One of the questions we get asked a lot is how to generate massive profits with a small account size, the easy answer to that question is that with time and compounding it can happen.
However for the majority of people they want to start generating large amounts of money now!
Well in recent years proprietary trading firms have been established to give you the chance of trading their capital to generate money through the Foreign Exchange market.
What Are the Steps to Get Funded?
To start with it is essential to have a winning trading strategy that has been consistently profitable for the last few months, this is to ensure you will pass the challenge to become funded and to start trading with more capital.
Once you have your consistent trading strategy perfected and you are confident with trading you will need to sign up to one of many proprietary trading firms, here’s a list of the most popular:
- FTMO
- Funding talent
- 5%ERS
I would encourage viewers to do their own research and pick the best that suits them in terms of the challenge, pricing and reputation of the companies.
Once you have chosen your prop firm of choice you will be going through a challenge phase to ensure you have what it takes to trade with their capital. The base challenge with most prop firm companies is to make 10% of the capital within 20 trading days, upon completion you will then need to pass a verification stage and make 5% of the initial capital within an extended 40 trading days.
For example if you wanted to trade with $100,000 of capital you will need to make $10,000 in 20 trading days and once completed you will be given new credentials to the verification stage. Within this stage in the $100,000 account, you will only need to generate $5,000 and you will become a funded trader.
What’s the Catch?
Well all these prop firms have trading objectives for example you can’t lose more than 5% of your capital a day and you can’t lose 10% of all capital at all, if you do then you lose the challenge and you cannot receive your refund money. However, if you pass without violating any of the rules you will become a funded trader.
I Am Now a Funded Trader Now What?
Congratulations you have become funded! Although you may feel like you will be generating massive amounts of money this is only a glimpse of reality, you must still follow all the trading objectives and to ensure you follow all the rules. If you lose too much equity and break the rules you have lost your funded account and will need to purchase another challenge and to start all over again.
How Do I Get paid?
If you are consistently profitable and do not break any of the rules, each month you will get a payout from the prop firm or bi-weekly depending on the company you choose. Normally these funds are sent to you after you produce an invoice and is either wired straight to your bank account or through PayPal or Bitcoin depending on the prop firm, do note that it may take 2-4 business days for the funds to be clear and to be sent to you.
Is Being Funded Worth It?
Just like with most things in life it just depends. For example, if you don’t want to produce your own capital and would prefer to trade on someone’s behalf following the rules isn’t a bad trade-off when acquiring such large capital to trade with. However, if your trading strategy requires a lot of drawdown or if you prefer taking a risky approach, then trading with your own capital according to your owns rules may be a better option.