Funded Account Rules

Learn how to become an Funded Trader with Funded Account

How much leverage do you offer?

At this time, we offer up to 1:50 leverage.

Major up to 1:50.
Exotics up to 1:50.
Commodities & Indices up to 1:50.
Crypto up to 1:5.
As professional traders, we understand the importance of the risk management and we believe that focusing on your risk allocation rather than on your leverage is the best way to succeed. We believe that traders should be more focused on the maximum drawdown rules rather than on the maximum leverage.

Prohibited gambling strategies

The general public frequently perceives financial market trading as gambling. Although this statement is false, many traders trade like gamblers and unknowingly support it. This policy refers to these traders. We must take specific measures to address these traders to protect them while continuing to provide opportunities for prudent risk managers and legitimate traders.

Some traders gamble because they want to make a quick buck. The issue is that a quick profit usually implies a high risk and a low likelihood of success. Furthermore, financial markets are considered high-risk markets where one can make a lot of money.

Suppose we suspect you are attempting to gamify the offer created by Funded for aspiring consistent traders. In that case, we reserve the right to substantially de-risk your trading strategy, which may include lowering your leverage or payout. We will only do this if our team of risk managers deems your style to fall into one of the categories. Below is a list of restricted practices.

Over-leveraging

Over-leveraging is a classic example of gambling that many traders engage in. Some traders believe that the larger the positions they open, the faster they will become wealthy. Unfortunately, such prominent positions frequently increase trader stress due to the possibility of a significant loss, resulting in a negative effect on the psyche, which leads to more mistakes and the initial trading plan being sabotaged.

At the same time, trading large positions (whether opened as a single entry or gradually through additional trade reinforcements) limits the trader's options. A trader must consider the Maximum Daily Loss objective when trading for Funded. Each additional position open increases the trader's risk of exceeding the Maximum Daily Loss limit if markets do not go their way. As a result, they must reduce their Stop Losses (in points/pips) or risk being unable to open another potentially profitable position.

When they are a few percent short of meeting the profit requirements, some traders tend to increase their positions to the extreme a few days before the end of the Evaluation Phase 1 or 2. While this may appear to be a good idea, if they make a sudden move in the opposite direction of their position, they may end up in the red or, worse, violate the Maximum Loss condition. Taking such a risk is usually not worth it, because with Funded, you have options such as a 14-day extension or a free opportunity to repeat your  Evaluation.

One-sided bets

Opening up larger positions consecutively (stacking) on one instrument can be considered gambling. Alternatively, as previously mentioned, this can include opening consecutive positions in profit or, in loss.

Opening additional positions is pure gambling if the first position is significant and exceeds the limits of proper risk management.

While it is true that adding to a profitable trade can be a profitable strategy in the event of a strong trend, are you confident in the long-term trend?

This is especially true when opening a position at a loss because the desire to change the market's direction as positions grow causes unnecessary stress and a potentially significant loss, which a trader may take a long time to recover from.

Simply put, such behavior has nothing to do with serious trading. A serious trader possesses certain characteristics. He has an advantage in his strategy that he can use daily, month after month, and year after year.

Overexposure

To diversify their risk, some traders trade multiple instruments. Even in this case, a trader may open multiple positions representing different instruments or currency pairs. However, the trader is exposed to more risk on one instrument or currency. Opening multiple positions on different significant pairs is a common example. What appears to be a diverse position could be one large dollar bet.

However, scaling in or, conversely, diluting positions is similar. Consider the following scenario. You have caught a trend movement, everything is going well, and you are happily buying to maximize your profit. Is this, however, the best approach?

Isn't it always the same trading strategy? In this case, are you upholding good risk and money management?

Dangerous situations include when a trader opens a position or a series of positions that are so large that they consume all of the available margin. Although the trading account technically allows it, this is not a risk or money management strategy, even if the trader has entered Stop Losses. Slippage, order execution at a different value, sudden price fluctuations, gaps, flash crashes, and other concepts are all understood by an experienced trader. Because the trading account responds to actual market liquidity, no one can guarantee that the order entered will be executed.

Rolling Accounts

Account rolling is an intriguing case and type of gambling, particularly for prop trading firms. In this case, traders will purchase the maximum number of evaluation courses available. They are able to finish these (including Phase-2). However, due to the total allocation limit for one trader/strategy, they can only trade on some accounts at the same time or combine them into one account.

This gives them the impression that they can open unnecessarily risky trades on the account they were given first. If they breach that account recklessly, they can immediately begin trading in the next one.

However, Funded encourages traders to take the exact opposite approach. Thanks to the Scaling plan, not only can traders keep the balance earned as a scaling perk even after they withdraw, but we also increase your overall drawdown by 1% with each withdrawal up to 14%.

Policy Against Gambling

The perception that financial market trading is akin to gambling is common among the general public. However, this belief is false and is reinforced by traders who engage in gambling-like behavior. To safeguard Traders and continue providing opportunities for responsible traders, measures must be taken to address these individuals.

Some traders may engage in high-risk behavior in pursuit of quick profits, but these actions often lead to a low likelihood of success. Financial markets are inherently high-risk, but it is important to distinguish between legitimate trading and gambling.

If Funded suspects that a trader is attempting to use our offerings for gambling purposes, we reserve the right to take steps to reduce the risk of their strategies, including reducing leverage or altering profit splits. These actions will only be taken after careful consideration by our risk management team and if the trader's behavior falls within certain prohibited categories.
Account Rolling

Account rolling is a form of gambling that is commonly used among trading simulated accounts. In this practice, traders will acquire the maximum number of evaluation accounts available and attempt to complete them in a rolling style, where they sacrifice as many accounts as necessary to pass one. However, due to the limited number of accounts a trader can operate at the same time, this may lead to reckless and high-risk trades on one account, with the expectation that they can move on to the next if it fails.

Funded promotes a different approach. Our Scaling plan allows traders to retain their earnings as a scaling perk even after they withdraw, and also increases the overall drawdown by 1% with each payout, up to 14%. This encourages traders to adopt a more cautious and risk-managed approach.

All-Or-Nothing trading style

Opening large positions consecutively, also known as "stacking," on a single instrument can be considered a form of gambling. Similarly, opening consecutive positions in profit or, in extreme cases, in loss can also be considered gambling. This behavior is particularly problematic when the initial position exceeds the limits of proper risk management.

While it is true that adding to a profitable trade can be a profitable strategy in the event of a strong trend, it is important to consider the long-term trend and whether the trader is confident in it. This is especially true when opening a position at a loss, as the desire to change the market's direction as positions grow can lead to unnecessary stress and potentially significant losses that can take a long time to recover from.

It is important to note that such behavior has little to do with serious trading. A true risk manager possesses certain characteristics, such as a consistent advantage in their strategy that they can use daily, month after month, and year after year.

Diversifying positions by trading multiple instruments or currency pairs can be a good risk management strategy, as it reduces the exposure to one specific instrument or currency. However, it is important to note that opening multiple positions on correlated instruments or currency pairs can still be a large overall bet. Scaling in or diluting positions is a common strategy, but it can also lead to over-leveraging if not managed effectively. Over-leveraging is a form of gambling that can lead to increased stress and mistakes, and it is important for traders to consider their Maximum Daily Loss objective. Trading large positions, whether opened as a single entry or gradually through additional trade reinforcements, can limit a trader's options and increase the risk of exceeding the Maximum Daily Loss limit if markets do not go their way. Therefore, it is crucial for traders to implement a solid risk and money management strategy, and consider options such as a 14-day extension or a free opportunity to repeat their evaluation when they are a few percent short of meeting profit requirements.

Group hedging

Trading with opposite positions on our platform is strictly prohibited. Some traders may be exploiting the opportunities we provide by using strategies that are not aligned with our risk management approach. If it is found that a trader is participating in this type of activity, they will be permanently banned from trading on our platform. This type of strategy is not sustainable in the long-term and ultimately leads to losses. It usually involves taking the same level of risk on one side of a trade on one account and taking the same level of risk on the opposite side of a trade on a different account from a different user.

This inconsistency is eventually discovered by our team when reviewing the positions, and they are subsequently netted out. Traders do not benefit from engaging in this type of strategy because it is not possible on real trading accounts and it is not the type of behavior we condone.

How do I keep track of the rules and objectives?

Easily keep track of your trading performance through the dashboard. In our opinion there is no better way to clearly view all your most important statistics.

We have strived to create the most user-friendly experience to keep track of all your trading history as well as your Trading Objectives and Rules

What instruments are allowed to be traded?

Clients can trade Forex, Commodities, Indexes and Cryptocurrencies. Our comprehensive list is shown after users log in the Funded MT4.

Phase-1 Objectives

For Regular accounts:

Objectives:

  • 8% Profit Target - Closed profit in your trading account.

  • 5% Daily Drawdown - Maximum Floating or Closed loss from your starting Balance or Equity (Depending on which one is higher) of the day within 24 hours of Metatrader timezone.

  • 8% Maximum Drawdown – Maximum Running (floating) equity loss in the whole period

  • Minimum trading days: 1 - Trade at least 1 day during the period. Trading day counts when you close an open position during the 24 hours of ET time.

  • Unlimited Trading Days - There is no time limit.

For Extended accounts:

Objectives:

  • 8% Profit Target - Closed profit in your trading account.

  • 5% Daily Drawdown - Maximum Floating or Closed loss from your starting Balance or Equity (Depending on which one is higher) of the day within 24 hours of Metatrader timezone.

  • 10% Maximum Loss - Maximum Running (floating) equity loss in the whole period

  • Minimum trading days: 5 - Trade at least 1 day during the period. Trading day counts when you close an open position during the 24 hours of ET time.

  • Unlimited Trading Days - There is no time limit.

Phase-2 Objectives

For Regular accounts:

Objectives:

  • 5% Profit Target - Closed profit in your trading account.

  • 5% Daily Drawdown - Maximum Floating or Closed loss from your starting Balance or Equity (Depending on which one is higher) of the day within 24 hours of Metatrader timezone.

  • 8% Maximum Drawdown – Maximum Running (floating) equity loss in the whole period.

  • Minimum Trading Days: 1 - Trade at least 1 day during the period. Trading day counts when you close an open position during the 24 hours of ET time.

  • Unlimited Trading Days - There is no time limit.

For Extended accounts:

Objectives:

  • 5% Profit Target - Closed profit in your trading account.

  • 5% Daily Drawdown - Maximum Floating or Closed loss from your starting Balance or Equity (Depending on which one is higher) of the day within 24 hours of Metatrader timezone.

  • 10% Maximum Drawdown - Maximum Running (floating) equity loss in the whole period.

  • Minimum Trading Days: 5 - Trade at least 1 day during the period. Trading day counts when you close an open position during the 24 hours of ET time.

  • Unlimited Trading Days - There is no time limit.

Can I trade News on any of the Funded Accounts?

You are free to trade any news events on the Funded Trader account and during Phase-1 and Phase-2 of the evaluation for plans as long as you are aware of the risks involved with a slippage.

To clarify, you can trade news and it will not be a direct violation. However, you should understand that there are occurrences where slippages occur and that the trader is ultimately responsible should one cause a violation of the max loss rules.

We cannot guarantee any profits generated during such high-risk news events and we cannot protect you from any losses taken because the trades may not actually fill or may fill causing a loss on your simulated account which is designed to mimic live trading account conditions. Therefore, it is best to avoid trading during high-impact news releases, but it is not a violation.

Can I hold positions overnight?

Yes, you are allowed to hold trades overnight, however as a trader you should be aware of bad market conditions that may occur during a market rollover.

We don't advise trading during a market rollover, because the liquidity on all pairs is being reduced and thus all spreads will be negatively affected for our traders and us. You should be especially careful with pairs containing AUD, NZD, CHF, and JPY affected the most during midnight rollovers and bank rollovers.

Bear in mind that any losses caused by widened spread or slippage can not be REIMBURSED by us.

Funded Trader Account Objectives

Objectives:

Refundable Fee

NO Profit Target

Max. 5% (Daily floating loss + closed loss)

8% Max. Initial Deposit Drawdown Scalable to 14% on Trader Stage

Withdraw 80% of your earnings each 14 calendar days; the First payout is eligible anytime after 8 calendar days.