Review
Funding Traders Plans
Funding Traders structures its offering into three main families of funding programs: Pro, Next Gen, and Instant Funded. Each of these families is designed to meet the needs of different trader profiles, varying in aspects such as the evaluation process, risk rules, leverage, and associated costs.
Pro Programs: The Traditional Approach
The Pro programs represent the firm’s most conventional offering. They are aimed at traders who are comfortable with a clear set of rules and a more conservative risk approach. Their main features include moderate leverage and a more permissive news trading policy compared to the company’s other models, making them ideal for swing traders or those with medium-term strategies.
Pro 1-Step
This model consists of a single evaluation phase. The trader must achieve a profit target of 10% of the initial account capital without ever breaching the daily or maximum loss limits. It is a direct route to funding for traders who are confident in their ability to generate a significant return in an unlimited time period.
| Account Size | Price | Profit Target | Max Drawdown | Daily Drawdown |
|---|---|---|---|---|
| $5,000 | $49 | 10% | 6% (Fixed) | 3% |
| $10,000 | $99 | 10% | 6% (Fixed) | 3% |
| $25,000 | $179 | 10% | 6% (Fixed) | 3% |
| $50,000 | $329 | 10% | 6% (Fixed) | 3% |
| $100,000 | $549 | 10% | 6% (Fixed) | 3% |
| $200,000 | $1099 | 10% | 6% (Fixed) | 3% |
Pro 2-Step
The Pro 2-Step plan is the classic industry challenge. The process is divided into two phases. In Phase 1, the trader must achieve a profit target of 6%. Once passed, they advance to Phase 2, where the target is 4%. This model is designed to verify not only a trader’s ability to be profitable but also their consistency across two distinct evaluation periods.
| Account Size | Price | Phase 1 Target | Phase 2 Target | Max Drawdown | Daily Drawdown |
|---|---|---|---|---|---|
| $5,000 | $49 | 6% | 4% | 6% (Fixed) | 3% |
| $10,000 | $99 | 6% | 4% | 6% (Fixed) | 3% |
| $25,000 | $179 | 6% | 4% | 6% (Fixed) | 3% |
| $50,000 | $329 | 6% | 4% | 6% (Fixed) | 3% |
| $100,000 | $549 | 6% | 4% | 6% (Fixed) | 3% |
| $200,000 | $1099 | 6% | 4% | 6% (Fixed) | 3% |
Next Gen Programs: Flexibility and High Leverage
The Next Gen family of programs is positioned as Funding Traders’ high-performance offering. These plans are designed for traders looking to maximize their purchasing power through higher leverage and who benefit from more generous loss limits. However, this flexibility is accompanied by stricter rules, especially regarding trading during high-impact news events. They represent a clear trade-off: more capital and room to maneuver are offered in exchange for greater discipline and restrictions on certain trading styles.
Next Gen 1-Step
This is a single-phase challenge with a 10% profit target. Its main differentiators are a higher daily loss limit (4%), a trailing maximum loss limit (5%), and significantly higher leverage, which can go up to 1:100 on Forex. Additionally, the entry prices are lower than those of the Pro programs, presenting an attractive option for aggressive traders.
| Account Size | Price | Profit Target | Max Drawdown | Daily Drawdown |
|---|---|---|---|---|
| $5,000 | $39 | 10% | 5% (Trailing) | 4% |
| $10,000 | $79 | 10% | 5% (Trailing) | 4% |
| $25,000 | $159 | 10% | 5% (Trailing) | 4% |
| $50,000 | $299 | 10% | 5% (Trailing) | 4% |
| $100,000 | $499 | 10% | 5% (Trailing) | 4% |
| $200,000 | $997 | 10% | 5% (Trailing) | 4% |
Next Gen 2-Step
The Next Gen 2-Step model is arguably the firm’s most distinctive. Although it requires passing two phases with higher profit targets (8% in Phase 1 and 5% in Phase 2), it offers the most flexible risk parameters of the entire lineup in return. Traders have a 6% daily loss limit and an impressive 12% fixed maximum loss limit. This program is designed for traders who value having a large cushion to manage their trades and absorb market volatility without risking the account.
| Account Size | Price | Phase 1 Target | Phase 2 Target | Max Drawdown | Daily Drawdown |
|---|---|---|---|---|---|
| $5,000 | $39 | 8% | 5% | 12% (Fixed) | 6% |
| $10,000 | $79 | 8% | 5% | 12% (Fixed) | 6% |
| $25,000 | $159 | 8% | 5% | 12% (Fixed) | 6% |
| $50,000 | $299 | 8% | 5% | 12% (Fixed) | 6% |
| $100,000 | $499 | 8% | 5% | 12% (Fixed) | 6% |
| $200,000 | $997 | 8% | 5% | 12% (Fixed) | 6% |
Instant Funded Program: Direct Access to Capital
This program completely eliminates the evaluation phase, giving traders immediate access to a funded account. This option is ideal for traders with a proven track record who do not want to go through a challenge. However, this direct access implies a higher risk for the firm, which is mitigated through a set of much stricter and more specific rules, designed for more rigorous risk control from day one.
The unique rules of this program include the absence of a profit target to maintain the account, although generating at least a 1% profit is required to request the first payout. A “Safety Cushion” is applied, where the first 3% of profits generated is not withdrawable. The most important rule is the “Maximum Risk Limit,” which prohibits having a floating loss (PNL) greater than 1% of the initial account balance across all open trades.
| Account Size | Price | Max Drawdown | Daily Drawdown | Maximum Risk Limit |
|---|---|---|---|---|
| $5,000 | $59 | 6% (Trailing*) | 3% | 1% |
| $10,000 | $89 | 6% (Trailing*) | 3% | 1% |
| $25,000 | $189 | 6% (Trailing*) | 3% | 1% |
| $50,000 | $289 | 6% (Trailing*) | 3% | 1% |
| $100,000 | $589 | 6% (Trailing*) | 3% | 1% |
*Note: The maximum drawdown is trailing until the trader reaches a 3% profit. At that point, the maximum loss limit is fixed at the initial account balance.
Comparison of Funding Programs
To facilitate choosing the most suitable program, it is essential to compare the key features that define the allowed trading style in each account family. The following table summarizes the most important strategic differences between the Pro, Next Gen, and Instant Funded programs.
| Feature | Pro (1 & 2-Step) | Next Gen (1 & 2-Step) | Instant Funded |
|---|---|---|---|
| Ideal For | Traditional traders, swing traders | Scalpers, aggressive traders, algorithmic traders | Traders who want to avoid evaluations |
| News Trading | Allowed in Challenge & Funded (with rules) | Allowed in Challenge, Prohibited in Funded | Prohibited (5 min window) |
| Weekend Holding | Allowed | Allowed | Prohibited |
| Max. Leverage | 1:50 | 1:100 | 1:50 |
| Commissions (Funded) | $3 / lot | $3 / lot | $6 / lot |
| Consistency Rule | Not applicable | 25% (Soft Breach) | 15% (Soft Breach) |
| Profit Split | 80% (Add-ons available) | 80% (Add-ons available) | 90% (Fixed) |
The analysis of this structure reveals a sophisticated risk management system by the firm, which can be described as a “risk funnel.” The company offers highly attractive features, such as instant funding or high leverage, but surrounds them with progressively more restrictive rules to mitigate its own exposure.
The Pro model serves as the baseline, with lower risk for the firm: moderate leverage and fewer operational restrictions. Next, the Next Gen model introduces greater risk for the firm through leverage but compensates by eliminating news trading in the funded phase, one of the main sources of volatility and unexpected losses. Finally, the Instant Funded model, which represents the highest initial risk for the firm by not having an evaluation filter, imposes the strictest conditions: higher commissions, a ban on holding trades over the weekend, and a very tight floating risk limit.
This approach demonstrates that Funding Traders not only sells accounts but also manages and values risk in a tiered manner. The greater the risk a trader’s style imposes on the firm, the greater the restrictions or associated costs.
Trading Rules
Beyond the objectives of each program, there are operational rules that apply to all accounts and whose violation has consequences. It is vital that traders know and understand these rules, especially those considered “Hard Breaches,” as their violation leads to the immediate and unconditional termination of the account.
General Rules (Hard Breach)
These are the fundamental rules that protect the firm’s capital and define the absolute limits of trading.
- Loss Limits: Each account has two loss limits. The Daily Drawdown restricts the amount an account can lose in a single day. The Max Drawdown sets the total loss allowed on the account. It is crucial to understand whether the max drawdown is fixed (calculated on the initial balance) or trailing (calculated on the highest equity or balance point reached), as this varies between programs and drastically affects risk management.
- Inactivity Rule: If an account, whether challenge or funded, remains inactive with no trades placed for 30 consecutive days, it will be considered abandoned and will be closed.
- Unrealistic Trading Practices: The firm explicitly prohibits strategies that it does not consider sustainable or replicable under real market conditions. This includes:
- VWHT (Volume-Weighted Average Holding Time): The average holding time of trades, weighted by their volume, must be greater than 2 minutes. This rule seeks to filter out high-frequency trading (HFT) strategies that depend on minimal latencies.
- HFT: Strategies involving trades with a duration of less than 15 seconds are prohibited.
- Grid Trading: The use of grid trading strategies is strictly prohibited. The firm argues that this type of strategy amplifies risk uncontrollably and can be detrimental to capital management.
Specific Rules and Guidelines
In addition to hard breach rules, there are guidelines that regulate specific trading styles.
- News Trading Policy: This is one of the most important rules with the most variations between programs.
- Pro Accounts: Trading during news is allowed in both the challenge and funded phases. However, on the funded account, new positions cannot be opened in the 2 minutes before and after a high-impact event, and profits generated from news trades cannot exceed 30% of the total profit for the payout period.
- Next Gen Accounts: Trading during news is allowed in the challenge phase. However, it is strictly prohibited in the funded account. There is an exception for trades opened more than 5 hours before the event. The firm offers a paid add-on that allows the trader to keep 30% of the profits made during news.
- Instant Funded Accounts: It is prohibited to open, close, or hold positions in the 5 minutes before and after a high-impact news event.
- Holding Trades Over Weekends: This practice is allowed in Pro and Next Gen accounts, which is essential for swing traders. However, it is prohibited in Instant Funded accounts, where all positions must be closed before the market closes on Friday.
- Use of EAs, Bots, and Copy Trading:
- EAs/Bots: The use of Expert Advisors (EAs) and bots is permitted, but with an important condition: they must be focused on risk management (e.g., position size calculators). Generic commercial, grid, or hedge EAs are not allowed.
- Copy Trading: The use of copy trading software is allowed to manage multiple accounts of the same user, even if one of them is with another firm. What is prohibited is copying the trades of other traders or participating in signal services.
- Stop Loss Requirement: It is not mandatory to use a stop-loss order on trades. Despite this, the firm strongly recommends its use as a fundamental risk management practice.
Payouts and Profit Split
The ultimate goal of a trader at a prop firm is to receive consistent payouts. Funding Traders has a profit-sharing system with several rules and options.
- Profit Split Structure: The standard profit split for traders is 80% in the Pro and Next Gen programs. For these programs, there are paid add-ons that allow this percentage to be increased to 90% or even 100%. In the case of Instant Funded accounts, the split is fixed at 90% from the start.
- Payout Frequency and Process: By default, traders can request a payout every 14 days, starting from the date they placed their first trade on the funded account. For Next Gen programs, an add-on is offered that reduces this period to 7 days. To process a payout request, all positions and pending orders must be closed.
- Withdrawal Methods: Payouts are processed through two main methods. The first is via bank transfer through the Rise platform, which requires a minimum withdrawal amount of $200. The second method is through cryptocurrencies (mainly USDT on the ERC-20 network) via Coinbase Commerce, with a minimum amount of $50.
- “Soft Breach” Rules: Unlike “Hard Breaches,” these rules do not cause the account to be closed, but they can delay eligibility for a payout.
- Consistency Rule: This rule applies to Next Gen and Instant Funded accounts. It stipulates that the profit from the best trading day cannot represent more than a certain percentage of the total accumulated profit. For Next Gen accounts, this limit is 25%, and for Instant Funded, it is 15%. If a trader exceeds this threshold, they must continue trading until the ratio adjusts to the norm. It is very important to note that this rule does not apply to Pro accounts, which is a significant advantage for traders with a more volatile trading style.
- Refund Policy: In all programs that require an evaluation phase (Pro and Next Gen), the initial fee paid for the challenge is 100% refundable. This refund is processed along with the first profit payout the trader receives.
Technical Trading Aspects
The technical trading conditions are a key factor that can influence the performance of a strategy.
Trading Platforms
Funding Traders offers its clients the TradeLocker trading platform. This is a modern web-based platform that integrates TradingView charts and is designed to offer a nimble, multi-device compatible user experience.
Broker, Spreads, and Commissions
- Broker: The firm does not publicly disclose its liquidity provider or the broker it partners with to execute trades. This lack of transparency can be a drawback for traders who want to know the exact environment they will be operating in.
- Spreads and Slippage: Similarly, Funding Traders does not provide specific information about the typical spreads that can be expected on its accounts or about its slippage policy. Traders must assume that conditions are variable and market-dependent.
- Commissions: Commissions are a direct operating cost and vary by account type.
- Challenge Phases: No commissions are charged.
- Funded Pro and Next Gen Accounts: A commission of $3 per full lot traded (round trip) is applied.
- Funded Instant Funded Accounts: The commission is $6 per full lot traded.
The doubling of the commission on Instant Funded accounts is a deliberate business decision. It acts as a risk premium for the firm. By funding a trader without a prior evaluation, the company assumes greater risk. The higher commission allows it to obtain an additional revenue stream based on trading volume, regardless of the trader’s profitability, thus offsetting some of that additional risk exposure.
Leverage
Leverage determines a trader’s purchasing power and varies significantly across different programs and instruments.
| Instrument | Pro Leverage | Next Gen Leverage | Instant Funded Leverage |
|---|---|---|---|
| Forex | 1:50 (Majors), 1:30 (Exotics) | 1:100 | 1:50 |
| Metals | 1:10 | 1:50 | 1:20 |
| Indices | 1:15 | 1:50 | 1:20 |
| Energies/Commodities | 1:1 | 1:50 | 1:10 |
| Cryptocurrencies | 1:1 | 1:5 | 1:2 |
Financial Instruments and Countries
- Tradable Instruments: Traders have access to a wide range of markets, including major currency pairs (Forex), stock indices, commodities (mainly energies like oil), precious metals (gold, silver), and the most popular cryptocurrencies.
- Restricted Countries: Funding Traders does not offer its services to residents of the following countries: Cuba, Iran, North Korea, Syria, Russia, and the Crimea, Donetsk, and Luhansk regions of Ukraine.
Customer Support
The firm’s main support channel is its Help Center, a comprehensive knowledge base with articles covering most frequently asked questions about rules, programs, and procedures.
For direct inquiries, contact is made via email at help@fundingtraders.com. It is important to note that the firm does not appear to offer real-time support channels like a live chat or phone support, which could be a disadvantage for traders who need immediate assistance with a technical issue or an urgent query.
Strengths of Funding Traders
In conclusion, Funding Traders presents itself as a solid and versatile option in the competitive prop firm ecosystem. Its main strengths lie in several key points.
- Variety of Programs: The offering of five distinct funding models is its biggest differentiator. This diversity allows virtually any type of trader, from the most conservative to the most aggressive, to find a program that fits their strategy and risk tolerance.
- Flexibility and Customization: The inclusion of add-ons to modify the profit split, payout frequency, or even news trading rules provides a degree of customization that is not common in the industry. This allows traders to build a funding experience tailored to their needs.
- Competitive Rules in Certain Programs: Some of its programs offer exceptionally attractive conditions. The 12% maximum loss limit in the Next Gen 2-Step plan is one of the most generous on the market. Likewise, the absence of a consistency rule in the Pro programs is a considerable advantage for many traders.
- Direct Access to Capital: The availability of an instant funding model, despite its strict rules, is a valuable option for experienced traders who wish to capitalize on their skills without delay.
- Competitive Pricing: The entry fees, especially in the Next Gen programs, are very competitive and are in the low range of the industry, which lowers the barrier to entry for many aspiring funded traders.
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