Discover the step-by-step guide on how to become a prop trader. Typically, prop firms hire experienced, skilled, and profitable traders with expertise to capitalize on market trends. To become a funded trader, prop firms require implementing various strategies, managing risks, and identifying the most profitable opportunities. Qualify through an initial evaluation to get funded, access the firm’s capital, and trade bigger.
Once funded, traders can diversify positions across forex, commodities, stocks, and other asset classes to earn substantial profits. As someone looking to become a funded trader, get familiar with the steps to pass prop firm challenges.
>> Join Funding Traders and start trading for a prop firm that provides competitive opportunities to beginners, seasoned, and experienced traders. Pass a funded challenge and showcase a consistent performance to get paid weekly with up to 100% of the earned profits.
Read on and learn how to become a prop firm trader and get funded.
Understand Key Requirements For Prop Trading
First, learn the key requirements to become a prop firm funded trader. Before you join prop trading firms, you must acquire a deep understanding of financial markets, the necessary analytical skills, and the ability to make data-driven decisions. Since prop trading involves intricate risks, you must learn to handle stress, manage losses, and stay disciplined. Becoming a funded trader may also require you to employ complex trading strategies to minimize risks – while earning consistent returns.
>> To become a funded trader with FT, you are required to assess market conditions, control risk exposure, and make consistent decisions – even under pressure. Take advantage of our prop trading courses to get familiar with the required skills to secure prop funding.
Definitely, understanding the key rules, requirements, and expectations is the first step to becoming a prop trader.
Select A Trading Strategy
Now, select a trading style to successfully become a funded trader with prop firms. Typically, prop firms allow a variety of trading strategies and styles – each providing a different approach to capitalize on market opportunities. Ideally, you should choose a trading style best suited to your risk tolerance, experience, and trading preferences.
For instance, choose day trading if you possess quick decision-making, analytical skills, and discipline to open & close positions fast. Similarly, you may prefer prop firm swing trading if you prefer catching medium-price trends over a period of a few days.
>> As one of the best prop firms for beginners, FT allows aspiring traders to choose between various trading strategies. Take your time to identify your personal style and become a prop-funded trader.
- Day Trading
- Swing Trading
- Scalping
- News Trading
- EA/Bots Trading (With A Few Restrictions)
Indeed, getting a funded account online requires implementing permitted prop firm trading strategies.
Develop A Personal Track Record
The next step to become a prop firm trader is to build a personal track record. Before getting funded as prop trader, use your personal account to acquire the required experience. By developing a personal record, you may learn to control mental, emotional, and technical challenges to manage funded accounts.
Additionally, you’ll develop the required skills to demonstrate consistent profitability, lower drawdowns, and limit risk exposure – increasing your chances of becoming a prop trader later on. Keep in mind some prop firms may even require you to showcase a performance track record over a personal account.
>> While FT doesn’t ask for personal trading records, beginners are still encouraged to prepare for the evaluation process. You can always join our online communities to learn from experienced traders globally.
Indeed, start developing a personal track record to successfully become a prop firm funded trader.
Master Risk Management
Becoming a prop firm trader and getting funded also requires risk management expertise. Carefully understand the significance of the risk-to-reward ratio while trading on prop firm funded accounts. Keep in mind prop firms require all applicants to focus on risk management as much as consistent profitability. Ultimately, risk management will help preserve the firm’s capital from significant losses.
>> As a basic risk management practice, Funding Traders requires you to maintain a consistent position sizing on each trade. As per the 2% consistency rule, you should risk less than 2% of your account size on every position – limiting the risk exposure.
To master risk management, develop clear, backtested, and well-defined trading strategies. Your strategy should clearly highlight position sizing, stop-loss orders, and other risk management parameters. Indeed, acquire prop trading risk management strategies to become a forex-funded trader.
Complete A Prop Firm Evaluation & Get Funded
After obtaining the necessary skills to become a prop firm trader, you are ready to apply for a funding evaluation. Take these prop firm challenges to prove your profitability through multiple evaluation stages. During evaluations, you are required to achieve profit targets, limit drawdowns, and control risk exposure on a challenge account – while following pre-defined prop firm rules.
>> To complete prop evaluation at Funding Traders, you can take advantage of our no-time limit rule to achieve profit targets.
- Profit Target (1-step challenge): 10%
- Daily Drawdown (1-step challenge): 4%
- Maximum Drawdown (1-step challenge): 5%
- Profit Target (2-step Phase-1): 10%
- Profit Target (2-step Phase-2): 5%
- Maximum Drawdown (2-step challenge): 10%
- Daily Drawdown (2-step challenge): 5%
Once you pass the challenge, you’ll get funded with a live account to start your prop trading journey. At this point, you’ll qualify for the default 80-20 profit split in your favor – with unique add-on options to receive up to 100% of the earnings. Indeed, pass the forex funded challenge and become a prop trader with a live account.
There are several steps to become a proprietary firm trader with a funded account. First, you need to understand the key prop trading requirements to secure forex funding. Then, select a combination of trading strategies that suit your overall experience.
Some prop firms with low-price forex funded accounts may require you to showcase a trading record before you qualify for the live funding. Meanwhile, legitimate firms offer the opportunity to directly participate in funding evaluations and prove skills on a challenge account. Follow the points above to learn how to become a prop firm funded trader.
