Funded accounts vs Personal account | Forex Factory

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Funded accounts vs Personal account

  • #1
  • First Post: Jul 23, 2023 12:48pm Jul 23, 2023 12:48pm
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
  • #2
  • Jul 23, 2023 1:22pm Jul 23, 2023 1:22pm
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.
  • #3
  • Edited 12:59am Jul 24, 2023 12:47am | Edited 12:59am
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.
  • #4
  • Jul 24, 2023 3:02pm Jul 24, 2023 3:02pm
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!
  • #5
  • Jul 24, 2023 7:21pm Jul 24, 2023 7:21pm
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.
MetaTrader 4 - so many advantages.
  • #6
  • Jul 25, 2023 7:57am Jul 25, 2023 7:57am
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!
  • #7
  • Edited 7:13pm Jul 27, 2023 4:24pm | Edited 7:13pm
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!
  • #8
  • Jul 28, 2023 3:36am Jul 28, 2023 3:36am
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.
  • #9
  • Jul 28, 2023 5:50pm Jul 28, 2023 5:50pm
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!
  • #10
  • Jul 28, 2023 10:58pm Jul 28, 2023 10:58pm
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.
  • #11
  • Jul 29, 2023 9:51pm Jul 29, 2023 9:51pm
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!
  • #12
  • Jul 30, 2023 3:01pm Jul 30, 2023 3:01pm
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...
  • #13
  • Aug 11, 2023 11:56am Aug 11, 2023 11:56am
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
  • #14
  • Oct 24, 2023 10:13am Oct 24, 2023 10:13am
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.
  • #15
  • Apr 2, 2025 7:56am Apr 2, 2025 7:56am
I get where you’re coming from, but funded accounts have some real advantages. Yeah, a $100K funded account with X100 leverage might seem similar to a $1K personal account, but the key difference is risk. With a prop firm, you’re not risking your own capital. if you lose, you’re not out of pocket.

Also, many traders struggle to scale up their own accounts. A funded account lets you trade with a larger balance without needing to save up or risk personal money. Plus, some firms (like Funded Trader Markets) offer instant funding, so you can start trading right away without going through a challenge.
If you’re a profitable trader, it’s a way to trade bigger without personal risk. Just depends on your goals.
  • #16
  • Apr 2, 2025 9:47am Apr 2, 2025 9:47am
Quoting 0icy
A $100k funded account is the same as a $1000 account with x100 leverage.

No - sorry, but this really isn't right at all. The two things you're comparing there are a funded account with no leverage at all and a personal account with 1:100 leverage. You're missing the point that funded accounts also have leverage available.

It's true, of course, that what a prop-firm calls a $100k funded account isn't really a $100k account, because of its loss limit: for example, if it has a loss-limit of only $5k, then in the sense that a $5k loss closes the facility, you could argue that it's only realistically a $5k account, but meanwhile it's an account with the facilities and capabilities of a $100k account, and it's not your capital that's at risk. All you can lose, yourself, is the $200 or however much you paid for it.


Quoting chgotom
With all those prop firms you will never trade on a live capital! Never ever!

Sorry, but this is also very mistaken. What you're saying may be true of most (not all) of the CFD prop-firms, but it clearly isn't true of the futures prop-firms that open genuinely funded CME accounts for some of their customers.

It's very easy indeed to verify whether or not you're trading a real, live, funded account on an exchange, too: all you have to do is briefly enter a stop-order far from the current price, and see whether or not it shows up immediately in the exchange's "Depth of Market" display. If it does, then you're trading a live, funded account: it's not something that a prop firm can fool you about!


Quoting chgotom
Always! All the trades are simulated.

Sorry, but this simply isn't so. Don't take my word for it. Ask the traders who have passed futures prop-firm evaluations or pass one yourself and check it out for yourself.


Quoting chgotom
From that 99%+ that fail!

Where does your 99% figure come from?

Might it possibly be slightly contaminated with the voice of prejudice, dare I ask?

I ask because one of the prop-firms (one that has been established for more than a decade and won some government-sponsored industry awards) published independently audited accounts a while ago, which showed that the pass-rate for their evaluations was just a tiny fraction under 20%.

Sure, that means 80% of people are failing evaluations, but that's equally true of 80% of all new businesses, isn't it?

And it's not like people have spent much money to try, is it?

And there are absolutely no entry-barriers at all, are they?

So it's hardly surprising that plenty of people fail, isn't it?

Some of them then go on to succeed with a later attempt anyway, of course.

Sorry if I sound like I'm complaining, but there really does seem to be a huge amount of misinformation, in forums, about this subject!
Victoria Chenevix (philosophy student, mathematical logician, MES trader)
  • #17
  • Apr 7, 2025 8:58pm Apr 7, 2025 8:58pm
Funded accounts eliminate personal capital risk while providing larger trading capacity. Passing challenges proves consistency - the key benefit being access to significant capital without using your own money.
  • #18
  • Apr 9, 2025 3:37am Apr 9, 2025 3:37am
Quoting RiskFighter
Trading a PROP account is totally free.
Lul.
  • #19
  • Apr 30, 2025 8:36am Apr 30, 2025 8:36am
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

Yo, funded accounts beat 100x leverage on a $1K Forex account because you trade big without risking your own cash, dodge margin call nightmares, pocket solid profits (even with splits), gain discipline, and maybe score clout for bigger gigs—just start with futures for way cheaper fees!
  • #20
  • Jun 10, 2025 12:42pm Jun 10, 2025 12:42pm
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