There are multiple prop firm funding rules to pass a challenge account in forex. Notably, prop funding offers the opportunity to trade with large amounts of capital and get paid with a competitive profit split. These funding opportunities are ideal for traders with limited funds to start in FX markets. Of course, prop firms for beginners require inexperienced traders to understand FX markets, deploy strong risk management, and follow profitable strategies on a challenge account – before securing a funded account.
As a trader yourself, you should follow all evaluation rules to successfully secure a prop trading funded account and get paid with up to 100% profit splits.
>> Funding Traders follows a straightforward process to help traders qualify for a prop firm funded account and manage $1M+ capital.
Follow these funding rules to work in prop firms and successfully pass a challenge account in FX.
One & Two-Phase Funding Rules
Follow prop firm funding rules to complete one & two-phase challenge accounts in forex. Typically, one-step prop firm challenges require you to complete a single evaluation to qualify for funding successfully. Evaluation rules for these single-step evaluations are designed for low-risk traders looking to secure funding in a single step.
You are also required to follow strict money management rules to protect the firm’s capital on a challenge account. Meanwhile, two-phase funding rules help identify more committed traders looking to work professionally in the industry. These rules require you to showcase consistency, accuracy, and strong risk management to get funded.
Follow these rules to pass 1-step & 2-step challenges with Funding Traders:
- Profit Target (1-Step): 10%
- Profit Target (2-step Phase 1): 10%
- Profit Target (2-Step Phase 2): 5%
>> Moreover, you can also select between different funded account options to pass 1 & 2-step challenges – ranging from $5,000 all the way up to $500,000+.
With these customized selections, you can choose an account size best suited for your trading style – maximizing success during the prop firm challenge. Indeed, clearly understand the one and two-step prop funding evaluation rules to get a forex funded account.
Maximum Daily/Overall Drawdown Rule
In addition, prop firm funding rules also require traders to follow maximum daily/overall drawdowns. On a challenge account, the maximum daily drawdowns require your equity to stay above the difference between maximum account balance and margins. For instance, your daily loss on a $5,000 challenge account should not go below $250 if daily loss limits are set to 5%.
Similarly, overall drawdown rules require your equity to stay above the maximum loss limit set on the challenge account. With a maximum 8% drawdown on a $100,000 account, your maximum loss should not exceed $92,000.
For 1-step & 2-step evaluations, Funding Traders offers static & trailing drawdowns to minimize losses and protect capital.
- Maximum Daily Drawdown (1-step): 4%
- Maximum Overall Drawdown (1-step): 5% (Trailing)
- Maximum Daily Drawdown (2-step): 5%
- Maximum Overall Drawdown (2-step): 10% (Static)
Keep in mind you may lose your challenge account if you fail to follow these drawdown rules – restricting your chance to secure funding. Indeed, follow daily/overall drawdown rules to pass the challenge account for prop firm funding.
No-Time Limit On Challenge Accounts
Take advantage of no-time limit rules on a prop firm funding challenge to get funded in forex. These funding rules offer the freedom to trade at your own pace and focus on your trades – without any psychological pressure. Instead, you can pass the funding challenge in a day, week, or even a month. The most legitimate prop firms offer no-time limit rules for all strategies – including scalping, news/event, and swing trading.
>> Similar to no time limits, Funding Traders also offers zero minimum trading days requirements to fund your accounts right after passing the evaluation.
With no time restrictions, you’ll automatically move to the funding stage when you complete the evaluation objectives. Indeed, leverage the no-time limit rule to pass the prop firm funding challenge in forex.
EAs/Bots/HFTs Restrictions
Prop firm funding rules also set certain restrictions on EAs, bots, and HFTs on a challenge account. While Expert Advisors (EAs) may help automatically execute trades, only a few prop firms allow automated strategies – especially before passing a funding challenge. For instance, Funding Traders encourages Expert Advisors (EAs) that help prioritize risk management. With EAs, you can deploy a series of algorithms to automatically execute the most profitable trades on challenge accounts.
>> Consult with FT’s team to evaluate the eligibility of your preferred Expert Advisors (EAs) and Bots.
As per standard prop firm rules, you are also restricted from using High-Frequency Trading (HFT) on challenge accounts. Due to latency limitations, prop firms may not replicate HFT trades in live market conditions – resulting in a non-sustainable model. Indeed, understand the EAs, bots, and HFT restrictions to pass a prop firm challenge account for forex funding.
News Trading & Position Holding
Finally, understand the prop firm funding rules for news trading & position holding to pass a challenge account successfully. Many prop firm trading rules allow you to trade based on the latest news. This way, you can leverage your trading strategies to capitalize on the latest events and achieve profit targets during the evaluation.
>> Watch out for additional swap charges during overnight/weekend position holding. Typically, these swap rates depend on your selected forex currency pair.
As a legitimate prop firm for news trading, you can also hold positions overnight and over the weekend to capitalize on long-term price movements during high-impact news events. These position-holding rules particularly cater to swing traders looking to achieve profits on long-term price movements. Definitely, news trading & position holding are two prop funding rules to pass a challenge account.
Follow the prop firm rules to pass a funded trading account challenge in forex. Choose between one-step and two-step challenges to move to a funded stage with your preferred evaluation process. These evaluation rules also require you to strictly follow the drawdown limits to secure forex funding. Next, understand the restrictions on EAs, bots, and news trading to avoid violating any prop firm challenge rules. Follow the points above for various prop firm rules required to pass a funding challenge in forex.
