you trade with simulated capital, but their business models and the conditions after the challenge are very different.
Markets, platforms and trading hours
With Futures, you trade standardised contracts based on regulated exchanges and official market prices.
Platforms include professional tools such as NinjaTrader and Sierra Chart, with connections such as Rithmic. Prop firm rules commonly restrict overnight and weekend holding.
Fees are typically fixed, at around $1.50 to $4 per contract.
With CFDs, you access a wider range of assets through MetaTrader, cTrader or TradingView, often with extended trading hours.
Pricing comes from the firm's trading environment, with variable spreads that are generally wider than those on Futures.
Price and account access
- CFDs: entry is expensive and often involves two phases, with a fee refund if you meet the programme's conditions. For example, a $100K FTMO account often costs more than $500.
- Futures: entry is inexpensive, but activation fees may apply after you pass. An equivalent Apex Trader Funding challenge can cost $30 to $100.
After passing
- CFDs: the model generally aims for a stable account, straightforward withdrawals and clear rules once funded.
- Futures: payouts may be capped, consistency requirements can apply, and some accounts may close after payouts. Conditions can remain strict and less predictable after passing.
Comparison table
| Futures prop firm | CFD prop firm | |
|---|---|---|
| Platforms and connections | NinjaTrader, Sierra Chart, Rithmic | MetaTrader, cTrader, TradingView |
| Pricing | Official prices from a regulated exchange, such as CME | Prices supplied through the firm's trading environment |
| Hours | Overnight and weekend holding commonly restricted | Near-continuous trading, depending on the asset |
| Fees | Around $1.50 to $4 per contract | Variable spreads |
| Challenge | Low entry price, with possible activation fees later | Higher entry price, with a refund under the programme's conditions |
| Payouts | Caps, detailed rules and possible account restrictions | Generally simpler, with fewer restrictions |
Which type should you choose?
The right choice mainly depends on your trading style, budget and expectations once funded.
Go for a futures prop firm if:
- You day trade or scalp and close positions within the session
- You want to limit the cost of failed challenges, with entry prices of a few dozen dollars
- You are comfortable with strict payout rules
My experience with futures firms has taught me to treat each account as temporary.
I pass, withdraw what I can as soon as possible, then start a new account. Payouts are still too uncertain for me to count on keeping an account for the long term.
Go for a CFD prop firm if:
- You hold positions for several days or mainly trade crypto
- You want a stable account and straightforward payouts after passing
- You accept a higher entry price, with the possibility of a fee refund under the account's conditions
To find the firm that suits you best, compare all the offers in my prop firm comparison tool.
