I’m a relatively new trader - well, scratch that, after 3 years ‘trading’, being scammed from a course and finally putting in the graft by reading and doing it properly (trade logs, correct risk mgt etc) - I feel like my trading journey is now starting to make sense and I’m seeing consistency.
My question is for anyone who has registered with a company such as TopStep FX or FTMO to obtain ‘funded’ accounts rather than your own money. What was your experience like? Learning curves? Conclusions?
I’m currently exploring such options with the hope this is expedite the size of my returns VS using my own modest funds.
The business model is that you pay them a fee to trade and the trades are very restrictive so end up staying in the monthly fee. Better to build your own pot that way you control the trades and your time
You have to jump through a number of hoops to get access to any capital, which you have to pay a fee to do. And as you probably know majority of traders have dollar signs in their eyes and over estimate their abilities so I have heard on the grapevine that something like 95% of traders who take part in the entry challenge and pay a fee fail because they can’t achieve the profit targets with the strict risk management criteria. So they make money initially from all the overly ambitious ones.
Then the ones that do make it through to a funded account still have to operate with certain risk management criteria and there is a profit split so it is not like the trader keeps everything they earn.
It’s not for me but if someone doesn’t have the capital but is genuinely a good risk manager with a profitable edge then they can absolutely make some money from it, even if it is just temporarily to help build up their own funds.
You have to pass challenges to prove you are profitable, if you pass them you have just proved that you are a profitable trader. The prop companies take a cut of your profits usually anything from 30% to 50%.
They also copy your trades onto their own accounts so when you make money, so do they. So its a win/win for each party really.
If you dont want to pay for the challenges then check out this site below, they will pay your entrance fee for a cut of your profits if your interested.
TLDR; If you’re feeling confident with your trading techniques and system, no need to go through any companies of the sort. You will lose money from those companies because of their service costs in “education”, “monthly seat access”, and commissions that can be 15-30% of your gross profit. Instead, search for a good broker that lets you trade on margin with your own money to avoid absurd monthly seat fees and commissions. Recommend this site, reddit, and google to make a choice on one. LET YOUR MONEY BE YOURS AS MUCH AS POSSIBLE!!
I’ve always been very skeptical of people when they offer me services, no matter what it is. When getting started, I got blasted by trading companies like you mentioned. They promised to make me a trader in no time through the idea that Id be generating profit. At the time I didn’t know anything and as I continued researching about forex and the path I wanted to take, I decided against it quickly.
The “training programs” they offered at a cost could be found for free on sites like BabyPips. Recruiter from one of the companies was talking to me like it was “prestigious” they offer me this opportunity to give them $3-5k to trade with their money, pay their fees, adhere to absurdly strict risk management, and payout about 20% commission from my gross profit… Its easy to get dunked on by the market as a new trader, so I see them as opportunists for sure.
Now I know your original question is in regards to whether or not you should join a company like TopStep FX or FTMO. In my honest opinion they are not worth it at all. I would rather my money be my money. If you’re feeling confident about your trading techniques and systems, then I would urge you to go through a broker and NOT a proprietary trading company.
What experience have you had with them that gives you this opinion?
To make a descent income, or even earn a living from trading you need descent capital. FTMO will let you trade with up to £300k of funding. 70/30 split on profits.
If you can trade, but you dont have capital, then its a no brainer.
Not too sure though if OPs position in joining a prop firm is a “no brainer”, Like I said, I looked into them and figured it didn’t seem fair at all. The barrier to trade with FTMO is very high when it comes to staying within their risk parameters from what I’ve heard and seen. While you’re trying to fit those parameters, fees add up while you try to “prove” yourself until you can actually begin trading a live account. In regards to using their capital, this can be a very hard line to walk for some traders. 70/30 split on profits isn’t attractive at all either. While we don’t know what “modest funds” OP has, it sounds like OP doesn’t want to waste any more time from the 3 years invested with some scammy or unnecessary setbacks. Since he/shes got a decent system down now why not trade with a broker? Just my opinion though.
