In the fast-changing world of forex trading, traders face a major challenge in finding enough money to reach their full potential. Funded forex accounts provided by proprietary trading firms solve this problem by offering traders the funds they need to trade without using their own money. This guide explains how to get a funded forex account. It covers how the system works, who qualifies, how to fill out an application and how the top prop firms in 2025 compare.
What Is a Funded Trading Account?
A funded trading account is a money deal where a trading firm gives its cash to a trader letting them work in different money markets, like forex, without using their own money. In this setup the firm takes the trading risks and the earnings get split between the trader and the firm according to a set rule. This system lets able traders use large sums boosting their trade scope furthermore possible gains.
How Does a Funded Trading Account Work?
A funded trading account works in a few clear steps:
- First test: The trader takes a test to show trading skills moreover correct risk handling. The test uses fake trading situations that copy real market events.
- Money given: After passing the test, the trader gets a real account with the firm’s money. The amount depends on the firm’s rules and the trader’s skills.
- Sharing profits: Trading gains split between the trader and the firm according to set figures. A usual plan gives the trader up to 90 % of the gains, while the firm keeps the rest.
- Following risk rules: The trader must keep to the firm’s rules for risk, such as daily loss limits, maximum drop limits next to trade size caps. Breaking these rules can end the account.
Funded vs. Regular Trading Accounts
It is important for traders to know the differences between funded trading accounts and regular trading accounts before deciding:
- Money Supply: In funded accounts, the firm gives the trader money to trade, which lowers the trader’s risk with money. In regular accounts traders use their own money and they may lose it.
- Exposure to Loss: The trader’s own money is at less risk in funded accounts because the firm pays for losses within agreed limits. In regular accounts traders must pay for every loss.
- Sharing Gains: With funded accounts, traders give part of their gains to the firm. In regular accounts traders keep all their gains but must cover all losses.
- Evaluation Needed: To use a funded account, traders must pass a careful test to show they can trade well. Regular accounts do not require such a test and anyone may start with their own money.
Who Can Get a Funded Account?
Requirements differ among companies but most need:
- Proof of Trading History: They look for traders who have shown success in trading using past records or real market experience.
- Skill in Cutting Losses: Understanding in addition to using safety measures matters because companies care about keeping money safe and making gains.
- Passing a Skills Test: Applicants must complete the company’s assessment that checks trading ability, steadiness along with careful use of risk.
- Country and Legal Matters: Some companies limit participation based on the applicant’s home because of law limits. Check each company’s rules before you apply.
How to Get a Funded Forex Account
Securing a funded forex account takes clear steps. Prepare well fill in your application next to show you perform well. This is a simple guide:
Requirements for Getting a Funded Account
- Detailed Trading Plan: Write a clear plan that shows your trading methods, how you manage risks, in addition to your goals. This plan shows you know what you do and helps funding companies see your skills.
- Steady Trading History: Keep a solid record of your trades that proves you make money and handle risks. You can use a trading diary or simple tools to show this record.
- Risk Management Rules: Use safe practices by setting limits to stop losses, decide how much you risk per trade and handle leverage the right way. Funding companies like traders who protect money and try to earn profit.
- Mental Readiness: Get ready to deal with tough moments in trading, such as losses and stressful choices. A calm mind is important for winning traders.
Steps to Apply for a Funded Account
Check furthermore Pick a Trading Firm: Look at different firms moreover choose one that fits your style, gives you a fair share of profits and uses clear tests. Think about the firm’s name, its funding plans next to the support it gives.
- Join the Test Program: Sign up for the test program, which might cost some fees. Make sure you know what the firm needs, what rules you must follow and what goals you must hit.
- Pass the Test Phases: Show your trading skills by following the firm’s rules and reaching the profit goals while keeping risks low. This test shows you can trade well and safely.
- Read moreover Agree on Terms: If you pass the test, look over the funding agreement that explains the rules, profit sharing as well as how things work. Make sure all is clear before you agree.
Begin Trading with the Funded Account
Once your application is accepted and you get your funded trading account, you can trade for real. At this point:
- Follow the Trade Rules: Each firm has rules about risk limits, drops in account value next to trade sizes. Not following these rules may cost you your account.
- Stay Steady: Trading firms prefer traders who earn money steadily over those who take big risks for quick gains.
- Withdraw Money on Time: Most firms let traders take out profits regularly. Knowing the firm’s rules lets you get paid on time.
Choosing the Right Prop Firm for You
Many firms offer funded accounts. You must look at several points before you choose.
Factors to Consider When Selecting a Prop Firm
- Earned Share: Firms split profits in different ways. Some let you keep up to 90 % of your gains, while others take more.
- Trading Rules and Limits: Make sure you agree with the firm’s daily loss limits, trade size limits next to steady trade rules.
- Test Method: Some firms ask you to pass two tests, while others give money directly. Choose based on your skill moreover comfort with risk.
- Withdrawal Process: Look at how often moreover by what means you get your money, so it fits your needs.
- Trading Platforms Supported: Verify that the firm gives you a platform you know, such as MetaTrader 4, MetaTrader 5 or cTrader.
Best Forex Funded Accounts in 2025
Though rankings change, some of the top firms in 2025 are:
- FTMO: A well-known firm that gives high profit shares moreover a clear test method.
- The Funded Trader: A firm that offers flexible test options plus good payment rules.
- E8 Funding: A firm growing fast with simple money rules and helpful support.
Comparing the Top Proprietary Trading Firms
FTMO
- Earned share: Up to 90%
- Test Method: Two tests
- Payment times: Every two weeks
The Funded Trader
- Earned share: Up to 90%
- Test Method: One or two tests
- Payment times: Every week or every 2 weeks
My Forex Funds
- Earned share: Up to 85%
- Test Method: Quick, regular or test
- Payment times: Every two weeks
E8 Funding
- Earned share: Up to 80%
- Test Method: One test
- Payment times: Every week
Industry Standards and Key Evaluation Criteria
Firms check traders by:
- Profit Goals: Traders must hit profit goals (usually 8-10 %) within a set time.
- Maximum Loss Limits: Firms set rules to protect money, often letting loss be up to 5-10 %.
- Steady Trading Rules: Some firms ask traders to trade in a steady way instead of making one or two big trades.
Is a Funded Forex Account Worth It?
Using a funded forex account lets traders work with more money without spending their own cash but it also leads to problems.
Pros of a Funded Trading Account
- Use More Money: You do not have to pay your own funds.
- Lower Own Risk: Losses do not touch your own money.
- Better Earnings: More money can bring larger gains.
- Steady Growth: It helps build discipline and trading skill with careful risk checks.
Cons and Risks to Consider
- Firm Limits: Rules can block free decision making.
- Testing Costs: Some companies ask for fees that you do not get back for tests.
- Split Gains: You do not take all of the money you earn.
- Account Closure: Breaking the rules may end your account.
What do Prop Traders Earn?
Prop trading income changes with profit sharing, account size and trading results.
How Do Funded Traders Earn Money?
Traders earn money when they make profits with the company’s funds and a set portion of the profit belongs to them.
Profit Splits and Performance-Based Payouts
For instance:
- A trader with a $100,000 account who earns 10 % monthly (that is, $10,000)
- At an 80 % share, gets $8,000 each month.
- At a 90 % share, gets $9,000 each month.
Some companies also increase the account size when traders meet their targets over time.
Conclusion
Obtaining a forex account with funding is a practical choice for experienced traders who wish to grow their trades without risking their own money. By selecting a proper proprietary firm following trade guidelines and keeping steady gains, traders may use funded accounts moreover boost their profit chance.
FAQ
A proprietary trading firm is a company that gives traders money to make trades in markets such as forex, stocks along with goods. Traders use the firm’s money instead of their own, which allows them to open bigger positions and maybe earn more. In exchange the firm takes a part of the trader’s profit. Many of these firms make traders pass a test before they can use a funded account. This step checks that the trader is good at trading, follows money rules along with earns steady profit.
Most firms expect traders to know something about trading before asking for a funded account. You do not have to be an expert but you must show that you understand how the market works, how to manage risk as well as how to make trades. The test process makes sure only traders who can earn profit plus follow rules receive trading money. Some firms provide learning materials plus guidance but it is best to have some trading background first.
The profit a trader can make with a funded forex account depends on many things, like the account amount trading plan, risk handling as well as how profit is split. Most firms let traders keep between 70 % and 90 % of the profit. For example if a trader has an account with $100,000 and makes a 10 % profit in one month (or $10,000), the trader would receive between $7,000 and $9,000 after the firm’s share is taken. Some firms also raise the account size over time, which may increase earnings.
Trading with a funded account lowers the personal money risk but it still has challenges. One risk is failing the test or challenge, which may require a fee to attempt again. If a trader does not meet the set profit goal or breaks risk rules, they might have to repeat the test furthermore pay again. Another risk is that the account may be taken away if there is too much loss or if firm rules are broken. Some firms also set strict rules, such as required stop-loss limits, fixed trading hours or restrictions on keeping trades open over the weekend. Traders need to read in addition to understand the firm’s terms and money rules to keep their funded account.
