Proprietary trading firms, commonly known as “prop firms”, are financial institutions that trade their capital, in contrast to other financial institutions that trade on behalf of clients. Prop firms build a team of highly profitable traders that will be trading the company’s capital to diversify risk through different trading strategies implemented by other traders in the team.
This model results in a mutually beneficial relationship between the firm and the traders. The firm gets professional traders to grow their capital while the traders get access to larger capital from which they trade and earn performance-based compensation.
Prop firms used to have a very high barrier of entry for traders as most firms have high standards in recruiting traders (educational background, track record, and expensive “buy-in”s). However, with the recent rise of the talent pool in the retail trading industry, modern prop firms are now lowering the barrier of entry for retail traders to have access to prop firm capital.
Modern prop firms have made it easier for retail traders to advance their trading careers by accessing significant capital, outstanding support and trainers, and scaling plans. It’s never been a more exciting time to pursue full-time trading.
Most programs are designed for profitable retail traders that showcase exceptional risk management. If you fall under this category, we welcome you to the world of prop firms here at Funding Traders.
80-100% | Our default profit split is capped at 80% to the trader and 20% to us.
*Add-ons for 90% or 100% profit split is available upon checkout
*The minimum payout is $50 profit on any account size
Welcome to FundingTraders, where our Forex prop firm provides an enticing profit split opportunity for traders like you. By default, we offer an 80% profit allocation to you, the trader, while retaining 20% for the firm. However, we believe in rewarding your dedication and skills, so we give you the option to upgrade your profit split through our convenient checkout process. With this upgrade, you can choose to enjoy a higher profit split of 90%
At FundingTraders, we understand that each trader has unique goals and risk preferences. Hence, we provide the flexibility to tailor your profit-sharing arrangement. If you're willing to have more skin in the game and take on greater earning potential, this upgrade is the perfect opportunity for you. As long as you've met the minimum trading period and adhered to our trading objectives, you're eligible for a payout that reflects your hard work and accomplishments. Join us today, and let's embark on a profitable journey together in the world of Forex trading.
Every 14 or 7 days | The default first payout is available after 14 days since the first trade was placed on a funded account. Subsequent payouts will be available to you every 14 days.
As an add-on, you have the chance to receive your payout only after 7 days since the first trade was placed on a funded account. This applies to subsequent payouts on accounts with the add-on.
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 discovered during the account review can delay this process. If the alert is false, please cooperate with us to receive your profit split sooner.
Bank Transfer | You may receive your payout by using the banking service. The minimum payout amount to receive your payout is $100.
Crypto (28-48 business hours)
Crypto is the fastest method we can process a payout. The minimum payout requirement is $50.
Note: All positions and limit orders must be closed before requesting a payout.
At FundingTraders, we have established clear rules to ensure a fair and successful affiliate partnership:
Prohibited Self-Referral: Affiliates cannot use their affiliate link for purchases.
Monthly Payouts: Affiliate earnings are paid out at the end of each month.
Fraud Prevention: Payouts may be denied if fraudulent activity is suspected.
Affiliates help maintain a trustworthy and effective program by adhering to these rules and promoting authentically. If you have any questions, please contact our support team.
At FundingTraders, we value our affiliates and their contributions to our community. To ensure a fair, compliant, and successful partnership, we've established some essential rules for our affiliate accounts. Please review these guidelines carefully to understand our expectations and the best practices for promoting FundingTraders.
Prohibited Use of Own Affiliate Link
Affiliates are not permitted to use their affiliate link to make purchases. This practice is considered self-referral and is strictly prohibited. Violating this rule can result in the suspension of your affiliate account and forfeiture of any earned commissions.
Monthly Affiliate Payouts
All affiliate payouts are processed at the end of each month. Payouts are made based on the verified and eligible commissions accumulated during the month.
Fraud Prevention and Payment Denial
We reserve the right to deny payouts if we suspect any fraudulent activity or manipulation. Our team regularly monitors affiliate activities to maintain a fair and trustworthy program for all participants.
By following these rules and best practices, you contribute to a positive and thriving affiliate community at FundingTraders. We appreciate your efforts and look forward to a successful partnership.
For any questions or further clarifications, please contact our support team.
What is the legal relationship between trader and fundingtraders.com
Summary:
Contractor | As signed in the terms of use agreement, you are an independent contractor compensated on a performance basis.
Legal Relationship Between Funded Traders and FundingTraders: Contractor
The legal relationship between funded traders and FundingTraders is established as follows:
Contractor Relationship: As stipulated in the terms of use agreement that you have signed, you are considered an independent contractor. Your compensation is structured on a performance-based basis.
This contractor arrangement underscores the independent nature of your trading activities within our program. As a funded trader, you have the opportunity to earn based on your trading performance, and this relationship is governed by the terms outlined in our agreement.
FundingTraders values transparency and adherence to the terms and conditions of our program. This contractor-based relationship allows both parties to engage in a clear and mutually beneficial partnership, where traders have the opportunity to succeed based on their trading skills and performance.
Is the funded trader liable for any losses in the funded account?
Summary:
No Liability on Losses | Funded traders are not liable for any losses made in the funded accounts. We cover your losses.
As a funded trader, we want you to trade at the highest level without worrying about massive losses that can negatively affect your performance. Your role is to manage risk and make a profit. Our role is to provide the capital and accept the risks that come with it.
No Liability on Losses at FundingTraders:
At FundingTraders, we prioritize the success and confidence of our funded traders. Therefore, it's important to clarify that funded traders bear no liability for any losses incurred in their funded accounts.
We stand by our commitment to our traders by covering these losses. Our objective is to empower you as a funded trader to trade at the highest level of performance without the concern of significant losses negatively impacting your trading performance.
Your primary role as a funded trader is to effectively manage risk and strive for profitability. Meanwhile, our role is to provide the capital and assume the risks associated with trading.
This arrangement allows you, as a funded trader, to focus on your trading strategies and objectives with the assurance that you are not personally responsible for any losses incurred in your funded account. We are dedicated to supporting and enabling your success within the FundingTraders community.
How do I pay my taxes from the payouts?
Summary:
Your responsibility | Funding Traders does not handle your taxes for you.
As a contractor, you are solely responsible for paying your own taxes based on the laws governing your country/state.
We advise you to consult a tax professional.
Handling Taxes from Payouts at FundingTraders: Your Responsibility
Your Responsibility: FundingTraders does not manage or handle your taxes on your behalf. As a funded trader operating with us, you are considered a contractor, and it is your sole responsibility to manage and fulfill your tax obligations in accordance with the tax laws governing your specific country or state.
Consulting a Tax Professional: To ensure compliance with tax regulations and to understand your tax liabilities fully, we strongly advise you to consult with a qualified tax professional or accountant. They can provide you with the guidance and insights necessary to accurately report and pay your taxes.
By making you aware of your tax responsibilities and encouraging you to seek professional guidance, we aim to assist you in managing this important aspect of your trading activities responsibly and in accordance with the laws applicable to your jurisdiction.
Arbitrage trading:
Trader detects different displayed prices between 2 exchange platforms and exploits this bug to make a profit
High-frequency trading:
Traders employ algorithms to execute thousands of trades each second, capitalizing on minor market fluctuations for profit.
Bracketing strategy
Before the News announcement, the Trader sets Limit/Stop orders on both ends. Take advantage of the News release to activate the set orders to profit
Intentionally or unintentionally employ trading strategies that take advantage of errors within the system, such as inaccuracies in price display or delays in updating
Due to a technical glitch, the trading platform displays incorrect price quotes for a particular asset. A trader quickly identifies this discrepancy and places trades based on inaccurate prices, intending to profit before the error is corrected.
Co-trading or copying trades with other traders or accounts
A group of traders who work together to execute coordinated trades across multiple accounts. They share signals and strategies, effectively copying each other's trades to amplify their profits.
One sided-bets
A Trader only places a single order in either the Buy or Sell direction throughout the entire trading process regardless of market conditions
Expert Advisors which scalp during the rollover night to take advantage of the price feed
A trader uses an Expert Advisor programmed to exploit price differences during the switch when liquidity is lower. The EA executes quick trades to take advantage of small price differences between the bid and ask prices.
EA from a third party when other traders open the same trade (copy trading)
A trader purchases an EA from a third-party provider without realizing that many other traders have used the same EA with identical trading strategies, leading to market saturation and reduced efficiency.
Tick Scalping
A trader who enters and exits trades at lightning speed, entering and exiting positions within seconds based on the small price fluctuations that occur with each market pulse.
Hedge Arbitrage Trading
A trader simultaneously buys and sells the same currency pair on different accounts exploiting temporary pricing inefficiencies
Sharing or Reselling Accounts with Other Individuals or Entities
A trader sells access to their funded trading account to another individual or entity, allowing them to trade on their behalf or use the account for their own purposes in exchange for a fee or a share of the profits.
“Challenge Pass” Account Management Services Also Prohibited
A service that manages other individuals’ challenge accounts, promising to pass the assessment phase and receive sponsorship money on their behalf in exchange for a percentage of the profits.
What is the profit target for the 1-step evaluation?
Summary
10% | The account balance (not equity) must reach 10% profit relative to starting account balance. All positions must be closed.
Example:
Starting Account Balance = $100,000
Profit Target = $10,000
Your account balance, not equity, must reach a 10% profit to your starting account balance. Once this profit target of 10% is achieved, you must close all positions. This rule serves as an essential benchmark, ensuring that our traders can generate consistent profits with no time pressures. By achieving this profit target, you showcase your ability to execute on your edge in the market.
What is the maximum daily loss in the 1-step evaluation?
Summary
4% | Current equity or balance must not reach -4% of the initial balance relative to the | starting day's equity.
Example:
Initial Balance = $100,000
4% of Initial Balance = $4,000
Starting Day's Equity = $107,000
Max. Daily Loss = $103,000
At FundingTraders, risk management is a top priority, and our Maximum Daily Loss rule is designed to safeguard our trading capital. To maintain financial stability, we enforce a maximum daily loss limit of 4%. This means that your current equity or balance must not fall below -4% of the initial balance relative to the starting day's equity. For instance, with an initial balance of $100,000 and the starting day's equity of $107,000, the maximum daily loss is set at $103,000.
By strictly following the Maximum Daily Loss rule, you can preserve your capital and showcase a sustainable trading approach. Our commitment to risk management empowers you to navigate the markets with confidence, focus on strategic decision-making, and achieve long-term success as a valued member of the FundingTraders community.
What is the maximum daily loss in the 1-step evaluation?
Summary
5% | Current equity or balance must not reach -5% of the initial account balance relative to the highest recorded account balance.
This trails higher as the account balance increases.
Example:
Initial Account Balance: $100,000
5% of Initial Account Balance: $5,000
Highest Recorded Balance: $106,000
Max. Overall Loss: $101,000
The Maximum Loss rule is a cornerstone of our risk management approach. To safeguard our capital as your account balance increases, we implement a trailing mechanism. This rule dictates that your current equity or balance must not drop below -5% of the initial account balance relative to the highest recorded account balance. For example, with an initial account balance of $100,000 and the highest recorded balance of $106,000, the maximum overall loss is capped at $101,000.
The trailing feature ensures that as your account balance grows, the maximum loss limit is adjusted accordingly. By adhering to this rule, you showcase your ability to control your losses while having a smooth trending equity curve.
What is the maximum daily loss in the 1-step evaluation?
Summary
5% | Current equity or balance must not reach -5% of the initial account balance relative to the highest recorded account balance.
This trails higher as the account balance increases.
Min. Trading Day of:
7 for $200k account size
25 for $350k account size
40 for $500k account size
At FundingTraders, we recognize that some traders apply lower timeframe trading strategies. Our minimum trading day is set to 1 to cater to said type of traders of account sizes $5k-$100k. To meet this requirement, traders must place a trade for at least 1 trading day. Only days with at least 1 position opened are counted as a trading day.
For accounts $200k, $350k, and $500k, the minimum trading days are 7, 25, and 40, respectively.
Is a stop-loss order required for every trade?
Summary
However, we highly suggest that you always place a stop-loss order. We understand that traders have diverse risk management strategies, including the use of EAs/bots for automated risk management. As such, we do not impose a mandatory stop loss order, recognizing the flexibility traders need to implement their preferred risk mitigation strategy.
However, while stop-loss orders are not mandatory, we strongly advise all our traders to consider placing a stop-loss order for their trades. Stop-loss orders act as essential safety measures, helping limit potential losses and protect our trading capital. By incorporating stop-loss orders into your trading routine, you can effectively manage risk and enhance the overall stability of your trading results.
While the decision to utilize stop-loss orders remains optional, we encourage you to embrace risk management best practices to optimize your trading experience and achieve your financial goals with confidence.
What is the available leverage on instruments on the 1-step evaluation?
Summary
Up to 1:100 | Leverage varies for different instruments:
FX - 1:100
Crypto - 1:100
A 1:100 leverage on FX helps empower scalpers and day traders by being able to capitalize on intraday moves
Notably, our 1:100 leverage on FX plays a crucial role in supporting scalpers and day traders. It empowers them to take advantage of intraday price movements effectively. With the ability to control larger positions relative to their account balance, traders can seize opportunities for potential profit maximization on short-term trades.
Phase 1 Rules
What is the profit target for Phase 1?
Summary
8% | The account balance (not equity) must reach 8% profit relative to starting account balance. All positions must be closed.
Example:
Starting Account Balance = $100,000
Profit Target = $8,000
Your account balance, not equity, must reach a 8% profit to your starting account balance. Once this profit target of 8% is achieved, it is required to close all positions. This rule serves as an essential benchmark, ensuring that our traders can generate consistent profits with no time pressures. By achieving this profit target, you showcase your ability to execute on your edge in the market.
What is the maximum daily loss on the 3-step evaluation account (Phase 1)?
Summary
5% | Current equity or balance must not reach -5% of the initial balance relative to the starting day's balance
Example:
Initial Balance = $100,000
5% of Initial Balance = -$5,000
Starting Day's Balance = $107,000
Max. Daily Loss = $102,000
At any point within that day, the current equity or balance must not drop to $102,000.
Our Maximum Daily Loss rule is designed to protect our trading capital effectively. With a maximum allowable loss of 5% in a day, your current equity or balance mustn't fall below -5% of your initial balance relative to the starting day's balance. For instance, if your initial balance is $100,000 and the starting day's balance is $107,000, the Maximum Daily Loss limit is set at $102,000.
Throughout the trading day, it's essential to adhere to this rule diligently. At any point during your trading activities, ensure that your current equity does not drop to -5% or beyond. By following this well-defined guideline, you can maintain disciplined risk management and safeguard your trading capital, fostering a sustainable and controlled trading approach.
What is the maximum daily loss on the 3-step evaluation account (Phase 1)?
Summary
10% | Current equity or balance must not reach -10% relative to the initial account balance. This is fixed and does not trail higher when you’re in profit.
Example:
Initial Balance = $100,000
Max. Overall Loss: -$10,000
At any point during the evaluation, the current equity or balance must not drop to $90,000.
At FundingTraders, preserving trading capital is of utmost importance, and our Maximum Loss rule is designed to do just that. With a fixed maximum allowable loss of 10%, it is crucial to ensure that your current equity or balance does not fall below -10% relative to the initial account balance. For example, if your initial account balance is $100,000, the maximum overall loss is capped at -$10,000.
Throughout the evaluation period, it is essential to adhere to this rule diligently. At any point during your trading activities, make sure that your current equity does not drop to $90,000 or below. Unlike trailing mechanisms, our Maximum Loss rule remains constant and does not increase even if your trades are in profit.
What are the minimum trading days for the 3-step evaluation (Phase 1)
Summary
Min. Trading Day of 1 for $5k-$100k account sizes.
Min. Trading Day of::
7 for $200k account size
25 for $350k account size
40 for $500k account size
At FundingTraders, we recognize that some traders apply lower timeframe trading strategies. Our minimum trading day is set to 1 to cater to said type of traders of account sizes $5k-$100k. To meet this requirement, traders must place a trade for at least 1 trading day. Only days with at least 1 position opened are counted as a trading day.
For accounts $200k, $350k, and $500k, the minimum trading days are 7, 25, and 40, respectively.
Is a stop loss required for every trade in the 3-step evaluation (Phase 1)
Summary
No | Due to many traders using EAs/bots for their risk management automation, we do not require a stop-loss order.
However, we highly suggest that you always place a stop-loss order.
We understand that traders have diverse risk management strategies, including the use of EAs/bots for automated risk management. As such, we do not impose a mandatory stop loss order, recognizing the flexibility traders need to implement their preferred risk mitigation strategy.
However, while stop-loss orders are not mandatory, we strongly advise all our traders to consider placing a stop-loss order for their trades. Stop-loss orders act as essential safety measures, helping limit potential losses and protect our trading capital. By incorporating stop-loss orders into your trading routine, you can effectively manage risk and enhance the overall stability of your trading results.
While the decision to utilize stop-loss orders remains optional, we encourage you to embrace risk management best practices to optimize your trading experience and achieve your financial goals with confidence.
What is the available leverage in 3-step Phase 1?
Summary
Up to 1:100 | Leverage varies for different instruments:
FX - 1:100
Indices/Gold - 1:100
Crypto - 1:100
A 1:100 leverage on FX helps empower scalpers and day traders by being able to capitalize on intraday moves.
Notably, our 1:100 leverage on FX plays a crucial role in supporting scalpers and day traders. It empowers them to take advantage of intraday price movements effectively. With the ability to control larger positions relative to their account balance, traders can seize opportunities for potential profit maximization on short-term trades.
Phase 2 Rules
What is the profit target for 2-step evaluation Phase 2?
5% | The account balance (not equity) must reach 5% profit relative to starting account balance. All positions must be closed.
Ex. Starting Account Balance = $100,000
Profit Target = $5,000
What is the profit target for 2-step evaluation Phase 2?
5% | Current equity or balance must not reach -5% of the initial balance relative to the starting day's balance
Example:
Initial Balance = $100,000
5% of Initial Balance = -$5,000
Starting Day's Balance = $107,000
Max. Daily Loss = $102,000
At any point within that day, the current equity or balance must not drop to $102,000.
What is the maximum overall loss on 2-step evaluation Phase 2?
10% | Current equity or balance must not reach -10% relative to the initial account balance. This is fixed and does not trail higher when you’re in profit.
Example:
Initial Balance = $100,000
Max. Overall Loss: -$10,000
At any point during the evaluation, the current equity or balance must not drop to $90,000.
What are the minimum trading days for 2-step evaluation Phase 2?
Summary
Min. Trading Day of 1 for $5k-$100k account sizes.
Min. Trading Day of::
7 for $200k account size
25 for $350k account size
40 for $500k account size
At FundingTraders, we recognize that some traders apply lower timeframe trading strategies. Our minimum trading day is set to 1 to cater to said type of traders of account sizes $5k-$100k. To meet this requirement, traders must place a trade for at least 1 trading day. Only days with at least 1 position opened are counted as a trading day.
For accounts $200k, $350k, and $500k, the minimum trading days are 7, 25, and 40, respectively.
Is a stop loss required for every trade in the 3-step evaluation (Phase 1)
Summary
No | Due to many traders using EAs/bots for their risk management automation, we do not require a stop-loss order.
However, we highly suggest that you always place a stop-loss order.
We understand that traders have diverse risk management strategies, including the use of EAs/bots for automated risk management. As such, we do not impose a mandatory stop loss order, recognizing the flexibility traders need to implement their preferred risk mitigation strategy.
However, while stop-loss orders are not mandatory, we strongly advise all our traders to consider placing a stop-loss order for their trades. Stop-loss orders act as essential safety measures, helping limit potential losses and protect our trading capital. By incorporating stop-loss orders into your trading routine, you can effectively manage risk and enhance the overall stability of your trading results.
While the decision to utilize stop-loss orders remains optional, we encourage you to embrace risk management best practices to optimize your trading experience and achieve your financial goals with confidence.
What is the available leverage in 3-step Phase 1?
Summary
Up to 1:100 | Leverage varies for different instruments:
FX - 1:100
Indices/Gold - 1:100
Crypto - 1:100
A 1:100 leverage on FX helps empower scalpers and day traders by being able to capitalize on intraday moves.
Notably, our 1:100 leverage on FX plays a crucial role in supporting scalpers and day traders. It empowers them to take advantage of intraday price movements effectively. With the ability to control larger positions relative to their account balance, traders can seize opportunities for potential profit maximization on short-term trades.
Phase 1 Rules (3-step pro)
What is the profit target for Phase 1?
Summary
8% | The account balance (not equity) must reach 8% profit relative to starting account balance. All positions must be closed.
Example:
Starting Account Balance = $100,000
Profit Target = $8,000
Your account balance, not equity, must reach a 8% profit to your starting account balance. Once this profit target of 8% is achieved, it is required to close all positions. This rule serves as an essential benchmark, ensuring that our traders can generate consistent profits with no time pressures. By achieving this profit target, you showcase your ability to execute on your edge in the market.
What is the maximum daily loss on the 3-step evaluation account (Phase 1)?
Summary
5% | Current equity or balance must not reach -5% of the initial balance relative to the starting day's balance
Example:
Initial Balance = $100,000
5% of Initial Balance = -$5,000
Starting Day's Balance = $107,000
Max. Daily Loss = $102,000
At any point within that day, the current equity or balance must not drop to $102,000.
Our Maximum Daily Loss rule is designed to protect our trading capital effectively. With a maximum allowable loss of 5% in a day, your current equity or balance mustn't fall below -5% of your initial balance relative to the starting day's balance. For instance, if your initial balance is $100,000 and the starting day's balance is $107,000, the Maximum Daily Loss limit is set at $102,000.
Throughout the trading day, it's essential to adhere to this rule diligently. At any point during your trading activities, ensure that your current equity does not drop to -5% or beyond. By following this well-defined guideline, you can maintain disciplined risk management and safeguard your trading capital, fostering a sustainable and controlled trading approach.
What is the maximum daily loss on the 3-step evaluation account (Phase 1)?
Summary
10% | Current equity or balance must not reach -10% relative to the initial account balance. This is fixed and does not trail higher when you’re in profit.
Example:
Initial Balance = $100,000
Max. Overall Loss: -$10,000
At any point during the evaluation, the current equity or balance must not drop to $90,000.
At FundingTraders, preserving trading capital is of utmost importance, and our Maximum Loss rule is designed to do just that. With a fixed maximum allowable loss of 10%, it is crucial to ensure that your current equity or balance does not fall below -10% relative to the initial account balance. For example, if your initial account balance is $100,000, the maximum overall loss is capped at -$10,000.
Throughout the evaluation period, it is essential to adhere to this rule diligently. At any point during your trading activities, make sure that your current equity does not drop to $90,000 or below. Unlike trailing mechanisms, our Maximum Loss rule remains constant and does not increase even if your trades are in profit.
What are the minimum trading days for the 3-step evaluation (Phase 1)
Summary
Min. Trading Day of 1 for $5k-$100k account sizes.
Min. Trading Day of::
7 for $200k account size
25 for $350k account size
40 for $500k account size
At FundingTraders, we recognize that some traders apply lower timeframe trading strategies. Our minimum trading day is set to 1 to cater to said type of traders of account sizes $5k-$100k. To meet this requirement, traders must place a trade for at least 1 trading day. Only days with at least 1 position opened are counted as a trading day.
For accounts $200k, $350k, and $500k, the minimum trading days are 7, 25, and 40, respectively.
Is a stop loss required for every trade in the 3-step evaluation (Phase 1)
Summary
No | Due to many traders using EAs/bots for their risk management automation, we do not require a stop-loss order.
However, we highly suggest that you always place a stop-loss order.
We understand that traders have diverse risk management strategies, including the use of EAs/bots for automated risk management. As such, we do not impose a mandatory stop loss order, recognizing the flexibility traders need to implement their preferred risk mitigation strategy.
However, while stop-loss orders are not mandatory, we strongly advise all our traders to consider placing a stop-loss order for their trades. Stop-loss orders act as essential safety measures, helping limit potential losses and protect our trading capital. By incorporating stop-loss orders into your trading routine, you can effectively manage risk and enhance the overall stability of your trading results.
While the decision to utilize stop-loss orders remains optional, we encourage you to embrace risk management best practices to optimize your trading experience and achieve your financial goals with confidence.
What is the available leverage in 3-step Phase 1?
Summary
Up to 1:100 | Leverage varies for different instruments:
FX - 1:100
Indices/Gold - 1:100
Crypto - 1:100
A 1:100 leverage on FX helps empower scalpers and day traders by being able to capitalize on intraday moves.
Notably, our 1:100 leverage on FX plays a crucial role in supporting scalpers and day traders. It empowers them to take advantage of intraday price movements effectively. With the ability to control larger positions relative to their account balance, traders can seize opportunities for potential profit maximization on short-term trades.
Phase 2 Rules (3-step pro)
What is the profit target for Phase 2?
Summary
8% | The account balance (not equity) must reach 8% profit relative to starting account balance. All positions must be closed.
Example:
Starting Account Balance = $100,000
Profit Target = $8,000
Your account balance, not equity, must reach a 8% profit to your starting account balance. Once this profit target of 8% is achieved, it is required to close all positions. This rule serves as an essential benchmark, ensuring that our traders can generate consistent profits with no time pressures. By achieving this profit target, you showcase your ability to execute on your edge in the market.
What is the maximum daily loss on the 3-step evaluation account (Phase 2)?
Summary
5% | Current equity or balance must not reach -5% of the initial balance relative to the starting day's balance
Example:
Initial Balance = $100,000
5% of Initial Balance = -$5,000
Starting Day's Balance = $107,000
Max. Daily Loss = $102,000
At any point within that day, the current equity or balance must not drop to $102,000.
Our Maximum Daily Loss rule is designed to protect our trading capital effectively. With a maximum allowable loss of 5% in a day, your current equity or balance mustn't fall below -5% of your initial balance relative to the starting day's balance. For instance, if your initial balance is $100,000 and the starting day's balance is $107,000, the Maximum Daily Loss limit is set at $102,000.
Throughout the trading day, it's essential to adhere to this rule diligently. At any point during your trading activities, ensure that your current equity does not drop to -5% or beyond. By following this well-defined guideline, you can maintain disciplined risk management and safeguard your trading capital, fostering a sustainable and controlled trading approach.
What is the maximum daily loss on the 3-step evaluation account (Phase 2)?
Summary
10% | Current equity or balance must not reach -10% relative to the initial account balance. This is fixed and does not trail higher when you’re in profit.
Example:
Initial Balance = $100,000
Max. Overall Loss: -$10,000
At any point during the evaluation, the current equity or balance must not drop to $90,000.
At FundingTraders, preserving trading capital is of utmost importance, and our Maximum Loss rule is designed to do just that. With a fixed maximum allowable loss of 10%, it is crucial to ensure that your current equity or balance does not fall below -10% relative to the initial account balance. For example, if your initial account balance is $100,000, the maximum overall loss is capped at -$10,000.
Throughout the evaluation period, it is essential to adhere to this rule diligently. At any point during your trading activities, make sure that your current equity does not drop to $90,000 or below. Unlike trailing mechanisms, our Maximum Loss rule remains constant and does not increase even if your trades are in profit.
What are the minimum trading days for the 3-step evaluation (Phase 2)
Summary
Min. Trading Day of 1 for $5k-$100k account sizes.
Min. Trading Day of::
7 for $200k account size
25 for $350k account size
40 for $500k account size
At FundingTraders, we recognize that some traders apply lower timeframe trading strategies. Our minimum trading day is set to 1 to cater to said type of traders of account sizes $5k-$100k. To meet this requirement, traders must place a trade for at least 1 trading day. Only days with at least 1 position opened are counted as a trading day.
For accounts $200k, $350k, and $500k, the minimum trading days are 7, 25, and 40, respectively.
Is a stop loss required for every trade in the 3-step evaluation (Phase 2)
Summary
No | Due to many traders using EAs/bots for their risk management automation, we do not require a stop-loss order.
However, we highly suggest that you always place a stop-loss order.
We understand that traders have diverse risk management strategies, including the use of EAs/bots for automated risk management. As such, we do not impose a mandatory stop loss order, recognizing the flexibility traders need to implement their preferred risk mitigation strategy.
However, while stop-loss orders are not mandatory, we strongly advise all our traders to consider placing a stop-loss order for their trades. Stop-loss orders act as essential safety measures, helping limit potential losses and protect our trading capital. By incorporating stop-loss orders into your trading routine, you can effectively manage risk and enhance the overall stability of your trading results.
While the decision to utilize stop-loss orders remains optional, we encourage you to embrace risk management best practices to optimize your trading experience and achieve your financial goals with confidence.
What is the available leverage in 3-step Phase 2?
Summary
Up to 1:100 | Leverage varies for different instruments:
FX - 1:100
Indices/Gold - 1:100
Crypto - 1:100
A 1:100 leverage on FX helps empower scalpers and day traders by being able to capitalize on intraday moves.
Notably, our 1:100 leverage on FX plays a crucial role in supporting scalpers and day traders. It empowers them to take advantage of intraday price movements effectively. With the ability to control larger positions relative to their account balance, traders can seize opportunities for potential profit maximization on short-term trades.