The Funded Trader Review 2024
Website: www.thefundedtraderprogram.com
Min. Deposit: US$ 289
Leverage: 1:200
Trading Platforms: MT5, MT4
Regulation: US
Headquarters: US
Founded: 2021
Regulatory Licenses:
- The Funded Trader LLC — registered in Texas, USA
Updated on February 22, 2024
Quick Links
In our quest to deliver an impartial, comprehensive review of The Funded Trader, we meticulously examined a myriad of factors that are critical for traders seeking a reliable proprietary trading firm. Our methodology encompassed an in-depth analysis of the firm's trading programs, fee structures, profit-sharing schemes, and the stringent evaluation process it employs to select traders. Furthermore, we compared The Funded Trader against over 1000 brokers and proprietary trading firms to gauge its standing in the competitive landscape. This review is crafted to assist both novice and experienced traders in making an informed decision regarding their trading career.
What is The Funded Trader?
The Funded Trader stands as a proprietary trading firm that equips adept traders with the capital they need once they successfully navigate its evaluation process. Those who emerge victorious in this rigorous selection process are dignified with the title of “funded traders”, granting them the privilege to trade the firm's capital. In return, these traders are entitled to retain a substantial share of the profits generated. The firm proffers a variety of programs that enable traders to gain access to a starting capital of up to $400,000. Founded in 2021 and rooted in Liberty Hill, Texas, The Funded Trader offers a global platform for traders to amass considerable trading capital post an evaluation phase.
Traders who meet the firm’s criteria, henceforth referred to as Funded Traders, are authorized to trade with the firm’s money, keeping a lion’s share of the profits which ranges from 80% to as high as 90%. The firm lays out an array of trading programs and challenges tailored to meet the diverse skill sets of traders, with the ultimate goal of scaling the capital they manage based on their performance. This framework permits traders to capitalize on the firm’s financial resources to potentially garner profits, sans the risk of personal financial investment, on the condition that they comply with the firm’s designated trading rules and risk management protocols.
Pros
Provides traders with the opportunity to trade with significant capital without personal financial risk
Offers a high profitshare ratio, starting from 80% to 90%, depending on performance
Features diverse trading programs and challenges to accommodate various skill levels
Encourages trader growth by scaling capital based on performance
Cons
Requires passing a stringent evaluation process to qualify as a funded trader
Operates with specific trading rules and risk management guidelines that must be adhered to
Is The Funded Trader Legit?
Based in the United States, The Funded Trader's registration in this jurisdiction adds a substantial degree of legitimacy to its operations as a proprietary trading firm. This legitimacy is further bolstered by strategic partnerships with well-regarded Forex Brokers such as Purple Trading and EightCap, and with VVS Academy, a leading provider of trading education. Such collaborations underscore The Funded Trader's reputation as a reliable proprietary trading firm.
Unlike Forex brokers, proprietary trading firms are not mandated to operate under a Forex broker license, meaning they face less stringent regulatory oversight. This reduced regulatory environment affects the level of safety associated with these firms since they independently manage their operations and provide the capital for trading activities. It is essential for individuals to understand the risks involved thoroughly, 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, after a thorough examination of The Funded Trader's official website and available information, has not found any concrete evidence to suggest that it is a scam. However, it's crucial to note that proprietary firms generally operate with less oversight from financial regulators, complicating the task of fully assessing their legitimacy.
From a professional perspective, we recommend conducting extensive research into proprietary trading, understanding the associated risks, and choosing a firm with a solid reputation that has been operational for several years, indicating a more stable offering. Additionally, since interaction with a prop firm usually only requires a subscription fee rather than substantial capital investment, potential financial exposure is often less than that encountered when trading with personal funds.
The Funded Trader Competition Program Review ▲
Most proprietary trading firms, including The Funded Trader, require traders to prove their profit-generating abilities before granting them a funded account. The Funded Trader sets itself apart with an innovative evaluation process consisting of four unique challenges, each designed with specific trading conditions and objectives to suit different trading styles.
The challenges include a two-phase evaluation period, with traders having 35 days for Phase 1 and 60 days for Phase 2 to demonstrate their trading proficiency. The evaluation begins immediately upon placing the first trade:
The Standard Challenge offers a daily drawdown limit of 6% and a maximum drawdown of 12% across various account sizes, appealing to experienced traders. It promises participants a share of the profits within the first month.
The Rapid Challenge caters to those focusing on speed, aiming for the first profit distribution within two weeks. It employs a balancebased daily drawdown approach, offering traders flexibility to maintain trades over time.
The Royal Challenge allows the use of Expert Advisors (EAs) without restrictions on lot sizes, with a maximum drawdown of 10% and a profit goal of 8%, providing traders with more strategic freedom.
The Knight Challenge is designed for traders looking for a quick turnaround, requiring only a single phase to qualify for a payout, achievable in just 7 to 10 days.
Account Balance and Registration Fee ▲
The process of logging into The Funded Trader requires selecting a trading Challenge and an Account Balance level for qualification. The conditions and the registration fee depend on the chosen account size.
The registration fee, paid to participate in the challenge, is refundable by The Funded Trader upon achieving Funded Trader status. The Funded Trader's fee structure and account balance options are competitive, with starting points for both account sizes and fees being notably lower compared to other firms. Additionally, The Funded Trader offers a broad range of starting balances, from $5,000 to $400,000, depending on the challenge selected.
The Funded Trader adopts a trader-centric approach with its profit targets. For the Rapid and Royal accounts, the 8% profit target is lower than what many other proprietary trading firms require. Furthermore, this target drops to just 5% during the second phase of the challenge. The Standard account's limits of 5% daily and 10% total align with common industry standards, offering a balance between risk and flexibility for the trader. The Knight account sets a profit target of 10%.
Each Prop Trading evaluation encompasses critical rules regarding loss limits, which include the Maximum Daily Loss and the Maximum Overall Loss. These thresholds vary depending on the account type:
For Standard Challenge Accounts, the maximum loss is 12%, and the maximum daily loss is 6%.
For Rapid Challenge Accounts, the maximum loss is 8%, and the maximum daily loss is 5%.
For Royal Challenge Accounts, the maximum loss is 10%, and the maximum daily loss is 5%.
For Knight Challenge Accounts, the maximum loss is 6%, and the maximum daily loss is 3%.
Our research indicates that each challenge has specific rules concerning the minimum number of trading days required and overall time constraints. Depending on the account sizes, TFT traders are required to trade profitably for a minimum of 3 or 5 days, or there may be no minimum days required.
The Funded Trader Standard Challenge ▲
Currently, The Funded Trader does not offer a free trial. However, they are contemplating the introduction of a free trial offering in the future.
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.
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 offers a wide range of trading instruments, including forex pairs, commodities, indices, and cryptocurrencies. This diversity allows traders to explore multiple markets and develop varied trading strategies.
The Funded Trader Commission
The Funded Trader applies competitive commission rates, ensuring traders can maximize their profits without being heavily penalized by fees. Specific commission rates vary depending on the account type and trading volume.
Leverage
Leverage options with The Funded Trader are flexible, offering traders the ability to choose their preferred level of risk and reward. It’s crucial to understand the implications of leverage on trading outcomes and to use it judiciously.
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.
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.
