“Your Capital, Your Skills”
You might have read this statement many times if you are in search of FUNDED ACCOUNTS. Novice traders mostly enter forex empty-handed. They want to earn, invest and then earn more from the same platform. For this, they need capital, funds, and investment.
Where to manage funds? That’s the common question every trader asks. No problem, forex is for everyone.
Stop worrying about money and start reading the post: How to get funded as a forex trader.
There are several ways to get funded as a forex trader. Prop firms can help to manage funds when traders contact them. Traders with a good track record can join PAMM and MAM accounts for trading with high equity. Another option is to get funds from remote trading opportunities. The last option is to manage the fund through family and friends.
Every fund has its pros and cons. After getting the fund there is a strong need to utilize it properly according to terms and conditions set by the funded authority. Don’t forget to read our list of top Funded trading accounts in the end.
What Is Funded Account and Why Traders Need It
Most traders enter in trading without sufficient funds. They have skills but they don’t have enough capital to invest in trading. To facilitate such skillful traders, many companies offer fully funded trading accounts.
Such companies are in search of traders with winning strategies and provide them accounts to trade with their own(company) capital. This type of accounts is known as funded accounts.
About 99% of traders need capital or funds to start trading. Some traders succeed to manage their own capital but 99% rely on brokers or companies who offer funded accounts to trade on certain conditions.
For this, a trader has to prove whether he or she is able to earn a stable income and deserve this account or not. They have to pass different evaluation tests or assessment phases.
Some companies train traders according to their terms and conditions through trading courses and videos. After training and passing an evaluation, a trader can join a trading platform and start earning from the first day of trading.
For every successful trade, they get a profit share according to the terms and conditions of the company.
How To Get Funded As Forex Trader: 5 Ways
Depending on the skills and track record of traders, there are 5 ways to get funds in forex. The most common and profitable among all ways is to get a funded account of prop firms.
Let’s see the detail of all possible sources of getting funds:
Get Funded Directly from Prop Firms
Proprietary firms or companies offer traders fully funded accounts. If you have a positive track record of 3 years or more, you can contact these prop firms in your area directly and request them to provide you a funded account.
This way, you need not risk your own money for trading.
Nowadays the trend of online prop firms is increasing. They have their pages or websites in which you can apply as a remote trader.
You can search for these companies area-wise using the google search engine or you can also find such opportunities on various job-seeking portals.
Get Funded Using PAMM Accounts
Your brokers may offer you PAMM accounts if you want to trade with larger equity. This account works on the percentage allocation management module.
It is also known as a percentage allocation of money management. It is a type of pooled money forex trading.
In this account, investors allocate a proportion or % of their money to qualified traders’ money managers of their own choice. This trade manager is responsible for managing multiple forex accounts with his own capital.
The participants of the PAMM account setup include forex brokers, traders or money managers, and investors. Other people can also invest money in your portfolio.
The broker is responsible for managing clients and the trader will do trading tasks while investors are third parties who will join this platform to invest only.
Get Funded Using MAM Accounts
MAM accounts are more flexible than PAMM accounts. In PAMM accounts, allocation of trade is made on the basis of % of total equity.
While in MAM account trades are allocated on the basis of fixed lots. That’s why MAM account holders can get the benefit of higher leverage.
In MAM accounts, brokers pool multiple trader’s accounts as well as investment accounts into a single terminal. Now the money in this single MAM account is provided as a fund to traders to trade on.
All orders executed on the main MAM account are executed on associated MAM account holders. The performance fee is due to be paid to the trade master according to performance.
The main drawback of this system is that it offers a low-profit percentage of 30% to 35% to account holders. Whereas the profit percentage of prop firms is quite higher around 50% to 80%
Get Funded from Remote Trading Programme
The remote trading program is just like hiring traders to trade and providing capital on certain conditions. The traders have to pay a certain amount to join these funded trading programs.
They have to pass certain assessments and they are provided with a trading account with 20 % more money they deposit. For example, when they deposit $500, $100, they will get 20% more on the deposit.
When the capital goes down 5%, trading will stop and your order will cancel. Some funded programs ask for paid training and PAID competitions and then traders get funded accounts.
In some funded programs, the profit share is set at 50% and the growth target is set at 10%. They will not allow traders to risk capital at the entry level.
Get Funded from Family & Friends
Another way is to request your family members and friends to fund you for trading. If you are skillful you can set a profit share margin.
This way your friends will earn and love to invest more. But do the proper paperwork to avoid any inconvenience later.
If you belong to a wealthy family, you can ask for a loan. Remember forex is a risky field, even a tiny mistake can wipe off your account. So, I would never advise you to risk your relationship for the sake of money.
Pros of Funded Accounts
What are the main benefits of funded trading accounts? Read the points below to know why funded accounts are helpful:
- A funded account provides an opportunity to trade using a large sum of money.
- Day traders who are experienced can start trading with high equity of more than $250,000.
- Funded accounts with accelerated size growth are helpful for professional traders. This way, traders can get an account with the initial fund. Later the company increases the fund according to the skills and performance of traders.
Cons of Funded Accounts
Is there anything bad about funded accounts? Yes, there are few drawbacks of such accounts. Let’s see what are these negativities:
- The major disadvantage of this account is that it is highly dependent on the company that is offering the account.
- The company can’t interfere in the trader’s activity at any time
- The company can fix or increase its charges as the profit increases.
List of Best Funded Traded Accounts in Forex
Choosing the best-funded trading program is a challenging task. First, you should be aware of what is available in the internet world.
You can check the authenticity of funded platforms through reviews. You can also ask them in person about any issue in chat rooms.
Below is the list of Best Funded Trading Accounts, you can choose anyone:
List of Best Funded Trade Accounts
|Alphabetic Order||Name of Funded Trading Programme|
|A||Affinity Traders – Funded Account|
AudaCity Capital Funded Trader Program
|B||Big Bend FX Signals Funded Account|
BluFX Funded Account
BSTrader – Funded Account
|C||City Traders Imperium Funded Account|
Colibri Trader Funded Account
|E||Earn2Trade Funded Account|
FTMO Funded Account
Funded-Trader Funded Account
|L||Lenno JSC – Funded Account Review|
Liberty Market Investment – Funded Account
|M||Main Street Trading Company Funded Account Review|
|N||NOFT Trading Funded Account|
|O||OneUPTrader Funded Account|
|S||Savius LLC – Funded Account Review|
SMB U LLC – Funded Account Review
SMM Options – Funded Account Review
|T||The Trader Institute – Funded Account|
The5ers Funded Account Review
TopstepFX LLC Funded Account Review
TopStepTrader, LLC – Funded Account Review
Trader Dock – Funded Account Review
Trader2b Funded Account Review
Traders4Traders Funded Account Review
Trend Trading DNA – Funded Account
|U||Unable Markets – Funded Account|
|W||WeFundTraders Funded Account|
It’s obvious from the above post that getting funds is possible but it depends on how good you trade.
For day traders and professional traders, there are so many funded accounts as they have a long track record of more than 2 years to 5 years. But for swing traders and beginners, the opportunities are limited.
Never go for a funded account if you have a shorter track record of a few months only.
Moreover, if you lack consistency and a stable profit-making strategy, this option is not for you. Always do a proper search of prop firms or brokers before paying any penny as a fee.