Becoming a funded trader during the current bull run sounds very exciting. Especially when you are hearing everywhere that traders are making money and that commodity traders, stock traders and especially forex traders are profiting. So, getting funded trading forex has never been more appealing.
But it is not as simple as googling “funded trader” or “get funded trading forex” or anything similar and hoping the first result, or few results will get initiate your prop trading career trading forex. If you are serious about becoming a funded trader, you are going to need to do your homework about what is out there first.
Many companies are going to say they have a funded trader program, and many will say you have the opportunity to get funded trading forex pairs with them. But what you will need to do is assess their terms and conditions.
The good news for an aspiring funded trader is that funded trader programs have been in the marketplace for a while, so there are a few key things you should keep in mind and keep an eye out for.
First thing is to always remember that not all funded trader programs are created equal. That is right, I know you are keen to get funded trading forex and you are keen to become a fully fledged funded trader quickly. However, you need to realise use your brain here. Your brain will one of your strongest tools when you trade; it will be your strongest edge when selecting a funding provider.
Now you know not all funding trader programs are equal. What now?
Look at the terms and conditions of every funded trading provider. Do they work with your trading style? Moreover, are they realistic; does the provider want you to succeed or are they banking on traders hoping to get funded paying their sign up fee, sometimes repeatedly?
To the untrained eye you would not be able to suss this out. But if you know a thing or two about trading, you will. One key give away is if they try to extract as much income from you as possible, that if they try to make you pay a recurring fee which is not justifiable. If you are not renting a desk, you should not pay a monthly fee, that is ludicrous. Especially during times where working from home is the norm.
Further, authentic funded trader programs that actually want to see targets get funded trading forex – you know the same forex market which runs virtually 24/7 – want to place as little restrictions on your trading as possible. So, you should raise your eyebrows when you read restrictions such as close trading positions:
- By the end of the day
- Before the end of the week
- Close relevant currency pairs near high impact economic events, for example, US Dollar pairs near Federal Reserve announcements or Non Farm Payroll Data Releases
What this tells you is that these sort of funding providers are profiting from the bid-ask spread and are collecting income from sign up fees. They do not expect their funded traders to be profitable. Otherwise, why place so many limitations?
Lastly, you will generally have an evaluation phase which is normal. The timing of this phase should be realistic. Many funded traders, and those looking to get funded trading forex, will find this is a secondary source of income on average – generally on average it will not be the primary source.
So the evaluation phase will need to reflect this. However, if you are noticing the evaluation phase has something ridiculously short such as 6 months. Then you need to be worried, but it signals that the funding provider would rather have full timers that scalp or day traders which simply is not compatible with most retail traders. Especially since many prop firms do not offer a basic salary which can be tough for someone’s trading psychology—more so during COVID times.
Now you know what not to look for you should have an example of what to look for. A prime example of what to look for comes in the form of City Traders Imperium, which is an excellent example of what a funded trader program should look like. Those looking to get funded trading forex would be looked after here because they avoid the issues from above.
For instance, they do not restrict trading positions. They understand how the forex market works hence you can hold your positions all day, every day – including the weekends. And you are free to hold your positions during fundamental events as they believe you know what you are doing. Apart from offering one of the fairest funded trader programs, they also educate, mentor and coach aspiring traders to maximise their chances to excel as a funded trader.
Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.