A question commonly faced by seasoned traders is whether to trade using their own private funds or trade using a prop firm’s capital to trade instead through means of a forex funded account. Both options are valid and have their own merit but the majority of seasoned traders have opted to trade using a forex funded account. We shall discuss this in more detail below:
Our capital, your skills
Firstly and most importantly is understanding what exactly a funded account or a funded account forex is. Traders who use a funded account essentially trade using their techniques and knowledge but using someone else’s capital. Prop firms are the entities that offer this service to retail traders in exchange for a small portion of the profits made while covering the losses.
Funded forex accounts have been a game changer as it breaks the heavy capital restriction imposed on traders without funded forex accounts. Majority of retail traders would find it exceedingly difficult to spend thousands of dollars with no certainty of profit. A Funded account forex can help retail traders grow without them risking too much capital.
If you're a smart prop trader but need more capital, funded accounts forex let you trade bigger positions. This is a game-changer if you know what you're doing but need the bankroll to back it up. You can make bigger moves and, hopefully, bigger profits.
Traders who are confident in their skills might have to work for a long time to build up enough capital to trade with the account size they wish. Funded accounts forex give these skilled traders the luxury of choice by offering comparatively affordable prices than if they decided to trade as an independent entity without a funded account forex.
No matter how good a trader you are or how strong your mental fortitude is , it is very easy to feel overwhelmed by feelings of anxiety or stress with thousands of dollars at stake based on the outcome of one trade. Funded accounts forex help ease this fear by eliminating all the risk of losses in case the trade fails. Traders who opt to get funded thus have a Psychological edge over typical retail traders.
Funded account forex programs come with rules pertaining to risk management. Majority of accounts have a maximum daily drawdown and a maximum overall drawdown limit. This may seem like a buzzkill at first but it has been implemented for the benefit of the trader by acting as a safety net that prevents quick loss of the entire portfolio.
The most important demerit of a funded forex account is the fact that a portion of the profits earned by the trader goes to the prop firm. This amount typically ranges from 70% - 90% in favor of the trader
Another aspect of trading with a funded account forex is that in order to start the journey as a funded trader , traders must first pass and clear the evaluation criteria which can be reasonably challenging. A small nominal fee will be lost upon failure to pass the challenge.
When you device to trade using a funded account forex you are subject to any and all restrictions and rules that entity or firm might enforce. This leads to a loss of freedom due to more rigidity.
While not risking your money can be a relief, trading with a funded account comes with performance pressure. If you don't hit specific profit targets or violate risk rules, you could lose the account, which adds a different kind of stress to the trading process.
So, you're convinced that funded forex accounts are worth a shot, but where do you start? Axe Trader is an excellent choice if you're looking to go down this path. Here's why.
Axe Trader offers a smooth and straightforward evaluation process, making it easier for skilled traders to get funded. The profit split is competitive, allowing you to keep a solid majority of your earnings. Plus, the firm has some of the most trader-friendly rules in the industry, giving you the flexibility to trade your way.
With Axe Trader, it's not just about giving you the money—it's about setting you up for success. If you're serious about growing as a trader, Axe Trader's funded forex accounts could be the stepping stone you need.
Ready to trade smarter, not harder? Give Axe Trader a look and see how a funded account could change the game for you.
So, are you Ready to take your trading to the next level? Traders get the funding you need with Axe Trader. Follow us on our socials to keep upto date with promos, and new updates to our business operations. Here’s all our Axe Trader social handles:
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Axe Trader Ltd. offers fee-based assessment services and facilitates connections with third parties for Potential Traders who meet specific criteria defined by Axe Trader (“Eligible Traders”). Our services involve evaluating the simulated trading performance and results of Potential Traders in certain virtual off-exchange foreign currency instrument pairs (“Forex”) and/or selected virtual contracts for differences (“CFDs”). We conduct data analysis based on simulated trading activities in demo accounts traded by Potential Traders through Axe Trader’s platform, utilizing data provided by a third-party broker. Our methods and techniques are established and maintained by Eligible Traders.
Axe Trader grants access to a third-party’s simulated trading platform, related demo accounts, and simulated trading information for the purpose of conducting data analysis and assessment services. This third-party offers Eligible Traders a simulated trading environment and an opportunity to earn a share of virtual trading gains generated in demo accounts, as specified in their agreement with the Eligible Trader.
Additionally, Eligible Traders acknowledge and agree, as outlined in their agreement, that the third party has the right to collect and use the data obtained from Axe Trader for their own benefit, including the option to replicate trading activities based on this data. The third party also retains the right to incorporate any information received from Axe Trader regarding Eligible Traders into actual live market trading, which they will conduct for their own account and at their own risk.
Theoretical performance outcomes should not be considered as reflective of real trading experiences and are typically formulated with the advantage of historical knowledge, which may either overstate or understate the influence of specific market factors such as limited liquidity and price fluctuations. Moreover, since theoretical trading does not carry financial risk, it cannot fully encompass the impact of various risk-related elements, including an individual’s or advisor’s capacity to manage losses or adhere to a specific trading strategy when confronted with trading setbacks.
