Since the pandemic, we all stayed a home for the most part. Many people turned to retail trading and outdid Wall Street, including forex traders. Funding for traders became a popular idea as people realised their small accounts grew exponentially, this applied even more people looking for a forex funded account as the forex market is the most liquid and active capital market.
Taking on what was said earlier, many opened small accounts with the stock markets because there’s a myth among the average joe that the stock markets go up forever. (You’d think after all these years they’d learn!)
The more astute traders opted for the forex markets because it is more liquid and open for much longer and less susceptible to gappage. But as it has been written before on City Traders Imperium, because literally no-one likes to debunk this outrageous myth directly: small accounts will not make you rich. (This was touched on twice!)
The general rule is this, if you want to make serious money in the markets, you must trade with serious money. There is a reason why fund managers have capital requirements alongside their management fee. Some of the best funds in the world require higher fees.
So, I repeat, and I want you to say this with me: Small. Accounts. Will. Not. Make. You. Rich.
Trading with a 1k account, or a 10k account will not result in you having models and bottles by the end of the year.
Now that we have managed your expectations, these accounts are usually used to establish a track record to obtain funding from investors. Usually around the 10k mark. But it is tough as it is hardly seen as large accounts require different mindset altogether. Especially a market as complex as currencies; forex.
Now when people ask what funding for traders opportunities do we provide? We point them towards a forex funded account.
Funded accounts tend to allow you to access larger capital than you normally would have access to without having to worry about saving lots of money over a long time. You save that time and jump to the account size.
Even better, you trade under fund manager conditions, in other words, institutional conditions. So, should you desire to seek external funding, it makes you look better. Think of it as your “funding for traders passport”, so to speak.
Many funding for traders programs have an exponential growth system, wherein you hit key milestones and your account often doubles. Picture this, with a funded account during the COVID panic, you could have arguably hit the milestones quite rapidly if you played your cards right.
You could imagine many people in Dubai right now with their yachts avoiding COVID.
Yes… and no. There are things you must watch for.
Each funding for traders provider will have their own terms, such as conditions on:
- Your max drawdown;
- Profit split;
- Whether your account gets affected by profit payments;
- When you get paid;
- What you can trade;
- When you must close trades;
- Max exposure;
- Some pay require monthly fees from you while others may require a one-time payment only
- And so on
As with any funding for traders program, it is absolutely vital you read the terms and conditions then ensure your strategy can adapt to them. Further, you are getting fair terms. Providers should be happy to clearly explain convey their terms to you clearly upon request.
Moreover, they will be happy to point you to a directory of successful traders, or let you speak to some if you would like.
These days pandemic fatigue is a real phenomenon. Mental health being an important conversation nowadays and psychology is paramount importance to trading success. One thing you should look for is how providers look after their traders. Your funding provider must ensure their aftercare looks after their trader traders to ensure your profitability.
After all, if you profit, they profit. Naturally, the onus is on you to perform, trading is very much a performance-based role and the meritocratic nature of key milestone is indicative of this. However, you want to know that there is a Forex funding company to help you develop if required.
So, choose wisely and profit!