What is Funded Trading?
Funded trading refers to programs where proprietary trading firms provide capital to skilled traders in exchange for a share of the profits. Instead of risking your own money, you trade the firm’s capital while following their risk parameters.
The typical funded trading process involves:
- Passing an evaluation challenge (usually 1-2 phases)
- Meeting drawdown and profit targets
- Getting funded with real capital
- Earning profit splits (typically 50-90% in your favor)
Top Funded Trading Programs Compared
| Firm | Account Size | Profit Split | Evaluation Cost | Best For |
|---|---|---|---|---|
| FTMO | Up to $400k | Up to 90% | $155-$540 | Forex traders |
| Apex Trader Funding | Up to $300k | Up to 100% | $85-$165 | Futures traders |
| The5ers | Up to $1.28M | 50-100% | $95-$345 | Scalpers |
| Earn2Trade | Up to $150k | 80% | $150-$250 | Beginner futures |
How to Choose the Best Funded Trading Program
With dozens of prop firms offering funded accounts, selecting the right one requires careful consideration of these key factors:
1. Trading Style Compatibility
Different firms cater to specific trading approaches:
- Day traders: Look for firms with no minimum day requirements
- Swing traders: Choose programs with generous overnight holds
- Scalpers: Find firms with low commission structures
2. Profit Split Structure
While 80/20 splits are common, some firms offer:
- Scaling plans that increase your percentage over time
- 100% profit periods during challenges
- Bonus structures for consistent performance
3. Drawdown Rules
The two main types to understand:
- Trailing drawdown: Your max loss adjusts with profits
- Static drawdown: Fixed loss limit regardless of account growth
Essential Tools for Funded Traders
Successful funded traders leverage specialized tools to maintain discipline and analyze performance:
TradingView for Advanced Chart Analysis
TradingView offers the most comprehensive charting package for funded traders. Their premium features include:
- Multi-timeframe analysis
- Custom alert systems
- Backtesting capabilities
- Cloud-based syncing across devices
TradeZella for Performance Tracking
TradeZella provides the perfect trading journal solution with:
- Automatic trade import from 100+ brokers
- Advanced analytics on win rates and risk/reward
- Emotional bias detection
- Custom reporting for prop firm verification
Pros and Cons of Funded Trading
Advantages
- Access to substantial capital without personal risk
- Professional trading environment with rules
- Potential for high earnings through profit splits
- No need for expensive trading courses or mentors
Challenges
- Strict risk management rules to follow
- Evaluation phases require upfront fees
- Profit withdrawals may have timing restrictions
- Psychological pressure of trading larger sums
Funded Trading FAQ
How much does it cost to get a funded account?
Evaluation challenges typically cost between $50-$500 depending on the account size. Some firms offer free retests or discounted challenges during promotions.
What’s the fastest way to pass a funding challenge?
Focus on consistency over large wins. Most successful traders use 1-2% risk per trade and aim for 3-5% monthly growth during evaluations.
Can I trade cryptocurrencies with funded accounts?
Some firms like FTMO and The5ers offer crypto trading, but most focus on forex and futures. Always check the allowed instruments before purchasing a challenge.
How often can I withdraw profits?
Most firms process withdrawals monthly, though some offer bi-weekly payouts after you establish consistency. Initial payouts may take 30-45 days.
Start Your Funded Trading Journey Today
Funded trading represents one of the most exciting opportunities in modern financial markets. By following the strategies outlined in this guide and selecting the right prop firm for your trading style, you can transform your skills into a sustainable income stream.
Ready to take the next step? Compare our top-rated prop firms or use our profit calculator to project your potential earnings.
Pro Tip: Many traders start with smaller evaluation accounts ($10k-$25k) to prove their strategy before scaling up. This minimizes initial costs while allowing you to test the funded trading model.