Funding Companies
What Are Funding Companies?
Funding companies are companies that provide funding (trading capital) to individual traders who trade in the forex and other markets. These firms offer an opportunity for traders to access substantial capital and leverage without the need for their own substantial funds.
This is a great opportunity for traders that did not exist a few years ago. By taking advantage of the opportunity offered by funding companies, a trader can earn much more than with his own trading capital alone. Of course, it requires that the trader is profitable. In addition, the good side of this possibility is that the trader is able to keep proper risk management, because there is no need to risk a large amount of trading account in order to make good amount money from trades.
How It Works?
- Find a funding company you like
- Buy a challenge
- Pass the evaluation process
- Get the funded account
- When you make a profit, you can withdraw your first profit split and get your refund (after that all is risk free, you can’t lose your own money trading funded account)
- Continue trading on the funded account and withdrawing profits (usually 80-90% of profits bi-weekly)
Funding Challenges
Just this year 2023, a large number of funding companies have removed time limits from their challenges. This change makes passing the challenges “easier” because the trader is not under pressure to reach the required profit target in a certain (short) time. The time limit can predispose the trader to make stupid decisions, such as taking invalid trades and over risking.
There are different types of challenges. That’s why it’s worth finding out which type suits you best. Below we present the most common options.
2-Step Challenges
In 2-step challenges, you must pass both phases to get the funded account. These 2-step challenges are definitely the most popular challenges.
1-Step Challenges
Some funding companies offer 1-step challenges. In those 1-step challenges, you must pass only 1 phase to get the funded account. Often 1-step challenges are structured differently compared to 2-step challenges. The account you get after passing the 1-step challenge usually has different rules than 2-step challenge (for example, lower max. daily loss and max. overall loss limits).
Rules
It is absolutely important to familiarize yourself with the rules of challenges and accounts carefully. The most important is max. daily loss and max. overall loss. It is also worth checking if the company allows you to trade over the news and weekends, if these are part of your trading strategy.
Free Trial
If you are not yet ready for a real challenge, you can take the challenge as a simulation like demo trading. This process allows you to familiarize yourself with the rules of the challenge. Below is the button where you can create an FTMO account and you can take the first free trial right away! You can take your time with the trials and then move on to the real challenges when you’re ready.
Recommended Funding Company
We only want to recommend the best tools for traders and that’s why we present you the best funding company for forex traders, FTMO. It has worked in the industry for a long time and is popular with traders for a reason. FTMO has also removed time limits from their challenges. You can create an account by pressing the banner below and start scaling your trading capital to the next level with a reliable funding company.
Tips for Passing Funding Challenges
- Read the rules carefully
- Follow your own trading plan
- Use strict risk management rules, risk management tips here
- Take your time if you have no max. time limit on your challenge
Take Advantage of This Huge Opportunity
Now is the best time ever to become a forex trader and this is one of the reasons. Now you don’t have to save tens of thousands of your own trading capital to make good money from your trades. This opportunity used properly, can really change your life.💯
