Futures Funded Trader Program - Learn to get Funded - NeuroStreet (2024)

FAQs

How to pass the funded trader program? ›

Demonstrate Consistency and Patience. Consistency and patience are the key to success in a funded account challenge. Rather than aiming for big wins, focus on making consistent profits over time. Be patient and disciplined in your trading, avoiding impulsive decisions that can lead to losses.

Payout Process Overview

Reviews of trader's accounts are conducted before processing payouts, which currently are available through Rise (Riseworks) and Plane (previously Pilot.co). Payout Processing Times: Standard, Rapid, Royal, Knight, & Dragon Challenges: 3 to 5 business days from request.

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

To become a funded trader, you'll have to pass two or three rounds of challenges set by the prop firms. They aren't easy! The prop firms bet a large amount of capital on their funded traders. As such, they set challenges to ensure that the traders who apply are serious about trading and have sufficient knowledge.

Maximum Daily Loss is a crucial rule in not only our Evaluation Process but also during the performance of the FTMO Account. It is set as 5% (or 10% in case of an Aggressive risk mode) from the initial account balance.

Only the amounts of money you are paid by the funding organization will reflect on your tax return (as well as amounts you chose to retain in your funded account). Furthermore, these amounts will be classified as earned income. The IRS does not care if honest mistakes are made.

As the chart below shows, our survey suggests that macro traders earned the most in combined salary and bonus ($484k) in 2023, followed by credit and equity traders, who were on roughly equivalent $400k average packages, followed by commodities traders on $369k.

Retail prop traders will trade in demo accounts, making all profits and losses theoretical, meaning they are not liable for any losses. So, what happens if you lose money on a funded account? Traders who violate the maximum drawdown rule lose access to the account and must pay and pass the challenge again.

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.

The Standard Challenge consists of a two-phased evaluation process where a trader has unlimited trading days to complete both phases of the challenge.

Why is FTMo so hard to pass? ›

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.

This is a popular way for traders to prove their skills and potentially secure funding from a prop firm. However, passing this challenge can be quite daunting and requires a lot of hard work and dedication.

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.

Participants are expected to engage in manual trading only. Minimum Trading Days: To be eligible for winning a prize, participants must actively trade for a minimum of 5 days during the competition period. Traders only need to take a minimum of 5 individual and separate trades during their trading journey.

It would be naive to assume that you can pass these challenges overnight. The reality is, for most profitable traders, this will still take between 4-5 months of trading. Once you've passed the trading challenge, you'll be funded!

In September 2023, Forex Prop Firm published their challenge passing rates, revealing that only 10.59% of participants were able to pass the first level, and a mere 9.26% qualified for the advanced pro level.