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Funded accounts vs Personal account

  • Post #1
  • Quote
  • First Post: Jul 23, 2023 1:48pm Jul 23, 2023 1:48pm
Whats the use of funded accounts? Cuz I see a lot of people bragging abt it in social media. A $100k funded account is the same as a $1000 account with x100 leverage. And on top of it profits on funded accounts are further divided. It would be helpful if anyone points out the benefits of passing a funded challange
Quoting 0icy
Whats the use of funded accounts? Cuz I see a lot of people bragging abt it in social media. A $100k funded account is the same as a $1000 account with x100 leverage. And on top of it profits on funded accounts are further divided. It would be helpful if anyone points out the benefits of passing a funded challange
If you pass you trade basically with ~10% of the account. So that is for 100 K account 10000.

But passing is not that easy because to pass you have to earn in total about 13000 for 100K account.
  • Post #3
  • Quote
  • Edited 1:59am Jul 24, 2023 1:47am | Edited 1:59am
I trade personal live account. I find i didn't have enough freedom to do as i please with a prop account. But either is ok depending on your scenario.

Ftmo and mff I've tried with success. Other props i can't speak for.
Trading is gambling. So gamble responsibly.
Quoting Eren10
{quote} If you pass you trade basically with ~10% of the account. So that is for 100 K account 10000. But passing is not that easy because to pass you have to earn in total about 13000 for 100K account.
I agree with Eren and I think that the existence of prop firms is very beneficial to traders.
Risk Management is of utmost importance!
It is obvious. Trading a PROP account is totally free. The money you make is a gift. It is impossible to lose money - except for the fee if you don't pass the evaluation. Download the profit every other week and trade it on your private account.

Even better - learn to program robots. Then you can manage a number of accounts in parallel. That is even more money in your pocket.
Read post #1 !! Then read it again 10 more times before you ask.
They're like getting a big bag of someone else's money to trade with. People brag about it on social media 'cause it's a big achievement. It's not the same as a small account with high leverage 'cause funded accounts have more backing and less risk.
Sure, they might take a cut from your profits, but think about it – you get to trade with a massive capital you didn't even put up! Passing a funded challenge proves you got the skills to impress and handle big money. So, it's like leveling up in the trading game and showing off your pro status!
  • Post #7
  • Quote
  • Edited 8:13pm Jul 27, 2023 5:24pm | Edited 8:13pm
With all those prop firms you will never trade on a live capital! Never ever! What they give you is a demo account, yes it shows "live" or "real" but it is a demo. Always! All the trades are simulated.

Now where does all that money come from so they can pay some successful traders (less than 1%)?

From that 99%+ that fail! Remember, you have to pay the fee for one or two challenges to participate. Well, that's where that little less than 1% of $ is coming from to pay you if you are profitable.

And that's how they make money my friends. From failed traders!
Funded accounts are scams. Period.
No one will be able to achieve the requirements in the long term. They made money from your fee.

Using leverage like that is also a recipe for disaster.
Quoting bayfresh
Funded accounts are scams. Period. No one will be able to achieve the requirements in the long term. They made money from your fee. Using leverage like that is also a recipe for disaster.

Not necessarily. But for starters, if you are aware of the fact, that you are always trading on a simulated demo account and your (potential) payouts are going to be coming from the fees of failed traders, then you are quite OK.

Reputable prop firms like FTMO.com, thefundedtraderprogram.com, the5ers.com... are going to pay you and they have been in business for years.

I personally am funded with thefundedtraderprogram.com and they offer free re-entry for challenges if you didn't breach the rules. Also, now since July 1, there is unlimited time to pass the challenge (before 35 days)! It is a big game changer, I didn't pass before a few times just because of the fact I ran out of time.
Some prop firms now even offer no challenge programs, just pay the fee and start trading on "real" money right the next day.

If you don't want to risk your own money and still want to trade on some $100k-400k simulated account, knowing where potential earnings are coming from, you will do quite OK. But as always, train on a demo first and learn your strategy and discipline!
Just note, trading is gambling so, it really sucks to lose a lot of money which you can put in an index or invest in rent or other ventures. So only trade what you can afford to lose.

Example

I traded 50 capital and made it 300 dollars. Thats a lot in terms of returns based on capital, but that is actually small money.

Because for me to enjoy the 250 dollars or net from that I'll start again at a lower capital.

So i do hope people who go into trading don't have unrealistic expectations. Instead build their capital over time and trade prudently.
Trading is gambling. So gamble responsibly.
Quoting chgotom
{quote} Not necessarily. But for starters, if you are aware of the fact, that you are always trading on a simulated demo account and your (potential) payouts are going to be coming from the fees of failed traders, then you are quite OK. Reputable prop firms like FTMO.com, thefundedtraderprogram.com, the5ers.com... are going to pay you and they have been in business for years. I personally am funded with thefundedtraderprogram.com and they offer free re-entry for challenges if you didn't breach the rules. Also, now since July 1, there is unlimited...
what a joke.
Wake up!
Quoting bayfresh
{quote} what a joke. Wake up!
I'm fully awake my friend!

Prop firms are just an option if you are a good trader but don't want to risk your own money. I've got paid thousands on a fully funded account already and my initial investment was minimal so...
Quoting 0icy
Whats the use of funded accounts? Cuz I see a lot of people bragging abt it in social media. A $100k funded account is the same as a $1000 account with x100 leverage. And on top of it profits on funded accounts are further divided. It would be helpful if anyone points out the benefits of passing a funded challange
Larger margin, no impact of margin on buying power and in some cases no impact on the market in futures, imagine puting 30 NQ futures contracts in the market without moving it, no saying that you should but you can. Also it's easier psychology wise for some.
TheLiveTradingChannel
  • Post #14
  • Quote
  • Last Post: Oct 24, 2023 11:13am Oct 24, 2023 11:13am
The majority of funded accounts have strict limitations or “breaches” that’s how they call it, but whatever.
If you get the breach, you’re out.
But on the flip side it allows you to increase the trading power via more significant balance in the platform.
Also chgotom brought interesting thought of how do you know if you trade on the real account? I wouldn’t be surprised if all those prop trading firms don’t place your orders on the interbank market and act like market makers. Basically earning out of your losses.
So Personal account seems more favorable to me.
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