Funded trading is fast becoming a way for many funded traders to increase their ability to use their trading skills to increase their profits, not only from well-placed trades but by trading an account with much higher capital than most would be able to save up in a lifetime, they are trading for a prop firm, which means they trade a prop firms capital and have none of their own capital on the line, they trade for the prop firm in exchange for a share of the profits.
In the past, the chances of trading for a large fund was beyond the average person’s reach, with trading firms needing months of account statements or university qualifications. However, with the advent of the online prop firm, this has brought this opportunity to the average trader by allowing them to become funded traders with access to firms like these, but by using their trading skills and by passing relatively simple evaluations, these prop firms will offer a forex trader accounts that can make a very lucrative career in forex.
These prop firms offer traders account sizes that would under normal circumstances be out of the reach of the average trader, in some cases into multiple millions of dollars and with very generous profit splits
One of these firms, as an example, will offer up to 4 million dollars with up to 100% of the profits paid to the trader. There are many firms offering funded forex accounts, and it is up to you to do your research on the best option for your trading style.
So, how does a trader go about getting one of these funded forex accounts from a prop firm?
Each prop firm has slightly different requirements to be met by a trader before they will risk their capital, both a profit requirement and within an allotted time frame, so it is best to do your research and find a prop firm whose requirements are realistic and would allow you to meet these requirements without hindering your trading style, by allowing you to keep trading the way you do without putting limitations on your trading strategy, or putting the trader under pressure to complete a target or set number of trades in a limited number of days, while we all like to see profit build quickly, trying to build too fast can lead to bad trading decisions and more often than not undesirable outcomes.
Once a trader has reached a level of consistency where they are confident they will be able to pass these requirements, they can take an evaluation account with a prop firm. Once the requirements are met, the firm will increase the traders account size and give the trader another target to reach for, once this has been reached the account is increased again, and this continues until the trader reaches a ceiling of the max allowable funding by that firm, this varies between prop firms but is usually a very handsome account size that would support a very comfortable lifestyle also, the trader is not limited to trading for only one prop firm, often successful traders have passed evaluations with multiple firms allowing an even greater total capital for the trader..
It is always worth mentioning that finding a prop firm that has the same values as you do is an important aspect of becoming a funded trader. Having a funded forex account where time restrictions and targets are not aligned with your trading can lead to failed evaluations and lost accounts and can be damaging to a trader’s psychology by making them doubt their ability, so it is very important you do your research carefully and choose wisely when looking for a prop firm to work with.
But by doing your research and choosing a prop firm that allows you the freedom to trade your way, you will in no time be trading with capital that would usually be out of reach for the average trader and funding the lifestyle you’ve always dreamed about, while being able to work from any location and on your own terms, sounds like the career we are all in search of.