The Funded Trader Review

1. What is The Funded Trader?
2. The Funded Trader Pros Cons
3. Is The Funded Trader Legit?
4. The Funded Trader Challenge
5. Funded Account
6. Account Conditions
7. Payout
8. The Funded Trader Alternative

Our Review Method

• 55Brokers Financial Experts with over 15 years of experience in Trading check and verify carefully Proprietary Trading Firm offerings and what the challenge you have to pass to become a Funded Trader to give an expert opinion on The Funded Trader and its reliability

What is The Funded Trader?

The Funded Trader is a proprietary trading firm that provides capital to skilled traders who pass its evaluation process. Successful candidates are granted the title of “funded traders”, allowing them to trade the firm’s money and keep a significant portion of the profits. The firm offers various programs that can provide traders with access to initial trading capital of up to $400,000. Read our article about Prop Trading

• Launched in 2021 and based in Liberty Hill, Texas, the firm offers an opportunity for traders around the world to access substantial trading capital after passing an evaluation process.

Once qualified, these traders, known as Funded Traders, are allowed to trade with the firm’s money and keep a majority share of the profits—starting from 80% to potentially 90%. The firm offers different trading programs and challenges to suit various trader skill levels and aims to foster trader success by scaling up the capital they manage based on performance.

This structure enables traders to leverage the firm’s capital to potentially earn profits without the risk of personal financial investment, provided they adhere to the firm’s rules and risk management guidelines.

Is The Funded Trader Legit?

The Funded Trader is headquartered in the US, and registration in the United States adds an extra layer of legitimacy to a prop trading firm like The Funded Trader. Moreover, it gains significant legitimacy in the trading industry through its strategic partnerships with Purple Trading and EightCap, reputable Forex Brokers, and VVS Academy, a prominent trading education provider. These collaborations enhance the credibility of The Funded Trader as a trustworthy proprietary trading firm.

• Typically, proprietary trading firms, unlike Forex brokers, do not operate under a Forex broker license, which means they are subject to less stringent regulatory oversight. This lesser degree of regulation can impact the level of safety associated with these firms since they independently manage their operations and provide the capital for trading activities. It is crucial for individuals to fully comprehend the risks involved, as the firm itself oversees the entire trading operation without the supervision of industry-specific regulators

Is The Funded Trader Scam?

Our team of Financial Experts has examined the legitimacy of The Funded Trader through information available on their official website and found no clear evidence to suggest that it is a scam. However, it’s important to note that proprietary firms generally operate with less oversight from financial regulators, making it more challenging to assess their full legitimacy.

• From a professional standpoint, we advise conducting thorough research into proprietary trading, understanding the associated risks, and selecting a firm that has a solid reputation and has been operational for a number of years, indicating a more stable offering. Furthermore, since involvement with a prop firm typically requires only a subscription fee rather than a significant capital investment, potential financial exposure is often less than what one would face when trading with personal funds.

The Funded Trader Competition Program Review

Most prop trading firms, including The Funded Trader, mandate that traders demonstrate their proficiency in generating profits before granting them a funded account. The Funded Trader differentiates itself with an innovative evaluation process that comprises four unique challenges, each tailored with specific trading conditions and objectives to cater to different trading approaches.

All the challenges consist of a two-phase evaluation period in which a trader has 35 days for Phase 1 and 60 days for Phase 2. For all challenges, the evaluation begins as soon as you place the first trade:

• The Standard Challenge offers a more generous daily drawdown limit of 6% and a maximum drawdown of 12% across various account sizes, which is particularly appealing for experienced traders eager to put their strategies to the test. This challenge promises participants a share of the profits within the first month.
• The Rapid Challenge is structured for those who prioritize speed, targeting the first profit distribution within a fortnight. It utilizes a balance-based daily drawdown approach, giving traders the flexibility to sustain trades over time, potentially enhancing their profit-compounding ability.
• The Royal Challenge stands out for its flexibility, allowing the use of Expert Advisors (EAs) without imposing any restrictions on lot sizes. With a more lenient maximum drawdown of 10% and a profit goal set at 8%, it provides traders with greater strategic freedom compared to the typical offerings from other prop firms.
• The Knight Challenge caters to traders who desire a swift turnaround, demanding only a single phase to qualify for a payout, which can be secured in just 7 to 10 days.

Account Balance and Registration Fee

To initiate The Funded Trader login process, you’re required to first select a trading Challenge and an Account Balance level for qualification. The conditions of your chosen challenge will vary based on the account size you opt for, which also influences the registration fee.

This fee, paid to participate in the challenge, is refundable by The Funded Trader once you achieve the Funded Trader status. For insights into how the registration fees compare across different account sizes, see the Registration Fee comparison table below:

• The Funded Trader has developed four unique Evaluation Challenges – Standard, Rapid, Royal, and Knight. These challenges are differentiated by the presence or absence of time limits, distinct profit targets, and various Trading Rules.
• On reviewing The Funded Trader’s fee structure and account balance options, it is evident that they are compelling. The starting points for both account sizes and fees are notably lower when compared to similar offerings from other firms, which constitutes a significant advantage.
• Furthermore, The Funded Trader offers an extensive selection of starting balances, with amounts ranging from $5,000 to $400,000, contingent upon the type of challenge chosen.

Profit Target

The Funded Trader demonstrates a trader-centric approach with its profit targets. The 8% profit target for the Rapid and Royal accounts stands out as being lower than what is typically required by other proprietary trading firms.

Moreover, this target is further reduced to only 5% during the second phase of the challenge. In terms of the Standard account, the set limits of 5% daily and 10% total are in line with the common industry benchmarks, striking a balance between risk and flexibility for the trader. For Knight account the profit target is 10%.

Maximum Loss

Each Prop Trading evaluation includes a critical rule concerning loss limits, which traders must adhere to. It’s essential to understand that there are two distinct types of loss thresholds: the Maximum Daily Loss and the Maximum Overall Loss. It’s worth noting that the specific limits set for these thresholds can vary depending on the account type in question.

The Standard Challenge Accounts

• Maximum loss: 12%
• Maximum daily loss: 6%

The Rapid Challenge Accounts

• Maximum loss: 8%
• Maximum daily loss: 5%

The Royal Challenge Accounts

• Maximum loss: 10%
• Maximum daily loss: 5%

The Knight Challenge Accounts

• Maximum loss: 6%
• Maximum daily loss: 3%

Minimum Trading Period

Based on our research, each challenge is designed with its own set of rules regarding the minimum number of trading days required and overall time constraints. However, TFT traders are required to trade profitably for a minimum of 3 or 5 days or no minimum days based on account sizes.

The Funded Trader Standard Challenge

Free Trial

Currently, The Funded Trader does not offer a free trial option. However, they are considering implementing a free trial offering in the future.

The Funded Trader Funded Account

Profit Split

Starting with The Funded Trader, all accounts initially receive an 80% share of the profits. However, upon successful completion of the evaluation phase, traders become eligible to increase their profit split up to 90% as a funded trader.

The Funded Trader Leaderboard

A leaderboard is a ranking or list that displays the performance of traders who are participating in a funded trading program or challenge. These programs are typically offered by proprietary trading firms or platforms, and they allow traders to trade with the firm’s capital or funds after meeting certain criteria or passing a trading evaluation. The Funded Trader also offers a leaderboard with the information of trader’s profit returns.

Payout and Withdrawals

Withdrawal Method

The Funded Trader Prop Trading Firm provides a range of convenient withdrawal options for funds from your Funded Account. These methods encompass bank transfers, bank cards, e-wallets, crypto wallets, and online banking services.

 

Account Conditions

In reviewing Account Conditions, it’s important to check the broker’s variety of accounts, supported platforms, instruments, costs, and leverage options. Be aware of any restrictions on trading strategies that could risk account termination, necessitating a retest to regain account access. Refer to the detailed breakdown for specifics.

Trading Instruments

The Funded Trader Commission

Leverage

The Funded Trader App Platform

The Funded Trader’s platform offerings are tied to its partner brokers, providing access to the widely-used MetaTrader platforms, MT5 and MT4. For traders who are accustomed to or prefer these platforms, this is a convenient feature. However, those looking for different trading software might need to explore other proprietary trading companies, as The Funded Trader does not offer alternative platforms.

Trading Conditions

Based on our research, The Funded Trader does not impose restrictions on trading strategies. As long as the trades are legitimate (aligned with sound risk management principles), reflect true market conditions, and avoid prohibited practices, traders are free to implement their preferred approaches.

• The Funded Trader distinguishes itself by permitting a variety of trading techniques, which include News Trading, Swing Trading, the use of Expert Advisors (EAs), and holding positions over the weekend. Furthermore, traders are encouraged to use stop-loss orders for more effective risk management.
• The Funded Trader is committed to transparency in its pricing structure, guaranteeing no hidden fees or intentional slippage. The trade execution is expected to match the prices that are quoted on the trading platform. Any slippage that may occur is due to technical factors rather than manipulated price changes.
• In addition to the trading environment, The Funded Trader offers a wealth of educational resources and advanced tools to help traders refine their skills and strategic insight.

The Funded Trader Promotions

The Funded Trader offers The Funded Trader Certificate with various promotions from time to time, such as discounted challenge fees or bonuses on successfully funded accounts. These promotions are typically time-limited and subject to certain terms and conditions. It’s always a good idea to check the company’s official website or contact their customer support for the latest information on any ongoing promotions.

The Funded Trader Alternative Brokers

When evaluating prop trading options, it’s wise to compare The Funded Trader’s offerings with other firms. Different firms may better match specific trading preferences in terms of instruments and platforms. However, The Funded Trader also presents distinct benefits. For a quick comparison, consult our summary and comparison table of alternatives below:

• FTMO – Great Swing Trading Prop Firm
• True Forex Funds – Good for USA Trading on Funded Accounts
• FundedNext — Trading Prop Firm with Lowest Account Balance