What is Funded Trading Plus?
Funded Trading Plus is a prop firm that offers traders the opportunity to trade with real capital after completing an evaluation or challenge. These challenges assess a trader’s skills, risk management, and consistency over a defined period of time.
The basic process involves:
- Trader Enrollment: A trader purchases an evaluation or challenge, which is designed to test their trading skills.
- Evaluation Process: During this phase, the trader must demonstrate their ability to manage risk and trade profitably under specific conditions.
- Funded Account: Upon passing the evaluation, traders are given access to a funded account with the firm’s capital to trade and earn profits.
- Profit Sharing: Once the trader profits, a profit-sharing agreement dictates the percentage of the profits the trader keeps.
What is a Prop Firm?
A proprietary trading firm or prop firm is a company that provides capital to traders for the purpose of making profits in the financial markets. Prop firms invest their own capital and take on the risk while allowing traders to access this capital for trading. In return, the traders share a portion of the profits with the firm.
The Role of a Prop Firm
The main function of a prop firm is to give traders the ability to trade using capital they wouldn’t otherwise have. In fact, this is particularly attractive for traders who may have the skill but lack the financial resources to trade large accounts. Prop firms typically look for traders who can prove their consistency and risk management, and they allow traders to scale their accounts as they prove their skills.
Funded Trading Plus Payment Methods
Understanding how payments work in Funded Trading Plus is essential for traders who are considering this type of arrangement.
1. Initial Evaluation Fee Payment
For a trader to participate in an evaluation program with Funded Trading Plus, there is generally an initial fee to be paid. This fee covers the cost of the trader’s access to the challenge. The challenge is a way for the prop firm to assess whether a trader’s skills align with the firm’s requirements.
- Evaluation Fees: Traders usually pay upfront for the evaluation or challenge.
- Payment Methods for Evaluation Fees: Funded Trading Plus prop firms accept payments through credit cards, PayPal, and bank transfers, cryptocurrency.
2. Refunding the Evaluation Fee
Funded Trading Plus prop firms refund the evaluation fee to traders who pass the evaluation and receive a funded account. This means that if a trader succeeds in the evaluation process, the firm reimburses the initial payment, creating a “no-risk” entry point for the trader.
- Refund Model: The evaluation fee is refunded once the trader receives a funded account.
- Reimbursement Process: The firm can reimburse the trader directly to the original payment method or as credit toward the trader’s future trading.
3. Funded Account Payment and Capital Transfer
Once a trader successfully passes the evaluation, the firm awards them a funded trading account with real capital to trade. The firm typically delivers the funded accounts after the trader passes the challenge, and the account size can range from thousands to millions of dollars, depending on the firm and the trader’s performance.
- Funded Accounts: The capital provided by the prop firm allows the trader to execute real trades and generate profit.
- Payment Methods for Funded Accounts: Funded accounts are usually provided via an online trading platform. These accounts are not “cash” but digital accounts with access to real funds for trading. The firm may give the trader access to the account through a trading platform like MetaTrader, cTrader, or NinjaTrader, where the trader executes trades.
Payout Methods for Funded Trading Plus
Once the trader generates profits on their funded account, the firm entitles them to payouts based on a profit-sharing agreement.
- Profit Sharing
A key characteristic of funded trading firms is the profit-sharing agreement. Traders typically receive a portion of the profits they generate from their funded account. This can vary depending on the firm and the trader’s performance.
- Percentage Split: After making 20% overall simulated profit in an account, you may move from the 80/20 split to 90/10. Once you reach 30% simulated profit, traders can request the simulated profit split to be changed to 100/0.
- Scaling Profits: As traders prove their skills, some firms may offer higher payout percentages for more consistent and successful traders.
2. Withdrawal Methods
Once a trader accumulates profits, they will want to withdraw their earnings. Funded Trading Plus offers different withdrawal options to ensure ease of access to funds.
- Bank Transfers: This is one of the most common payout methods. Funded Trading Plus prop firms typically send payouts via wire transfer, transferring the funds directly to the trader’s bank account.
- PayPal: Many traders prefer PayPal for its convenience and speed. Prop firms like Funded Trading Plus offer PayPal as an option for withdrawing earnings.
- Cryptocurrency: Funded Trading Plus prop firms offer cryptocurrency withdrawals, such as Bitcoin or Ethereum, as a modern payment method. This can be an advantage for traders who prefer to deal in digital currencies.
3. Minimum Withdrawal Thresholds
Most prop firms will have a minimum withdrawal threshold before a trader can request a payout. For instance, traders may need to accumulate a certain amount of profits before they can withdraw earnings. This ensures that the trader has met the firm’s risk management criteria and that the firm maintains financial stability.
- Thresholds: Prop firms may set a minimum threshold for withdrawals ($50).
- Timing: Traders can make further withdrawals at any time with a minimum of 7 calendar days, and they can only initiate the first withdrawal request on the Premium Program after 7 calendar days of activity.
4. Processing Time for Payouts
After a trader requests a withdrawal, processing time is an important factor. Generally, Funded Trading Plus strives to process withdrawals as quickly as possible. All withdrawal requests will be processed as quickly as possible. The firm processes most payments within 2 hours of the request and completes all payments within 48 hours.
- Bank Transfers: Typically take 3-5 business days.
- PayPal: Usually processed within 1-2 business days.
- Cryptocurrency: Depending on network congestion, cryptocurrency withdrawals can take anywhere from a few minutes to a few hours.
Conclusion
Funded Trading Plus and other prop firms offer an excellent opportunity for traders to access capital and trade larger accounts, sharing profits with the firm in a mutually beneficial arrangement. Understanding how the payment methods and payout processes work is key to ensuring a smooth experience with these firms.
Whether you’re just starting or are an experienced trader, the ability to scale your trading operations through funded programs like Funded Trading Plus offers an exciting opportunity. Furthermore, it can lead to substantial profits, as long as you have the necessary trading skills and discipline.
Frequently Asked Questions (FAQs)
What is a funded trading account?
A funded trading account is an account that is provided by a prop firm to a trader after they pass an evaluation challenge. The account has real capital for the trader to use in trading the markets. The trader earns a share of the profits made from this account.
How much do I have to pay to participate in the evaluation?
The cost of participating in an evaluation varies depending on the firm. For Funded Trading Plus, the price ranges from $100 to several thousand dollars, depending on the size of the evaluation account you choose. The larger the account, the higher the cost of the evaluation.
What happens if I fail the evaluation?
If a trader fails the evaluation, they typically lose the fee they paid for the challenge. However, some firms offer the ability to retake the evaluation for a discounted fee or with modified terms.
How are profits split between the trader and the firm?
Profit-sharing is usually done based on a fixed percentage. A common split is 70/30, where the trader keeps 70% of the profits, and the firm takes 30%. Some firms offer better splits based on the trader’s performance or account size.
How long does it take to get paid after requesting a withdrawal?
The processing time for payouts can vary depending on the withdrawal method. Typically:
- Bank transfers take 3-5 business days.
- PayPal withdrawals can take 1-2 business days.
- Cryptocurrency payouts can be processed in a few hours, depending on network congestion.
Can I trade any asset with a funded account?
Most prop firms allow traders to trade a range of financial instruments, such as forex, stocks, commodities, and cryptocurrencies. However, the available assets may depend on the specific firm’s policy, platform, and regulations.
Are there any risks involved in funded trading?
Yes, there are some risks. If a trader violates the firm’s risk management rules or fails to make profits, they may lose access to the funded account. Some firms also have drawdown limits, which if exceeded, could result in the account being deactivated.
