Swing trading, the art of taking extremely large, longer term moves is by far the best way to trade volatile markets like the currency market. With that being said, the drawback of swing trading is that you really do need a lot of trading capital to make it worth while as the frequency of trades taken is extremely low compared to day traders or scalpers. This is where funding comes in…
A lot of the prop firms in the industry haven’t been offering weekend holding and had very short 20-30 day time limits on the profit target requirements, making it impossible for swing traders to actually take on any investor or prop firm capital. That was, until now!
In this article we are going to look at the 4 best options for a swing trader to take on capital from a forex prop firm and scale their trading career right now! Let’s get into it…
Finding A Prop Firm As A Swing Trader?
As a swing trader looking for funding, you’re going to have 3 main requirements that are absolutely essential to actually securing any type of funding.
- The ability to hold trades over the weekend.
- The challenge length being longer than a month.
- No monthly profit targets.
Without these 3 components, it’s going to be nearly impossible for you to actually get funded. I was swing trading a few months back (before FTMO brought out their swing trading challenge) and the rush of having to reach the profit target within 20 trading days and no weekend holding led me to falling completely short on the target and it was overall quite a stressful experience compared to my normal swing trading.
With that being said, a lot of the Best Prop Firms follow on from one another and once the main competitors have adapted challenges to suit longer term traders, the rest seem to follow – which has worked greatly in our favour!
FTMO is by far the best prop firm in the industry as of right now and they have just recently updated their offering to include a new Swing Trading Challenge. This is great news for traders as previous to the last few months, the challenge length was just 20 days with no weekend holding, making it impossible for us longer term traders!
This swing trading funding option works exactly the same as the typical FTMO Challenge (Read my full article here for a breakdown of the challenge) but now you are able to:
- Hold trades over the weekend
- Trade during new releases
- All trading styles allowed
The leverage on the challenge has taken a hit, down to 1:30 from 1:100 but realistically swing traders don’t need leverage too high as our stop losses are usually high in amounts of pips.
If you’re curious, FTMO offers up to $400,000 in total funding, with a 70% profit share and monthly payments, making them again one of the best firms in the industry without a doubt.
The reputation of a prop firm is extremely important if you’re going to be trusting them to pay your profit shares out every month. Luckily, FTMO has an AMAZING Trustpilot reputation with over 700 reviews now, 90% of which are clocking in at excellent.
5%ers is the 2nd highest ranked prop firm on our Best Prop Firms list and for very good reason! Until recently, they were one of the only forex prop firms offering funding for swing traders which is where they really came to fame.
They are offering funding of up to $1,200,000 for swing traders, an aggressive scaling program and up to 180 days to complete a challenge – which should be more than enough for the majority of traders. 5%ers offer a 50% profit share for traders, which is slightly less than the 70% that FTMO are offering but still nothing to be sniffed at! If you’re curious, I have a full in-depth 5%ers review here that will answer any questions you have.
With the 5%ers you are able to:
- Hold trades over the weekend.
- Complete a challenge in 180 days.
- Get leverage up to 1:30.
- Trade during news releases.
- Trade any style.
Every 10% that you make, the company will immediately double your funding, which is brilliant! By just making around 60%, you can have yourself trading a HUGE amount of capital. A 10% gain will of course take a long while to get as a swing trader, but with scaling into positions this is still much faster than having to make the full 100%!
The 5%ers also have an Excellent Trustpilot rating, with over 80% positive reviews, clocking in at nearly 350 reviews at the time of writing! This is amazing to see as the majority of retail traders using this company are swing traders, so it really speaks for itself.
City Traders Imperium, or CTI, is again right at the top of our Top Forex Prop Firms List and it’s for great reason. Besides just being a great all round capital option for traders, they’re especially perfect for swing traders as they are offering a challenge with a maximum duration of 1 year!
The funding options offered are ranging from $20,000 to $2,000,000, with INSTANT FUNDING and a huge scaling program which again makes this a great option for traders that get consistent, but lower returns than day traders and scalpers. Besides just offering the challenge, the company also offers a huge amount of support and education for traders.
With CTI you are offered:
- Up to a year to pass the challenge.
- 1:100 leverage.
- Fast capital scaling.
- Trade during new releases.
- Holding over the weekend allowed.
The scaling option is what really sets CTI apart from some of the other competitors in the industry. It can be a real challenge for swing traders to grow capital as they typically only net a few percent per month, if that. With a hugely aggressive capital incentive from the company, you’re able to rapidly grow your forex profits without having to take on any additional risk or leverage!
CTI also have an amazing score on Trustpilot, with well over 100 reviews clocking in at ‘Excellent’. This just goes to show how many traders around the world are completely satisfied with the trading objectives and funding being offered by CTI, even if it is fairly new to the industry.
If you’re still undecided, I would recommenced having a read of my full article breaking down CTI’s offerings in more detail. Fancy getting funding? Sign up now!
Lux Trading Firm is another contender for the best forex prop firm for swing traders around the world. Besides just being an all round great prop firm, they are offering a profit share of up to 65%, no time limit on profit targets and weekend holding! This makes it a very viable option for swing traders looking to get more capital quickly.
The company offers initial funding of up to $150,000 but this quickly scales up to $2,500,000 if you’re consistently trading your account every month. Leverage and allowed risk is reduced, with a maximum drawdown of 4% which is fairly low, but still very much in the realms of reality for swing traders risking 0.5% per trade.
With Lux Trading Firm you’ll get:
- Weekend holding
- No profit target time limits
- Aggressive scaling
- Simple rules for swing traders
Much like CTI, the scaling option is such a big plus. If I was just swing trading my own capital, with no prop firms and no scaling options, I simply wouldn’t be able to justify trading as much as I do!
Much like the other prop firms in this article, Lux Trading Firm has an Excellent rating on Trustpilot, with over 120 reviews currently and an average of 4.7/5 stars! The 87% of positive reviews really does showcase how much traders love and trust the funding being offered by Lux Trading.
If you’re still on the fence or unsure about the company, I have a full in-depth review of the features, pros and cons which would be worth a read! Ready to get trading? Get funding now!
In summary, there are certainly some really good options for swing traders looking to take on additional capital. Taking on further funding is actually more essential for swing traders than any other style of trader due to the fact swing traders and position traders have such a lower frequency, they need to be trading higher levels of capital to scale up their career.
There are always new options for swing traders coming into the market as a lot of the traditional prop firms are dropping the whole ‘no weekend holding’ rules, so keep an eye on our Top Prop Firms List to see any updates over the next few months.
If you have used any of these firms, or even any others to take on additional forex trading capital please do let me know in the comments down below, I’m curious as to which firm you’ve used!