Best Funded Trading Programs

Access to money is one of the main challenges for traders. Without significant capital, it is impossible to trade calmly. It is impossible to place large trades and manage more significant positions. And it, in turn, limits profit. Funded trading programs help to eliminate this challenge. They allow traders to get funding without risking their own money. In most cases, before a trader gets a real account, he can also test his skills and strategy with a demo account. These programs have become very increasingly popular, especially among those people who want to make a trading career but don’t have enough funds. In the article, we will explore the best funded programs that are available now, and you can choose the one that is most suitable for you.

What Is a Funded Trading Account?

Before we move to funded programs, let us clarify what a funded trading account is. A funded trading account is an account that provides capital for traders. With it, traders can trade financial markets like stocks, forex, commodities, or even cryptocurrencies. These programs offer traders a chance to show their skills with a demo account. If the trader meets specific performance criteria, such as consistent profitability, risk management, and strategy execution, he can be given a funded account with real money. Funded accounts offer some benefits. The main benefit is that traders get access to large sums that they cannot afford on their own. They can also gain experience in live markets, and there is no need to risk their personal capital. Funded trading programs can provide a significant opportunity for those traders who have the skills but don’t have the necessary funds to grow their portfolios. Funded trading programs also offer lots of flexibility. They typically allow traders to choose their strategies, manage their risk levels, and decide independently on their trading hours. However, funded programs have also drawbacks. One of the main cons is that most of them impose strict rules and conditions. We will check them in more detail later.

Criteria for Choosing the Best Funded Accounts

If you are looking for a funded account, consider all the details and make sure it is suitable for your trading style and goals. Here are some of the most important criteria. Size of Capital Provided The amount of capital that a funded account gives can differ a lot between different funded programs. Some programs limit a trader to only $10,000 as a maximum, while others can give around $200,000 or even more. This is why always check how much money a selected program offers. If you get more funds, you can open larger positions, but the risks are higher, too.

Account Requirements (Evaluation Tasks, Fees, Limits)

To get a funded account, a trader must pass a specific evaluation task. The trader may reach a specific profit target within a specified time, trade with a specific risk level, maintain a certain risk-to-reward ratio or comply with all these requirements. The program may charge fees for access to the demo account. It can also have limits on the maximum drawdown (the amount you can lose before you get disqualified). Always check these requirements and see if the program suits your trading style.

Trading Rules (Risk Management, Strategy Restrictions)

Many funded trading programs impose certain rules about how you can trade. These can be restrictions on trading strategies. For example, high-frequency trading or scalping may not be permitted. Such programs also pay attention to risk management. You may be required to use stop-loss orders, adhere to maximum drawdown limits, or maintain a particular risk percentage per trade.

Profit Split and Payout Conditions

The profit split is one of the main factors that you should pay attention to. Funded programs take their share of your profit, so you keep only part of what you earn. The difference between different programs may be very high. They can leave you between 50% and 90% of what you earn. Also, check if there are any conditions for withdrawing the profits. For example, there may be a minimum threshold or fees.

Top 5 Funded Trading Accounts

Now, you know how to choose a funded account. It is time to check what the best funded programs are.

FTMO

FTMO is one of the most popular and respected funded trading programs in the industry. It offers traders up to $200,000 in capital. To get a funded account, a trader must complete the evaluation phase. The FTMO challenge requires traders to reach a profit target of 10% over 30 days, adhere to strict risk management rules, and a maximum drawdown shall be not more than 10%. The program offers a lot of educational resources and a supportive community of traders. However, the rules can be very strict, especially the drawdown limits. This is why it may be difficult for beginners to get a funded account.

The5ers

The5ers offers a more flexible approach to funded trading. Traders can start with as little as $200,000 in capital. The profit target is 6% within 30 days and a maximum drawdown is only 4%. If traders manage well, they can get more funds. The5ers offers lower entry fees compared to some other programs. The risk profile is also more flexible. This is why this program is suitable not only for experienced traders but also for beginners. The main drawback of the program is the profit split which starts at 50%.

TopstepTrader

TopstepTrader allows traders to trade futures and forex. The evaluation process is slightly more complicated. Traders must meet specific profit targets in both a simulated trading environment and a live trading environment. Traders can manage accounts up to $150,000 after completing the evaluation. TopstepTrader’s evaluation process is strict and very detailed. This is why only skilled traders can get funded accounts. The platform offers educational resources and a community of traders. The program is only available for futures and forex trading, so those traders who are interested in something else have to find something other.

My Forex Funds

My Forex Funds offers several evaluation challenges. There is even an accelerated program that provides faster access to capital. Traders can access capital of up to $200,000. The program requires traders to reach a profit target of 8% in a 30-day period with a drawdown limit of 5%. My Forex Funds is known for its affordable evaluation fees and relatively easy trading conditions. It also offers fast account scaling for traders who perform well. However, the lower drawdown limits may not be suitable for aggressive traders. The profit targets may also feel challenging to some traders.

SurgeTrader

SurgeTrader offers funded accounts for forex traders with capital starting from $25,000 up to $1 million. The program has relatively flexible rules. Traders have to achieve a profit target of 8% in 30 days, with a 5% drawdown limit. SurgeTrader offers some of the highest capital allocations in the industry. This is why this program is perfect for traders who want to manage big positions. It also has a straightforward evaluation process and offers a variety of account options. The profit split starts at 75%, which is good, but there are fees associated with the evaluation.

How to Choose the Right Funded Trading Account?

You shall choose a funded trading account depending on your experience level, trading style, and financial goals. Here are some key factors that you need to consider:

Your Skill Level

If you’re a beginner, you might want to choose a program with lower fees and less strict performance requirements. If you’re more experienced, a program with higher capital allocations and a more complex evaluation process may be more suitable.

YourTrading Style

Different programs may be suitable for specific trading styles. For example, if you prefer scalping or high-frequency trading, make sure the program allows these strategies. If you’re more of a long-term trader, look for a program that offers flexibility and long-term risk management options.

Fees and Profit Splits

Check the evaluation fees and the profit split. It will help you to determine if the program offers a fair deal. Programs with higher profit splits and lower fees are normally more attractive.

Advantages of Funded Trading Accounts

The most important advantages of funded accounts are the following. Trading without using personal capital: Funded trading programs allow you to trade with the company’s money, you don’t have to risk your funds. Increased profit potential: If you get more money to trade, you can also earn more. Professional development: Funded programs often provide access to educational resources and mentorship opportunities. This can help traders to improve their skills.

Risks and Challenges

Funded trading programs offer numerous advantages, but there are also risks. Traders must follow rules regarding drawdowns and risk management. If they break the rules, their accounts can be closed.

Conclusion

Funded trading programs provide an excellent opportunity for traders to access capital. However, choosing the right program is difficult. This is why check all conditions and rules, and pick a program that suits your trading style, experience, and goals.