Answers to Your Questions about Prop Trading, Funding, and More - FundingTraders (2024)

Answers to Your Questions about Prop Trading, Funding, and More - FundingTraders (1)

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What is Prop Trading

A prop trading firm is a company that provides traders with access to trading capital, technology, and infrastructure to trade the FX market for a share of the profits. These firms typically do not manage client funds but instead, pool their resources to create trading opportunities for their team of traders.

Who are we?

We are a company dedicated to providing traders with the necessary resources, support, and capital to succeed in the competitive FX market. Our goal is to help traders reach their full potential by offering a range of services, including mentorship, educational materials, and advanced trading tools.

How much money can you make?

The amount of money you can make with our program is truly unlimited and entirely up to you. We have seen traders who consistently earn $2,000 per month, while others are making well over $20,000 per month. The sky's the limit! Your earning potential will depend on a variety of factors, such as your experience level, risk tolerance, and trading strategy. However, we provide you with all the tools and resources necessary to succeed and reach your financial goals. We encourage you to take advantage of our training and mentorship programs, as well as our community of traders who can offer support and guidance along the way. With dedication, discipline, and a commitment to learning, you have the potential to achieve financial freedom with our program."

1 Step Rules

Phase 1: 10% Target
Phase 2: None
4% Daily Drawdown
5% Overall Drawdown (Trailing on highest balance)

7-14 Day Withdrawals

2 Step Rules

Phase 1: 10% Target
Phase 2: 5% Target
5% Daily Drawdown
10% Overall Drawdown (static on balance)
Drawdown reset end of day

7-14 Day Withdrawals

What leverage is available?

FX 1:100
Indices/Gold 1:50
Coins: 1:5

Max allocation & scaling

We offer scaling plan of 25% growth for every 3 months you're profitable 10% at the end of the 3 month period.

Current max allocation is set to $750,000 per customer.

For the bigger plans, maximum account merging is $2m (ex. $1m x 2)

Can I merge accounts?

Yes we allow account merging, simply just send us an email with the account Id’s you’d like to merge.

Profit split and payout times

The first payout is available after 7-14 days since the first trade placed on a funded account. Subsequent payouts will be available to you every 7-14 days.

Unlike other prop firms, we want to make sure that you have regular access to the hard earned profits you have made.

Payout is only valid if the trader does not violate any trading rule or go against the signed terms of use agreement. Any suspicious activities upon review of the account can delay this process. Please cooperate with us in order to receive your profit split quicker if it is a false alert.

Our default profit split is capped at 80% for the trader and 20% to us. The good news is, you may upgrade your profit split to 90% or 100% when you purchase the add-on through our checkout. If you’re willing to have more skin in the game, we give you the opportunity to earn more.

Key Rules

We believe that success in trading requires not only skill and knowledge, but also discipline and adherence to rules.

Therefore, we require all traders to follow the basic rules set out in our plan, which includes daily and total drawdown limits. We believe that this helps to manage risk and prevent large losses that could wipe out your account.

In addition, we prohibit any attempts to cheat the system through glitches or high-frequency trading, as we believe in fair and ethical trading practices.

That being said, we do allow traders to trade new events and to hold positions overnight or over weekends.

We believe that these opportunities can lead to profitable trades and increased earnings potential. It's important to note that we are looking for profitable traders who can make us both money.

Therefore, traders who consistently violate our rules or fail to generate profits may not be a good fit for our challenge.

We want to work with traders who are dedicated, disciplined, and committed to achieving success in the markets.

If you're ready to take your trading to the next level and generate consistent profits, we invite you to join our community and start your journey to financial freedom.

Where can Iread more?

If you still have more questions, and they aren't answered here, we recommend you head over to our, where we have answers to all of your other questions.

Check out the Help Center now!

Answers to Your Questions about Prop Trading, Funding, and More - FundingTraders (4)

Answers to Your Questions about Prop Trading, Funding, and More - FundingTraders (5)

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© 2023 FundingTraders. All rights reserved.

The content on this website is intended solely for studying purposes related to trading on financial markets. It does not provide any specific investment recommendations, business advice, investment opportunity analysis, or general recommendations regarding investment instrument trading. Trading in financial markets involves high risk, and it is advised not to risk more than one can afford to lose. The company does not offer any investment services listed in the Capital Market Undertakings Act. The information on this site is not intended for residents of any country or jurisdiction where such distribution or use would violate local laws or regulations. The company is not a broker and does not accept deposits. Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. This website is owned and operated by RSRDLimited, Suite C, Level 7, World Trust Tower, 50 Stanley Street, Central, Hong Kong.

Answers to Your Questions about Prop Trading, Funding, and More - FundingTraders (2024)

FAQs

Do prop firms really pay out? ›

Statistics on Average Trader Payouts

Profit Split: The average prop firm will offer a 80-20 profit split once you become a funded trader. TFT, on the other hand, gives up to a 90% split, — even as high as 95% in some promotions — the highest in the industry.

What are the problems with prop firms? ›

This decision has caused some prop firms to face challenges and has raised concerns about the future of prop trading. Proprietary trading, or prop trading, involves trading financial instruments using a firm's own capital. These firms hire traders who trade on behalf of the firm, aiming to generate profits.

How do prop firms get funding? ›

Proprietary trading firms trade their own capital instead of client's funds, which distinguishes them from brokerage firms. Unlike hedge funds, they typically do not seek external investors and their compensation is not based on a management or performance fee but on the profit generated from trades.

Why do prop traders make so much money? ›

Prop trading firms generate revenue through various sources such as commissions, fees, and profits from their traders' activities. The profitability of these firms can greatly influence the income of their traders, and a successful year can lead to higher earnings for traders.

How many people pass funded accounts? ›

5-15% pass rate

Across account levels, probably only around 5-15% of traders ultimately pass funded account evaluations at firms like FTMO and pass verification phases to trade with investor capital.

Which is the most trusted prop firm? ›

The most popular prop trading firms and funded programmes
  • Axi Select.
  • FTMO.
  • The Forex Funder.
  • E8 Markets.
  • True Forex Funds.
  • The 5%ers.
  • Funded Next.

Why is proprietary trading bad? ›

Personal Risk: One of the significant drawbacks of prop trading is the potential personal financial risk. If a trader doesn't perform well, they may lose their deposit, and in some cases, their job. Loss Limitations: Prop firms often implement daily loss limits to protect their capital.

How do prop firms pay their traders? ›

A prop trading firm is a company that provides its traders with access to capital. In return, the traders share a percentage of the profits they generate with the company. Individuals face many hurdles on their journey to become professional traders.

What is the cheapest prop firm? ›

Best cheap forex prop firms
  • FTMO: evaluations starting at $399.
  • TopStepTrader: Challenges starting at $375.
  • T4tCapital: Flexible evaluation options starting at $299.
  • Funded Trading Plus: Starting at $25.
  • Earn2Trade: $99 Mini challenge.
  • True Trading Group: $49 evaluation with a $25,000 virtual account.
Feb 27, 2024

Which prop firm offers instant funding? ›

FTUK is a reputable prop firm with instant funding accounts, which attracts seasoned traders who want to access large trading capital without a lengthy evaluation process. The funding range is from 14k to 5 million USD with a profit share of 80% and maximum leverage of 1:100.

How much capital is needed to start a prop firm? ›

How much money do you need to open a prop firm? Starting an online prop firm can cost as little as $10,000, while starting a traditional prop firm can cost up to $1 million.

How do you succeed in prop trading? ›

15 Risk Management Tips for Prop Trading Success
  1. Educate yourself about the Forex Market and its Risks before Trading a Live Account. ...
  2. Develop and stick to a prudent trading plan. ...
  3. Test any trading strategy before risking real money. ...
  4. Never risk more than you can afford to lose. ...
  5. Choose a sensible risk-to-reward ratio.

What is the starting salary for prop trading? ›

How much does an Entry Level Proprietary Trader make? As of Apr 23, 2024, the average annual pay for an Entry Level Proprietary Trader in the United States is $112,369 a year.

How to pass prop firm challenge? ›

Tips for Passing a Prop Firm Trading Challenge
  1. Understand the Rules of Engagement: ...
  2. Master Your Trading Strategy: ...
  3. Risk Management is Non-Negotiable: ...
  4. Leverage Your Analytical Skills: ...
  5. Stay Disciplined and Patient: ...
  6. Continuous Learning is the Key: ...
  7. Embrace Feedback and Adapt: ...
  8. Simulate Real Trading Conditions:
Feb 5, 2024

Do prop traders need a license? ›

Prop trading firms are less heavily regulated than regular brokerages and broker-dealers. However, it depends on the way the prof firm choose to open their business. If them choose to open a firm only with trader challenges, there's no license needed.

What happens if you lose money in a prop firm? ›

Profits from trades are generally divided between the firm and the prop trader; however, the risk distribution is asymmetric. This means that in the event of a loss, the trader bears 100% of the losses, while they don't receive 100% of the profits.

What percentage do prop firms take? ›

A prop trading firm looks to recruit talented traders and fund them with the company's capital. The funds that a trader makes, is then split between the trader and the company. The profit share is between 50 – 95%, with the trader taking the lion's share.

Does FTMO pay out? ›

All FTMO Traders can request payout on-demand. The payout can be processed just after 14 days, but you also have the ability to choose your own Profit Split Day, which can be even changed up to three times. In conclusion, we make sure that you will always receive your withdrawal on your most convenient day.

What percentage do prop firms pay? ›

Prop firms offer funded trader programs where they provide you capital to trade. In exchange, they take a percentage of your profits. The percentages vary but are often 50-70% to the trader. The more profits you generate, the higher your payout.

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