Can I start a prop firm in the United States?
Quick answer
Yes, many prop firms are US-based, particularly futures evaluation firms. They operate as evaluation businesses, buy licensed exchange data and keep marketing conservative. CFD products are not offered to US retail clients by regulated US brokers, which shapes product choices. US counsel is strongly recommended.
Detailed answer
General information, not legal, tax or regulatory advice. Rules differ by country and change over time; confirm your position with a qualified professional before acting on it.
Things a US founder needs to settle:
- Product: futures evaluations are common; CFD-style products for US residents raise more questions.
- Entity: typically an LLC or corporation in a chosen state.
- Regulators: the CFTC and NFA for futures, the FTC and state attorneys general for consumer protection.
- Data: exchange data licences for real-time futures prices.
- Payments: processors' policies on prop firms.
- Platform: whether your platform licence permits US clients.
The 2023 to 2025 CFTC case against My Forex Funds ended in dismissal and sanctions against the agency, but it showed that US enforcement is a real risk. This is general information, not legal advice.
Practical first steps
- Choose the state and entity type with your accountant.
- Get US counsel's view on your product and marketing.
- Confirm your platform and data licences allow US customers.
- Apply to payment processors with a clear business description.
PropExecutor team · Updated
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