Traders worldwide are getting behind a new avenue of leverage: funded accounts. Otherwise known as proprietary trading firms or “prop firms” these platforms offer profitable traders the chance to trade with accounts of up to $200K with various profit shares in the trader’s favor. As interest in prop firms grows, so do the number of funded account challenges. In these reviews, we will examine each firm under a series of metrics to assess which platform is best for you.
Earn2Trade is carving a unique path through the forest of prop firms. Their funded account challenge is pitched not as a contest to reward the most consistently profitable traders, but more of an educational academy. Traders are invited to join the mentorship program and be trained in professional trading. Titled the “Trader Career Path” the Earn2Trade funded account is lauded as being tiered to suit the varying abilities and background experience of a wide variety of traders.
What are funded accounts?
Before we launch into the nitty gritty of this particular funded account challenge – we should check the fundamentals. What exactly does proprietary trading mean? Prop firms are a mutually beneficial agreement between trader and broker, whereby the former seek low-risk leverage from the latter upon passing a series of prerequisite tests or “challenges.” Only high-earning and consistently profitable traders pass the funded account challenge and can then be rewarded for their efforts with up to a quarter of a million dollars funding in which the majority of risk is assumed by the broker, and profits taken home by the trader.
Earn2Trade Challenge review
There is an initial examination that tests the trading proficiency of applicants and lays the foundation for risk management. Traders who pass the test will be brought into the prop trading firm and furnished with funded accounts to grow based on prerequisites and trading objectives. The scaling career path aims to build up traders from beginners to experts and the funded accounts grow accordingly.
Novice traders could take the Gauntlet Mini, an examination that is focused on intraday traders. This challenge takes place over 15 days, after which successful contestants will be funded and begin trading live markets. The Gauntlet Mini is suitable even for first-time traders, as the examination includes a beginner crash course. Like many of the funded account challenges, the Earn2Trade Gauntlet Mini allows traders to retrospectively assess their performance through advanced journaling and trading metrics.
There are ways to customize the contest to suit personal preferences. When signing up for the Gauntlet Mini, traders are asked to choose their account size, with options ranging from $25,000 to $150,000. Regardless of the account size, applicants are then challenged to prove that they can be consistently profitable over a trading period of at least 15 days. The conditions of each account will vary depending on the starting capital.
Requirements such as profit goal, EOD drawdown, the daily loss limit, and the monthly subscription will all increase as the trading capital grows. For instance, the base account (starting size of $25,000) will have a profit goal of $1,750, a daily loss limit of $550 and the monthly cost is $150. When traders enter the top tier account (virtual trading capital of $150,000) these exigencies move up to $9,000, $3,300, and $350 accordingly.
Traders looking for more flexibility may be more interested in the other evaluation offered by Earn2Trade. The Gauntlet offers “maximum trader flexibility.” Unlike the Gauntlet Mini which imposes a strict management regime over approximately two weeks, the Gauntlet has minimum rules and tests applicants for 60 days. Contestants can trade how they want: the ultimate objective is to reach a 10% profit target and 10% maximum drawdown by the end of the 60-day period.
Candidates can choose their stop losses, daily losses, and weekly limits and implement any desired strategy. They will have to present their approach by uploading a Trading Plan into the dashboard. The idea behind the Gauntlet is to reward diversity. Earn2Trade recognizes that not all traders will follow the same path to success and therefore the rules and stipulations are minimal. Traders wishing to enter the Gauntlet will be asked to pay a one-time entry fee of $429 after which they will have 72 hours to set up their account. Now, we’ll give you an overview of the pros and cons of the Earn2Trade Challenge before exploring these features in greater detail further on.
Let’s talk about the good stuff …
Whether traders enter the Gauntlet Mini or the Gauntlet, the funded account challenges offered by Earn2Trade are impressive. The minutiae of profit goals, EOD limits, and fees do not differ widely from the other prop firms on offer. The educational approach embedded in the Earn2Trade challenges may come from their marketing department, but newbie traders will certainly benefit from the beginners' crash course and the journaling features.
The underlying tech used by Earn2Trade is reassuring: NinjaTrader is a reliable and powerful trading platform with over 1,000 third-party apps and add-ons and advanced analytics, and the FinMark Systems is computing-light and suits traders who want a minimal digital footprint on their systems. The company has stellar reviews from traders, with customer support and learning materials being two of the most appreciated features. Kudos to Earn2Trade, they appeal to beginners with the Mini version and inbuilt beginners’ course, while bigger fish will be attracted to the flexibility of the Gauntlet challenge; with no daily loss or contract size limits and the ability to hold overnight trades.