Stock trading can be a great way to make money. But, it can also be a risky endeavor if you don't know what you're doing. One way to mitigate this risk is to use a funded stock trading account. These accounts provide traders with a set amount of money to trade with. Thus, allowing them to gain experience and build their skills without risking their own capital. In this blog post, we will discuss the best funded stock trading accounts and what you need to know to compare them.
When on the hunt for the perfect funded stock trading account, there are a few key features that you simply can't overlook. For starters, let's talk about the balance of risk and reward. You don't want to be playing it too safe, but you also don't want to be throwing all your chips on the table without a solid game plan. That's why finding an account that offers a sweet spot of risk and reward. Not to mention, some tasty profit-sharing terms and a manageable maximum drawdown, are crucial.
Next up, we have the evaluation process. You don't want to be stuck in a never-ending game of "guess what the account provider wants." That's why it's important to find an account that has a crystal clear evaluation process. Find one with straightforward guidelines for meeting performance requirements and a well-defined path to funding.
And last but not least, let's talk about the big bucks. Some accounts may offer more capital than others. This can be a game changer for traders who want to go big or go home. And let's not forget the account provider's track record of success. You don't want to be the player who always chooses the losing team. Thus, finding an account provider with a solid track record of success can give you an edge.
Here is a list of considerations for a potential trader looking into funded trading accounts:
It's important to understand how the account provider shares profits with traders. After all, this will directly impact your potential earnings. Look for a provider with competitive profit-sharing terms that align with your trading goals.
This is the maximum amount of capital that a trader is willing to lose. It's important to consider this, because it will be a measure of the amount of risk you are willing to take on. A manageable maximum drawdown will limit your losses and protect your trading capital.
Look for a provider that has a transparent and fair evaluation process with clear performance criteria. This will ensure that the process of getting funding is clear. You'll also know what you have to do to be funded.
Consider if the provider offers educational resources to help you improve your trading skills. Webinars, market analysis, and trading strategies can help you make better trading decisions.
A supportive community of traders can be a valuable resource for gaining insights, sharing strategies, and receiving feedback on your trading. Consider if the provider offers a community forum or chat group.
Some providers have a variety of funding options and flexible terms of funding. Therefore, it's important to consider if they align with your goals, and preferences.
FTMO is a trading account provider that offers funding options for traders of all experience levels. They have a two-step evaluation process, starting with the FTMO Challenge. The Challenge is designed to ensure that traders can trade responsibly and manage risk properly. However, it has reasonable rules where the Profit Target is balanced with the drawdown allowed. Remember, the FTMO Challenge stage has a duration of 30 calendar days, with a minimum of 10 trading days required to complete the Challenge.
Additionally, FTMO sets a Maximum Daily Loss, which is defined as the equity of the trading account must not, at any moment during the account duration, decline below 90% of the initial account balance, this is a buffer that should keep the trader in the game even if there were some initial losses.
The Profit Target in the FTMO Challenge is set to 10% of the initial balance. Thus, traders must reach a profit in the sum of closed positions on the assigned trading account anytime within 30 calendar days in the FTMO Challenge.
Overall, FTMO's evaluation process is transparent and fair, with clear performance criteria and a well-defined path to funding, which allows traders to prove their trading abilities and manage risk responsibly. Click here to try FTMO today.
Trader Career Path by Earn2Trade is a funded stock trading program that helps traders structure their journey. They do so by reflecting on their progress over time. The program offers a gradual achievement of different milestones that gives traders a clear roadmap and continuous motivation. This helps a lot on the road to becoming a professional trader. The better traders become, the more trading capital they will get.
The program is different from other funded trading programs as it offers progression. It doesn't lock traders into a single account, but as traders become better, they will be able to upgrade their account to one with more capital.
The program is broken down into 3 steps. First, the evaluation phase, then getting the first funding offer. Finally, they build up and climb the progression ladder. The evaluation phase requires traders to manage an account with $25,000 in virtual capital and follow four pre-defined trading rules and meet three goals.
The program offers a straightforward scaling plan. Traders can progress through a series of Live accounts, including Junior ($25,000), Intermediate ($50,000), Advanced ($100,000), and Senior ($200,000).
Mini Gauntlet, is a fast-track program offered by Earn2Trade. It offers traders the opportunity to prove their trading abilities in a shorter period of time. The program is focused on the evaluation phase, where traders are required to trade a simulated account with a set amount of capital and follow a set of rules for a specific period. However, this program is more challenging and is intended for traders who want to quickly prove their trading abilities and be funded faster.
Overall, Trader Career Path by Earn2Trade is a solid choice for traders who are looking for a funded trading program that offers progression, scalability, and a clear roadmap to becoming a professional trader. Click here to check out Trader Career Path by Earn2Trade.
TopStepTrader is a funded stock futures trading account provider founded in 2012. It has seen rapid growth and is considered one of America's fastest-growing companies. However, the concept is simple, traders who qualify can trade with TopStep Trader's capital, keeping the first $5,000 in profits and 90% of profits after that.
Over 10,000 traders have already qualified for a TopStepTrader funded account in the last two years, with satisfied funded traders and performance coaching available. The program supports 14 trading platforms and is open to traders from 143 different countries. The process starts with a 14-day practice account with $150,000. Or, traders can enter the challenge of TopStep Trader’s Trading Combine to be evaluated for a funded trading account.
The program offers simulated accounts where traders can trade in real-time while their performance is assessed. TopStepTrader supports trading in CME equity, foreign exchange, agricultural, NYMEX, CBOT agricultural, and financial and interest rate futures.
The program has a two-step process, starting with the Trading Combine. Here traders can pay a monthly subscription until they meet the target or cancel the subscription. Overall, TopStepTrader is a solid choice for traders looking to trade a wide range of futures markets and prove their trading abilities for a chance to be funded. Click here to try TopStepTrader today.