Learn About Funded Trading
Are you an experienced trader or a beginner looking to profit from the markets? You may begin trading forex for as little as $100, but your profits will be limited. It can be challenging when you don’t have enough capital to make a significant trading investment. That is why in this article, we will teach you how to get a funded account. This way, you can get a significant amount of capital in a funded trading account.
What is Funded Trading?
Funded trading is the practice of trading on behalf of the firm while maintaining a proprietary trading account. When you trade on behalf of a firm, your money is not at stake. You are not responsible for the losses either. Thanks to the lower risk associated, you might feel more at ease when trading. The benefit of trading for a prop firm may be life-changing as long as you are consistently profitable.
Why Trade with a Funded Trading Account?
The advantage of these funded trading accounts is that the firm and the trader each receive a portion of the profits.
For many people, a career in prop trading is an opportunity. It offers flexibility and makes entering the market easier. In addition, it greatly reduces the risks connected with this kind of work.
As the firm will give you the funds to trade, there is no need for you to put your own money at risk. Additionally, you are not responsible for losses, allowing you to trade stress-free.
Compared to trading alone with your own money, the capital is probably considerably larger because you are using funds given by the prop firm. You can engage in larger trades and earn larger profits if you have more capital. Perhaps it will take you a lot longer to earn a significant profit if you were trading solo with less capital.
What You Should Know Before Choosing a Prop Firm?
You should remember to conduct thorough research before selecting which funded trading program to join. But we at Funded Trading can help since we conduct the research for you. We go over the terms and conditions, familiarize ourselves with the rules and parameters, and evaluate the price of the program. Some services might set you back $1,000 or more, which is far more than you ought to pay.
Ultimately, you are trying to find the most affordable approach to develop a career as a professional prop trader. Once you get the funds, you are free to trade the capital any way you see fit to earn profits. You can also scale up your account to handle a larger capital if you are consistently profitable.
You can read more in-depth about this topic in our article “What You Need to Know Before Choosing a Prop Firm”
How To Trade With a Funded Trading Account?
We mention in the title about starting to make money today. So ultimately, we are referring to prop firms where you don’t have to pass a challenge. Passing a challenge can take a long time before being able to start trading. With instant funding prop firms, you just need to give the phone interview and pay the fee. This can take 24 hours, depending on the prop firm.
There are a lot of different prop firms available to join. The most important is that they are reputable and payout their traders.
If you are a beginner or even an experienced trader, we recommend that you join a prop firm without a challenge. This way you are almost guaranteed to get funding as long as you have the discipline, strategy, and mindset to be profitable.
Which Prop Firm to Choose?
You can check our list of the best prop firms to trade with here.
You can also read more in our article “How to Get Instant Funding for Forex?” where we list the top 4 prop firms where you can get instant funding.
We base the winner on the affordability and key features available for traders. We list FundYourFX as the winner followed by The 5%ers. If you want to see the full ranking and read more about the reason they are at the top, you can click on the article here.
It is important that when choosing prop firms, you understand the rules and parameters of the prop firm. Some prop firms have a more detailed FAQ for you to read through where you can find most of the information you need before starting with the prop firm.
How to Choose a Prop Firm Based on Strategy?
Some prop firms specialize in a specific market, and some are just better for all kinds of markets. As an example, there are prop firms with better rules that benefit forex traders more than their competitors if you trade forex. Here, in “Forex Prop Firms: The Top 5 Prop Firms to Trade Forex” we list the top 5 best prop firms to trade forex with.
Other than basing it on the price of joining, the reason we chose FundYourFX and FTMO as the number 1 and 2 is that they offer high leverage when trading forex, which is 1:100. Their rules are flexible, however only FundYourFX’s are more so because you can hold trades overnight there, but you cannot with FTMO. To read more in detail and see the other prop firms in the list you can read here.
If you are a trader that loves using EAs, then you need to choose a prop firm that allows you to use EAs freely. What we meant when we say freely is that they don’t restrict the way you use it. FundYourFX, FTMO, and The 5%ers don’t restrict the way you use your EAs. But firms like MyForexFunds don’t allow you to use EAs unless you submit them for approval. So just make sure that you know the prop firm you are trading with before joining. Some prop firms like Audacity Capital don’t allow news trading, weekend trading, crypto trading, and indices trading. You can read more about Audacity Capital in the comparison of FundYourFX vs Audacity Capital.
Now that you have learned all about funded trading and how you can start making money, you can use our guide to choose the best prop firm that is suitable for your style. Be sure to read our blog to find more information regarding prop firms and trading. By absorbing as much information as you can, it makes it easier to choose the right prop firm. Because of this, you must choose a prop firm carefully to lay the right foundation for your long-term trading.