Novice traders often find themselves caught in a setback loop. They struggle to earn significant profits due to their lack of experience, yet their limited starting capital causes this inexperience in the first place. Breaking free from this loop requires good planning and careful consideration of available resources.
This is when funded trading programs enter the stage, offering both novices and seasoned traders the essential options to support their trading ventures.
How Much Can You Earn as a Funded Trader?
Under the FX2 Funding program, a trader can receive up to 85% profit on the amount traded. Since the number of funding depends on many factors (trader efficiency, risk level, trading account size), profits also vary.
Funded trading programs do not guarantee or make any specific profit margins. The main goal of any program is to create a trader’s reputation and prepare traders to receive stable profits in real trading conditions. Moreover, most trading programs do not guarantee profits since trading in the financial market is risky.
Nevertheless, with several conveniently funded accounts available, including starter and intermediate ones (providing $10,000 and $25,000 funds respectively), a novice trader can minimize risks and practice trading at their own pace.
How To Get Funded by a Funded Trading Program?
To qualify for a funded account, a trader must demonstrate a positive gain (usually, 10%) and get approval for their trading account, whether it is a $10,000 starter or a $200,000 master program.
However, if you are not fully confident in your trading skills, it is highly advisable to start with the smallest funded account and slowly progress towards those options that best suit your skills and financial ambitions.
In practice, to open a funded account, you need to go through several steps:
- Register on the prop company’s website and go through verification to verify your identity.
- Select a suitable account – typically, prop companies (the ones that provide funded trading programs) offer several accounts or tariff plans for the user to choose from.
- Pass the test – demonstrate a 10% gain in trading while adhering to the company’s trading rules. You will need to get approval on your trading account to continue trading.
If a trader does not have enough skills or is not confident in his abilities, he can take an educational course first. This can be done on their own and for free, or with the help of specialized training programs and mentors.
The Bottom Line
It doesn’t take long to get funded and start trading. In essence, you only need to have a desire to learn, progress, and a good will to follow the prop firm’s trading rules.
On the other hand, the potential for earning through funded trading programs is huge. Your profit margins can reach 85% of the amount traded, and your next logical option could be to scale up your trading business and increase your original account size.