Futures markets sound cool and all fast, liquid, exciting but also a bit like jumping into the deep end of the pool. Don’t sweat it. Everyone starts somewhere and when it comes to futures then picking the right asset to begin with can make or break your early journey.
Let’s discuss the best futures contracts for beginner prop traders and what makes them ideal for starters, what to watch out for, and how to get your feet wet without drowning in risk.
Why Futures?
Prop firms love futures because they’re:
- Highly liquid – Tons of volume means tight spreads and fast executions.
- Capital efficient – Thanks to leverage, you can control a large contract with relatively small margin.
- Regulated – Futures trade on centralized exchanges which adds a level of transparency you don’t always get in spot markets or CFDs.
- Available 23+ hours a day – Most futures markets have near round-the-clock action.
That’s all great but for beginners, that same leverage and fast pace can be dangerous if you're not trading the right product.
So, what are the best futures for beginners trading in a prop environment?
E-mini S&P 500 (ES) – The Classic Choice
Why It’s Great for Beginners:
- It tracks the S&P 500 index, so it moves based on broader market sentiment—perfect for learning macro moves and market structure.
- It’s incredibly liquid, meaning your orders get filled quickly with minimal slippage.
- Tons of educational resources, trade setups, and strategies out there. You’ll never feel lost.
What to Watch Out For:
- It can be volatile, especially during economic news releases. Moves of 10–20 points in a few minutes aren't rare.
- The standard ES contract is $50 per point. That adds up quickly. For beginners, this might be a bit rich.
As an alternative, start with the Micro E-mini S&P 500 Futures. At $5 per point, it's only a tenth of the size of the ES. Ideal for practicing and following drawdown restrictions set by prop companies.
Crude Oil (CL) – For the Bold Beginners
Oil is a fantastic futures asset if you want action; it's not only for petrol stations and geopolitics. It is among the most traded commodities in the world and has a good tendency to stick to technical levels.
Why It’s Great:
- Great intraday movement, meaning more opportunities to catch trades.
- Reacts strongly to news, especially inventory reports and geopolitical stuff. If you’re someone who likes fundamentals and news trading, CL might be your jam.
- Prop firms that focus on commodities often prioritize oil trading due to volume and volatility.
But Be Careful:
- This thing moves. One tick is worth $10 and it can swing multiple dollars in a session. A bad trade can get out of hand fast.
- Overnight margins and volatility spikes can catch you off guard if you're not dialed in.
10-Year Treasury Note (ZN) – Calm and Predictable
ZN is the calm and trustworthy partner you want at your side if ES and CL are the flashy attention-getters. New traders frequently ignore Treasury futures, despite the fact that they have some significant benefits, particularly in prop trading environments where risk management is crucial.
Why It’s a Solid Pick:
- Less erratic than equities or commodities. Moves are more gradual which is great for developing discipline and strategy.
- Strong reaction to macroeconomic data like NFP, CPI, and FOMC makes it a good learning ground for fundamental analysis.
- Big institutional volume makes it reliable and consistent.
Downsides:
- Might feel boring to adrenaline-seeking traders.
- If you're not tuned into macro trends and bond market dynamics then the movements can feel confusing.
Still, if you’re looking for a futures market that rewards patience and consistency then ZN should definitely be on your radar.
Gold (GC) – The Safe Haven With a Temper
Gold futures is another classic futures market. It’s got history, volatility, and a lot of personality. It tends to spike during uncertain times—economic turmoil, inflation fears, geopolitical stress.
Why Beginners Like It:
- Lots of intraday volatility, meaning frequent trade setups.
- Great for practicing breakouts, pullbacks, and range trading.
- Tons of coverage in financial media—easy to follow.
But Heads Up:
- Can be erratic, especially when it's reacting to sudden news or USD moves.
- Full-size contracts are large. A small mistake can be costly.
So micro contracts like the Micro Gold – MGC are your friend here. You get the same behavior but with a manageable position size.
What Makes a Futures Asset Beginner-Friendly?
- Controlling risk
- Building consistency
- Learning execution and discipline
- Staying within firm rules (drawdowns, daily loss limits, etc.)
The best beginner assets tend to have:
- Micro or mini contract versions so you can trade smaller sizes
- Good liquidity so you don’t get slipped or stuck
- Predictable behavior (to a point) so you can spot clean setups
- Educational resources so you're not trying to decode the market alone
Don’t chase the most exciting product. The goal isn’t to impress anyone with your first week’s P&L—it’s to still have an account in week four.
