With the forex industry offering such large leverage, it can attract a lot of newer traders with much less trading capital. Growing trading capital enough to actually earn a living in the markets, or trade full time, can be a lengthy experience and most traders will never manage to do so.
This is where prop firms come into the picture, as they offer funding for forex traders, in return for a share of the profits!
NOTE: BluFx went bust at the end of 2023. Please ignore everything in the below review!
BluFx is one of the worlds leading prop firms, offering a subscription model in return for instant account funding, unlike any other prop firm in the market.
We have extensively tested and researched BluFx to compile this in-depth article, which should help you make a decision about whether this is the prop firm for you. Let’s find out more…
Who Are BluFx?
BluFx is a forex prop firm, started in 2015 and it has been getting quite a lot of attention in the recent months within the industry. The company is owned by Yu Song and on the website he breaks down the journey that he has been through during his trading experience, also the journey he has been through in growing the company. By looking at Company Check, we have been able to verify that Yu Song is the owner and CEO.
BluFx offers large accounts to forex traders, in exchange for a monthly subscription instead of passing a skill based challenge like you would with FTMO or 5%ers. This makes them very unique within the market and has attracted quite a response from the online community. BluFx offer 2 different account sizes currently, $25,000 and $50,000, which you will be given instantly!
This sounds like an absolute no-brainer decision for forex traders right? Paying a small monthly fee to get access to larger trader capital, surely that’s worth doing? Well, let’s break it down in more detail.
Getting Funding From BluFx
As previously mentioned, BluFx offer 2 different account sizes to traders, which are paid for with a small monthly subscription. This means that you do not need to pass any challenges to get funded, making this capital more accessible to newer forex traders.
The first sized funding offered is $25,000. To obtain $25,000 of funding will cost you £99 per month, which can be cancelled whenever you wish. The funding is also instant from this prop firm, meaning you will get account details sent through to you and be up, ready to trade within a few hours. This funding does come with a fair amount of rules and regulations that you need to abide by, which are consistent with other prop firms such as FTMO.
The second size of funding offered is $50,000. This package comes with all of the same rules as the $25,000 account, however BluFx charge £249 per month for this amount of funding. The Pro account also comes with an account growth feature, which will be very interesting for profitable traders.
Essentially, every time you hit 5% growth on your account, you are eligible for a payout. However, when you hit 10% growth, BluFx will double your trading capital for the same amount of money per month, meaning you can in theory work yourself up to trading £1M in capital, much like with 5%ers.
These are the rules that come with the trading capital offered on the Lite and Pro accounts. Trading is done through MT4, which is common of most prop firms and they offer a 50-50 profit split. If we look at other firms in the industry, this is fairly common with only FTMO beating that with a 70-30 split.
The allowed drawdown is capped at 10% and you are paid monthly on any trading profits, once 5% gain is reached.
What is important to consider is the fact that the leverage offered is fairly low, as you can see by the buying power that BluFx actually offer. This may make it hard for a lot of traders to reach consistently hitting that 5% monthly milestone. For instance traders with a very small $1000 deposit on their personal account, using a broker like IC Markets offering 1:500 leverage will still have more buying power than someone using an account offered by BluFx.
With that being said, leverage isn’t always the best idea for newer traders and a smaller amount of buying power is more likely to keep you from taking large losses. If you don’t have an understanding of leverage, have a read of this article to understand more.
What Makes BluFx Different From Any Other Prop Firm?
BluFx is very much different to every other prop firm leading the industry, as you can see in our top prop firms list. This is fundamentally down to their lack of trading challenge in order to obtain the funded accounts, which is a pro for a lot of budding traders.
If you haven’t had much experience with prop firms in the past, you may not know how the process usually goes. This is a standard process of obtaining forex funding…
- You purchase a Demo Challenge Account, from FTMO for example.
- You trade this account for maybe 1 month, trying to reach a certain profit goal, whilst abiding by daily loss limits and overall loss limits.
- If you are successful in this stage, you will do a verification account. This is usually the same process again, but half the time duration and half as hard. This is to prove you didn’t just get 1 lucky trade!
- If you meet the trading requirements, you will now have a funded account.
- You trade the funded capital, never paying the company another penny. You take your profit splits on milestones and continue trading.
This is the industry standard, however, this is how BluFx do things…
- You pay a monthly fee of either £99 or £249, in order to have access to a funded forex account.
- You trade the funded capital, taking profit splits on milestones and paying a monthly fee for the account.
It’s certainly a very much different and faster process to be trading capital from this company. However, this doesn’t mean that they are a better option than some of the other prop firms.
There seems to be a rise in companies offering instant funding to forex traders. Whereas BluFx was the only company offering this, now your options are:
Is It Realistic To Get Funding From BluFx?
When you’re choosing a forex funded account, you need to be sure that it’s actually realistic. If the prop firm is asking you to jump through 20 hoops, you’ll most likely not get any of the funding offered, or even worse, lose your funded account!
Getting funding from BluFx is extremely easy. Much like with MyForexFunds, there is no challenge or verification model meaning that you are able to instantly get funded. There are of course pros and cons of being instantly funded with a $50,000 account, but overall it’s much easier and will get you earning profits much faster than a company like FTMO would!
In fact, you can literally start trading the same day with BluFx. Traders would usually spend anywhere between 1-2 months to obtain funding and if the markets happen to be not responding well to your strategies during the last few weeks of the challenge, it could all be for nothing!
The only drawback of being able to obtain instant funding is that new traders, who aren’t profitable or ready for funding, will now be on funded accounts. The issue with that is the unprofitable traders (who wouldn’t have passed a challenge anyway), are now running riot on a $50,000 account and will most likely blow the account within a few hours.
BluFx Withdrawal Proof – My Withdrawal
When choosing which of the industry leading prop firms to work with, it’s really important to figure out if traders are actually getting treated fairly and paid on time. I have taken multiple withdrawals from BluFx and they’ve all come completely on time and I’ve been in contact with the accounting team each time.
The one drawback of the withdrawals are the fact that you do have to pay the fee if you choose to withdraw via PayPal. This is minor and in all honesty, it’s my fault for choosing PayPal!
None the less, the withdrawal was paid within 4 days of the initial request and the support team are always extremely responsive whenever I am looking to take a withdrawal.
BluFx New Capital Scaling Plan
Once you have a funded forex account, you’ll most likely be withdrawing your profits every week/every month so you can put that in your own personal trading account. This is a very good way to do it and something I highly recommend! None the less, it’s also important to scale your trading capital and this is where Blu Fx Scaling Plan comes in…
With the scaling plan, every 10% profit you make (whilst following the rules), the company will double your funded account balance. This is huge and means traders can go from $50,000 to $1,000,000 under management within a few months, without even having made 100% profit!
Another huge benefit of this, is at $1,000,000 of funding, Blu Fx will allow you a profit split on everything about your trading balance, alongside weekend holding which is crucial for swing traders. This scaling plan is very similar to the likes of City Traders Imperium and much more aggressive than FTMO!
BluFx Reviews – What Are Traders Saying?
One of the best ways to understand how well a prop firm is performing for us traders is to look at a vast number of reviews from traders all around the world. It’s important to understand that my experience, or your experience, may be different to the vast majority so I like to use the trading community to help guide my decisions when joining firms.
BluFx has an ‘Excellent’ rating on Trustpilot, with over 360 reviews currently and a staggering 76% of those in the excellent range. This is really positive to see that they are so well respected by traders within the industry. Compared to the reputation of some of the companies on our Best Prop Firm List, this is really promising!
From reading every one of the 300+ reviews, it’s clear that the support team works above and beyond to get any problems sorted, which again is absolutely brilliant to see. Traders are actually positively gaining from the experience and rules set in place, as it is teaching them to have a more disciplined approach to forex trading, which again is a net gain. However, I have seen a negative point raised numerous times across various forums.
The low buying power/leverage is something that traders seem to be struggling with, compared to that of FTMO for example. It is still very much possible to hit your profit targets with BluFx, despite the lower leverage but the majority of retail traders are used to trading with brokers like Blueberry Markets, offering leverage of 1:500. BluFx actually responded to some of the leverage comments, saying that they don’t want lucky traders, they are looking for consistent traders, which does make sense. They also claim to have a higher percentage of profitable traders than brokers, which may in part be down to their restricted leverage.
Conclusion – Is BluFx Just A Scam?
In summary, BluFx is not a scam and is very much a viable option for increasing your trading account size in the forex market. They have proven themselves to be a legitimate, reputable company, offering funding for newer traders without access to large sums of capital.
If you have read the full review you’ll know that the selling point of using BluFx rather than one of the other firms like 5%ers is simply the fact that you can get funded the same day, without having to pass any type of performance based challenge. In return for getting funded with no questions asked, you have to pay a monthly fee for the account and also have limited leverage. There are other prop firms like DT4X and MyForexFunds offering instant funding accounts with much better features.
In my opinion, if you are already consistently profitable over the long term with forex trading, I would recommend a firm like FTMO instead of using BluFx. Over the long term with the profit split, the lack of leverage, the small(ish) account size and the monthly fee, I would expect more profits to be obtained with FTMO. However, if you’re a relatively new trader just reaching consistency, getting instantly funded with BluFx could be a really smart way to start experiencing larger capital and a adopting a professional mindset within your trading.
In addition, compared to other firms leading the industry, BluFx offers very little in the way of education for traders. Personally, I would recommend education from BabyPips and even YouTube, rather than relying on your prop firm to teach you anything, but it is something that some traders are interested in having, so please bare that in mind.