The Top Forex Funding Programs in 2024
1. TopStep
Quick Overview
TopStep stands out for its strong reputation and rapid growth, even making it to the INC 5000 list of fastest-growing U.S. companies. The journey starts with the Trading Combine, where you can practice with a virtual futures account. Successful traders can then access a funded trading account, trading with TopStep’s money and not risking their own.
Costs
Starting at $165/month for a $50,000 account, with potential discounts. They also offer a 14-day free trial.
Earning Potential
Withdraw your first $5,000 in earnings and then 90% of additional profits.
2. Fidelcrest
Quick Overview
Fidelcrest offers versatility with multiple platforms like MetaTrader 4 and 5. They have a unique Trading Challenge and Verification process, using demo accounts from various brokers.
Costs
ProFX Normal accounts range from $50,000 to $400,000, with one-time fees from $349 to $1,499.
Earning Potential
40% profit share during verification, increasing to 70%-80% afterward.
3. FTMO
Quick Overview
FTMO's rigorous three-step process includes the FTMO Challenge and a 60-day Verification Procedure. Successful traders get access to accounts ranging from $10,000 to $400,000.
Costs
One-time challenge fee, varying based on account size.
Earning Potential
80/20 profit split, with a Scaling Plan allowing for up to 90/10 and account sizes up to $2,000,000.
4. Funded Next
Quick Overview
Offering up to $200,000 with a $4 million scale-up plan, Funded Next has two funding models with varying challenges and time restrictions.
Costs
One-time fees are based on the funding amount, which is determined after completing the challenge.
Earning Potential
60-90% profit split, with unique perks even during the assessment stage.
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5. The5ers
Quick Overview
Known for their unconventional approach, The5ers' funded accounts start live and real-money funded. Traders must complete the Level 1 Program to progress.
Costs
Entry fees range from $275 to $875.
Earning Potential
50/50 profit split.
6. Earn2Trade
Quick Overview
Offering three distinct programs, including the Gauntlet, Gauntlet Mini, and Trader Career Path, Earn2Trade caters to a wide range of trading styles and goals.
Costs
Varies per program, with a monthly or one-time fee.
Earning Potential
Traders keep 80% of profits.
7. City Traders Imperium
Quick Overview
Based in London, this program allows for a variety of trading strategies and offers a one-year Evaluation Phase.
Costs
Prices in pounds, ranging from $150 to $893.
Earning Potential
50%-70% revenue share.
8. SurgeTrader
Quick Overview
SurgeTrader stands out for its straightforward evaluation process and high-profit split. They cater to all skill levels with various packages.
Costs
Audition fees range from $200 to $6,500.
Earning Potential
A generous 75% profit split.
In 2024, the leading funded trading accounts are:
1. Topstep offers a $50,000 account for a monthly fee of $165.
2. Fidelcrest features a trading challenge that does not require a minimum number of trading days.
3. FTMO provides a Scaling Plan with a potential of up to $2,000,000.
4. Funded Next is an ideal choice for experienced traders focusing on proprietary trading.
5. The5ers introduces innovative forex-funded programs with opportunities for immediate funding.
Editor's Caution:
The domain of traders' funding operates without stringent regulation, which allows firms to often overstate their offerings and distort the truth. It is a common occurrence for individuals to incur financial losses by paying for the Challenge (a form of testing) and subsequently failing to secure funding. Therefore, I advise avoiding this risky venture. Instead, focus on enhancing your trading capabilities through reputable Forex brokers, that are at the top of our rankings. – Rinat Gismatullin (Author and Business Expert at Traders Union)
Securing adequate trading capital is a significant obstacle that prevents Forex traders from capitalizing on their skills to generate profits. Nonetheless, proprietary trading firms come to the rescue of skilled traders who possess the expertise but lack sufficient capital for more substantial trading ventures. These firms offer "funded trading accounts," essentially granting seasoned traders a specific amount of capital to trade with.
This article explores methods to finance your trading account and identifies the top five funded trading accounts available. First, however, we'll clarify what a funded trading account is.
What Is a Funded Trading Account?
Funded trading accounts are intended for traders needing additional capital for independent trading who also wish to capitalize on money provided by proprietary (prop) firms. By not bearing losses themselves, financial risk is significantly decreased, while fees and expenses should also be considered when opening one of these forex accounts.
Prop firms also safeguard traders' capital with various restrictions; their agreement could be revised if losses exceed an agreed-upon percentage threshold (e.g. 10%).
Who is eligible to open such accounts?
Qualification for Funded Trading Account
Funded trading accounts may not be suitable for every Forex trader; these accounts are granted only to traders with extensive knowledge and proven ability, while prop firms look for profitable partnerships when selecting traders to receive these accounts.
Experienced traders use their knowledge and skill to generate profits that they share with their broker firm, so extensive trading knowledge is indispensable and funded trading accounts provide a way for those with limited capital but ambitions for expansion to continue growing their market influence.
Funded traders enjoy access to more trading platforms than retail traders, making a funded Forex account an indispensable way of transitioning from beginner-level trading with prop firms' support to professional-level trading with them. Here are our recommended funded trading accounts for experienced traders.
The Top Forex Funding Programs in 2024
Navigating the world of forex funding can be tricky, but choosing the right program can make a big difference in your trading career and profit potential. We’ve rounded up the top 8 forex trading funded account companies for you to consider.
Each of these programs offers unique features and benefits, so it’s worth considering your specific needs and trading style before making a choice.
Becoming a Funded Trader: Your Step-by-Step Guide
Here’s a step-by-step guide for you to begin your funded trading journey. Follow the steps given below
Step 1 - Choose and Open an Account
Kickstart your journey by picking a trustworthy trading platform. Beginners should consider starting with a demo account to hone their skills risk-free. Look for platforms known for their reliability, variety of tools, and supportive community.
Step 2 - Showcase Your Trading Prowess
Your demo account isn't just a playground; it's your stage. Here, you need to do more than just make profitable trades. Display your understanding of market dynamics, a solid trading strategy, and smart risk management. Engaging in any challenge programs offered by the platform can be a great way to prove your mettle.
Step 3 - Pass the Verification Test
Next up is the platform’s verification process. This usually involves a thorough review of your trading approach, risk control methods, and overall market strategy. Be prepared with the necessary qualifications, like relevant trading courses or certifications. This step ensures that funding is reserved for traders who are not just lucky but also skilled and educated.
Step 4 - Secure Your Funding
Once you clear the verification, you’re set to receive funding. However, remember that this comes with certain obligations. Be mindful of the platform's guidelines, which may include trading limits, mandatory stop-loss orders, and specific profit-sharing terms. Understanding these rules is crucial before you venture into funded trading.
Keep these steps in mind as you embark on your funded trading journey. Remember, it's a blend of skill, strategy, and adherence to rules that paves the way to success in the world of funded trading.
Key Requirements for a Funded Trading Account
You must meet and maintain several essential criteria to access a funded trading account. Here's an overview:
1. Identity Verification
To start, you'll need to verify your identity. This involves presenting a current photo ID, like a driver's license or passport, that has stayed active for over 14 days. Also, a selfie matching your ID photo and documents like bank and utility statements confirming your address is required.
2. Meeting Profit Targets
Prop firms set specific profit targets to evaluate a trader's skills. You must hit these targets while adhering to the firm's trading rules and limits to qualify for and keep your funded account.
3. Max Drawdown Limit
A critical aspect is the 'max drawdown' - the most significant amount you can lose before risking account suspension. This limit is usually a percentage of your total funded amount. For example, with a 10% max drawdown, your account's value must stay within 90% of its initial balance. This rule applies to both your open and closed positions.
4. Risk Management
Before you start trading, be aware of the maximum risk percentage allowed. Many prop firms set this so that your total open risk doesn't exceed 3%, and the chance for any single trade doesn't surpass 2% of your account balance.
5. Weekend Trading Rules
For funded accounts, holding positions over the weekend is typically prohibited. Positions are automatically closed every Friday at 7:00 PM GMT/UTC.
6. Trading Discipline
Finally, prop traders must maintain profitability, minimize losses, and trade with discipline and consistency. Consistent and responsible trading is critical, with no stringent time constraints or mandatory profit targets.
Understanding and adhering to these requirements is vital for anyone looking to succeed with a funded trading account.
FAQs
How Can I Select a Funded Trading Account?
Picking out an appropriately funded trading account involves numerous considerations. Please take note of its legal standing, available leverage options, trading platforms supported, educational resources provided, and what percentage of profits will remain yours after tax.
Are Funded Traders Beneficial to My Portfolio?
Switching to being a funded trader may be advantageous for traders who need access to capital to support their accounts directly. When trading using an unfunded account, no risk will be placed upon your funds; instead, you must abide by all funding company regulations, such as their payment processes, operational policies, and risk management rules.
Can Anyone Become a Funded Trader?
Becoming a funded trader requires both expertise and discipline. Funding companies set strict rules regarding daily losses and maximum position sizes that you must abide by to obtain funding, so becoming one is not solely determined by skill but requires self-discipline in adhering to specific trading protocols.
Are Funded Trading Accounts Beneficial?
Yes, funded trading accounts provide many advantages. They provide the capital for trading activities and opportunities to learn from experienced traders while honing your skills and strategies that might otherwise have been impossible with only your funds available for investment. Furthermore, trading via funded accounts might prove more profitable in some instances, making this choice attractive among traders.
