Prop Trading | Forex Trading | Prop Firm Trading - FundingTraders (2024)

FAQs

What is the 2% rule in Fundingtraders? ›

One popular method is the 2% Rule, which means you never put more than 2% of your account equity at risk (Table 1). For example, if you are trading a $50,000 account, and you choose a risk management stop loss of 2%, you could risk up to $1,000 on any given trade.

Proprietary traders use their firm's own money to invest in the financial markets, and they retain 100% of the returns generated. Unlike proprietary traders, hedge funds are answerable to their clients.

FTUK is a reputable prop firm with instant funding accounts, which attracts seasoned traders who want to access large trading capital without a lengthy evaluation process. The funding range is from 14k to 5 million USD with a profit share of 80% and maximum leverage of 1:100.

What is a prop trading firm? A prop trading firm is a company that provides its traders with access to capital. In return, the traders share a percentage of the profits they generate with the company. Individuals face many hurdles on their journey to become professional traders.

That said, investors should be cautious and consider other important factors when determining whether to purchase a property. The 1% and 2% rules may not provide a reliable benchmark for rental property investments in areas with high cost of living or high rental demand such as California.

One of the precautionary rules that FundedNext introduced during the launch, the 30 Seconds Rule. The rule entails : “If a trader placed multiple trades with hugely varying lot sizes within 30 seconds, it would have been considered a violation in suspicion of trying to beat the system in malicious ways.

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. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders. But why is the percentage of failure so high?

The Costs of Prop Firm Regulation & Company Registration

Some prop firms may opt to be regulated which puts costs significantly higher. One should expect to pay a one time fee of around $10,000 for company registration and payment options while regulation involves a minimum budget of $75,000.

Also known as “prop trading,” it offers higher earnings potential much earlier in your career than jobs like investment banking or private equity. It's arguably the most merit-based industry within finance: if you make millions of dollars for your firm, you'll earn some percentage of it.

Prop Firm Trader Salary

The salary of a prop trader can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.

What is the consistency rule for funded traders? ›

The 40% consistency rule during the simulated funded stage means that the profits from one trading day can not equal or be greater than 40% of total profits made.

Apex wants to fund and pay out traders who follow a consistent plan in size, stops, and targets. This means not trading the maximum or larger-than-usual contracts on one trade, while trading micros for the rest of their time.

The rule states that the earnings of your best trading day should not exceed 45% of your total profits. The Consistency Rule applies during all Phases of all Challenge types.

The Consistency Target is calculated by factoring in your best day's profit and your account's profit target. As long as your Best Day is below 50% of your profit target, you are meeting the target requirement. Losses don't affect the best day recommendation.