Proprietary Trading FAQs | Prop Trading Firm | Funding for Traders (2024)

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How is drawdown calculated?

Daily Drawdown:
The daily drawdown is calculated as 5% of your start of day balance for the Standard Trader Account.
The daily drawdown is calculated as 6% of your start of day balance for the Ultimate Trader Account.
This calculation must include any floating losses, swaps and commission rates. This limit will be reset at midnight as per the server time.

Example 1: Starting balance of $100,000, (Standard Trader Account)
You trade and secure a profit of +$2000, your account balance currently sits $102,000.
The following day your maximum daily loss must now not exceed 5% of that previous days balance ($102,000 - 5% = $96,900) $5,100 max daily loss.
Day 2 you trade and incur a loss of -$1000 bringing your account balance down to $101,000.
The following day your maximum daily loss must not exceed 5% of that previous days balance ($101,000 - 5% = $95,950) $5,050 max daily loss.

Max Drawdown:
The max drawdown on any Standard Trader Evaluation is 10% of your initial account balance. This means your account equity cannot fall below 90% of the initial balance at any point.

The max drawdown on any Ultimate Trader Evaluation is 12% of your initial account balance. This means your account equity cannot fall below 88% of the initial balance at any point.

It is important to note that the max drawdown limit does not reset like the daily drawdown limit.

Are there any monthly fees?

No, there are zero ongoing monthly fees.

Spreads and Commissions

Quantec is partnered with Eightcap as our broker, to offer industry leading spreads and commissions for traders. To understand the account offerings that we use, see here: https://www.eightcap.com/en/trading/trading-conditions/spreads/

Where can I download your trading platform?

Here:

https://www.eightcap.com/en/platforms/metatrader-4/

How often can I withdraw?

Once you become a funded trader, you must trade with us for at least 30 days for both the first and second payout, after that profits can be withdrawn bi-weekly.

Is the assessment time limited?

For both the standard trader account and the ultimate trader account, we give traders unlimited days to pass.

Are there any profit targets on a live account?

There are no profit targets required to be reached on the live funded account. Therefore, to make a withdrawal the account must be in profit.

Can I trade using EA's or Algos?

Yes, you are allowed to use EA’s and Indicators, including tools for managing risk and automated trading systems.

However, certain strategies are strictly prohibited in the funded stage:

  • High-frequency trading (manually or using a bot)
  • Hedge arbitrage trading
  • Tick scalping
  • Grid trading
  • One-sided betting
  • Latency arbitrage trading
  • Reverse arbitrage trading
  • Copying trades from other traders

If any of these strategies are detected in your live account, it will be considered a violation of the rules and Quantec Trading Capital will terminate your account.

Can I withdraw evaluation profits?

No, you cannot withdraw profits generated from the evaluation stage.

Do you have minimum hold times?

Although we do not have a minimum duration a trade can take, we do not support scalping strategies where trades are entered and exited within seconds.

For example: Tick trading is a trading strategy that aims to capitalise on small price movements in the market by executing a large number of trades within a brief period. Typically, tick charts are used to identify these price changes. The strategy involves opening and closing positions quickly to generate a small profit on each trade. However, due to the high risks associated with this approach, tick trading is not permitted.

Yes, the minimum age to participate in all of our programs is 18 years of age or older.

How fast will I receive my challenge account after signing up?

Upon receiving your confirmation of successful payment, you will receive your Trading Platform and Dashboard credentials via email within 10 minutes.

How many accounts can I trade at any given time?

There is no limit on how many accounts you can have however, we only allow for a total funding amount of up to $600,000

USD.

Do you offer instant funding?

No, Quantec are on the lookout for profitable and consistent traders to partner with. To be awarded capital, traders must prove they can profit consistently whilst working within the rules.

Is hedging allowed?

Hedging a position on your own account is allowed. However, you are not allowed to hedge between accounts, such as using 2 trading accounts to open opposing trades on the same instruments with the same lot size at the same time.

How can I withdraw my live profits?

To request a withdrawal, please go to your dashboard and select the Withdrawal/ Profit Share option to request a withdrawal.

Once you send your request, our payments team will verify if you meet the eligible criteria to make a withdrawal, if so they will process the payout either via Cryptocurrency or Bank Transfer.

Please notice that once you create a Funded account, you will be required to sign the Independent Contractor Agreement and fill out the Payment Method form, where you will provide your preferred payment method to process your future requests.

Where do I find my login details?

Login details will be sent to you in the payment confirmation email.

Account inactivity?

Accounts will be breached when the account has been inactive for 30 days.

What are your Standard Trader Challenge rules?

Standard Trader rules:
High Frequency Trading (HFT) is allowed, but only in the evaluation stage.
EAs are permitted in the challenge stage.
Profit target 1st phase: 10%
Min trading days: Zero minimum trading days
Max daily drawdown: 5%
Max total drawdown: 10%
Account leverage: 1:100
Profit split: Scaling up to 80/20
Copy trading: Copy trading or the use of trade copier software is permitted between personal accounts where both accounts are in your name. Copy trading from 3rd party IP addresses and accounts not in your name is strictly prohibited.
Hedging between accounts: Not allowed.
Weekend holding: Not allowed.
Trading High impact news is not allowed. We define this as any trade placed within 10 mins before and 10 mins after any major high impact news event

What are your Ultimate Trader challenge rules?

Ultimate Trader challenge rules:
High Frequency Trading (HFT) is allowed, but only in the evaluation stage.
EAs are permitted in the challenge stage.
Profit target: 10%
Min trading days: Zero minimum trading days
Max daily drawdown: 6%
Max total drawdown: 12%
Account leverage: 1:100
Profit split: Scaling up to 80/20
Copy trading: Copy trading or the use of trade copier software is permitted between personal accounts where both accounts are in your name. Copy trading from 3rd party IP addresses and accounts not in your name is strictly prohibited.
Hedging between accounts: Not allowed.
Weekend holding: Allowed.
News Trading: Not Allowed

What are your funded rules?

1 Step Standard Trader Account:

High Frequency Trading (HFT): not allowed.

EAs: Allowed

Profit target: No profit targets required to be reached on the live funded account. Minimum withdrawal $100usd.

Profit consistency: 50% profit consistency rule

Lot Size Consistency: Lot consistency rules applied at withdrawal.

Account leverage: 1:30

Profit split: Scaling up to 80/20

Copy trading: Copy trading or the use of trade copier software is permitted between personal accounts only when both accounts are in your name. Copy trading from 3rd party IP addresses or an account that isnt in your name is strictly prohibited.

Hedging: Permitted.

Weekend holding: Not permitted.

Trading High impact news: not allowed.

Minimum trading days: 10 minimum trading days during the first 30 days, 5 minimum trading days thereafter.

Account inactivity: After 30 days of inactivity the account will be terminated.

Drawdown: Max daily drawdown: 5%, Max total drawdown: 10%

1 Step Ultimate Trader Account:

High Frequency Trading (HFT): not allowed.

EAs: Allowed

Profit target: No profit targets required to be reached on the live funded account. Minimum withdrawal $100usd.

Profit consistency: 35% profit consistency rule

Lot Size Consistency: Lot consistency rules applied at withdrawal.

Account leverage: 1:30

Profit split: Scaling up to 80/20

Copy trading: Copy trading or the use of trade copier software is permitted between personal accounts only when both accounts are in your name. Copy trading from 3rd party IP addresses or from an account that isn't in your name is strictly prohibited.

Hedging: Permitted.

Weekend holding: Permitted.

Trading High impact news: Not allowed.

Minimum trading days: 10 minimum trading days during the first 30 days, 5 minimum trading days thereafter.

Account inactivity: After 30 days of inactivity the account will be terminated.

Drawdown rules: Max daily drawdown: 6%, Max total drawdown: 12%

Who can buy challenges on our site?

You must be 18 years or older to join this site. Due to regulatory conditions, we are unable to offer services with traders residing in the following countries: Cuba, Iran, North Korea, Myanmar, Russia (or the Crimea, Donetsk or Luhansk regions of Ukraine), Somalia and Syria. The provision of services is not extended to individuals who appear on sanction lists, possess criminal records associated with financial crime, terrorism, or have been previously prohibited due to breach of contract, with no allowances.

Is HFT trading allowed?

Yes, High Frequency Trading is allowed for both types of accounts, but only in the evaluation stage.

Is copy trading allowed?

Copy trading or the use of trade copier software is permitted between personal accounts. Copy trading or trading from any 3rd party IP addresses is strictly prohibited.

Do I pay tax on my trade earnings?

We classify our live traders as independent contractors. As such you invoice Quantec for your earnings and must report this yourself to your relevant tax authority. Please see a tax professional.

Does my account have to be in my name?

Yes, traders will be required to KYC in the funded stage therefore accounts must be created in your own name

Do you allow news trading?

No, we do not allow News trading on the standard or ultimate Funded trader accounts. We define news trading as any trade opened or closed within 10 mins before or 10 mins after any major high impact news event.

If a trade is opened outside of this window, you can leave the trade open subject to the position not being closed within 10 minutes before/after news.

High impact News events are classified as any "red folder” in the Forex Factory calendar. https://www.forexfactory.com/calendar/.

Note, we do allow news trading on the evaluation phase of both the ultimate and standard challenges.

How do your consistency rules work?

Profit Consistency: We apply a 35% day profit consistency rule, therefore upon payout withdrawal request no single day traded can account for more than 35% of your total profit. For example: If by the end of a 30 day period, your account has a total profit of $10,000, then no single day traded can account for more than 35% of $10,000, which is $3,500. Once a payout withdrawal request is submitted any trades breaching this rule will be considered a soft breach and we will remove the invalid trades while keeping account access.

Lot Size Consistency: The lot size consistency rule is applied once a payout withdrawal request has been submitted, to ensure consistency within your trading. To satisfy the Lot Size Consistency Rule your average trade size is used to calculate your trading range. The range is determined by adding 50% to your average trade size to determine the maximum value and subtracting 50% to determine the minimum value. Once a payout withdrawal request is submitted any trades breaching this rule will be considered a soft breach and we will remove the invalid trades while keeping account access.

Note: trades are aggregated when placed within a 30 second window into one position for both profit and lot consistency.

These consistency rules apply to both the standard trader account and the ultimate trader account.

Do you allow trading over the weekend?

Standard Trader Challenge:
No, weekend holding is not allowed.

Ultimate Trader Challenge:
Yes, weekend holding is allowed.

Can I merge my accounts with you?

We do not allow for account merging due to risk management and tracking purposes. You can however have up to six challenges at one time totalling a maximum of $600K USD in funding.

Which platforms can I use for my trading?

Trade with ASIC regulated Eightcap's platform

How long does it take to become a live trader once I pass the evaluation?

Within 10 minutes. Once you pass the evaluation, you will receive an evaluation success email. You can follow the prompts in the email and receive the live funded account right away. Our team will follow up with email directly to our traders for their withdrawal and KYC information via an encrypted web form, from here our finance team will process the payment and issue a confirmation to the trader.

Are payouts guaranteed?

Our prop firm operates as part of the PropTradeTech network of funding programs. As such, we are a member of a large organisation with substantial capital backing. We are ultimately in the business of finding good traders, which means paying out what our trader’s deserve and guaranteeing this via our legal documents and funded trader contracts. That being said all payouts are vetted by our risk team, and the only times we do not payout is if these legals have been breached or trader’s have not obtained profits in a legitimate way.

How long do withdrawals take?

We aim to process payouts as quickly as possible. Our average withdrawal processing time is within 2 - 6 business days.

How do I KYC?

Once you pass your challenge phase, our team will send out e-signature contracts to our traders via email. We will also follow up with email directly to our traders for their withdrawal and KYC information via an encrypted web form, from here our finance team will process the payment and issue a confirmation to the trader.

What is your leverage?

With our Standard Trader Funded accounts we offer 1:30 on Forex, Metals and Energy, 1:20 on Indices, and 1:2 on Crypto Markets.

With our Ultimate Trader Funded accounts we offer 1:30 on Forex, Metals and Energy, 1:20 on Indices, and 1:2 on Crypto Markets.

Do you allow free repeats?

No, Quantec does not offer free repeats.

What instruments can be traded?

Forex: AUDCAD.i, AUDCHF.i, AUDNZD.i, AUDSGD.i, AUDUSD.i, CADCHF.i, AUDJPY.i, CADJPY.i, CHFJPY.i, EURAUD.i, EURCAD.i, EURCHF.i, EURGBP.i, EURHUF.i, EURJPY.i, EURNOK.i, EURNZD.i, EURPLN.i, EURTRY.i, EURUSD.i, GBPAUD.i, GBPCAD.i, GBPCHF.i, GBPJPY.i, GBPNZD.i, GBPUSD.i, NZDCAD.i, NZDCHF.i, NZDJPY.i, NZDUSD.i, SGDJPY.i, USDCAD.i, USDCHF.i, USDDKK.i, USDHUF.i, USDJPY.i, USDMXN.i, USDNOK.i, USDPLN.i, USDSEK.i, USDSGD.i, USDTHB.i, USDTRY.i, USDZAR.i, ZARJPY.i, MXNJPY.i, NOKJPY.i, CNHJPY.i

Crypto: BTCUSD.b, ETHUSD.b, BCHUSD.b, LTCUSD.b

Metals: XAUUSD, XAGUSD Oils: UKOUSD, USOUSD

Indices: ASX200, US30, FRA40, GER30, UK100, EUSTX50, NDX100, JPN225, SPX500, HK50, VIX, US2000, USDX, SWI20, CAN60, NTH25

What is the Profit Split?

Scaling Profit Split:

Withdrawal 1:

  1. 30 calendar days

  2. 10 minimum trading days

  3. 60% profit split

  4. 2.5% profit cap

Withdrawal 2:

  1. 30 calendar days

  2. 5 minimum trading days

  3. 70% profit split

  4. 5% profit cap

Withdrawal 3 onwards:

  1. 15 calendar days

  2. 5 minimum trading days

  3. 80% profit split

  4. 5% profit cap

Where is Quantec Located?

Quantec Is located in Singapore

Do you have a minimum withdrawal amount?

Yes, $100USD.

What countries are banned from trading with Quantec?

The countries that are not allowed to trade with Quantec are:

Cuba, Iran, North Korea, Myanmar, Russia (or the Crimea, Donetsk, or Luhansk regions of Ukraine), Somalia, Syria, and Vietnam

Can I use a VPS?

Yes, but please keep in mind that if any of your IPs which you have used to trade through is detected to be used by other individual traders, this could be flagged as suspicious activity by our internal risk team. The reason is because it would indicate services such as Account Management, Copy Trading etc.

Can US residents buy challenges?

As of 20th February 2024, residents of the United States are unable to purchase challenges on this site. US citizens residing outside the US who possess a valid resident ID may still continue to use the services.

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Proprietary Trading FAQs | Prop Trading Firm | Funding for Traders (1)

Proprietary Trading FAQs | Prop Trading Firm | Funding for Traders (2024)

FAQs

Do prop firms give you real money to trade? ›

There is nothing inherently scammy about the business model of prop firms. But how do they make money then? For starters, prop firms, of course, do not give money to just anyone who asks. Typically, they have a multi-stage evaluation process to make sure the traders they employ know what they are doing.

How do funded prop firms work? ›

Prop trading firms trade with their own capital, aligning firm success with market performance. These firms enhance market liquidity and efficiency while offering traders capital and advanced technology. Traders at prop firms may receive support including mentorship, training, and a network of industry peers.

Are proprietary trading firms legit? ›

While these laws applied to banks, not all independent prop companies in operation today are covered by the Volcker rule. Prop businesses nowadays are utterly unregulated and far apart from the banking industry. As a result, these internet prop companies are legitimate and not a fraud.

What is the problem with prop firms? ›

Limited Control Over Capital and Payouts:

- Traders in prop firms often have limited control over the firm's capital. They may need to deposit their own money as collateral or risk management. - Additionally, payouts are subject to the firm's rules, which may restrict a trader's access to profits.

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.

What percent of traders pass prop firms? ›

That result should look catastrophic for anyone who hopes to join a prop firm. The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

How do prop firms pay their traders? ›

Profit Sharing: Prop firms typically allow traders to keep a percentage of the profits they generate. The profit-sharing arrangement can vary among firms, and some may offer more favorable terms than others. Leverage: Prop trading firms often provide traders with access to higher leverage than retail brokers.

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.

Where do prop firms get funding? ›

As mentioned earlier, prop firms use their own capital to make trades, which sets them apart from traditional brokerage firms that handle client trades. This means that prop firms take on a higher level of risk because they are using their own funds to make trades.

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.

Why is proprietary trading illegal? ›

The Volcker Rule is section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. It places strict limitations on federally insured depository banks from investing in stocks and other securities with the bank's own money. This is known as proprietary trading.

Why do prop firms fund traders? ›

Why do prop firms provide traders with funding? Prop firms fund traders to earn a share of their profits, which constitutes a major part of their revenue, and may also gain income through subscription, joining fees, and selling educational courses.

What are the cons of prop firms? ›

Among many other potential factors, the main disadvantages of prop trading arise from being classified as a market professional, unfavorable profit sharing, and whether your net trading profits are taxed as capital gains or ordinary personal income.

Is prop firm a good idea? ›

Prop firms are an excellent source of accessing further capital to increase profit potential. Passing a prop firm's evaluation means reaching a profit target while staying within its risk management rules. Prop firms require traders to use their brokers, which can be positive or negative depending on the broker.

How do you get paid from prop firms? ›

Under the profit split model, the prop firm provides traders with a funded trading account in exchange for a share of their profits. The profit split typically ranges from 20-50%, and the trader is responsible for managing the trades and making profitable decisions.

How do prop traders get paid? ›

Commissions: Prop trading firms often charge commissions on trades made by their traders. These commissions can range from a few dollars to hundreds or even thousands of dollars per trade, depending on the size and complexity of the transaction. This is one of the primary sources of income for prop trading firms.

Which prop firm gives a real money account? ›

Prop Trading Firms with Real Capital
Proprietary Trading FirmProvided with Real Capital
FunderPro
Funding Pips
FXIFY
Glow Node
35 more rows
Apr 26, 2024

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