Proprietary trading firms, by definition, trade their own capital rather than the capital of clients. Typically, traders’ earnings at proprietary trading firms are based on their performance, and profits are split between the trader and the firm.
The best proprietary trading firms do not require traders to pay an upfront fee and may pay a salary along with the split in earnings. However, a desk fee to cover costs, such as a Bloomberg terminal, may be deducted from the trader’s earnings.
Listing of Top Proprietary Trading Firms
- 3Red Partners 3Red Partners bridges technology and trading. (Amsterdam, London, Chicago, New York, Singapore)
- Akuna Capital Akuna Capital is a fast-growing boutique trading house that specializes in derivative market-making and arbitrage. (Chicago)
- Amplify TradingAmplify Trading is a proprietary trading company specialising in the development of new trading talent offering direct experience in financial markets. (London, Madrid, Paris, Frankfurt, Brisbane)
- Avatar Securities Avatar Securities, LLC is a proprietary trading firm providing trading services for individual traders and large trading groups. Avatar specializes in direct market access, systematic, and algorithmic trading in equities and exchange listed options with robust trading floors in Manhattan, Chicago and a presence nationwide. (New York, Chicago). (New York, Chicago)
- Belvedere TradingBelvedere Trading is a proprietary trading firm specializing in equity index options. (Chicago)
- Bluefin Companies Bluefin Companies is a privately-owned multi-strategy trading firm. We are focused on seeking out trading and investment opportunities to grow our capital in the global financial markets. (New York, London, Chicago, Hong Kong)
- Breakwater TradingBreakwater is an agile, focused, proactive organization that strives to integrate technology with intelligence and market vision. (Chicago)
- Bright TradingBright Trading, LLC is a professional, proprietary stock trading firm. We have hundreds of independent traders who trade from dozens of locations throughout the United States. In addition, our “Bright-At-Home” traders enjoy the benefits of proprietary trading from the comfort of their homes. (Las Vegas)
- Chicago Trading Company Chicago Trading Company (CTC) is a proprietary market making firm and is recognized internationally as a leading provider of pricing and liquidity on all U.S. derivatives exchanges. (Chicago, New York, London)
- Chopper TradingDriven by pioneering technology and research, Chopper Trading LLC’s multidisciplinary team of traders and analysts rapidly identify and capitalize on emerging opportunities. (Chicago, London, New York, Washington DC)
- Da Vinci Da Vinci is a proprietary trading house made up of some of the sharpest minds and most passionate players in the industry.(Amsterdam)
- DRW Trading GroupThe DRW Trading Group is an aggressive, dedicated organization engaged in many different aspects of the trading industry, including market making and proprietary trading. Offices in Chicago, New York and London.
- DV Trading Since 2006, our mission has been to adapt, innovate and evolve. In all aspects of our organization, it is a core belief that these three action words help define the roadmap to success. (Chicago, New York, Toronto)
- First New York First New York is a multi-strategy investment firm. Since its inception in 1986, First New York has been a preferred destination for portfolio managers seeking to partner in an opportunistic environment with a history of success. (New York, London)
- Flow Traders Aleading global technology-enabled liquidity provider specialised in Exchange Traded Products (ETPs).
- Gelber Group – Gelber is a unique service provider for the individual professional trader, professional trading group, or institution. We have an unwavering focus on technology management and service, as we seek to expand our access to liquid electronic markets around the world. Gelber Group maintains the philosophy that clear communication and interaction bring successful trading results. (Chicago, Cranford NJ,Greenwich CT,San Diego,London,Schindellegi Switzerland)
- Geneva Trading – Geneva Trading is a proprietary electronic trading firm located in Chicago, Illinois USA and Dublin, Ireland. Focus is on electronically traded futures and equity markets in the USA and Europe. (Chicago, Dublin)
- GH Financials G. H. Financials is a premium choice provider of bespoke global clearing solutions for exchange traded futures and options contracts to the world’s leading derivatives markets. (Chicago, London, Hong Kong)
- Grace Hall Trading Grace Hall Trading is a proprietary trading firm specializing in transactional arbitrage, volatility arbitrage, and event driven trading. Based in Chicago and established in 2008 the firm utilizes cutting edge technology as it trades futures, equities, and equity options.
- Great Point CapitalGreat Point Capital is a FINRA registered trading firm, headquartered in Chicago.
- Group One Trading – Group One is one of the largest proprietary options trading firms in the country. (New York,Philadelphia,Chicago,San Francisco)
- Hard Eight Trading Hard Eight Futures, LLC and Hard Eight Trading, LLC are proprietary trading firms headquartered in Chicago, Illinois. (Chicago)
- Hold Brothers– Proprietary Online Stock Trading.
- Hudson River Trading Hudson River Trading brings a scientific approach to trading financial products. We have built one of the world’s most sophisticated computing environments for research and development. (New York, Chicago, London, Shanghai, Singapore, Dublin, Austin)
- IMC Financial Markets – The IMC Group is a global financial organization with a presence in Amsterdam, London, New York, Chicago, Hong Kong, Sydney, and Zug.
- Integra CapitalIntegra Capital is a New York based proprietary trading firm and a division of T3 Trading Group. Integra is home to in-house and remote traders around the country. They provide capital leverage, professional trading platforms, and exceptional concierge service & support to active equities, options, and forex traders.
- Jane Street Jane Street is a quantitative trading firm with a unique focus on technology and collaborative problem solving. (New York, Chicago, London, and Tokyo)
- Jump Trading – Jump Trading, LLC is a proprietary trading firm, focused on trading index futures, options, and equities. Because we are not a brokerage firm, we do not have clients. Revenues come solely from trading Jump’s proprietary account. Jump Trading is a member of the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the Chicago Board Options Exchange (CBOE), and the American Stock Exchange (AMEX). Jump is also a non-clearing member of the European Exchange (Eurex). (Chicago, London, Singapore)
- Kershner Trading Group – Since 1993, Kershner Trading has been built on the idea of shared success. We are a classic proprietary trading business providing full service, support and capital to ourtraders, including state-of-the-art proprietary technology applications withdirect access to US markets. Our traders currently trade in our Austin, Tx office, however we are always interested in hearing from groups of successful traders in other locations. Member NASD, SEC registered.
- League Trading Originally concentrating on agricultural products and the newly emerging options trade, League Trading is now dedicated to developing proprietary relationships with both experienced and novice traders in options and futures. (Chicago)
- Mako GroupMako Group is a global diversified financial company comprising sales, trading and investment management.
- Marex Spectron Providing liquidity, market access and infrastructure services to clients in the energy, commodities and financial markets. (London)
- Optiver – Optiver is an international proprietary trading house dealing mainly in derivatives, shares and bonds. The firm has expanded from a few Amsterdam based market makers to a global arbitrage group with subsidiaries in Chicago and Sydney.
- OSTC Ltd. OSTC is a global derivatives trading company creating outstanding performers in financial markets, by developing and supporting their knowledge and experience. (London)
- Peak6 Trading – One of the largest equity options market-making firms in the U.S. (Chicago, San Francisco, Seattle, New York)
- Positive Equity Limited Positive Equity was founded in 2008 and focuses on discipline, hard work and innovation in strategies and products for success. We trade futures and equities. We hire both experienced traders and trainees who are prepared to work hard for long-term success.
- Prime Trading, LLC Prime Trading, LLC is geared to the serious trading professional who is eager to take their craft to the next level. We are a Chicago-based proprietary trading firm with global ties to Europe, Asia, and South America, assuring that our traders have a solid international base for maximum earnings potential.
- Savius, LLCSavius, LLC is a boutique proprietary trading firm with headquarters in Chicago and traders in the US and Europe.
- Seven Points Capital Seven Points Capital established trading floors in 4 cities across the US and our first international office in Toronto, Canada. (New York, New Jersey, Florida, California, Toronto)
- SMB Capital – SMB Capital, LLC is a privately owned investment partnership engaged in day trading NYSE and NASDAQ equities.
- Schonfeld Group Schonfeld Securities, LLC pioneered the short term trading industry when it began operations in 1988. It is one of the largest U.S. proprietary equity trading firms in terms of number of traders and volume traded on the NYSE and NASDAQ.
- Simplex – Founded in Chicago in 2004, Simplex is a leading, technology-driven, proprietary trading firm.
- Susquehanna International Group (SIG)Susquehanna International Group is global quantitative trading firm that has built virtually all of their own trading technology from scratch. SIG’s traders compete in the financial markets by leveraging their quantitative skills to take calculated risks with SIG’s proprietary capital. They have a best-in-class trader development program. The firm’s success lies at the intersection of trading, quantitative, and technology.
- Tibra CapitalA global prop firm specialising in market making and arbitrage. (Chicago, London, Amsterdam, Hong Kong, Sydney, Wollongong)
- TopstepTraderTopstepTrader invites you to experience the power of our trading Combine. We are financially backing consistent, profitable, and disciplined futures traders.
- Tower Research Capital Founded in 1998 by Mark Gorton, Tower Research Capital is a trading and technology company that has built some of the fastest, most sophisticated electronic trading platforms in the world. (Chicago, London, New York, Charleston, Singapore, Hong Kong)
- TradeLink TradeLink Holdings LLC (“TradeLink”) is a diversified alternative investment and proprietary trading firm founded in 1979 by Walt Weissman. The firm is engaged in securities, futures, options and commodities trading. TradeLink’s focus is the design and implementation of quantitative models that draw on the firm’s considerable expertise in trading, research, and technology. (Chicago, London)
- Trade Vision CapitalTrade Vision Capital provides its customers with the highest end order entry software available. It is the only software to receive the NASD’s platinum certification.
- Transmarket GroupTransMarket Group LLC is a global private trading and investment company. Provide risk capital and market access to individuals for the purpose of trading the global financial markets. Employees trade all global exchange listed derivatives, equities, commodities and selected cash markets. (London, Madrid, Mumbai, New York, Singapore, Sydney)
- Trillium TradingTrillium Trading L.L.C. is a premier proprietary trading firm that excels in short term equity trading, and portfolio management. (New York, Edison NJ, Princeton NJ, Miami FL)
- TTG Capital Limited Trading Exchange Traded Derivatives. Proprietary Trading. Liquidity Provision. Market Making. Direct Electronic Access. Algorithmic Trading. (London)
- Tyler Capital Tyler Capital is a proprietary trader of global financial markets. Our vision is to be a pioneer in systematic trading, creating new ways to trade any market, anywhere. (London)
- VIRTU Financial As a leading provider of financial services and products, we leverage cutting-edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to our clients. (Chicago, London, Madrid, Mumbai, New York, Singapore, Sydney)
- WH TradingWH Trading LLC is a proprietary futures, options and equities trading firm headquartered in Chicago, IL. Founded in 1994, WH Trading currently serves as a primary liquidity provider on the floor of the major Chicago futures exchanges and also as an exchange designated Lead Market Maker for electronically traded products in a variety of asset classes. (Chicago, London)
- Wolverine TradingWolverine is headquartered in Chicago and has offices in New York, San Francisco, Philadelphia and London.
- XR Trading XR Trading is a proprietary trading firm. We design and build cutting-edge technology and serve as a leader in the global derivatives marketplace. We employ a team-based approach and leverage our technology and core competencies across a wide array of asset classes.
- XY Capital A quantitative and systematic trading firm that employs a rigorous mathematical approach to pricing securities and constructing portfolios across multiple asset classes globally.
FAQ
What is the Volcker Rule?
This rule prohibits banks from engaging in proprietary trading. Part of the Dodd–Frank Wall Street Reform and Consumer Protection Act, it was put in place to stop banks from making the types of speculative investments that led to to the 2008 financial crisis.
Is proprietary trading legal?
Yes. Hedge funds, specialized trading firms and wealth management firms can engage in proprietary trading. The Volcker Rule only applies to banks.
Are proprietary trading firms regulated?
In the United States, proprietary trading firms must register with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) if they are also operating as a broker-dealer. Not all proprietary firms are regulated, so it is important for you to do your due diligence.
What is the difference between hedge funds and proprietary trading firms?
Hedge funds invest money on behalf of clients, while proprietary trading firms use their own funds to speculate in the markets.
Dan Blystone
Dan worked in the futures industry in Chicago as a floor clerk, trader and broker before founding TradersLog.com. Over the years he has also contributed to financial websites such as Investopedia, FXStreet and Forbes. Other interests include travel, photography and hiking.
