5%ers Review: All Pros and Cons of the Prop Firm
- Flexible account types
- High profit split potential
- Instant funding option
- Comprehensive educational resources
- Responsive customer support
- Bi-weekly payouts
- Multiple withdrawal methods
- Advanced trading platform (MT5)
- No additional costs for scaling
- Strict risk management policies
- Not directly regulated
- Initial challenge fees
- Higher cost for instant funding
- Strict evaluation process
- Daily and total drawdown limits
- Confidentiality on liquidity providers
- Minimum withdrawal amount
- Business income tax treatment
- Requires ongoing performance
- Fixed profit split structure
We reviewed The 5%ers, a proprietary trading firm, to provide a clear understanding of its benefits and drawbacks. This review aims to offer insights for beginners and experienced traders alike, presenting our findings in a straightforward and professional manner. Let’s dive into the details of The 5%ers and see how it stands out in the prop trading landscape.
Summary of Our Expert:
4 5%ers Customer Reviews And Ratings
What Is 5%ers?
The 5%ers, founded in 2016, is a proprietary trading firm that provides traders with the opportunity to trade using the firm’s capital. The primary focus is on forex trading, but they also support other asset classes. The 5%ers’ business model is straightforward: they identify talented traders, fund their accounts, and share a portion of the profits.
Traders can start with various account sizes, and based on their performance, they can scale up to manage larger amounts of capital. This model reduces the financial risk for traders and allows them to focus on developing their trading strategies. The firm has grown in popularity due to its transparent processes and supportive environment for traders at different skill levels.
Is 5%ers Legal?
Yes, The 5%ers is a legal and legitimate proprietary trading firm. Here’s a detailed breakdown of its regulatory status and reputation.
Regulation and Legitimacy
The 5%ers operates as a private fund holding ownership of forex trading accounts under regulated brokers. However, The 5%ers itself is not a financial institution and does not provide financial services; therefore, it is not regulated by financial authorities like the SEC or FCA. This structure means there is no direct regulation clause specific to their operations. Instead, the firm leverages the regulatory frameworks of the brokers they partner with, ensuring a layer of oversight and protection. No laws or regulations forbid the 5%ers from offering prop trading services.
Reputation and Safety
Since 2016, The 5%ers has built a solid reputation in the trading community. The firm is known for its transparency, strict risk management policies, and supportive environment for traders. Positive feedback from users highlights the firm’s commitment to clear communication and trader development. The 5%ers have managed to gain a great score of 4.8 stars from almost 4,000 reviews on Trustpilot.
Trader Protections
Even without direct regulation by top-tier financial authorities, The 5%ers takes significant steps to protect its traders. These include encrypting sensitive data, allowing 2-step authentication, and ensuring user accounts are protected.
Prop Trading Account Types With 5%ers
The 5%ers offers a variety of account types. Here’s a detailed overview of the available account types, including their costs and key features.
Instant Funding Accounts
Instant Funding Accounts allow traders to start trading immediately without passing any challenges. This type of account is ideal for traders who want to begin trading with significant capital right away. There are three instant funding plans. Here are the details:
| Details | |
|---|---|
| Capital Amount | $10,000 to $40,000 |
| Evaluation Funding Capital | $5,000 to $20,000 |
| Evaluation Target | 10% |
| Stop Out Level | 6% |
| Daily Pause | 3% |
| Profit Split | Up to 100% |
| Time Limit | None |
| Leverage | 1:30 |
| Challenge cost | $260 to $850 |
Bootcamp Program
Bootcamp Accounts are designed for traders who prefer a more conservative approach, with stricter risk parameters and lower drawdown limits. These accounts are suitable for traders who prioritize capital preservation.
| Details | |
|---|---|
| Account Size | $20,000 to $250,000 |
| Profit Target | 5% to 6% |
| Max Loss | 4% to 5% |
| Daily Pause | None to 3% |
| Leverage | 1:10 |
| Time Limit | Unlimited |
| Profit Share | Up to 100% |
| Cost | $95 to $350 |
High Stakes Challenge
The High Stakes Challenge offers more flexibility with higher drawdown limits, better for traders with a more aggressive trading style. These accounts are suitable for traders who are confident in their strategies and can handle higher risks.
| Details | |
|---|---|
| Evaluation Funding Capital | $5,000 to $100,000 |
| Evaluation Target | 8% to 10% |
| Minimum Profitable Days | 3 |
| Maximum Daily Loss | 5% |
| Challenge cost | $39 to $495 |
| Profit Share | 80% to 100% |
The Challenge and Costs on 5%ers Explained
We reviewed the challenge and cost structure of The 5%ers to provide you with a clear understanding of what to expect. Here’s how the funding process works and the associated costs.
How the Challenge Works
The 5%ers require traders to pass a trading challenge to qualify for funded accounts. Here’s our breakdown of the process:
- Registration: We registered for the challenge by choosing our preferred account type and paying the entry fee.
- Trading Period: The challenge gave us either unlimited or predetermined time to meet the profit target without exceeding the drawdown limits.
- Profit Target: The targets vary; for example, we aimed for a 6% profit target.
- Drawdown Limits: We had to maintain our trading within a 4% daily and 5% total drawdown limit.
Successfully passing the challenge allowed us to access a funded account and start trading with the firm’s capital.
Instant Funding
For traders who prefer not to go through the challenge, The 5%ers offers instant funding options. Here’s what we found:
- Immediate Access: We could start trading immediately with a funded account.
- Higher Costs: The cost for instant funding was higher compared to the challenge fee, reflecting the reduced risk and immediate capital access.
Cost Breakdown
Here’s a detailed look at the costs we encountered:
| Challenge Type | Cost |
|---|---|
| Instant Funding Accounts | $260 to $850 |
| Bootcamp Program | $95 to $350 |
| High Stakes Challenge | $39 to $495 |
Win Your 5%ers Challenge With WR Trading
The 5%ers challenge is designed to test traders’ ability to achieve profit targets, but it can be difficult to pass without the right guidance. WR Trading’s course provides you with the tools needed to succeed. High-risk reward strategies, scalping techniques, and 1-minute chart trading are core components of the course.
With over 10 years of trading experience, Andre Witzel offers personal coaching and support, ensuring you receive top-tier advice to enhance your trading skills. The course also includes membership in an exclusive trading community, providing ongoing trade analysis, development opportunities, and direct interaction with professional traders.
Promo Codes for Rebates
During our review, we explored the availability and benefits of promo codes and rebates offered by The 5%ers. Promo codes can provide traders with discounts on their challenge fees or instant funding costs, making entry into The 5%ers more affordable.
Finding Promo Codes
Promo codes for The 5%ers are often available through various channels:
- Official Website: Periodically, The 5%ers release promo codes directly on their website, especially during special promotions or events.
- Email Newsletters: Subscribing to The 5%ers’ email newsletters can keep you updated on the latest discounts and promo codes.
Applying Promo Codes
We found the process of applying promo codes to be straightforward:
- During Registration: Enter the promo code in the designated field while registering for a challenge or instant funding account.
- Confirmation: Ensure the discount is applied before completing the payment process.
Payouts on 5%ers
The profit split with The 5%ers is designed to be highly rewarding for traders. Here’s how it works:
- Initial Split: The profit split starts at 50%, meaning traders receive 50% of the profits they generate, and The 5%ers retain the other 50%.
- Scaling Up: As traders progress and their accounts are scaled, the profit split can increase. In some cases, traders can earn up to 100% of the profits.
Payout Process
The payout process at The 5%ers is straightforward and designed to ensure traders can access their profits regularly:
- Eligibility: Payouts can be processed once the trader has moved to funded levels.
- Frequency: After reaching the funded levels, traders can request payouts on a bi-weekly basis.
- Methods: Payouts can be withdrawn through various methods, including Rise, bank transfers, The 5%ers VISA Card, and cryptocurrencies.
- Requesting Payouts: Traders can request a payout from their hub using the ‘request payout’ button on their dashboard.
- Minimum Withdrawal: The minimum amount for withdrawal is $150.
- Impact on Scaling: Withdrawals do not affect the scaling of the account, allowing traders to continue growing their accounts without penalty.
Payout Process Overview
Here’s a table summarizing the key aspects of the payout process:
| Aspect | Details |
|---|---|
| Profit Split | Starts at 50%, can go up to 100% |
| Payout Frequency | Bi-weekly after reaching funded levels |
| Withdrawal Methods | Rise, bank transfers, The 5%ers VISA Card, cryptocurrencies |
| Processing Time | A few business days |
| Minimum Withdrawal | $150 |
| Scaling Impact | Withdrawals do not affect account scaling |
| Request Method | Use ‘request payout’ button on the dashboard |
Trading Platforms
In our review, we found that The 5%ers exclusively use the MetaTrader 5 (MT5) platform from MetaQuotes, which offers several advantages over its predecessor, MT4. Here’s a detailed look at the features and benefits of using MT5 with The 5%ers.
MetaTrader 5
We reviewed the MetaTrader 5 (MT5) platform used by The 5%ers and found it to be highly advantageous for traders. MT5, developed by MetaQuotes, offers significant improvements over the older MT4 platform. It features advanced charting tools, more timeframes, additional types of pending orders, and an integrated economic calendar. These enhancements provide traders with a comprehensive trading environment, enabling more precise and informed trading decisions.
Setting up MT5 with The 5%ers is straightforward. After registering for an evaluation, we received an email with our login details and download links. The platform can be easily downloaded from the trader’s HUB, ensuring a smooth and hassle-free setup process. The intuitive interface of MT5 makes it accessible for beginners, while its advanced tools cater to the needs of experienced traders.
Which Broker Is Used by 5%ers?
The 5%ers operate differently from typical retail brokers by trading directly through commercial liquidity providers (LPs) rather than using common retail broker brands. This approach allows The 5%ers to offer their traders more favorable trading conditions and reliable execution. The use of LPs ensures that trades are executed with high efficiency, providing a smoother trading experience.
Confidentiality is a critical aspect of The 5%ers’ operations. As they state, “Confidentiality is very important to us, and we take as many precautions as possible to keep our supplier’s identity confidential.” This is why they do not disclose their broker partner.
Taxes on 5%ers
Understanding the tax implications of trading with The 5%ers is important for traders. Here’s what we found about how taxes are handled when trading with this prop firm.
Trader Responsibility
When trading with The 5%ers, traders are responsible for managing their own tax obligations. The firm does not provide tax advice or handle tax filings on behalf of traders. This means that traders must be aware of their tax liabilities in their respective countries and ensure compliance with local tax laws.
Business Income
Income earned through The 5%ers is treated as business income rather than capital gains. This distinction is important for tax reporting purposes, as it affects how income is calculated and taxed.
Support and Education
In our review of The 5%ers, we found their support and educational resources to be quite extensive and beneficial for traders.
Customer Support
The 5%ers provide comprehensive customer support that is both responsive and helpful. During our testing, we contacted their support team via email and phone and received clear responses. The support staff demonstrated a thorough understanding of the platform and trading processes, making it easy to resolve any issues we encountered.
Customer Support Options:
- Phone Support: +1 (929) 955 5595
- Email Support: help@the5ers.com
- Live Chat
Educational Resources
The 5%ers also offer extensive educational resources to help traders improve their skills and knowledge. We found their webinars, articles, and courses valuable. These resources cover a wide range of topics, from basic trading strategies to advanced techniques, ensuring that traders at all levels can find something useful.
Educational Content:
- Webinars: Regular sessions on trading strategies, risk management, and market analysis.
- Articles and Guides: A comprehensive library covering various aspects of trading, including psychology and technical analysis.
- The 5%ers Classes: These are videos presented by experts that teach users various trading topics.
Alternatives to 5%ers
While The 5%ers is a great platform, it’s important to consider alternatives to find the best fit for your trading style and needs. Here are four notable alternatives to The 5%ers:
The Trading Pit
The Trading Pit impressed us with its flexible funding options and supportive trading environment. They offer multiple account sizes and a straightforward evaluation process, making it accessible for traders at various levels. The firm’s strong emphasis on trader development is evident through its educational resources and responsive support. We found The Trading Pit to be appealing for its transparency and commitment to helping traders grow their accounts efficiently.
Apex Trader Funding
Apex Trader Funding stands out for its focus on futures trading. They provide a variety of evaluation programs, each designed to cater to different trading styles and risk tolerances. Our review highlighted the firm’s dedication to creating a supportive community for futures traders, backed by comprehensive educational materials and a user-friendly platform. Apex Trader Funding is a solid choice for those who specialize in futures markets and seek a prop firm that understands their needs.
FTMO
FTMO is a well-known name in the prop trading industry, especially for forex and CFD trading. Their evaluation process is rigorous, ensuring that only the most skilled traders get funded. Despite the challenging entry requirements, FTMO offers high-profit splits and substantial capital upon successful completion. During our review, we found that FTMO provides a highly structured and supportive trading environment, complete with extensive resources and professional guidance, making it an attractive option for serious traders.
Leeloo Trading
Leeloo Trading focuses on futures trading and offers a range of evaluation plans for different trading styles. We appreciated the flexibility and user-friendly nature of their platform. Leeloo Trading is known for its excellent support network and educational resources, which are crucial for trader success. Our experience with Leeloo Trading showed that they prioritize trader growth and provide the necessary tools to help traders succeed in the futures markets.
Conclusion
The 5%ers provide a supportive environment for traders. Their multiple account types and clear scaling plan allow traders to manage increasing amounts of capital effectively. The profit split, starting at 50% and potentially reaching 100%, is highly beneficial.
Educational resources and responsive customer support make it a good fit for traders at all levels. The payouts and various withdrawal options ensure easy access to profits. While not directly regulated, their use of commercial liquidity providers and strong reputation offer a secure trading experience.
Frequently Asked Questions on 5%ers:
What Is the 5%ers?
The 5%ers is a proprietary trading firm that funds traders. They provide capital for traders to trade and scale their accounts based on performance.
How Do I Get Funded by the 5%ers?
To get funded, pass an evaluation challenge testing your trading skills and risk management. Alternatively, instant funding options are available for immediate access to capital.
What Is the Profit Split?
The profit split starts at 50% for traders and can increase to 100% based on performance. This makes the payout structure highly beneficial.
What Trading Platform Does the 5%ers Use?
The 5%ers exclusively use MetaTrader 5 (MT5) for trading. This platform offers advanced features and a user-friendly interface.
What Educational Resources Are Available?
The 5%ers offer webinars, articles, guides, and video programs. These resources help international and US clients learn about different strategies and tips that will help them succeed.
