Forex trading isn’t easy and if you’re coming into the industry with a relatively small amount of capital, banking a few percent gain per month isn’t going to get you to the full time trader level anytime soon. Finding investors is nearly impossible and you’ll need a minimum of 3 years track record anyway – so what can you do to scale up your trading efforts? Well, this is where prop firms and funded accounts come into the equation…
In this article we are looking at The Funded Trader – a prop firm launched in June 2021 that offers funded accounts to consistently profitable forex traders. With a great profit split, high leverage and multiple funding options, it’s no wonder the company has such an amazing reputation! Let’s find out more…
Who Are The Funded Trader?
The Funded Trader is a new forex prop firm offering funding up to $1,500,000 for traders around the world. The company offers a huge profit split up to 90%, with various methods of becoming funded, a great community feel and most importantly, great leverage. TFT was created by VVS Academy and Forex League, two fairly influential players in the forex industry that have been educating traders for the last few years.
Regardless of your opinion on forex mentors in the industry, The Funded Trader offering is extremely strong and the company is already rivalling some of the biggest names in the prop firm industry. Could this be the best funded account option for you? Let’s find out more…
Getting Funding From The Funded Trader
The One Step Challenge
The one step challenge is really one of a kind and not something being offered by any of the other top prop firms. The idea is very simple, instead of doing the usual challenge and verification model like FTMO offers, you’ll only need to do that initial challenge. This makes it, in theory, easier to get funded and will result in a much faster turn around time for traders looking to get onto funded accounts.
The one step challenge is fixed at $100,000 of funding, with no time limit, 1:200 leverage, a 10% target, a 6% maximum daily loss and a maximum total loss of 12%. If successful in the challenge, you’ll get a full refund of the initial payment alongside a 40% profit split which will be roughly $4000.
I really like this challenge and I think it’s a great idea for traders looking to speed through the challenge stage and get going. It’ll also be better for traders that are slightly newer to the industry and perhaps aren’t too sure on their consistency over a 2-3 month period, as you’re only doing the one challenge with no time duration you can lower the risk and spend a lot longer trying to reach the profit target.
The Standard Challenge
The standard challenge is fairly aptly named as it is fairly standard in the industry. Since FTMO brought out the challenge and verification model, this has been widely adopted and for good reason – because it works.
The standard challenge packages range from $50,000 in account size all the way to $400,000 which is a lot higher than most starting balances. There is a refundable fee for the challenge which ranges from $315 to $1798 and this is fairly comparable in the industry. The fee is refunded if you’re successful and go on to get funded. If you fail during the challenge or verification, you will not get the fee back.
No matter the account value, the rules are the same across the board. Firstly, you’ll have access to 1:200 leverage on forex pairs and weekend/overnight holding is allowed, so all trading styles will be accepted. Secondly, you’ll have 35 days to complete the Phase 1 Challenge. In Phase 1, you’ll need to make a 10% total gain on the account, without violating a total loss of 12% and daily loss of 6%. If successful, you’ll be onto stage 2.
In Phase 2, you’ll have 60 days to make a profit of 5%, without violating 12% maximum loss and 6% daily loss. This stage should be easy for profitable traders and it’s just to weed out the traders that got through phase 1 in a fluke trade. If successful, you will be funded!
Once funded, you’ll get to keep 80% of the profits you make and you’ll be able to withdraw monthly. You’ll also potentially be eligible for a capital increase of 25% every 3 months, depending on your trading results. The initial fee will also be funded in full.
In terms of value for money, I would recommend starting with at least the $100,000 challenge, as the $50,000 is fairly pricey for the amount of capital you would obtain if you managed to pass the challenges.
The Rapid Challenge
The rapid challenge is coming soon, so we don’t exactly know what it entails just yet. However, we can have a good guess from looking at some of the competition in the industry. DT4X Trader, for instance, offers an instant funded forex trading account where no challenge is needed, at all. This typically costs slightly more than the challenge based funded accounts but you save yourself months of trying to jump through hoops, as well as knowing you’ll have a 100% chance of getting the funded account.
Although we cannot be sure yet, I imagine this is similar to what The Funded Traders rapid challenge will entail. If not, it may be a reduced target of only a few percent in order to get a funded account, but you’ll probably pay more for the reduction of difficulty so the company can hedge against unprofitable traders that get funded.
The Largest Payout In Forex Prop Firm History
The Funded Trader is responsible for the largest payout in the industry to date! If you follow the leaderboard, you’ll know that ‘the king’ had a HUGE month in terms of profits at the end of 2021. TFT came through with the proof of payment, which is amazing to see. Even with a payment that large, the money was released via Wise within a few days.
There have also been a few payments of a similar size. We’ve seen withdrawals of $75,000 and $107,000 in the past few months. The company has reached total payouts of over $1,000,000 in the last few months now – which is amazing to see. The growth is truly remarkable.
In the grand scheme of it, most of use will never even hope to have a withdrawal of this size from a prop firm – but it certainly reassures us that the company is paying traders that they’re owed.
What Makes The Funded Trader Different From Other Prop Firms?
If you take a look at the top forex prop firms list, you’ll see there is around 30 firms all offering funded trading accounts. The industry is booming and there has never been a better time for retail forex traders to be in the industry – however, a lot of the companies are offering the exact same package with a different logo. For this reason, it’s great to take a deeper look at the offerings and see if there are any features that set The Funded Trader apart from the competition…
The first feature that sets the company apart are the brokers. The Funded Trader is partnered with two big names in the industry right now, when it comes to the actual accounts being offered. These partnered brokers are Purple Trading and Nash Markets. Both of these brokers offer MetaTrader 4 and MetaTrader 5 platforms to trade on.
The Funded Trader also has a leaderboard feature, showcasing the highest profit traders of the week and of previous months. This also comes with a great community feel as there is a comments section where traders are interacting and discussing the markets. Trading, for retail, can feel like a very lonely game so this community feel is very important.
The company offers a free challenge to anyone who can show the best trading profits within a month, from a linked MyFxBook demo account. Although your chances of winning the $100,000 challenge are fairly slim, it’s lovely to see The Funded Trader giving back to the community like this and again, promoting a lovely community feel.
The main factor that sets The Funded Trader apart is the one step challenge. This is a more expensive $100,000 that allows you to just make 10% profit on the account, without violating the 12% maximum drawdown and 6% daily drawdown limits. You have unlimited time to complete the challenge and once that 1 stage is complete, you’re a funded trader! I haven’t seen any other prop firm offering a 1 step challenge, so this is fairly revolutionary and will make it potentially easier for traders to get on the ladder!
Is Getting Funding From The Funded Trader Realistic?
When it comes to prop firms, the company could be offering you $5M in funding but if they’re expecting a hugely unrealistic return it’s completely irrelevant. You need to ensure that getting the funded accounts is actually realistic.
Obtaining funding from The Funded Trader is actually realistic and potentially easier than with a lot of the firms in the industry. There are a number of reasons for this…
1. Leverage and Overnight Holding
Making 10% in a few weeks with 1:1 leverage is near on impossible. Making 10% in a few weeks without being able to hold trades past market close is also near on impossible. The Funded Trader allows traders 1:200 leverage on forex pairs which is more than enough to trade sizeable positions, along with weekend and overnight holding. This allows swing traders, day traders and intraday traders to all stand a great chance of getting funded.
2. Lenient Trading Conditions
When looking at the rules of the challenges, it’s important to compare them against the staple of the industry – FTMO. The Funded Trader actually has easier conditions than FTMO. You have slightly longer to complete the trading challenges, along with 2% larger total loss and a 1% larger daily loss limit. This may not sound important but when every percent counts, this does have a huge impact on how hard a trading challenge really is.
3. One Step Challenge
The one step challenge account makes it much easier for traders to get funding as you are doing half the work of a standard challenge. You only need to completely the first half of a normal funding process and you’ll have your funding! Of course, this will cost more but save you a lot of time, trial and error and increase the chance of you getting funded.
The Funded Trader Scaling Plan
Scaling plans are becoming a very important factor in which forex prop firm you seek funding from. Once you pass a challenge and have a large trading account, you don’t want this to be the end of your journey. You should still be expecting to see growth and working with a company that can offer this growth is key.
The Funded Trader offers a scaling plan that is based on performance and rewards consistent traders. In short, the profits are reviewed every 3 months, meaning you could receive additional funds 4 times per year. If you’re profitable for 2 out of the 3 months, at least, then you may be eligible. You’ll need to average a return of 6% or 2% monthly throughout that 3 month period. If you’re eligible you will receive an increase in capital of 25% and you’ll now be able to take a profit split of 90%! It’s also worth knowing that this will be capped at $1.5M.
The scaling plan is great and it does consistently reward consistent traders – which is what we want to see. It’s actually fairly similar to the scaling program offered by FTMO. There are more aggressive and faster paced scaling plans in the industry, such as DT4X Trader which offers to double an account balance for every 10% of capital made. There are of course merit to both kinds of programs though!
The Funded Trader Leaderboard
Although this is a bit of a gimmick, I think it’s a great idea! The Funded Trader has a leaderboard where the top traders of the week are shown. They are ranked and given a title depending on how much profit they have managed to make this week. There is also a hall of fame, where the best traders of each month are displayed, dating all the way back to June 2021 when the company really started.
I know that FTMO recently also brought in a dashboard for EMEA, USA and APAC to see the largest profits of the week and I do think it’s a great idea! It’s motivating and crazy to see that Artur Z has made over $100,000 in profits on their funded account this week – truly mind-blowing. Of course, I doubt this is typical and the majority of the other funded traders aren’t even making close to this but it’s worth keeping your eye on to see the success traders are having.
Traders are also able to win a free $100,000 challenge account by trading on a demo account of their choice. All you would need to do is link your demo account to MyFxBook, stick to the trading rules and you may be in for a chance of winning a free challenge. This is a great opportunity and it’s always nice to see a prop firm giving back to the community.
The Funded Trader Reviews – What Are Traders Saying?
It’s very important when choosing the best forex prop firm that you are looking at the experience other traders are having. The best way to do this is from a third party vetted website or forum as these reviews are typically much harder to manipulate.
We can clearly see that The Funded Trader is rated Excellent on Trustpilot, with 4.8 stars out of nearly 450 reviews! This is absolutely amazing to see and with only 2% of bad reviews, it’s clear that traders are finding a huge amount of value in the company. The prop firm has, at the time of writing this, been around for less than a year and to see a company with such good reviews in the first year is incredible. This actually puts the company very high on our top forex prop firms list, already!
As you can see here, traders are praising the prop firm and it seems that a lot of traders are very impressed with the customer service. When a lot of money and funded forex accounts are at stake, you need to be able to rely on a high level of customer support – so this is great to see. Some of the more negative reviews are from traders that have failed the challenge and don’t really seem to understand the model that these prop firms work with – so we can take those with a pinch of salt.
In Conclusion – Is The Funded Trader A Scam Prop Firm?
In summary, The Funded Trader is a great prop firm and is rapidly becoming one of the strongest offerings in the industry. The company offers funding up to $1,500,000, with a profit split up to 90%, monthly payouts, a leaderboard, 1:200 leverage, a scaling plan and weekend holding. It’s clear to see why the company has such a good reputation because what else could you possibly want?
The company really is for traders, by traders and I would highly recommend the company to traders looking for funding!
If you have any experience trading a funded account from The Funded Trader, please do let me know in the comments down below.