Do you want to start forex trading but don’t want to risk your own capital? If so, you can start trading on a funded forex trading account. By becoming a funded trader, you do not have to risk your own hard-earned money in order to trade.
Forex trading is risky and difficult. It is not like putting money on a single strategy and making all the trades correct with the single strategy. To become a good trader, you need to put a lot of effort and work on various strategies. When you want to get into forex trading, you can become a solo trader, or you can become a funded trader.
Starting as a solo forex trader can help you figure out your trading style and build character. However, the main problem for most people is the lack of sufficient funds. When you don’t have enough funds, you can start out by acquiring other people’s money. Again the problem here is you will be risking other people’s money. Obviously, when someone will give you money, he/she will keep expectations of good enough returns.
Hence, becoming a funded trader can be a good idea. By becoming a funded trader, you can improve yourself in forex trading without risking your own hard-earned capital.
Becoming A Funded Trader
Becoming a funded trader is not easy. When you trade for high intense firms, you will be working in a high pressured workspace. The main issue with becoming a funded forex trader is competition. Qualifying for a funded trading program isn’t easy because it is highly competitive. Keep in mind that after becoming a proprietary trader, you will not be using your own trading strategies; mostly, you need to trade your employer strategy.
Funded forex accounts allow new as well as experienced to trade on the foreign exchange market without risking their own money. However, when you get a funded forex account, you do not have to worry about losing the money.
Advantages of Becoming A Funded Trader
Before we talk about how you can actually become a funded trader, we will walk you through the different advantages of becoming a funded trader. Here are the benefits of using a forex funding account:
- You do not have to invest your hard-earned money
- You are not competing with other traders
- Free yourself from regulatory restrictions
- Clear trading
- Trading flexibility
- Get support services
How To Become A Funded Trader?
In this section, we will walk you through different steps to becoming a funded trader. The important thing you need to keep in mind is that the process of becoming a funded trader will vary from one trading platform to another. Here are the steps:
Learning is the first and most crucial step in the process. If it was possible to become a prop trader & make money without learning, everyone would be doing that. Under this stage, you need to put a significant amount of time into learning and to improve yourself. Your focus needs to be on learning various strategies and enhancing your trading skills.
2. Selecting the platform
When it comes to forex funded trading account, there are so many platforms out there. Make sure you select the right platform after considering factors like payout terms, share split, fees, etc. There are different funded trader programs out there. Some best ones are Earn2Trade, TopstepFX, Try Day Trading, TopstepTrader, OneUp Trader, and Maverick Trading.
3. Certification test
This is another important step in the process. To become a funded trader, you need to showcase your trading skills and knowledge. That’s the reason why funded trading platforms conduct certification test. The test makes it easier for them to find out the best traders. For trading platforms, conducting a certification test is essential because they have to deal with numerous traders, and they can’t check the background of each trader individually.
4. Demonstrate the skills as per the firm’s trading strategy
When it’s your test phase, keep in mind that you need to showcase your trading skills as per the firm’s definition of success. Each firm will have its own strategy. Rather than using your strategy and trying to come up with something different, you are required to show skills as per the firm’s definition of success.
5. Achieving target goals
No matter how experienced and skilled a trader you are, if you can’t achieve the provided target goals, it’s not worth it. When you successfully achieve target goals by using the firm’s trading strategy, it showcases your trading skills.
So here we have seen the process of becoming a funded trader. If you want to get started with forex trading but don’t have enough funds or you don’t want to risk your own funds, then signing up with a funded trader program can be a good idea.
Top Prop Trading Firms
No Timeline: City Traders Imperium – CTI has been around awhile their payout isn’t the best starting at 50% to 60% then up to 70% when to get to 7 figures funded. Now why would we suggest somebody with a lesser payout? Because if the company is making more money they will be much happier relaxing the rules and letting traders do what they want. You can trade during the news, hold over the weekends and take as much time up to to a year on your verification. 50k funded account will cost you around $500 USD.
Longer Timeline: 5%ers – same thing they have a lesser payout at 50%, but you have to look at that they want you to succeed that much more with them paying you 50% and the upside is 7 figures again. They have been around awhile and they give you 6 months to pass the verification as well. It is a little pricier for the verification at around $875 USD, but again not as much pressure as a 60 day verification. Take your time and take the higher quality trades instead of rushing into them.
Most Reputable: FTMO – FTMO has been around about the longest of the most popular prop firms. They aren’t too expensive they have different tiers which used to be only up to 100k, but now they do have a 200k. The only downside with FTMO is the rules they are very strict on things like the news and not holding trades over the weekend and such. This can make you better yes, but it can hold a lot of traders back based on their strategy and principles. We have always been low risk high reward traders so it doesn’t affect us that much.