TradeDay Review 2024
Website: www.tradeday.com
Min. Deposit: US$ 99
Leverage: —
Trading Platforms: Tradovate, NinjaTrader
Regulation: USA
Headquarters: USA
Founded: 2020
Regulatory Licenses:
- TradeDay — registered in USA company number 08878676
Updated on March 18, 2024
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In our comprehensive review process, we meticulously examine and compare a wide array of forex brokers, utilizing a rigorous methodology that encompasses a thorough analysis of over 1000 brokers. Our evaluation criteria include assessing the brokers' fees, spreads, and commissions; the variety and functionality of trading platforms offered; the quality of customer support; regulatory compliance and security measures; the range and depth of market research and educational resources; and the overall trading experience. This method ensures that our recommendations and criticisms are based on solid, unbiased research and real user experiences.
TradeDay is a unique proprietary trading firm that specializes in offering services and features tailored to traders interested in futures trading. The firm provides a pathway for traders to be evaluated and, if successful, to receive funded accounts up to $250,000. TradeDay retains a 10% share of the profits, while affording traders the opportunity to keep 90%. The evaluation process requires traders to demonstrate their proficiency in profitability, risk management, and discipline. TradeDay extends the chance to engage in real trading with minimal initial funds, by passing a test or challenge that leads to a funded account. This enables traders to operate with the company's funds as professional traders.
Pros
Lower profit target requirements for traders
Competitive pricing structure
Wide variety of account balances with low registration fees
Low entry requirements facilitate accessibility for many traders
Offers a free trial to prospective traders
Cons
Lack of stringent oversight may pose risks
The challenge of becoming a funded trader can be significant
The range of instruments available for trading is limited
Only the MetaTrader platform is supported, limiting platform choices
TradeDay is widely acknowledged as a reputable proprietary trading firm, with its roots firmly planted in Chicago, United States. This acknowledgment is bolstered by a plethora of positive reviews and feedback from the trading community. Nevertheless, it's paramount for interested traders to embark on their own due diligence journey and gauge their risk appetite prior to getting involved with the firm.
In contrast to Forex Brokers, Proprietary Trading firms operate without a Forex Broker license, thereby subjecting them to significantly less regulation and oversight by industry regulators. This translates to a lower level of security, as the company itself is responsible for overseeing operations and allocating funds for trading activities, thus it's crucial to be fully aware of all associated risks.
Is TradeDay Scam?
Upon investigating the company through its official website, we found no evidence to suggest that TradeDay is a scam. However, given that Proprietary Trading Firms are scarcely regulated by financial authorities, it's challenging to definitively label the firm as either a scam or genuine.
As a piece of professional advice, it's advisable to thoroughly understand Proprietary Trading, recognize the risks, and opt for a company that has a sterling reputation and has been in operation for many years, thus offering a more stable proposition. Since the financial commitment involves merely subscription fees rather than a substantial investment, potential losses are relatively lower compared to direct trading with personal funds.
TradeDay’s evaluation process is streamlined into a single-phase system, allowing traders to progress through one evaluation phase before being eligible to manage a funded account.
Account Balance and Registration Fee
The array of account sizes offered by TradeDay during the evaluation spans from $10,000 to $250,000, each tailored with corresponding profit targets and drawdown limits. The entry-level account boasts a $1,000 profit target coupled with a $500 maximum drawdown, whereas the premium account sets sights on a $12,000 profit target and a $4,000 drawdown limit.
Comparatively, TradeDay’s fee structure and account balances are highly competitive, starting at a lower threshold than that of its competitors, which is a noteworthy advantage.
Profit Target
Within the TradeDay evaluation framework, profit targets are delineated as percentages of the respective account sizes, varying from 4.8% to 10%, with larger account sizes typically featuring a reduced percentage target. This setup is designed for traders to showcase their prowess in achieving these targets while adeptly managing risk.
Maximum Loss
The maximum loss limits, or maximum drawdowns, within TradeDay’s evaluation vary according to account size, ranging from approximately 1.6% to 5%. These limits are implemented as trailing drawdowns, which adjust upwards with account balance increments but not downwards, thereby promoting effective risk management.
Minimum Trading Period
TradeDay does not impose a fixed timeframe for completing the evaluation, however, traders are required to trade for a minimum number of days. Additionally, positions must not be held open overnight or over the weekend.
Free Trial
Once the evaluation phase or challenge is successfully completed, traders will be allocated a Funded Account, which is usually activated within a few business days. It's critical to understand that the account conditions and balance will mirror those of the test you passed. If you wish to upgrade to a higher-tier account, you must undergo and pass the evaluation for the desired account balance from scratch.
Pros
Attractive profit split starting at 80% and potentially increasing to 90%
Quick activation of Funded Account postevaluation
Cons
Necessity to restart the evaluation process for account upgrades
In our assessment of Account Conditions, we delve into the broker's account preferences, covering Platforms, Instruments, and Trading Costs. It's also vital to check Leverage levels and Trading conditions since some brokers might limit strategies and disallow certain practices in Funded accounts. Not adhering to these conditions could result in account termination, requiring a retake of the assessment test. Below is a detailed analysis:
Trading Instruments
TradeDay excels in futures trading, offering access to over 50 instruments across exchanges such as CME, CBOT, COMEX, and NYMEX. The available instruments range from equity, currency, interest rate, energy, metal, to agricultural and micro futures.
TradeDay Commission
As of the last update, specific details regarding TradeDay's trading commissions are not publicly disclosed. Generally, proprietary trading firms adjust commissions based on the instrument type, trading volume, and account variants.
Leverage
TradeDay operates with a 1:1 leverage ratio, indicating that traders can only manage positions up to the size of their funded account balance, without the provision of additional leverage.
TradeDay App Platform
TradeDay supports leading trading platforms such as Tradovate, NinjaTrader, TradingView, and Jigsaw, renowned for their comprehensive features including advanced charting, analytics, and trading tools.
Trading Conditions
TradeDay permits various trading practices including News Trading, Swing Trading, EA Trading, and Weekend Holding. The platform also allows Copy Trading from other TradeDay accounts, offering flexibility for diverse trading strategies. Nevertheless, it prohibits High-Frequency Trading, Latency Trading, and Arbitrage.
TradeDay Promotions
The firm occasionally offers promotions, including TradeDay Coupons for discounts, which may comprise TradeDay-specific discounts. These promotions are typically temporary and subject to change, hence it's recommended to check the latest offers upon logging in.
Pros
Broad range of trading instruments
Support for major trading platforms
Permissive trading conditions for a variety of strategies
Cons
Prohibition of certain trading tactics like HighFrequency and Latency Trading
Lack of transparency regarding trading commissions
Upon qualifying for and managing a funded account, traders at TradeDay can withdraw their profits. The first $10,000 of profits are entirely for the trader to keep, with 90% of any subsequent profits also being theirs. The withdrawal policy imposes no restrictions, allowing traders free access to their funds.
Withdrawal Method
TradeDay supports profit withdrawals through multiple methods, including a free US bank wire, an international bank wire with a $15 fee, and crypto withdrawals at two levels - Level 1 with a $2.5 fee and gas fees, and Level 2 which is free. There are no restrictions on withdrawal frequency, and the minimum withdrawal amount is $500. Withdrawals are processed following the daily trade report at 4.30 pm CT.
Pros
Generous profit split allowing traders to keep a significant portion of their earnings
Multiple withdrawal methods with reasonable fees
Cons
Minimum withdrawal amount set at $500
For traders looking for alternatives to TradeDay, it's essential to compare similar providers in terms of profit split, account conditions, trading platforms, and withdrawal policies. Our extensive research across 1000 brokers has identified the Top 12 proprietary trading firms that offer competitive conditions for traders seeking to trade with funded accounts. These firms have been evaluated based on their trading conditions, platforms, instrument range, and overall trader support.
