Who is a Funded Trader and How to Become One

Who is a funded trader?

A funded trader is an individual who has opened a prop account, successfully passed the challenge phase and finally got a capital for his own trading.

He adheres to the trading rules of the firm and shares a certain percentage of his profits with them.

How to become a funded trader

In order to become a successful funded trader you can follow these steps:

• you must be a skilled forex trader, be 18+ years old and reside in a non-restricted country (check the firm’s website to find out if your country is accepted).
• Always do a due diligence to compare the best prop firms and choose the right funded trading program for you.

• Register on their website and make one-time payment for an account.

• be set to kick off the challenge phase. The purpose of the challenge phase is to evaluate your trading skill, and discipline (to follow the program guidelines).

• you will become funded after you’ve completed and passed your challenge aka evaluation phase (more on that later).

ADVICE: Alternatively, you can decide to do a free trial first before purchasing a program

Pro tips on how to pass the evaluation/challenge phase

The evaluation phase is a stage where traders’ skills and strategies are assessed before they are allowed to trade with the firm’s capital.

During this phase, traders operate with virtual funds to demonstrate their ability to generate consistent profits, manage risk, and follow trading rules.

How to pass the evaluation stage:

First and foremost, learn what is prop trading and secondly always make sure that you understand the rules and guidelines for the selected program.

Create your own trading plan that would work well with the instructions and stick to it.

This way, you will easily get rid of emotional trading.

Review each trade and learn from your mistakes or success.

How to choose the right funded account

The program you choose can be a key determinant of your trading success. You want to prioritise programs with favourable trading conditions and environment.

Firstly, you want to understand the evaluation process of the program. Usually, before a trader is funded, he/she would be expected to pass a trading challenge.

Examine to know if the drawdown rules and profit targets of the challenge phase are realistic and achievable for you.

Secondly, you want to check the profit split structure and be sure that you’re comfortable with your take-home percentage.

Also, research to confirm if traders receive their payouts on time or not. You want to work with a company where you can receive your payment in less than 24hrs.

Next, consider their trading platform. Avoid companies with third party trading platforms. It is safer to invest in a firm with an in-house trading software.

And lastly, invest in an affordable challenge account that gives you high value; the opportunity to scale up to a large capital.

FAQs

1. Can I buy and join a funded program as a forex beginner?

Yes, you can join a funded program as a forex beginner. Some prop firms have programs (for example, copper 4 program by RebelsFunding) specifically for forex amateurs.

This account type is designed to make your experience easy.

2. Will I get a refund if I pass the evaluation stage?

You may be eligible for a refund after successfully completing the challenge phase. RebelsFunding offers refunds of up to 200%.

3. What are the risks that come with becoming a funded trader?

There’s a possibility of being scammed. It is vital you do a thorough research, check reviews online before you buy an account.