Funded trader programs are the hot topic of 2020
Funded Trader Programs such as FTMO and Funding Talent are attractive for many reasons but can be a bit of an unknown, so we decided to review them. They can be a great solution for traders who are lacking capital but still want the opportunity to trade with large accounts and have the ability to make a profit.
A lot of traders are looking at these programs as another revenue stream. These programs, however, include difficult challenges and requirements before funding is approved, so it’s difficult to know if they are a good fit.
As a result, we decided to sit down and bring 4 traders, who are also ASFX coaches together, each with a different perspective and background with funding programs, so you guys can learn as much info as possible before making the choice if you should commit the time to these funded trading companies.
Austin and Linzi, at the moment, do not trade with funded companies while Ryan and Jase trade with separate companies.
Jase trades with his own account as well as with FTMO.
What is FTMO?
FTMO is a program that has developed a unique 2-step evaluation course for Forex Traders. This process consists of the FTMO Challenge and the Verification and is specifically tailored to discover trading talents.
If you successfully complete the trading course, you are guaranteed a placement in the FTMO Proprietary Trading firm where you can remotely manage a funded account of up to 100,000 USD.
This size of an account is the reason in which a program like FTMO is appealing. In the first two-three years of trading, most traders do not have $100,000 USD in their trading account.
The trader then gets to keep 70% of profits made while FTMO keeps the other 30%.
Keep in mind, there are rules (trading objectives) put in place to ensure that the trader can manage risk. These objectives must be met in order to pass the challenge.
First Step: The Challenge
- Trading Period: 30 days
- Minimum Trading Days: 10
- Maximum Daily Loss: $1,250.00
- Maximum Loss: $2,500
- Profit Target: $2,500
- Refundable fee: $250 (euro)
These numbers change slightly depending on how much capital you are wanting to trade with. For example, if you are wanting to take the challenge so you can qualify for an account with $25,00 then the numbers above are accurate. The possibilities for challenges are:
- $10,000 account
- $25,000 account
- $50,000 account
- $100,000 account
The risk level that you choose also alters the objectives. A trader can choose either Normal or Aggressive.
After the challenge portion has been completed successfully, there is Step 2 (Verification) which consists of:
- Trading Period: 60 days
- Minimum Trading Days: 10
- Maximum Daily Loss: $1,250.00
- Maximum Loss: $2,500
- Profit Target: $1,250
- Refundable fee: FREE
Head to their website here to read more about the FTMO Challenge, Verification and ultimately the rules as a successful FTMO Trader.
Jase and his review of FTMO:
Jase Brand, an ASFX Coach, has been with FTMO for 9 months and loves the experience.
Overall, he hasn’t had any issues with it and can confirm that it is a good and reliable platform. FTMO doesn’t glitch and it gets the job done. More importantly, it is a true and genuine platform for traders and the challenges are not designed to take money from traders.
What is Funding Talent?
Funding Talent is a program by ForexTips101.com. It’s a beginner forex education platform turned prop firm. It is similar to FTMO in its purpose but does not have a challenge requirement. It does have strict rules, which if broken, can result in an account suspension.
Now, let’s review this funded trader program:
Here is an overview of their rules:
- At least one trade per day for 12 days a month
- Daily loss ($25K account): max daily loss of $1,250
- Max overall loss: $2,500 on your account
- Daily loss (aggressive account of 25K): $2,000
- No max overall loss for all aggressive accounts
- Daily loss (100K account): $5,000
- Max overall loss (100K account): $10,000
- Daily loss (aggressive 100K account): $10,000
Funding Talent members should display consistent risk throughout their trading month. They do not limit your risk, leverage, or lot size.
For this reason, traders are expected to use consistent risk throughout your trading month.
For Funding Talent, consistency looks like this:
- Should use consistent risk each day
- Use a consistent trading style throughout their trading month
- Should not increase their risk drastically at any point (this includes when scaling into a position or possible opportunity)
- See here for some examples of trading behaviour that they would deem inconsistent
- Traders must continue trading even if their account has experienced unrealized profit. What this means is the trader may not abruptly stop trading once they are in profit even if they hit the 12-day minimum
Some highlights of Funding Talent:
- No challenge
- Bi-weekly payouts
- No profit targets (unlike FTMO’s mentioned above)
- Tight spreads
It also has a monthly membership fee.
The numbers below are their initial sign-up fees. For a 25K account, it’s a $75 monthly recurring fee starting after your first month (no automatic subscription). With a $100K account, it’s a $250 monthly recurring fee.
Your monthly fee can also be deducted from your Talent Bonus or Funded Earnings.
How do I get paid?
This is the big question. You immediately have a demo account that you are trading with. You get paid 10% of your demo account profit bi-weekly.
Your monthly funded earnings are calculated based on all profits you make on your account up to 5% of the original account balance. These will be automatically added to a real account for you. You will receive access to this account once the balance reaches $15K (or $3750 for $25K account members).
You may continue trading your demo account and earning your talent bonus, even once you’ve accessed your real account.
This balance does not reset if you break a rule. Your funded earnings will always remain in the real account for you to trade, as long as you remain a member with us.
You can withdraw all profits made on this account at any time, and as often as you wish. They will keep 25% of these profits.
Ryan and his review of Funding Talent:
Ryan chose Funding Talent because,
“I didn’t want to be limited to the profit target especially since I’m normally a pretty conservative trader, plus small amounts of money are earned right off the bat.“
Ryan enjoys trading with Funding Talent but admits that the time crunch aspect of the rules (for instance, needing to trade at least 12 days in a month). As a result, the time crunch can be a huge psychological wall that may result in taking less than probable trades.
Aside from this specific rule, however, it’s been a good experience for Ryan and he recommends it to traders lacking their own significant amount of capital to trade with.
These companies offer a solution for traders who lack the initial capital to get going.
Linzi Jess and her review of FTMO and Funding Talent:
As for Linzi Jess, she has stayed away from these platforms for now. The biggest deterrent for her is the minimum trading days required.
Linzi is a meticulous trader and only trades based on the high probable outcome. This means that she may only take 1-2 trades a week, so if you take your two to three trades a week, you’ve failed the challenge because you have to trade 12 days.
Funding Talent and Austin:
In Austin’s opinion, Funding Talent seems as if it may be tricky to manage. For instance, it is difficult to get a big funded account. This is due to the fact that traders are dealing with a demo account, a real account (through their platform) and also your own real account, so you have three accounts at the same time.
A common opinion amongst the ASFX coaches is that these programs may take away from self-sufficiency as traders put more time and effort into these programs than into developing their own style and accounts, though they are a great solution for those who lack capital.
“How much money would you need to have to not be with these companies?”
After an extensive review of the funded trader programs FTMO and Funding Talent, all of the ASFX coaches agree that if a trader has over 50K in their account, the lack of control, the rules and the overall numbers would deter them from joining one of these programs.
If the trader isn’t taking out profits and putting it in their own account to eventually trade on their own and keeping 100% of the profits, then it doesn’t seem worth it in the long run.
If after reading our review of FTMO and Funding Talent (way to go!), you’re still wanting to join one of these programs, keep in mind that the best trading months to start challenges are September and October.
Good luck and happy trading!
Check out https://asfx.biz/ for more info on our courses, real trader testimonials, and more.
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