September 26, 2023

Funded Prop Trading Account Guide: Do Funded Traders Make Money?


Have you tried saving money for trading before? I wish you could tell me all about it in the comment section I’m really interested, otherwise if not a funded prop trading account is the way to go. You must have invested a lot of time learning your current trading skills, from experts like Al Brooks, Dr. Alexander, and many more. Only to realize lessons alone don’t mean much without enough capital to fund your venture.

Apart from honing your skills and all the intense psychology lessons, Dr. Alexander claims that $6000 for a successful trading startup might not be enough, on that note I fully agree with him. That means you need loads of cash to set yourself up for success.

Contrary to what brokers are preaching, they tell you that your success may start for as little as $10. But for the fact that you are on this page, you understand they lied.

The aim of this post is to guide you to transcend proprietary trading by answering the following questions;

Key Takeaways

  • What is a funded Prop trader
  • How do I get a funded trading account
  • How much do you get funded in prop trading
  • Is proprietary trading risky
  • What are the benefits of being a funded trader
  • How long does it take to become a funded trader

What is a funded Prop trader

A proprietary trader is a market professional who uses the company’s funds to speculate buy and sell opportunities in the financial markets. Larger firms have a huge pool of investors, and they allocate some of these funds to a prop trader. This provides prop traders with huge buying power and leverage to take advantage of market opportunities.

How do I get a funded prop trading account

The funding process occurs in two stages; the evaluation stage and the verification stage. The first stage is where you are provided with a demonstration trading account and asked to meet certain objectives. For example, prove to a prop firm that you can make 10% in one calendar month under predetermined maximum drawdown levels.

Once you successfully pass the first stage you move on to the verification stage, this is where the firm requires documents such as government proof of identification and address. Once the docs check out you are welcome to the team. You will then be provided with login details to a live-funded trading account.

How much do you get funded in prop trading

This differs from firm to firm, but our funding partner Alpha Capital Group starts at $50k, $100k, and $200k. These figures are scalable to a maximum of $2 million per trader. Alpha Capital Group is based in London and provides lots of support for traders on their journey, this includes one-on-one mentoring sessions, a discord community group, and free tools for trading.

Is proprietary trading risky

Trading liquid markets such as Forex, stocks, and cryptocurrencies generally involves high risk. Proprietary firms limit their risk by having traders prove their skills before allocating funds to them.

The risk is significantly low for a prop trader because they go live using the company’s funds rather than going solo. A prop trader is only exposed during the evaluation stage on their journey toward funding, and the fee exposure is 100% refunded when they pass.

What are the benefits of being a funded trader

One major benefit is trading a large pool of capital using leverage. This gets even better because prop traders have an 80% profit share that gets paid directly every two weeks.

Proprietary traders have a big opportunity to trade without emotions, due to the fact that capital is no longer a strain on their mindset.

Furthermore, there are no limits to trading styles, they can even use automated robot systems as long as these stay within the parameters set forth by the firm.

How long does it take to become a funded trader

Some firms allow a minimum of 10 days, but alpha group capital deeply understands the risks and they allow a minimum of 20 days with extremely low risk. The maximum time allowed to complete a challenge is 60 calendar days, which is a long time for a serious trader to generate 10% profit.

Conclusion: Do Funded Traders Make Money

They make more money than solo traders with low capital that’s for certain, but this is a question that only you can answer. For example, if you have $100k trading for yourself you won’t be cashing 80% profit but the whole 100% pie. Can you make money trading for a reputable firm?

We are partnered with Alpha Group Capital, prove to us that you can trade. In return, we will fund you from $50k, $100k, and $200k. The evaluation process is very easy and can take as little as 20 days. To get 30% off on the evaluation process click the “get funded” button below.

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