Prop Trading | Forex Trading | Prop Firm Trading - FundingTraders (2024)

FAQs

Is it hard to get funded by a prop firm? ›

Becoming a funded trader with a prop firm involves showcasing your trading skills and adherence to risk management during an evaluation process. While the difficulty can vary, it's achievable with consistency, dedication, and a solid trading approach.

Funding Traders is partnered with CBT, which is a technology solutions provider for brokers and prop firms, but does not act as a broker, does not offer financial advice, or engage in brokerage activities. The firm loses legitimacy in these criteria as well, as CBT is not a broker.

In a typical challenge model, the prop firm will give the trader a certain amount of virtual money to trade with. The trader will then have to meet certain profit targets in order to pass the challenge. Once they pass the challenge, they will be given a funded account that they can use to trade with real money.

With the Prop Firm challenges, it's not just about failing or winning. You must be profitable and fulfill certain trading objectives which makes it even harder. Less than 1% of traders who attempt the challenge pass and get funded. It's best to invest in a few challenges.

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

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.

One popular method is the 2% Rule, which means you never put more than 2% of your account equity at risk (Table 1). For example, if you are trading a $50,000 account, and you choose a risk management stop loss of 2%, you could risk up to $1,000 on any given trade.

Funded Trader uses the Metatrader 4/5 platform, which is the most common choice for Traders and Brokers worldwide.

No funded trader accounts are not real accounts. They are demo accounts where you are not trading on legit markets. You are trading on fake prices that closely mirror the underlying market.

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. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders. But why is the percentage of failure so high?

Can you make a living with prop trading? ›

Also known as “prop trading,” it offers higher earnings potential much earlier in your career than jobs like investment banking or private equity. It's arguably the most merit-based industry within finance: if you make millions of dollars for your firm, you'll earn some percentage of it.

The minimum capital requirements for prop trading firms vary from country to country. In the United States, the SEC requires prop trading firms to maintain a minimum net capital of $100,000. However, this amount can increase significantly depending on the type of securities you trade in.

Proprietary trading firms often provide evaluation accounts where you prove your trading skills. Usually, you pay a one-time fee to enter this “challenge.” If you lose money during this evaluation, you won't owe anything beyond the initial fee.

2) PACE YOURSELF, START SMALL AND ALWAYS RISK LESS THAN 1% PER TRADE (especially for Day Traders and Scalpers): When facing a prop firm challenge, the first thing they aim to teach you is risk, the second is patience. There are limits to how much you are allowed to lose in a prop firm-funded account.

It typically takes around 4-5 months to become a prop firm funded trader, if you're a consistently profitable trader. Some traders can achieve this much faster by using increased risk. However, the likelihood of failing the trading challenges would be increased.

Breaking into proprietary trading firms can be challenging, with factors like education, skills, networking, and persistence playing key roles.

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.

To become a funded trader, you'll have to pass two or three rounds of challenges set by the prop firms. They aren't easy! The prop firms bet a large amount of capital on their funded traders. As such, they set challenges to ensure that the traders who apply are serious about trading and have sufficient knowledge.