0 XP   0   0   0

Funded Accounts

When you find videos about trading on youtube you might encounter traders that are kind of bragging about how much money they make each trade. This can range into thousands of dollars per trade. While these trades might be very legit, they don’t always tell you the whole story. They are probably not trading with their own money. Many professional traders use funded accounts. Funded accounts are accounts from so called prop firms. These firms borrow you money you can trade with. This way traders can take on very large position sizes without losing their own money.

For example, FTMO is a company that borrows you money you can trade with. Before you can use their money, you have to go through a few steps:

  • You need to pay a fee of €155 (2021) to start the process
  • Step 1: FTMO challenge
  • Step 2: Verification
  • Step 3: FTMO trader

In the first step you have to prove you know what you are doing. You need to make 10% profit in 30 days of trading. You can lose a maximum of $1000 based on open and closed trades. In the second step you also have to complete trading objectives. Once you complete all objectives you become a FTMO trader and use the money of FTMO to trade. This does come with a price. You have to pay a commission and earn up to 90% profits of your trades. 

Funding accounts are used by many professional day traders. That's why they can open very large positions because it’s not their own money. Although they can lose their trading account if they lose too much, they will not be charged for all the money that is lost. So basically it’s a low risk way of trading. So don’t be confused or hyped by all those traders making thousands of dollars each trade. They are very knowledgeable and are not trading with their own money.

[keypoint text=Key concepts:

  • Pro traders use funded accounts and don’t trade their own money.
  • You need to verify you know how to trade before you can get a funded account.]
Chapters: The Ultimate Day Trading Guide

Comments

Join the conversation.

Leave a comment

Stay informed with my latest content.

Subscribe to my newsletter and receive an email as soon as I add content to PenkeTrading.com.


By clicking Register, you agree to the General Terms and Conditions.
Penke's Market Notifications
EKUS.XETRA
1 minute ago

I found you a Death Cross on the daily chart of EKUS.XETRA.

EKUS.XETRA Daily Candlestick Chart
RGLG.PINK
2 minutes ago

I found you a Oversold RSI (Relative Strength Index) on the daily chart of RGLG.PINK.

RGLG.PINK Daily Candlestick Chart
BOPO.PINK
2 minutes ago

I found you a Overbought RSI (Relative Strength Index) on the daily chart of BOPO.PINK.

BOPO.PINK Daily Candlestick Chart
BBCK.XETRA
6 minutes ago

I found you a Oversold RSI (Relative Strength Index) on the daily chart of BBCK.XETRA.

BBCK.XETRA Daily Candlestick Chart
AMD.XETRA
8 minutes ago

I found you a Overbought RSI (Relative Strength Index) on the daily chart of AMD.XETRA.

AMD.XETRA Daily Candlestick Chart
ALNEV.PA
9 minutes ago

I found you a RSI Bearish Hidden Divergence on the daily chart of ALNEV.PA.

ALNEV.PA Daily Candlestick Chart
9TS.XETRA
10 minutes ago

I found you a RSI Bullish Reversal Divergence on the daily chart of 9TS.XETRA.

9TS.XETRA Daily Candlestick Chart
6PSA.XETRA
10 minutes ago

I found you a Oversold RSI (Relative Strength Index) on the daily chart of 6PSA.XETRA.

6PSA.XETRA Daily Candlestick Chart
2B70.XETRA
10 minutes ago

I found you a Oversold RSI (Relative Strength Index) on the daily chart of 2B70.XETRA.

2B70.XETRA Daily Candlestick Chart
AAGH.PINK
41 minutes ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of AAGH.PINK.

AAGH.PINK Daily Candlestick Chart
WSNAF.OTCQB
44 minutes ago

I found you a STOCH Bearish Reversal Divergence on the daily chart of WSNAF.OTCQB.

WSNAF.OTCQB Daily Candlestick Chart
XINT.ST
1 hour ago

I found you a Bearish Three Line Strike Candle Pattern on the daily chart of XINT.ST.

XINT.ST Daily Candlestick Chart
ELAN.NYSE
1 hour ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of ELAN.NYSE.

ELAN.NYSE Daily Candlestick Chart
EIGR.NASDAQ
1 hour ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of EIGR.NASDAQ.

EIGR.NASDAQ Daily Candlestick Chart
EFSC.NASDAQ
1 hour ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of EFSC.NASDAQ.

EFSC.NASDAQ Daily Candlestick Chart
DZZ.NYSE ARC
1 hour ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of DZZ.NYSE ARC.

DZZ.NYSE ARC Daily Candlestick Chart
CANS.V
2 hours ago

I found you a Overbought RSI (Relative Strength Index) on the daily chart of CANS.V.

CANS.V Daily Candlestick Chart
DRMA.NASDAQ
2 hours ago

I found you a RSI Bullish Hidden Divergence on the daily chart of DRMA.NASDAQ.

DRMA.NASDAQ Daily Candlestick Chart
DRFS.PINK
2 hours ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of DRFS.PINK.

DRFS.PINK Daily Candlestick Chart
DISH.NASDAQ
2 hours ago

I found you a STOCH Bearish Hidden Divergence on the daily chart of DISH.NASDAQ.

DISH.NASDAQ Daily Candlestick Chart
EDGE.TO
2 hours ago

I found you a Golden Cross on the daily chart of EDGE.TO.

EDGE.TO Daily Candlestick Chart
ENRG.V
2 hours ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of ENRG.V.

ENRG.V Daily Candlestick Chart
EFR.TO
2 hours ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of EFR.TO.

EFR.TO Daily Candlestick Chart
DML.TO
2 hours ago

I found you a STOCH Bullish Reversal Divergence on the daily chart of DML.TO.

DML.TO Daily Candlestick Chart