Are Prop Firms Legal in the US? A Founder's View

The US is the most valuable prop market and the most complicated one. Topstep, Apex and other futures firms are US-facing, and before MetaQuotes' 2024 action, nearly 30% of traffic to the top prop firms came from American traders, according to Finance Magnates. Serving that demand raises two separate questions: the legal one and the platform one.

What happened with the CFTC?

In August 2023 the CFTC froze MyForexFunds over alleged fraud. In May 2025 a federal judge in New Jersey dismissed the case with prejudice and awarded fees as a sanction against the CFTC's conduct. That ruling punished how the case was run. It is not a ruling that the evaluation model is lawful, and founders should not read it as one.

Since then, large US firms have moved toward registration. Topstep became an NFA-member introducing broker cleared by Plus500 in January 2026, and Finance Magnates reported in June 2026 that "large American prop firms are already beginning to seek registration with the CFTC".

Which platforms can serve US traders?

Fewer than before, especially for CFD firms. MetaQuotes moved against prop firms with US clients in February 2024. Spotware stopped onboarding US traders to cTrader through prop firms from July 1, 2026, and firms moved them to Match-Trader, TradeLocker and Volumetrica. Futures firms use NinjaTrader Prop, Tradovate Prop, Rithmic front ends and others; ProjectX has been Topstep-only since February 28, 2026.

Our page on why prop firms ban US traders explains the commercial side of that decision.

What should you ask a US lawyer?

• Does our product, as designed, raise a registration question with the CFTC, NFA or any state?
• Do we need the CFTC Rule 4.41 hypothetical-performance legend, and where?
• How should we describe payouts so they are not read as investment returns?
• Which platforms may we lawfully offer US traders, and on what terms?
• Should we exclude the US at launch, and how do we enforce that at checkout and KYC?

Questions

Sources

1. Finance Magnates: Prop trading is finding its way back to the US, but can it beat futures dominance?
2. Willkie Compliance Concourse: New Jersey federal judge dismisses forex case with prejudice
3. TradeInformer: Topstep launches introducing broker through Plus500 partnership
4. Finance Magnates: Prop trading slips down Paris agenda as the US steps up (Jun 26, 2026)
5. Finance Magnates: Prop trading firms' renaissance: cutting US clients, integrating new trading platforms
6. Finance Magnates: cTrader restricts US prop firm access following internal regulatory assessment
7. Finance Magnates: ProjectX to end its third-party service offering (Nov 17, 2025)
8. 17 CFR 4.41: Advertising by commodity pool operators, commodity trading advisors, and the principals thereof