Introduction to Funded Trading Accounts: How They Help Traders Without a Lot of Capital
10/16/2024, 2:10:08 PM
Discover outstanding trading opportunities with FundingPips, where you can obtain a $100k evaluation. Boost your career without investing your capital.
Many traders find it challenging to profit from the markets, as it often requires a significant initial investment. A trader cannot manage positions big enough for good returns with low funds. Recently, companies known as proprietary trading firms that fully operate online emerged. A $100k evaluation with FundingPips offers traders a remarkable chance to trade with substantial capital effortlessly. This article will explore this type of account, how it works, and some benefits that come with it.
What is a Funded Trading Account?
A funded trading account is a master account provided by a proprietary trading firm. Before getting funded, traders must pass an evaluation to prove they know how to trade. Once they pass, they can start trading the master account and earn a profit.
Traders usually have a profit-sharing agreement with the prop firm, allowing them to keep a percentage of the profits they generate while the firm retains the rest..
How Does the 100k FundingPips Evaluation Work?
Here’s how it usually works:
Evaluation phase
The $100k evaluation account for FundingPips consists of two distinct phases: the Student Phase and the Practitioner Phase. Both phases are done on a demo account.
Performance Targets
During both phases, you need to meet specific targets. In the student phase, you need to make 8% profit without losing more than 5% daily or 10% for the entire student phase. The leverage is 1:100, the minimum number of trading days in the student phase is three days, and there is no time limit. You need to achieve a 5% profit in the practitioner phase, which is the main difference from the student phase.
Getting your Master Account
After passing the evaluation stage, you can access the FundingPips $100k account, with the leverage still maintained at 1:100.
Profit Sharing
The $100k FundingPips account offers flexible profit-splits options. With progress, you can receive up to 100% of the profit.
Risk Management
FundingPips offers specific risk parameters designed for its traders. You must keep daily loss under 5% and overall drawdown below 10%.
Join FundingPips today and take on the $100k evaluation challenge without spending much. Focus on achieving profit targets and refining your strategies. After evaluation, you can access the $100k account with flexible profit-sharing and risk management. Take advantage of the opportunity to trade like a pro with the best leverage and trading conditions on your side!
Benefits of 100k FundingPips Account
This account offers several advantages, especially for people with limited capital to trade with.
Here’s why the $100k FundingPips evaluation can be a good option.
Structured Evaluation
The two-step evaluation, student and practitioner, gives traders a clear and easy path to demonstrating their skills, essential for developing confidence and discipline.
Profit Target
Reasonable targets of 8% in the student phase and 5% in the practitioner phase are low considering other similar firms. Traders can easily do so without feeling pressured, as there is no time limit to pass.
Holding Trades During News and Over the Weekend
You can hold trades during news events and over the weekends, which is a big advantage because most trading programs do not support holding positions in either of these conditions. You can get into longer-term positions due to such flexibility.
Expert Advisors Permitted
The program allows using EAs, which are automated trading systems or risk management systems. This allows you to automate part of your strategy as long as no toxic trading techniques are used.
Risk Management Rules
Strict rules regarding the maximum daily loss at 5% and overall loss limits at 10% may keep you within the accepted parameters for long-term success.
Freedom in Trading Strategy
As a trader, you are allowed to trade the way you prefer, either manually or with expert advisors. You can also use different strategies and take larger positions thanks to the sufficient leverage that, in turn, offers flexibility.
Quick Review Process
After reaching the profit target, the evaluation review is completed within two working days, ensuring a fast transition to funded status.
Emphasis on Growth
FundingPips takes on the financial risk, giving you, the trader, an opportunity to grow as long as you have the right skills without risking your capital.
Things to Keep in Mind Before Applying
While this account offers plenty of benefits, there are some things to watch out for:
Fees
FundingPips charges a fee to participate in the evaluation phase, which is not refunded if the trader doesn’t pass. However, you are entitled to a refund if you pass the challenge.
Strict Rules
FundingPips accounts have rules about how much risk a trader can take. Breaking these rules can result in losing the account.
Profit Sharing
Even though traders get to keep a large portion of the profits, you still have to share some earnings with the firm, reducing overall profits compared to trading on your own. However, you can raise your profit share to 100% as you scale your account when you reach the hot seat. It’s an honor given by the firm to the traders which comes with several other benefits as well.
Final Thoughts: A $100k Master Account is the best.
Trading accounts under FundingPips provide an excellent opportunity for traders who don’t have a lot of money to get into trading. As a trader, you can protect your savings and trade in a structured environment that encourages discipline and success. As a professional trader, this might be the best and fastest way to grow your trading career without any significant personal investment.
A $100k-funded trading account is a stepping stone that allows both new and experienced traders to grow without the high costs and risks associated with normal trading accounts. However, it’s essential for any trader to fully understand the rules, fees, and profit-sharing structures before committing to any FundingPips challenge.
