There is no dedicated US licence for the funded-account model, and it is not illegal per se — but US oversight runs on registration law via the CFTC and NFA, the CFTC has already taken enforcement action against an evaluation-fee firm (My Forex Funds, 2023), and after MetaQuotes withdrew MT4/MT5 access from most prop firms in 2024 the majority restrict US clients. An evaluation fee is at risk and is not a regulated investment.
How the US actually oversees prop firms
The US does not license the 'funded-account' challenge as a bespoke product. Instead, oversight runs through registration law administered by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). There is active industry debate over whether evaluation-fee firms should register as Commodity Trading Advisors. So the honest answer to 'is it legal?' is: the model is not banned, but it sits in a registration-law grey zone, and the product itself is not a regulated, protected investment.
The My Forex Funds enforcement action
The landmark event is the 2023 CFTC action against My Forex Funds, the first major US enforcement against an evaluation-fee prop firm. It signalled that US regulators will reach these firms through existing law even without a dedicated prop-firm regime. For a trader, the takeaway is that 'no specific licence exists' does not mean 'no regulator can act' — and that the absence of bespoke regulation is a risk, not a reassurance.
Why most firms restrict US clients
The practical barrier is platform access. Starting in early 2024, MetaQuotes began revoking MT4/MT5 licences from dozens of prop firms, and most CFD firms could no longer offer those platforms to US clients. Futures-focused firms such as Topstep and Apex Trader Funding are less affected, because futures are exchange-traded rather than MT4/MT5 instruments. FTMO is a notable CFD exception, because it owns the regulated broker OANDA and can still offer MT5 to US traders.
Frequently asked questions
Are prop trading firms legal in the US?
The model is not banned, but there is no dedicated US licence for it. Oversight runs on registration law via the CFTC and NFA, the CFTC has acted against an evaluation-fee firm (My Forex Funds, 2023), and most firms restrict US clients after the 2024 MetaQuotes withdrawal. The product is not a regulated, protected investment, and an evaluation fee is at risk.
Which prop firms accept US traders?
Futures-focused firms such as Topstep and Apex Trader Funding are generally more US-accessible because futures are exchange-traded rather than MT4/MT5 instruments. Among CFD firms, FTMO is a notable exception via its OANDA broker. Always confirm current US eligibility and platform on a firm's own site before paying.
Sources & further reading
An independent, regulation-first guide to proprietary trading firms. Our editorial desk verifies every factual claim against primary sources and regulators' own publications, and never accepts payment for a better listing. Nothing we publish is financial or legal advice.