TheFundedTrader Review 2024: Is it a legit or scam

The Funded Trader Review and Analysis

Overview

The Funded Trader is offering traders a staggering $600K in funding to develop razor-sharp strategies and skills. The Funded Trader is not a traditional prop firm: demo trading is practiced throughout the phases as the idea is virtual trading for real skills. This is not the place for traders looking for fast-track profits: the concept behind the Funded Trader is to develop skills and enable strategy deployment in a simulated market environment. Traders who progress through the Funded Trader program will graduate with newly honed skills, ready to conquer live markets and begin scaling their accounts.

What’s it all about?

The concept behind prop firms is simple: traders lacking capital can seek funding through a prop firm, with some companies offering up to $1 million to trade. The profits from the firm’s capital are shared between the trader and firm, generally with an 80/20 split in the trader’s favor. Prop firms do not distribute funded accounts to any recruit. However, traders wanting to join a firm must pass a series of internal evaluations (sometimes called a “Challenge”) to prove their mettle and get verified. In the case of the Funded Trader Program, it ticks all these boxes bar the fact that the funds in question remain virtual and traders use demo accounts even in the “Funded” stage.

Prop firms are enjoying a stellar rise in popularity and for good reason. Typically, prop firms will represent access to company capital, high-end trading tools and technology, educational resources, and inclusion into a global network of industry connections. Traders joining the Funded Trader Program will find an opportunity to develop new or improve existing trading strategies embodied within an interactive and stimulating framework

The Funded Trader: More than a Prop Firm

The Funded Trader is designed to develop traders’ skills and increase their confidence. Their mantra is simple: with the right support, mindset, tech tools, and smart risk management, anyone is capable of being an excellent and highly profitable trader. The platform brings together Challenges, an interactive “Treasure Hunt” app various competitions and Leaderboard initiatives to hone trading skills and encourage stimulating competition among their members.

In the same way that prop firms offering funding appeal to undercapitalized traders, the Funded Trader is the go-to platform for traders who lack the right resources to level up their trading game.

Their mission is to be the go-to portal of resources and community support for talented traders around the world. The Funded Trader Program was set up for the many traders facing the all-too-common roadblock of lacking or limited resources for developing or improving skills before entering the live markets. Traders of all ilk and strategy preferences are catered for, with a wide range of funding options and starting account sizes.

The draw of the Funded Trader Program extends beyond trading tools and resources alone; the platform is intended to function as a collaborative network of like-minded traders, a professional cohort of rookies and experts alike.

Funded Accounts

What are funded accounts?

To qualify as a funded trader, you need to prove your ability to generate consistent profits while managing risk effectively. The Funded Trader assesses applicants using three stages:

• The Challenge (Phase 1): This initial phase will require traders to meet a virtual profit target while adhering to specific rules. Traders execute simulated trades within a demo environment designed to mimic the real market, complete with latency and static slippage based on order size. If you meet your goals and trading criteria in Phase 1 you will get access to your Phase 2 account within 24 hours.
• Verification (Phase 2): Phase 2 is known as the validation stage. Once again you will need to prove your prowess in the markets by hitting your virtual profit target and following the account rules. Just as in Phase 1, you will be executing simulated trades within a realistic demo environment. If you are successful in this Phase, then once your results have been verified you will progress to being a Funded Trader!
• The Funded Trader: Even at this final stage, you will still need to display sound risk management practices and consistent profits. If you manage this, you will receive up to 90% in virtual profits. Your performance will be evaluated every three months, and eligible traders can scale up to $1,500,000 in a virtual account balance. The profits may be virtual but remember that when trading with a funded account the platform is a perfectly accurate simulation of the real market, incorporating real order book quotes from various liquidity providers. Therefore, just as in live markets, periods of high volatility may result in increased slippage, and strategies that worked for you in Challenge and Verification phases may not necessarily yield the same results in the Funded phase.

Challenge Overview

TFT Challenge review

The Funding Kingdom: Build Your Empire

When it comes to gamifying trading, the Funded Trader Program has knocked it out of the park. The Challenges are represented as a chance to “Build Your Empire.” Through a series of demo accounts traders can access up to $600K in funding, unlocking benefits and adding new skills along the way. There are four challenges to choose from:

• The Standard Challenge
  • Unlimited Days
  • Phase 1: 10% Profit
  • Phase 2: 5% Profit
  • Maximum Daily Drawdown: 5%
  • Maximum Total Drawdown: 10%
  The Funded Trader Program Standard Challenge gives traders unlimited days to achieve specific profit targets. In Phase 1, the goal is to reach a 10% profit target, and in Phase 2, it is 5%. Traders must stay above a maximum daily drawdown of 5% based on equity or balance, (whichever is greater) when the day changes at 5 PM Eastern Standard Time. If you choose the Standard Challenge, remember that you need to remain above a maximum total drawdown of 10% from the initial account balance. (There is an option to acquire a higher drawdown of 6% daily and 12% overall.)

  In this Challenge traders need to trade at least three days. If you smash your profit targets and keep your trades within the Challenge parameters, you will receive a funded account eligible for a payout 21 days after placing their first trade. For beginner traders or those wanting to familiarize themselves with the Funded Trader Program this is an excellent launchpad.

• The Royal Challenge
  • Unlimited Days
  • Phase 1: 8% Profit
  • Phase 2: 5% Profit
  • Maximum Daily Drawdown: 5%
  • Maximum Total Drawdown: 10%
  • Allowed: EAs, weekend holding, news & copy trading

  The Royal Challenge is a two-phase evaluation program. Like the Standard option, the Royal Challenge allows traders unlimited days to reach their profit targets of 8% in Phase 1 and 5% in Phase 2. Traders must make sure to stay within 5% daily and 10% overall drawdown limits and trade for a minimum of 5 days. If there were one word to describe the Royal Challenge, it would be “flexible.” For example, if you prefer pressure-free trading then the absence of a time limit in the Royal Challenge may appeal as it lets you trade at your own pace. Another flexibility bonus is that there are no lot size limits in this Challenge which therefore accommodates a range of trading styles. Expert advisors and copy trading are permitted, as is weekend holding, and there are no restrictions on news trading.

  The Royal Challenge was crafted to empower traders to elevate their trading game within wide confines of freedom and flexibility.

• The Rapid Challenge
  • Payout from 20 days
  • No Minimum Trading Days
  • Scaling if 10% Profit/Payout Cycle

  Rapid by name, rapid by nature. The Rapid Challenge is the fastest TFT evaluation program, in which traders could get their first payout in as little as 20 days. If you plump for the Rapid Challenge, then you simply select your starting capital and then trade towards the specific targets in Phase 1 and Phase 2. Why is it Rapid? Unlike the other options, the Rapid Challenge does not have a minimum trading day requirement. Rapid is as rapid does: if you are quick enough you could complete each phase in just one day! Traders are eligible for their first profit split after 14 days and there is the option to scale your account if you hit a minimum 10% profit on each payout cycle. The rapid challenge is best suited to skilled professionals who have their eyes on accelerated capital and scaling opportunities without the wait.

• Knight’s Challenge

  Finally, there is the “Knight’s Challenge,” a one-phase program in which traders have no time limit and the option to use Expert Advisors.

Scaling Opportunities at the Funded Trader Program

Like many prop firms, the Funded Trader encourages continual progress and healthy competition among their traders by offering scaling opportunities. In other words, with the right performance, consistent profits, and appropriate risk management you could gradually increase your account size (and therefore potential payouts). The Standard Challenge and Royal Challenge offer scaling on account review every three months: if a trader has met their targets for at least two out of the last three months (and meet specific criteria), they will be eligible for a 25% increase on their starting account balance.

Scaling requests are processed during payouts and profit withdrawals as to increase your balance you need to reset it to the starting amount. Traders on a Rapid Challenge account can also opt to scale up if they earn over 10 percent of the initial balance in a profit split. This would earn them an additional 10 percent. Traders can continue scaling their accounts upon reaching at least 10 percent of the initial balance. Moreover, two withdrawals must take place during the three-month period. The Funded Trader scaling plan gives traders the potential to grow their accounts up to 1.5 million USD and qualify for 90 percent payouts.

Pros and Cons

Let’s talk about the good stuff…

The Funded Trader Benefits

Prop firm challenges, also known as trading challenges or evaluation programs, are increasing in popularity for several reasons.

• Access to capital: Challenges provide an opportunity for traders to prove their skills and abilities, and potentially gain access to larger amounts of capital for trading. This can be especially attractive for traders who have limited access to funding or who may not meet the minimum requirements of traditional trading firms or banks. The Funded Trader may not distribute real funds that could be withdrawn into spending money but nonetheless enables an invaluable experience of handling larger funds and the responsibility and potential profits that would come with increased position sizes.
• Practice: The Funded Trader Challenges (assessed in more detail in the next section) present a low-cost way for traders to gain exposure to the markets and test their strategies in a simulated live trading environment without risking their capital. The Challenges will impose trading criteria and performance targets varying in severity that are designed to help traders develop discipline and consistency in their trading. The long-term mission is that by achieving success in a virtual ambiance, traders can be confident and best prepared for real gains when their own collateral is on the line.
• Support: Prop firm challenges often provide traders with access to advanced trading platforms, analytics tools, and professional support and guidance, which can help traders to improve their trading skills and performance.
• Flexibility: Lastly, prop firm challenges can be an attractive option for traders who value flexibility and autonomy in their trading, as they typically offer greater control over trading strategies and decision-making compared to traditional trading firms or banks.

When assessed alongside competitor programs, the Funded Trader offers a host of extra perks and benefits you do not find across the board. These include:

• One-Step Challenge available
• Free Competitions
• Simulated Crypto Trading on Weekends
• Expert Advisors and Managers allowed
• Free Trials on offer
• Challenges with No Minimum Trading Days
• Challenge with First Withdrawal after 14 Days

What is not to love about the Funded Trader?

It is in the big print, but it is worth stating the obvious: the Funded Trader offers virtual funds and demo accounts only. All trading and liquidity are simulated only, and even in the Funded phase traders will not be able to access or withdraw real money.

Meet the CEO

Angelo Ciaramello is the Co-Founder and CEO of The Funded Trader, a position he assumed after honing his expertise as an Analyst in Financial Systems Innovation at Bayer. His educational journey includes attending Rutgers University, where he presumably cultivated the skills and knowledge that have contributed to his successful career in the finance industry.

In 2022, Angelo Ciaramello was honored to be recognized as one of the Top 25 Financial Technology Leaders of New Jersey, a testament to his outstanding contributions and leadership in the finance and technology sectors.

Frequently Asked Questions (FAQs):