If you are learning to trade and want to be rewarded with a funded account at the end of your education, then a funded trader program can be a great solution. Even if you are already an experienced trader, they can still give you access to a larger amount of capital to increase your profit potential. With that being said, lets take a look at funding programs in more detail including their pros and cons.
Funded trading allows traders to make money by trading on a funded account with a prop firm. The company will give the trader access to capital so that they can trade and take a share of any profits that they generate. Funded trading accounts are popular for traders who already have a successful trading strategy but are lacking in the capital to invest and leverage their gains.
The benefits of funded trading accounts are vast. By doing what you love, you can make money without putting your capital at risk. One of the main advantages of funded trading is that you can make substantially more profits and not take on any additional risk. The only thing to be wary of is that you are complying with the prop firms trading rules and objectives. Failure to do so can lead to a trader losing the funded account.
Before you get a funded account, you will usually have to take part in a funded trader program. This is an evaluation process where you need to prove to the prop firm that you have what it takes in order to qualify for a funded account. It wouldn’t make sense for them to give funds to anyone who asked without first seeing what they can do. After you demonstrate that you have the abilities to succeed, you will be given access to a funded trading account.
Funded trader programs will have different criteria that you need to follow, including profit targets, maximum drawdown, maximum loss and trading days. There can also be restrictions in the types of trading strategies that you can use. This is necessary because prop firms are only looking for the most consistent traders. If you already have a proven track record and are confident that you can trade successfully, then you might want to consider an instant funding prop firm.
Funded trader programs are usually for trader’s that already have some level of trading experience but lack the capital to start their trading career. There are funding programs that specialise in education that will provide beginner traders with all of the learning resources and mentorship they need to reach their full potential, including FTMO.
One of the most successful and well-known prop trading companies to date is FTMO. Trading on a funded account with their money will allay your worries about losing your savings. Your performance and discipline are in their best interests. By setting clear Trading Goals, the risk management principles implemented by FTMO can help to strengthen the trader’s performance.
By providing unique analytical tools and customised feedback in the form of an in-depth study of each trading account, they support traders’ progress. With a variety of funded trader programs, FTMO can meet the demands of both conservative and more aggressive traders. You can choose between the aggressive, swing, and standard accounts according to your preferences.
|Step 1. FTMO Challenge||Step 2. Verification||Step 3. FTMO Trader|
|Trading Period||30 days + 14 days||60 days||indefinite|
|Minimum Trading Days||10 days||10 days||x|
|Maximum Daily Loss||$500||$500||$500|
FTMO have an excellent choice of trading platforms in MT4, MT5 and cTrader. You can trade a good variety of asset classes in Forex, Commodities, Indices, Crypto, Stocks and Bonds. The trading program fee is refunded if you pass whilst you can keep a generous 90% share of profits on funded accounts which can be scaled up to $2,000,000.
- One-time fee only (no recurrent charges or other fees)
- No limits or restrictions on your trading style
- Choice of platforms (MT4, MT5, cTrader)
- Access to some handy trading apps designed to help you with risk management and profit maximization
- Trade Forex, Commodities, Indices, Crypto, Stocks, Bonds
- No limits on the volume traded (lot size)
- Leverage up to 1:100
- FTMO’s scaling plan allows their most skilled traders access to up to $2 million of trading capital
- A thorough account analysis for every account
- The fee will be reimbursed to you with the first Profit Split
- Customer Support in 17 languages
- The most trusted and reputable Prop Trading Firm in the industry
- So many traders have used FTMO over the years that there is an incredible amount of trader-generated resources available, including lots of great advice on how to pass the FTMO Challenge
- Strict requirements for the test period
- Steep 10% profit target for the first step of the FTMO evaluation, however, it eventually drops to 5% for the second verification stage
- FTMO keeps all traders on demo accounts, even those that have passed the FTMO Challenge and become fully funded
- In order to receive a funded account, traders must first pass the FTMO Challenge, followed by a verification stage
The Funded Trader is a legitimate proprietary trading company that gives traders an opportunity to select from one of three trader programs: Standard, Rapid, or Royal. Traders can potentially unlock up to $600k accounts to become professional traders and earn a 90% share of the profits.
|Minimum Trading Days||5||5||5||5|
|Phase 1 Target (35 Days)||$5,000 USD (10%)||$10,000 USD (10%)||$20,000 USD (10%)||$40,000 USD (10%)|
|Phase 2 Target (60 Days)||$2,500 USD (5%)||$5,000 USD (5%)||$10,000 USD (5%)||$20,000 USD (5%)|
|Max Loss||$6,000 USD (12%)||$12,000 USD (12%)||$24,000 USD (12%)||$48,000 USD (12%)|
|Max Daily Loss||$3,000 USD (6%)||$6,000 USD (6%)||$12,000 USD (6%)||$24,000 USD (6%)|
|Profit Split||80% | 90% with Scaling||80% | 90% with Scaling||80% | 90% with Scaling||80% | 90% with Scaling|
|Refundable Fees||$315 USD||$549 USD||$949 USD||$1898 USD|
|Minimum Trading Days||0||0||0|
|Phase 1 Target (35 Days)||$4,000 USD (8%)||$8,000 USD (8%)||$16,000 USD (8%)|
|Phase 2 Target (60 Days)||$2,500 USD (5%)||$5,000 USD (5%)||$10,000 USD (5%)|
|Max Loss||$4,000 USD (8%)||$8,000 USD (8%)||$16,000 USD (8%)|
|Max Daily Loss||$2,500 USD (5%)||$5,000 USD (5%)||$10,000 USD (5%)|
|Profit Split||80% | 90% with Scaling||80% | 90% with Scaling||80% | 90% with Scaling|
|Refundable Fees||$299 USD||$499 USD||$899 USD|
|Minimum Trading Days||5||5||5||5|
|Phase 1 Target (35 Days)||$4,000 USD (8%)||$8,000 USD (8%)||$16,000 USD (8%)||$24,000 USD (8%)|
|Phase 2 Target (60 Days)||$2,500 USD (5%)||$5,000 USD (5%)||$10,000 USD (5%)||$15,000 USD (5%)|
|Max Loss||$5,000 USD (10%)||$10,000 USD (10%)||$20,000 USD (10%)||$30,000 USD (10%)|
|Max Daily Loss||$2,500 USD (5%)||$5,000 USD (5%)||$10,000 USD (5%)||$15,000 USD (5%)|
|Profit Split||80% | 90% with Scaling||80% | 90% with Scaling||80% | 90% with Scaling||80% | 90% with Scaling|
|Drawdown Type||Equity & Balance||Equity & Balance||Equity & Balance||Equity & Balance|
|Refundable Fees||$289 USD||$489 USD||$939 USD||$1,399 USD|
One of the main advantages of The Funded Trader is that being traders themselves, they know exactly what to look for in a proprietary trading firm. They provide you with the popular MetaTrader 4/5 platforms for trading a large range of financial instruments including forex, stocks, commodities and cryptos. Leverage goes all the way up to 1:200 on forex trading whilst you can have unlimited evaluation retries if you fail the challenge.
- Maximum balance of standard accounts up to $600,000
- Scaling plan with balance up to $1,500,000
- Arranges exciting events, rewards and competitions
- High leverage for trading forex up to 1:200
- Achievable profit and drawdown targets
- 90% profit split on scaling plan
- Unlimited evaluation free retries
- Large range of trading instruments
- Overnight and weekend holding allowed
- Good variety of challenges to choose from
- Trade on both the MetaTrader 4/5 platforms
- No free trial
- Very strict trading conditions
- Funded with demo account and virtual funds
- Lack of educational content
- Overwhelming rules and restrictions
SurgeTrader is a trustworthy proprietary trading company that gives traders a choice of several funded trader programs with various account sizes. A one-phase evaluation challenge must be completed in order to acquire funds and be eligible for a healthy profit share of up to 90%.
SurgeTrader requires traders to reach a profit target of 10% before receiving funding, which is a sensible trading objective given that there are 4% daily loss and 5% trailing drawdown constraints to adhere to. They impose no restrictions on trading strategies so you are free to trade how you like provided you are not breaching any of the terms which are simple and fair.
|Starter – $25K||Intermediate – $50K||Seasoned – $100K||Advanced – $250K||Expert – $500K||Master – $1M|
|Profit Target (10%)||$2,500||$5,000||$10,000||$25,000||$50,000||$100,000|
|Daily Loss Limit||4%||4%||4%||4%||4%||4%|
|Max Trailing Drawdown||5%||5%||5%||5%||5%||5%|
Choose SurgeTrader if you’re looking for a prop firm with straightforward trading guidelines. Although being a young organisation, they offer favourable conditions for a broad group of individuals using a variety of trading strategies.
- Simple, straightforward trading rules
- No minimum trading days
- No 30-day assessment period
- Scale up from $25K all the way to $500K
- One-Time fee with no ongoing costs
- No restrictions on trading strategies
- 1 step evaluation process
- Good choice of trading instruments
- Trade on both MT4/MT5 platforms
- Handy trader dashboard
- Realistic profit target set at 10% of the total account balance
- After passing the audition you will start trading directly on a live account, with real profits and losses taken by the company, no demo accounts
- You will have access to a free 30-day membership with BKForex, which includes daily trading signals, tools, indicators, webinars and more
- Quick withdrawals and no minimum or maximum amount restrictions, which can be requested at any time once a month
- Very generous profit share that goes all the way up to 90%
- Free trial of the audition upon request
- A stop-loss is required for each trade
- All positions must be closed on Friday
- Maximum open size of 1 lot per $10,000 of the account balance
- 5% maximum trailing drawdown
- Low leverage 10:1, 5:1 and 2:1
Topstep was created to aid and educate traders through a “learn by doing” process in a simulated futures trading environment. They provide a secure environment where traders may turn their passion into a profession and securely participate in and earn from the financial markets. Topstep look to produce better traders with sensible money management and the skills required to make informed trading decisions.
|Profit Target (Per Step)||$3,000||$6,000||$9,000|
|Maximum Position Size||5 Contracts||10 Contracts||15 Contracts|
|Daily Loss Limit||$1,000||$2,000||$3,000|
|Trailing Max Drawdown||$2,000||$3,000||$4,500|
If you pass the stage 1 and 2 of the Topstep trader programs you can get up to $150,000 in capital and share 90% of profits. The exciting conditions provided by the funded program, which include access to several platforms, instructional resources, a free trial period, and reset choices, will appeal to both new and experienced investors. Due to all of this, it ranks among our top prop trading companies for investors looking to profit from their experience.
- Not much capital needed to start
- Account reset option available
- Free 14-day trial to enter program
- Excellent choice of professional trading platforms
- Keep up to 90% profits with a 50% account balance withdrawal available
- A real focus on improving trading skills via the Trading Combine program
- Great range of educational resources, community access, coaching and live webinars
- Quick evaluation process. Step 1 can be completed in just five trading days, and Step 2 no longer has a minimum days requirement
- Respected prop firm with many years in the business and millions of dollars of trader withdrawals
- No forex trading
- No MetaTrader platforms
- Very complicated account options and trading conditions
- No weekend positions
- Futures instruments only
- Withdrawals are limited to ACH or international bank wire transfers
- Higher monthly fixed costs because of exchange data fees
- Quite strict rules to follow
Earn2Trade offers the training materials and practical experience required for success in proprietary trading to both new and experienced traders. With plenty of instructional resources and assistance, even beginners may learn about futures trading and the sophisticated skills required to succeed and make a profit.
The three “challenges” offer individuals a variety of ways to get a funded account and begin trading. An 80/20 split, which is also competitive, can help prop traders get rewarded for their efforts. Sadly, funded accounts can only begin with $400,000, which is less than other prop trading firms like FTMO, where talented traders can access up to $2 million in trading capital thanks to their scaling strategy.
|$25K Career Path*||$150||3-16||$3K-$11K||$2K-$6K|
|$50K Career Path*||$190||6-30||$2K-$8.8K|
If you’re looking for a dependable and secure way to get a sponsored profile, taking part in one of Earn2Trade’s funded trader programs can be a smart choice. A successful evaluation programme secures an account, and Earn2Trade’s tools and experience may enable you to improve your skills along the way.
- Fast track to becoming a professional trader, shortest completion time is 15 trading days
- One stage evaluation with simple and transparent rules
- Choose your own virtual account size ranging from $50,000 to $200,000
- 80% profit on withdrawals for traders
- Complimentary 60 day access to Journalytix™ with your account ($78.00 value)
- Lots of educational material including videos, webinars and ebooks
- Full access to Earn2Trade’s educational material during your subscription
- Free NinjaTrader license during your evaluation
- Often run discount promos
- One of the longest running prop firms
- Data fees once funded (fairly normal amongst prop firms)
- 15 trading days to pass is one of the longest in the industry
- No forex trading in Gauntlet programs
- Recurring fees in Gauntlet Mini
- Some popular platforms, such as MetaTrader 4 or 5, are not supported
- Cannot hold positions overnight
- Copy trading is not allowed
- No free trials
- Get a funded account with a low entry threshold
- Free trading education and training for traders
- Access to high-level trading software and data analysis
- Direct market access to trade various asset classes
- No conflict between the prop trading firm and trader
- Take advantage of favourable trading conditions
- Potential to scale account up to significant capital
- Instant funding accounts available at some prop firms
- You will need to pay a sign-up fee
- Takes time and effort to pass a trading challenge
- Need to stick to certain trading rules
- Can cancel your account if you are in breach of rules
There are a few key things to look out for if you are shopping around for a funded trader program and not sure which proprietary trading firm you should use. The main thing most traders will look at would be the profit share. The greater this is, the more earning potential you will have. However, there are some other factors that can be considered just as important.
For instance, if you are a forex trader then you are going to want to find a forex prop trading firm. Likewise, if you trade cryptocurrencies, then you will need a crypto prop firm. You also need to think about the trading platform that you want to use and check to make sure that it is available. If you plan on using automated systems, then you would need a prop firm that allows expert advisors.
These are just a few examples of the many thanks to look for in a funded trader program:
- Profit share and payout method
- Maximum drawdown and loss
- Minimum/maximum trading days
- Trading strategies allowed
- Trading conditions and rules
- Trading broker that they use
- Trading platforms available
- Financial instruments you can trade
- Any educational resources or tools
- Funding program fees and refunds
- Customer support and client feedback
Funded traders with funded accounts can receive weekly or monthly payments based on their trading performance. The amount of money you can make with a funded trading program depends on various factors, including your trading performance, strategies, and profit ratio. It also depends on the type of funding trading program you choose.
If funded traders trade in accordance with the guidelines established by the supplier of their funded trading account, they can earn a limitless profit. Of course, the possible gains increase with the size of the tradeable account. Most prop firms will have a scaling plan which gives you access to more funds as you continue to show consistent results and reach your profit targets.
The profit share can vary depending on the provider, but the industry average is around 80-90% which is very generous when you consider that the prop firm is putting in the capital and taking on all of the risk. Some prop firms payout less but they may compensate for this by offering educational resources and other tools that can save trader money.
Yes, anyone can become a funded trader provided they are of legal age. Regardless of the prop firm, the process is fairly straightforward. All one needs to do is successfully pass a founded trader programs by sticking to the rules and reaching specified targets. If you achieve this, you can receive access to a funded trading account, then commence trading.
If you are a beginner, then you will find many prop firms will support your development through learning resources and one on one mentoring. Becoming a funded trader is also a goal for some experienced traders because they already know how to make profit in the financial markets, and it can act as a primary source of investment to leverage their potential gains.
The low risk factor is the key advantage of funded trader accounts. Real-time data and the platform have a nominal monthly cost. You receive access to a financed account in exchange after demonstrating that you have the necessary abilities to succeed. Once funded, you can keep up to 90% of the revenue and ask for a reimbursement to your account for the initial trading program fee.
Funded trading as a business model is not a scam and it is possible for traders to get funded with large amounts of money. However, there are a number of prop trading firms that benefit more from funded program fees than from the success of funded traders themselves.
Hence, that is why it is important to make sure you compare prop firms and choose one that has been around for a while and has a great reputation with proof of payouts being made to traders. It should be in the interest of the prop firm and trader that they are successful as each are getting a share of the profits.
A funded trader program gives traders the chance to trade with a prop firm’s funds. The gains you make in the funded account are split between you and the proprietary company. By offering trader education resources, webinars, and support, good funded trader programs help you get started in trading with more than just trading capital. Furthermore, it is also important to have a top-notch trading platform and a prop firm that provides the best funded accounts.
The trading sector is a booming one, and many individuals are working hard to learn more about it every day. Yet, success in the market requires more than just having a solid understanding of the fundamentals.
It’s getting simpler for people to study trading tactics and strategies online and to become consistently profitable traders, but many people lack the necessary investment capital to make a significant profit from their profitable trades.