The Funded Trader Review 2024: Pros, Cons and How It Compares

The Funded Trader is a US-based prop trading firm that provides a broad range of funded trader programs ranging from $65 to $1,879 one-time participation fees. If you successfully pass the evaluation process, you get a refund of your initial fee, which makes it a free funded trading account. Is it worth it?

What Is The Funded Trader?

The Funded Trader

The Funded Trader is a proprietary trading firm with offices located in Texas, United States (The Funded Trader LLC), and on the Cayman Islands (ARC Holdings). The company was founded in May 2021.

Is The Funded Trader Legit?

The Funded Trader officially discloses their company details on their website:

  • The Funded Trader LLC
  • Attn: Data Protection Officer, Carlos Rico-Ospina, Jr
  • 14001 W HWY 29 SUITE 102
  • Liberty Hill, Texas 78642
  • Email Address: support@thefundedtraderprogram.com
  • Telephone: (888) 920-3079

and

  • ARC Holdings
  • Attn: Data Protection Officer, FG Services Limited
  • Suite 2206, Cassia Court, 94 Solaris Avenue, Camana Bay
  • P.O. Box 1348, Grand Cayman KY1-1108, Cayman Islands
  • Email Address: archoldingsmanagement@gmail.com

On Trustpilot, The Funded Trader has a great reputation, with an average rating of 4.5/5 based on 14,472 reviews (as of October 2023).

What Assets Can You Trade with The Funded Trader?

The Funded Trader specializes in CFD trading, which includes over 60 available instruments in multiple asset classes to trade:

  • Forex: 39 forex pairs (EURUSD, GBPUSD, AUDUSD, etc.)
  • Indices: 9 major indices (SPX500, US30, GER30, etc.)
  • Commodities: Brent Crude Oil, WTI Crude Oil.
  • Cryptocurrencies: Bitcoin Cash, Bitcoin, Ethereum, Litecoin

Futures trading is not available with The Funded Trader.

Does The Funded Trader Offer Instant Funding – No Evaluation Accounts?

No, The Funded Trader does not offer any instant funding accounts without evaluation. The program that comes the closest to the no evaluation concept is the Knight Challenge, which is a 1-step challenge (one phase evaluation).

Does The Funded Trader Offer One-Step Challenges?

Yes, The Funded Trader offers a one-step challenge with their Knight Challenge programs. Here, you can choose between the following account sizes:

  • $25,000 account for $189
  • $50,000 account for $289
  • $100,000 account for $489
  • $200,000 account for $939

A one-step challenge means that you go through one evaluation phase until you get rewarded with a funded account, where you can earn profits ready for withdrawal to your bank account.

The rules across all one-phase funding account sizes are similar. You have unlimited trading days, and you can take all the time you need. Yes, you need to place at least one trade per every 30 days to keep your account active and avoid suspension due to inactivity.

In phase one, you have to reach a 10% profit target during evaluation to get access to your funded account. That means that profits made in phase one of the evaluation can’t be withdrawn. But once you make profits with the funded account, you can withdraw profits.

Your profit split in The Funded Trader funded account starts at 80/20, where you can withdraw 80% of the net profits you make. With scaling, you can increase the profit split to 90/10.

There is no minimum of trading days, but a profit target of 10%. You trade with a leverage of max. 30:1, and scaling plans based on net profit are available.

The maximum loss is set to 6% and defined as a value calculated based on the initial account balance as a relative drawdown. As long as you stay above the maximum loss number, your account remains active. Your daily loss limit is 3%.

Does The Funded Trader Offer Two-Phase Evaluations?

Yes, The Funded Trader offers two-phase evaluations with their Standard Challenge, Rapid Challenge and Royal Challenge account types.

For the two-step Standard Challenge, you can choose between the following account sizes:

  • $5,000 account for $65
  • $10,000 account for $129
  • $25,000 account for $199
  • $50,000 account for $299
  • $100,000 account for $499
  • $200,000 account for $939
  • $300,000 account for $1,469
  • $400,000 account for $1,879

For the two-step Rapid Challenge, you can choose between the following account sizes:

  • $5,000 account for $79
  • $10,000 account for $129
  • $25,000 account for $229
  • $50,000 account for $299
  • $100,000 account for $499
  • $200,000 account for $899

For the two-step Royal Challenge, you can choose between the following account sizes:

  • 50,000 account for $289
  • $100,000 account for $489
  • $200,000 account for $939
  • $300,000 account for $1,399
  • $400,000 account for $1,869

As you can see, the two-step challenges are extensive. It’s difficult to say why The Funded Trader uses that immense range of account sizes and sub-settings.

Wouldn’t it be enough to have four different funded trader paths? Each path has between four and eight account sizes, and for the Standard and Rapid Challenge, you can even switch the risk type between Swing and Regular (changing the risk type changes the leverage factors).

The Funded Trader Standard Challenge

All Standard Challenge accounts have a minimum of simulated trading days of 3 days and an unlimited trading period. The profit target is 10%, the maximum loss is 10% and a daily loss limit of 5%.

The first two steps are challenges where you can’t earn money for a withdrawal. Only traders who make it to step 3, The Funded Trader account, can withdraw money (21 days after the first trade had been placed).

The leverage in the Swing Risk account within the Standard Challenge is 60:1, with weekend holdings possible, but the use of expert advisors is prohibited.

In contrast, the Regular Risk account within the Standard Challenge is at 200:1 but with the same percentage target for profit, maximum loss, and daily loss. Weekend holdings and EAs are prohibited.

I don’t see a real benefit of using the Regular Risk accounts because it makes it impossible to hold positions over the weekend by having the same % targets at the same costs. The leverage by itself can’t be a real value for higher risk.

The Funded Trader Rapid Challenge

All Rapid Challenge accounts have a minimum of simulated trading days of 0 days and an unlimited trading period. The profit target is 8%, the maximum loss is 8% and a daily loss limit of 5%.

The first two steps are challenges where you can’t earn money for a withdrawal. Only traders who make it to step 3, The Funded Trader account, can withdraw money (14 days after the first trade had been placed).

The leverage in the Swing Risk account within the Rapid Challenge is 30:1, with weekend holdings possible, but there is no statement about the use of expert advisors.

In contrast, the Regular Risk account within the Rapid Challenge is at 100:1 but with the same percentage target for profit, maximum loss, and daily loss. Weekend holdings are prohibited, and there is no statement about the use of Expert Advisors.

I don’t see a real benefit of using the Regular Risk accounts because it makes it impossible to hold positions over the weekend by having the same % targets at the same costs. The leverage by itself can’t be a real value for higher risk.

The Funded Trader Royal Challenge

All Royal Challenge accounts have a minimum of simulated trading days of 5 days and an unlimited trading period. The profit target in the first step (TFT Challenge) is 8%, and 5% in the second step (Verification). The profit target is defined as 8%, the maximum loss is 10%, and the daily loss limit is 5%.

Within the Royal Challenge, Expert Advisors are allowed, but there is no statement about the weekend holdings. I find this extremely confusing. The comparison tables should clearly indicate for all account types and sizes what’s possible and what’s not.

When something is not mentioned, then it’s likely not allowed. However, news trading is never mentioned in the comparison tables, but in the Royal Challenge, it is separately noted that news trading is allowed. The Funded Trader could do a better job in terms of clarity here.

Payout Options

As of October 2023, only crypto payouts are available. Previously, payouts via Wise were possible, but they are no longer supported.

You need to provide a government-issued ID, proof of address (max. 60 days old) and a signed funded trader agreement to process payouts.

Does The Funded Trader offer Evaluation Fee Refunds?

Yes, The Funded Trader refunds fees if a trader reaches the final step of a challenge where he becomes access to his funded account by The Funded Trader.

What is The Funded Trader Partner Broker?

The Funded Trader partner Brokers are EightCap – a globally trusted CFD broker funded in 2009 in Melbourne, Australia. Also, Purple Trading SC – a Seychelles-based broker, and ThinkMarkets – a CFD broker established in 2010 with offices in London, Australia, South Africa and Tokyo.

What Trading Platforms Does The Funded Trader Offer?

The Funded Trader lets you choose between the preferred MetaTrader 5 platform, where you have full access to all markets and where you can trade over the weekend if allowed. Alternatively, you decide on the legacy MetaTrader 4 platform, where access to crypto is limited but where full access to all other markets is possible.

Do I Trade with Simulated Funds or Real Money at The Funded Trader?

With The Funded Trader, you trade under simulated live conditions at all times. That means there is no risk to the capital at any time.

When Can I Start Withdrawing Money from The Funded Trader?

Upon passing The Funded Trader evaluation stages, you receive access to The Funded Trader funded account, where you can withdraw real funds based on the profit split conditions to your bank account. The minimum of days for the first withdrawal ranges from 7 to 30 days, depending on the chosen funded trader path.

What Payment Methods Does The Funded Trader Offer?

The Funded Trader offers payments via credit card and cryptocurrency.

In What Currency Will My Account Balance Be?

All The Funded Trader accounts are held in USD as base currency.

Am I allowed to use Expert Advisors (EA), Bots and Algos with The Funded Trader?

It depends on the chosen challenge type if you are allowed to use Expert Advisors. The Royal Challenge and Knight Challenge allow EAs to be used, but the Standard Challenge and Rapid Challenge prohibit the use of EAs. Bots and Algos are not separately mentioned, but it’s likely that they are prohibited if not mentioned.

Pros

  • Wide range of funded accounts
  • Excellent review ratings
  • Choose between three brokers (Eigtcap, ThinkMarkets, Purple Trading)
  • Competitive pricing structure
  • Profit split ranging between 80% and 90%

Cons

  • Futures trading is not available
  • Only about 60 instruments can be traded
  • Funded accounts with virtual money
  • Payouts only via crypto possible (Wise no longer supported)
Alexander Voigt, CEO
Article by
Alexander Voigt is the founder of DayTradingZ, was a regular contributor to Benzinga and has been featured and quoted on leading financial websites such as Investors.com, Capital.com, Business Insider and Forbes.
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