The post Best Funded Trading Accounts by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.

Funded trading accounts give talented traders the opportunity to trade with a large pool of trading capital in exchange for a percentage of profits. Funded trading or proprietary trading also known as prop trading has become an increasingly popular option for traders and financial institutions offering numerous benefits to both parties. 

If you currently trade in a consistently profitable and strategic manner in your own account as a retail trader, you might want to consider funded prop trading since you can significantly reduce your financial risk and increase your income. 

Benzinga reviews some of the top prop trading funding firms in the following article so that you can make an informed decision on which one would best suit your needs. 

The Best Funded Trading Accounts

In general, the best-funded trading accounts for you would be the ones that best meet your personal preferences and needs as a trader. Criteria you might add to your search for the best-funded trading account provider to partner with can include: 

• Funding amount: The best-funded trading accounts typically offer a substantial capital allocation to traders. A higher funding amount allows traders to take larger positions and potentially generate more significant profits.

• Profit sharing: Favorable profit-sharing arrangements are an important aspect of a funded trading account. The best providers often offer competitive profit splits, allowing traders to retain a significant portion of their trading profits.

• Risk management: A reputable funded trading account provider prioritizes risk management. They may impose risk limits or position size restrictions or employ risk control measures to protect traders and the firm’s capital.

• Funding terms and conditions: The best funded trading accounts have clear and transparent terms and conditions. They should outline the funding process, evaluation criteria, performance targets and any fees or costs associated with the account.

• Training and support: Some funded trading account providers offer training programs, educational resources and mentoring to help traders improve their skills and trading strategies. Access to support and guidance can be beneficial, especially for traders who are still developing their trading abilities.

• Platform and Technology: The best funded trading accounts often provide reliable and efficient trading platforms with advanced features and tools. A user-friendly interface, fast execution and access to real-time market data are crucial for successful trading.

• Track record and reputation: Researching the track record and reputation of a funded trading account provider is essential. Look for established companies with positive reviews, a solid track record of successful traders and a fair and transparent evaluation process.

Make sure you thoroughly evaluate and compare different funded trading account providers to find the one that best aligns with your trading goals, risk tolerance and preferences. Consider the factors mentioned above and reach out to any provider you are considering directly to gather all the information you require before making a decision on which provider to partner with.

Below you can find Benzinga’s top picks for funded trading accounts based on these and other relevant criteria.

1. SurgeTrader

One of the best all-around funded trading companies, SurgeTrader offers a profit share of up to 90% of your profits depending on your trading expertise. The company has a profit target of 10% and a maximum 5% daily loss limit for its traders and offers no limits on instruments traded and has no minimum trading days for your initial audition. SurgeTrader auditions begin at $250 for a $25,000 Starter account up to $6,500 for a $1 million Master account. 

Other features SurgeTrader offers include:

• Prompt funding after your initial evaluation
• Easy account setup
• Excellent educational resources and blog posts
• Simple, easy-to-use trading platform and dashboard
• Easily accessible customer service

SurgeTrader has developed a straightforward program with simple trading rules, making it easy for qualified traders to get started. In addition, you can track your performance with the company’s advanced platform and dashboards. 

One of the best features SurgeTrader offers traders is the lack of a time limit for your initial audition. As long as you produce a return of 10% without incurring a daily drawdown of 5% or a trailing drawdown of 6%, you’re eligible to start trading in a SurgeTrader account. 

Unlike other prop trading firms that take at least two business days to fund your account, SurgeTrader will fund your account within 24 to 48 hours after registering your account as an independent contractor. 

Assets tradable through a SurgeTrader MetaTrader 4 or 5 (MT4 and MT5) account held with by the online broker eightcap include forex, metals, oil, indices, crypto and about 250 of the most traded stocks on the MT5 platform and 90 stocks on the MT4 platform. 

Leverage ratios for forex pairs, metals, oils and indices range up to 10:1, while individual stocks can be leveraged at a 5:1 ratio and cryptocurrencies at 2:1. An add-on can be purchased to double the leverage ratio.   

2. E8 Funding

Noted for its support for contract for difference (CFD) trading, E8 Funding is a company founded and run by traders. Its innovative approach creates unique funding opportunities, as well as a path for traders to become funded professional traders managing E8’s capital remotely from anywhere in the world.

With E8, you can choose from various levels of expertise, and the funding you get increases according to your audition level. The three audition accounts have different timeframes, as well as different costs and features as explained further in the sections below.

E8 normal and extended accounts: The parameters of the most basic E8 Normal and Extended Accounts with $25,000 of funding including profit targets, daily and overall drawdowns are shown in the table below. Additional possible funding amounts include $50,000, $100,000 and $250,000. 

E8 track account: The E8 Track Account has three phases instead of two with no extended trial and identical profit targets and profit split as the E8 Normal account. This account has 0 minimum trading days and maximum trading days of 30 days for Phase 1 and 60 days for Phases 2 and 3. Daily and overall drawdowns are identical to the E8 account with a $138 refundable fee. 

ELEV8 account: Aimed at professionals and traders with more experience, the ELEV8 Account has an evaluation fee of $888 for the first phase with free second and funded phases in a $100,000 account with an 80/20 profit split. This account has zero minimum trading days and 30 maximum days for Phase 1 and 60 days for Phase 2. The ELEV8 Account has a profit target of $8,000 with a daily drawdown of $5,000 and an overall drawdown of $8,000. 

If you have honed your trading skills and feel qualified to audition with a funded trading firm, E8 offers Tier 1 level executions and the platforms and tools you will need to be a successful funded trader. 

3. Traders With Edge

Giving traders access to trade in over 1,172 different assets, Traders With Edge has up to $3 million available to fund individual traders. The company’s four-phase challenge plan begins with a 30-day trial in a demo account to evaluate your trading skills. 

Traders With Edge supports trading in MT4 and MT5 accounts. The firm also features access to over 50 forex currency pairs, spot silver, gold and platinum, WTI and Brent Oil, 16 major stock indices and over 20 cryptocurrencies. 

Once the first phase of the evaluation process is completed successfully within 30 days, you get to trade in a funded account with an 80/20 profit split for the second phase. Phase 3 then lets you scale your trading capital until your account is topped off up to $3 million. 

After trading with Traders With Edge for two years, you then become eligible for the Big League. This means you could manage as much as $30 million for Traders With Edge and other financial institutions.  

The firm offers various account sizes, including $5,000, $10,000, $25,000, $50,000, $100,000, $200,000, $500,000 and $1 million accounts with scaling participation fees. One of the biggest attractions of Traders With Edge is its low participation fees, which start at just $55 for a Standard $5,000 account and range up to $7,500 for a $1 million account.

Traders With Edge offers three types of funding challenges, including a one-phase Turtle challenge with a minimum of 10 days and a maximum of 365 days to pass the first phase and that lets traders use 20:1 leverage. The other two challenges include the Hare Challenge and the Instant Funding Challenge. 

Accounts are also divided into Standard, which for the Turtle challenge requires a 10% profit, and Aggressive, which requires a 20% return. The cost also differs, with the Standard Challenge costing $55 and the Aggressive Challenge costing $110. 

In the two-phase Hare Challenge, you have a minimum time of 5 days and a maximum of 60 days to complete each phase with a profit target of 10% for the first phase and 5% for the second phase. The participation fee for the Hare Standard account is $69, and you get unlimited free retries if you fail to meet the firm’s standards.

The Instant Account has a different dynamic since you would be splitting profits 50/50 with Traders With Edge in a funded account that you would start trading in right away. The Standard Instant Account has a one-time desk fee of $125 and starts you out with $2,500. You then get 180 days to complete the first phase by turning the initial amount of $2,500 into $10,000 using a 20:1 leverage ratio. 

The Aggressive Instant account has the same features as the Standard account. The main difference is that your scaling target is 20% instead of 10%, and the maximum leverage ratio you can use increases to 50:1.      

You can go up as many as eight levels to an account size of $1,280,000 all for your initial One-Time Desk Fee of $125. Traders With Edge offers the right traders considerable funding and scaling possibilities, which make this funded trading account company well worth considering.    

4. OneUp Trader

Highly rated on the user review website Trustpilot, OneUp Trader gives prospective traders a one-step account evaluation to get a funded prop firm trading account with clear and attainable targets. Account costs range from $125 a month for a $25,000 funded account to $650 per month for a $250,000 funded account.

Other valuable features you will enjoy with OneUp Trader include:

• Free 7-day trial account
• No data or hidden fees
• Unlimited and free profit withdrawals from day one
• No daily drawdown
• Free NinjaTrader license with Level 2 real-time market quotes
• Advanced reporting, data analytics and performance analysis tools
• Dedicated trader community
• Full transparency at all levels of the evaluation and funding process
• Wide range of supported trading platforms
• Community and social trading dashboard
• 24/7 customer support

Many advanced traders choose OneUp for their easy one-step evaluation process and guidelines. They also appreciate the fact that the company charges no additional fees. OneUp account sizes include $25,000 to $50,000 accounts with a profit split of 80/20, and $100,000, $150,000 and $250,000 accounts with a profit split of 90/10.  

Once you have successfully completed the initial evaluation process, you will be able to trade with OneUp funding. You may also be eligible for placement with one of OneUp’s funding partners, although you must trade a minimum of 15 trading days to achieve eligibility. 

Overall, if you can show profits, consistency and regularity in your trading and adhere to all of the rules in the evaluation process, then OneUp funding might be a good fit for you.   

5. The 5ers

One of the most affordable ways to get a funded trading account and start trading is through The 5ers, a firm that was named after the top 5% of profitable traders. Through the 5ers’ new high-risk, high-reward program called High-Stakes Challenge, you can start your trader evaluation process for only $39.

The 5ers support the popular MetaTrader 4 and 5 trading platforms, which allow traders to code and use Expert Advisor (EA) automated trading software, as well as other trading tools and custom indicators. You can also download the MT5 app from the Google Play and Apple stores to trade from your mobile devices. 

The 5ers offer three different account types: 

• Hypergrowth program: According to 5ers, this program has the highest success rate in the industry. The program allows you to live trade from the first day and has a one-time fee of $260 for a $10,000 account, $450 for a $20,000 account and $850 for a $40,000 account. This account has a time limit of 12 months and lets you use a leverage ratio of 30:1. Depending on your performance, you could get up to a 100% profit split. The evaluation target for this account is a 10% profit with a stop-out level of 6%. 

• High-stakes challenge: This account type fits confident traders with a strategy that has a high-risk/high-reward profile. The program permits the use of a leverage ratio of 100:1, and it has a two-step evaluation phase on demo accounts with initial deposits of $5,000, $20,000, $60,000 and $100,000 with an evaluation cost of $39, $165, $300 and $495 respectively for each account. The first step has a profit target of 8% in 30 days, while the second step has a 5% profit target to complete within 60 days. Both steps require a minimum of three profitable days. After completing the first step successfully, you will receive a profit-sharing bonus consisting of a portion of your evaluation fee with the full fee refunded after completing both phases and graduating to the status of High Stakes Trader. Once you start trading in your funded account you will receive a profit share of 80% to 100%.

• Bootcamp program: This program has a low cost and is aimed at testing the consistency, profitability and discipline of advanced traders. The program consists of three challenge phases at the end of which you can begin trading in a live funded account. Leverage in the challenge phase is 10:1 with no minimum days or trades requirement. The maximum time to complete the three stages is 12 months unless the account expires after 21 days of inactivity. A maximum loss of 5% and a profit target of 6% applies to all three challenges. In the first challenge, the demo account is funded with $25,000, the second challenge is funded with $50,000 and the third with $75,000. Depending on your trading level, you can trade in up to three different accounts with a profit split of as much as 100%/0%. The Bootcamp Program has a one-time cost of $205 to $350 payable only after passing all of the challenge stages. 

The 5ers offers a wide range of trading resources in addition to its funding programs. Useful resources available to 5ers traders include a blog, a client area, a trading room, trading ideas, psychology, coaching, a trading course, trading webinars, videos and live events. Because of the clarity of its programs and challenges, the 5ers would definitely be a firm to consider if you are looking to trade in a funded account. 

How Does Funded Trading Work?

A funded trading account is a proprietary trading account traded by a third-party trader to benefit the trader and the company funding the account. One of the best features of trading in a funded account is the low level of risk to the trader and the wide array of tradable assets available, as well as sufficient funds to be able to trade them. 

Not everyone can access a funded trading program. Funded account providers thoroughly test candidates’ trading skills to evaluate the best prospective traders to select. Once you have met all the requirements and get a funded account, you may be able to keep as much as 90% of your profits depending on the funded trading program.  

Funded trading can be a highly profitable endeavor for the trader and the prop trading firm. For the trader, the prop firm generally offers access to advanced trading and market modeling tools and market information that can significantly benefit the trader. These tools, unless the trader was extremely well-funded, would not be otherwise available.  

The prop trading firm makes significantly more profits participating in the market than just collecting fees and commissions. In addition to directly participating in market profits, prop trading firms also collect fees and commissions on their trader’s transactions. 

Who Should Try Funded Trading?

Funded trading accounts are typically best suited for individuals who have some experience and knowledge in trading and are looking to trade with the larger capital sizes that can be provided by a funding firm like any of the providers mentioned above. 

While the specific requirements for getting funded may vary across different trader funding firms, certain characteristics and skills can be generally beneficial for those considering funded trading. Also, funded trading tends to be more appropriate for traders of the following types:

• Experienced traders: Funded trading is typically not recommended for beginners or individuals with limited trading experience. Traders who have a solid understanding of the financial markets, trading strategies and risk management methods and who have demonstrated some level of success in their trading activities are more likely to be suitable candidates for funded trading.

• Consistently profitable traders: Funded trading firms often require traders applying for funding to demonstrate a consistent track record of profitable trading over a specified period. This requirement helps ensure that the trader can generate consistent returns and manage risk effectively, which makes them a better candidate for funding.

• Underfunded traders: Some traders may lack the funding to make trading a full-time business, even though they have accumulated a great trading track record using a well-thought-out strategy that shows consistent returns with acceptable drawdowns. Such traders can often really benefit from partnering with a trader funding company so they can scale up enough to reap the rewards they deserve from their trading activities.

• Traders with strong risk management skills: Effective risk management is crucial to successful trading, and trader funding firms often place a strong emphasis on this aspect of a trading plan or strategy. Traders who can demonstrate their ability to manage risk, implement appropriate stop-loss orders, size positions appropriately and control drawdowns are generally preferred for funding over those who lack those skills.

• Traders with discipline and emotional control: Trading can be psychologically challenging, so it is important to maintain discipline and emotional control over your trading activities, especially during volatile market conditions. Funded trading firms tend to look for traders who can stick to their trading plans, avoid impulsive decisions and have the emotional control needed to handle both wins and losses with composure.

• Traders who display compliance with rules and guidelines: Funded trading firms typically have specific rules and guidelines that traders must adhere to when operating with their money. Traders should be comfortable with following these guidelines, which may include position size and leverage limits, trading during specific timeframes and other restrictions that can affect the profitability of your preferred trading strategy.

Keep in mind that each funded trading firm may have its own specific requirements and evaluation processes, so your strengths may seem more attractive to one firm than another. You should also thoroughly research and understand the fees, terms, conditions and expectations of any funding firm before considering participating in a funded trading account arrangement with them.

Funded Trading Strategies

Traders can use various funded trading strategies to generate consistent profits and meet the requirements set by funded trading firms. Some examples of funded trading strategies include:

• Scalping: Scalping is a short-term trading strategy that aims to profit from small market movements. Traders using this strategy typically execute numerous trades within a short timeframe, typically taking advantage of bid-ask spreads. Scalpers often employ technical analysis and use tools such as tick charts to make quick trading decisions.

• Day trading: Day trading involves entering and exiting trades within the same trading day with the goal of profiting from intraday market fluctuations without running the extra risk of holding positions overnight. Day traders often analyze technical indicators, chart patterns and market news to identify short-term trading opportunities. They typically close all positions before the market closes to avoid overnight trading risks.

• Swing trading: Swing trading involves holding trading positions for a few days to several weeks to take advantage of medium-term market movements with the goal of capturing both trends and retracements. Swing traders might analyze various technical and fundamental factors to identify potential trends and reversals. They often use tools like moving averages, momentum indicators, trendlines and candlestick patterns to make their trading decisions.

• Trend or position trading: Following trends is a longer-term trading strategy that involves identifying and trading in the direction of established market directional market movements or trends. Traders using this strategy aim to profit from sustained market movements by entering positions when a trend is confirmed and exiting when the trend shows signs of reversal. Trend traders may use indicators like moving averages, momentum indicators, trendlines, channels and chart pattern breakouts to identify trends and when they seem likely to reverse direction.

• News trading: This strategy involves taking advantage of market volatility that occurs as a result of major news events, such as economic data releases, corporate earnings announcements, geopolitical developments or monetary policy decisions. Traders using this strategy closely monitor news sources and economic calendars to identify upcoming events that could have a significant impact on the financial markets. When a relevant news event occurs, traders aim to quickly react to the market’s immediate response and capitalize on market fluctuations.

• Mean reversion: Mean reversion is a trading strategy based on the assumption that markets tend to revert to their average or equilibrium levels after deviating. Traders using this strategy typically identify overbought or oversold conditions in the market using momentum indicators and then take positions with the expectation that the market will move back toward its mean level. Mean reversion strategies often involve using technical indicators like Bollinger Bands, momentum oscillators and statistical analysis.

• Arbitrage: Arbitrage is a trading strategy that involves exploiting pricing discrepancies between different markets or financial instruments to generate risk-free or relatively risk-free profits. Traders using arbitrage strategies simultaneously buy and sell related assets to take advantage of temporary price differences. This strategy requires quick trade executions and access to trade in multiple markets.

Remember that the choice of trading strategy you use in a funded account should be based on your individual personality, preferences, risk tolerance and expertise level. You should thoroughly understand and test any trading strategy before implementing it in a funded trading account, and you should also remain ready to adapt your strategy to market conditions and to the specific requirements and rules set by the funding firm you decide to partner with.

Frequently Asked Questions

The post Best Funded Trading Accounts by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.