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.

Risk of Losing the Account: Funded trading programs set stringent rules and restrictions for traders. This means limited trading strategies and specific risk management guidelines. While these rules are in place to manage risk, they can also restrict flexibility.

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.

Before you sign up for a funded account challenge you must be sure that you are ready as a person and as a trader for this endeavor, which is both challenging and demanding. A good sign that you are ready would be having in your track record at least a few months of consistently making profitable trades.

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.

You have Access to Capital

The first and most apparent benefit of becoming a funded trader is access to capital. Instead of relying solely on your own funds, you get the opportunity to trade with the firm's capital. This would enable you to take larger positions.

Are funded trading accounts legit? No funded trader accounts are not real accounts. They are demo accounts where you are not trading on legit markets.

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

Is the funded trader real or fake? ›

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.

Statistics on Average Trader Payouts

Profit Split: The average prop firm will offer a 80-20 profit split once you become a funded trader. TFT, on the other hand, gives up to a 90% split, — even as high as 95% in some promotions — the highest in the industry.

If you're serious about generating consistent profits, then you should aim to become a funded trader. 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!

As of May 18, 2024, the average annual pay for a Funded Trader in the United States is $96,774 a year.

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. However, the likelihood of failing the trading challenges would be increased.

Studies have shown that more than 97% of day traders lose money over time, and less than 1% of day traders are actually profitable. One percent! But of course, nobody thinks they will be the one losing out.

Withdrawals. Receive an 80% payout at the end of every 14-day period (counted from the first trade after the last approved withdrawal). Receive an 80% payout at the end of every week if purchased with the Weekly Payouts add-on (counted from the first trade after the last approved withdrawal).