You can trade Forex either as a solo trader or a funded trader. Many beginners opt for solo accounts to hold and trade foreign currencies (Forex); however, a solo account can limit market opportunities, as traders need to put up their own capital. That’s why funded trading, on the other hand, lets you leverage the market without risking your own capital. Every trader aspires to earn a funded account, where they get to work with a reputed prop firm. That’s how funded traders get paid, after all: they help trading companies make higher profits; whatever profits they earn are split between the prop firm and the trader.
But what does this look like in practice? How do funded traders and prop firms split the dividends exactly? Let’s dive deeper into how funded traders get paid, and how much you can expect to earn.
Payment Methods for Funded Traders
As a funded trader, the prop firm will set the rules for you to trade—and most of the time, they give trusted traders a free hand. So, with trading experience, a tested strategy, and access to large amounts of capital, it becomes easier to generate profits.
Some trading companies give a fixed monthly income, meaning you generate consistent money every month to cover your expenses. However, this is not scalable. Another payment method is paying fees and commissions to the traders. As the trading market is dynamic, the number can vary from firm to firm.
But no matter which base method you get paid by, almost every prop firm uses some sort of profit split method to pay funded traders too—sometimes at a clean 50/50, and otherwise at more weighted amounts. The Funded Trader offers a max profit split of up to 90/10.
Once funded traders achieve profitability, they can request payouts in the form of cryptocurrencies or bank transfers via Deel.
Profit Sharing in Detail
Let’s explore the profit-sharing process more extensively to help you understand how exactly funded traders can expect to get paid.
The usual structures include a split of 50/50, 75/25, 80/20, 90/10, or some other similar formulation. The following factors can further affect your profit sharing:
- In order to be eligible for a funded account, you’ll first need to pass a prop firm challenge—the main idea being to understand if you can consistently achieve profit targets and abide by the drawdown rules
- The amount of profit you can earn will depend on your skill and risk management strategy
- The bigger your funded account, the larger your payout can be
- If you make profit consistently, you will be eligible for a scaling plan
- With consistency, you can also win bigger funded accounts—which means access to more capital and higher leverage and thus, more payout
- Your payments are “risk-adjusted,” meaning if you have a high drawdown, your return will be lower—learn more about risk-adjusted returns better here
Aim for consistency rather than high percentage gains; this will maximize your profit.
Attempt More Challenges for More Rewards
Even if you are already a funded trader, you can still attempt more challenges to win rewards. We welcome all traders to attempt our challenges. Each challenge consists of a one- or two-phase evaluation process, with a different profit target and drawdown percentage for each phase. If you are able to pass the challenge, you can request a payout—and your challenge fee will also be refunded.
What’s more? You’ll get to manage another funded account. For example, one of our funded traders manages multiple accounts successfully. He focuses on a different currency pair for each account; this way, he is able to streamline his strategy for each account.
Growth Potential as a Funded Trader
The growth horizon of a funded trader is much better than self-trading. Traders can request for partial withdrawals to get paid, which keeps at least some money in your funded account to grow further with each profitable trade.
Prop firms also give you high leverage, letting you trade large positions and magnify your returns.
The biggest benefit, however, is the scaling option. For instance, say you start with a $100,000 funded account. If you are consistently profitable, you can request to manage a larger account. We review the Standard and Royal Challenge funded accounts every three months; in order to be eligible for scaling, you’ll need to meet these criteria:
- You must be profitable for at least two of the three months
- The average return must be 6% over the three-month period, or
- The average return must be 2% each month during the three-month period
If you meet these criteria, you will be eligible for an account size increase equal to 25% of your original account balance. Learn more about account scaling here.
Considerations for Choosing a Funded Trading Firm
There are several prop firms that offer attractive conditions to funded traders; however, how funded traders get paid ultimately depends on the compensation structure. One of the best ways to choose a prop firm is to see if it aligns with your goals and strategies, as some firms may not mesh with your personal trading strategy. So make sure you understand their rules before applying for a funded account!
You should also check if they give opportunities to scale the account. Only work with firms that have a reliable and scalable system. Another key factor whether the brokerage firm is regulated. These firms offer better services in terms of customer support and others.
Lastly, choose a funded trader program where you won’t have to pay recurring fees. Some programs charge a subscription fee between $5 to $20 per month.
Exclusive Benefits with TFT’s New Program
The Funded Trader has recently launched The King’s Program, giving exclusive new benefits (and bragging rights) like none other. However, this program limited to our most successful traders. This means you’ll have to show consistency and discipline to qualify!
Let’s take a brief look at some of the new perks of The King’s Program.
- Withdraw profits at any time with Deel or Crypto: There is no minimum time limit for request payouts. You can ask for a withdrawal at any time, with no limitations on amount or frequency. If you want to make a withdrawal every day, you can do so!
- Shorter processing times: Your payouts will be processed the same day, within an eight-hour window during EST working hours.
- Ninety percent payouts: We set your profit split percentage permanently to 90%. This will apply to all payout requests.
Find out more about how to qualify for The King’s Program.
Choose The Funded Trader Program for the Highest Payouts
If you’re serious about generating consistent profits, then you should aim to become a funded trader. Based on our experience, we find that you can expect to take home at least 5% of your profits per month from trading. This means, if you start with $100,000, you can expect to make around $5,000 per month!
Here’s why you should consider The Funded Trader:
- Our average payout is $7,000
- You can start with a funded account as low as $5,000 and scale up to as high as $1.5 million
- We rank among the most trusted prop firms
Start your funded trading journey with TFT to get the best results—and earn money within the first month!
