Are funded trader programs a scam or safe? (2024)

FAQs

Are funded trader programs a scam or safe? ›

Funded trader programs can be a legitimate avenue for traders to access capital and amplify profits. However, like any lucrative opportunity, there are risks.

Statistics on Funded Trading Payouts and the 1% Myth

While trading is no cakewalk, the actual success rate might be closer to 5%. So, it's not quite as exclusive as you might have thought. For instance, the average payout for funded trading with The Funded Trader (TFT) is around $7,000.

Improved Trading Skills

Funded trading programs have strict risk parameters and position-sizing rules. This can help you develop disciplined trading habits, manage risk aggressively, and avoid emotions in your trades. All in all, it can be an excellent learning opportunity for you.

On a funded account, losing a large amount of money does not mean much. Even if it results in losing your funded account, you can still try to pass the evaluation at the same firm again or just join another one. Ultimately, you do not risk much and do not lose much.

With the right preparation, realistic goals, risk management, and focus, you can successfully navigate this test and secure your place in the trading community. Keep in mind that success takes time, and don't be discouraged if you don't hit your goals right away.

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

Reviews of trader's accounts are conducted before processing payouts, which currently are available through various cryptocurrencies including BTC, ETH (ERC-20), USDC (ERC-20) and USDT (ERC-20). Payout Processing Times: Standard, Rapid, Royal, Knight, & Dragon Challenges: 3 to 5 business days from request.

The Funded Trader challenge and funded accounts are not live trading accounts, they are fully simulated accounts utilizing real market quotes from liquidity providers. Therefore no real money is ever traded as no orders are ever executed in live markets, they are simulated orders in a simulated environment.

Based on our experience, we find that you can expect to take home at least 5% of your profits per month from trading. This means, if you start with $100,000, you can expect to make around $5,000 per month! Here's why you should consider The Funded Trader: Our average payout is $7,000.

After I Get Funded, How Many Days and How Often Am I Required to Trade? There are no inactivity rules or required number of trading days after you get funded. Trade as little or often as you want.

How hard is it to become a funded trader? ›

However, it can take a long time to achieve this goal – even with the fast paced nature of prop firm trading. It typically takes around 4-5 months to become a prop firm funded trader, if you're a consistently profitable trader. Some traders can achieve this much faster by using increased risk.

For a Normal risk account type, the limit is set at 5% of the initial balance. Let's take the Normal risk account with the 5% limit as an example. If you have a $200,000 FTMO Account, you must never exceed the total equity loss of $10,000 in one day.

However, when looking at the percentage of traders that actually reach their first payout, it is significantly lower. Only around 3.5% of the traders that reached funded status successfully received their first payment. Let's look at those numbers for October 2021 and November 2021.

As of May 23, 2024, the average annual pay for a Funded Trader in the United States is $96,774 a year.

Approximately 1–20% of day traders actually profit from their endeavors. Exceptionally few day traders ever generate returns that are even close to worthwhile. This means that between 80 and 99 percent of them fail.

Your Win Rate tells you how many of your trades are profitable, however this should never be confused with success as a trader. Many traders with high win rates are not profitable. Many studies have shown that many of the worlds most successful traders have win rates of between 40% and 50%.