Questions and Answers

Funding companies typically require traders to pass a test where they demonstrate their ability to manage risk and generate profits. These requirements include reaching a profit goal without exceeding a maximum drawdown. It is also common for traders to be required to trade for a certain number of days to prove consistency.

There are various types of funded accounts based on initial capital, drawdown rules, and commissions or fees. Some accounts allow trading with lower leverage but more freedom in risk management. Others offer higher capital but have stricter conditions. The choice depends on your trading style, experience, and risk tolerance.

Maximum drawdown is the total limit of losses you can accumulate during the life of the account. Daily drawdown is the maximum allowed losses for a single day. Both are strict limits, and exceeding them may result in disqualification. It is crucial to manage both carefully to avoid penalties or losing the account.

Recommended trading strategies usually focus on consistency, such as controlled scalping or swing trading with moderate targets. Avoid high-risk strategies like news trading or impulsive trades. Focus on strategies that allow for consistent profits while keeping risk under control at all times.

Benefits include access to capital without needing to invest your own money and the ability to keep part of the profits generated. Additionally, by trading with other people's money, you have the opportunity to develop discipline in risk management, which can improve your trading skills.

Common mistakes include not following account rules, over-leveraging, impulsively trading to recover losses, and not planning each trade adequately. These mistakes often lead to violations of drawdown limits, which can result in losing the funded account.

Yes, it is possible to live off trading with funded accounts, but it requires great discipline and a solid trading strategy. It is essential to have a well-defined risk management plan and trade consistently to achieve sustainable profits over time. It is also advisable to diversify income and not rely solely on a funded account for financial stability.

Earnings with a funded account vary widely depending on the type of account, the funding company, and the profit-sharing percentage. On average, experienced traders can generate between 5% and 20% monthly on the funded capital. However, these returns depend on the risk taken and trading consistency.

When choosing a funding company, evaluate factors such as drawdown rules, profit-sharing percentage, fees, customer support, and available trading platforms. It is also helpful to research the company's reputation in the trading community and ensure that their terms are clear and flexible so that you can trade properly.

Funded trading accounts generally require an initial fee to cover the evaluation costs. Some funding companies also charge a monthly fee to keep the funded account active. It is important to evaluate these costs, as they can vary considerably between companies and affect your net profits in the funded account.

Most funding companies offer between 70% and 90% of the profits generated in the funded account to the trader, while the rest goes to the funding company. However, this percentage can vary depending on the company and the type of funded account. It is advisable to choose a funded account that offers the best possible profit-sharing to maximize your earnings.

Yes, if a trader exceeds the drawdown limits set for the funded account, either due to accumulated losses or a daily loss, they are likely to lose access to the funded account. Funding companies implement these limits to protect their capital, so disciplined risk management is crucial to avoid losing access to the funds.

Although prior experience is not always required, it is highly recommended to improve your chances of success. Funding tests can be demanding, and a funded trading account involves trading with real company money, which requires mastery in risk management and a well-defined strategy. If you are a beginner, consider practicing in demo accounts before applying for a funded account.

When choosing a funding company, evaluate factors such as drawdown rules, profit-sharing percentage, fees, customer support, and available trading platforms. It is also helpful to research the company's reputation in the trading community and ensure that their terms are clear and flexible so that you can trade properly.

Funded trading accounts generally require an initial fee to cover the evaluation costs. Some funding companies also charge a monthly fee to keep the funded account active. It is important to evaluate these costs, as they can vary considerably between companies and affect your net profits in the funded account.

Most funding companies offer between 70% and 90% of the profits generated in the funded account to the trader, while the rest goes to the funding company. However, this percentage can vary depending on the company and the type of funded account. It is advisable to choose a funded account that offers the best possible profit-sharing to maximize your earnings.

Yes, if a trader exceeds the drawdown limits set for the funded account, either due to accumulated losses or a daily loss, they are likely to lose access to the funded account. Funding companies implement these limits to protect their capital, so disciplined risk management is crucial to avoid losing access to the funds.

Although prior experience is not always required, it is highly recommended to improve your chances of success. Funding tests can be demanding, and a funded trading account involves trading with real company money, which requires mastery in risk management and a well-defined strategy. If you are a beginner, consider practicing in demo accounts before applying for a funded account.