Futures Prop Trading vs. Self-Funded Futures vs. Options – Which Trading Style Is Best for You?

Comparing Pros, Cons, and Capital Requirements of Today’s Top Trading Strategies

When it comes to trading the markets, your choice of strategy can significantly affect your risk, capital requirements, and potential profit. Whether you’re exploring futures prop trading, funding your own futures account, or trading options with your own capital, understanding the trade-offs is major key to success.

This guide breaks down the pros and cons of each approach, helping you choose the right path based on your goals, experience, and available capital. And remember, we at GAR Capital trade all these assets. Let's dive into it.

What Is Futures Prop Trading? (Funded Trading Accounts)

Futures prop firms (short for proprietary trading firms) allow you to trade their capital after passing a basic evaluation. You keep a percentage of the profits—often up to 90%—while risking none of your own capital beyond the entry fee.

Pros of Futures Prop Trading:

✔️ Trade with a firm’s capital, not your own

✔️ High leverage and profit splits (up to 90%)

✔️ Low upfront cost – Evaluation accounts start at $100-$300

Cons of Futures Prop Trading:

🚫 Strict rules – Daily drawdowns, no overnight positions, and profit targets

🚫 Evaluation required – Fail the test and pay for a reset

🚫 Withdrawal restrictions – Delays or minimum thresholds are common

Best For: Traders who want low-risk access to large capital and can follow firm rules with precision.

What Is Self-Funded Futures Trading? In self-funded futures trading, you trade with your own money. There are no evaluations or rules from third parties—but you’re fully exposed to risk. After all, it is all your capital that you are trading with.

Pros of Self-Funded Futures:

✔️ Full control – No firm restrictions

✔️ 100% profit retention

✔️ No subscription or reset fees

Cons of Self-Funded Futures:

🚫 Personal capital at risk – Losses hit your own account

🚫 Higher capital needed – Ideally $10,000+ for proper risk management

🚫 More psychological pressure – You’re trading your own money

Best For: Experienced traders who want maximum freedom and have sufficient capital to manage their risk effectively.

What Is Options Trading With Your Own Money? Options trading gives you leverage with defined risk. It’s often the go-to strategy for traders starting with smaller accounts who want flexibility in structuring trades.

Pros of Options Trading:

✔️ Defined risk – Maximum loss is your premium

✔️ Built-in leverage – Control big moves with small capital

✔️ Low capital entry – Start with a few hundred dollars

Cons of Options Trading:

🚫 Time decay (theta) – Your contracts lose value daily

🚫 Less liquidity in some names – Wide bid/ask spreads can hurt

🚫 More complexity – Greeks, IV, and expiration all impact value

Best For: Traders who want strategic flexibility and limited risk exposure, especially with smaller portfolios.

Final Take: Which Trading Method Should You Choose?

Here’s a quick guide to help match your strategy with your trading style:

• Choose a Futures Prop Firm if you want to trade big with low personal risk
• Go Self-Funded if you want total control and can handle full responsibility
• Trade Options if you’re seeking leverage with defined risk on a smaller budget

Each of these trading paths has its own strengths—the key is choosing the one that aligns with your capital, risk tolerance, and trading style. With the most recent market events, futures trading has outperformed all strategies, delivering an impressive +600% YTD return, compared to a still-solid +25% from options trading.

• With our Lifetime Legacy Membership or Masterclass, you’ll get full access to our expert-guided alerts for options, futures, and long-term investing entries and exits—so you’re never trading alone.

Want Help Choosing the Best Trading Path? We’ve worked with traders at all levels—funded, self-funded, options-based, and long-term investors.

🔗 Book a Free Intro Call today to discover what strategy aligns with your goals (no pressure, just honest advice). BOOK A FREE CALL

Disclaimer: We are not sponsored by any prop firm or affiliated in any way. Most firms design rules to benefit themselves—not the trader. We share this info to help you win, not to promote platforms that profit off resets.