The forex market continues to grow, with an average daily trading volume of $7.5 trillion as of 2023. With such high liquidity, many traders are turning to funded forex accounts to access larger capital and maximize profit potential. In this comparison, we will analyze and compare the top-funded forex accounts to help traders choose the best option for their needs.
These are the 5 Best Funded Forex Accounts:
- Instant Funding: Provides immediate access to capital without evaluation
- Funded Next: Offers rapid account scaling with a profit split up to 90%.
- 5%ers: Focuses on low-risk trading with long challenge periods and profit splits up to 50% – 75%.
- The Trading Pit: Allows capital scaling up to $5 million with a profit split rising to 80%.
- FTMO: Known for flexibility, support, and profit splits up to 90%.
List Of The 5 Best Forex Funded Accounts:
#1 Instant Funding
Instant Funding is the winner of our best comparison of funded forex accounts. Unlike conventional brokers, we discovered that Instant Funding does not offer direct access to trading markets. Instead, it funds forex traders by providing account sizes ranging from $1,250 to $80,000 for its Instant Funding model, with pricing starting as low as $79.
To trade forex on Instant Funding, traders must first pass one of the available challenge models before they can access the capital and start trading forex on their accounts.
Key Facts About Instant Funding
| Feature | Instant Funding |
|---|---|
| Headquarters | London, England |
| Available Platforms | Platform 5, cTrader, DXtrade |
| Free Trial | No |
| Profit Split | 80% |
| Fee Structure | $79 (one-time fee with no recurring monthly charges) |
| Leverage | 1:100 |
| Payouts | Bi-weekly after the first trade, weekly subsequently |
| Evaluation Period | None |
| Profit Target | None |
#2 FundedNext
FundedNext stands as the second-best winner for forex traders looking for funded accounts due to its flexible rules, competitive profit splits, and accessible trading platforms. We found the platform’s two-phase evaluation program to be quite attractive for forex traders. This includes a profit target of 8% in the first phase and 5% in the second.
FundedNext has a strong reputation within the forex trading community, boasting a 4.5/5 rating on Trustpilot based on over 20,000 reviews, with 83% of them being 5-star ratings.
Key Facts About FundedNext
| Feature | FundedNext |
|---|---|
| Headquarters | Dubai, UAE |
| Available Platforms | MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader |
| Free Trial | 14-day free trial available |
| Profit Split | Up to 95% |
| Fee Structure | Evaluation fee from $49 to $1,099 based on account size, with no recurring fees |
| Leverage | 1:100 |
| Payouts | 4 weeks for the first payout, Bi-weekly payouts subsequently |
| Evaluation Period | Two phases: 4 trading weeks cycle for phase 1 and 8 trading weeks cycle for phase 2 |
| Profit Target | 8% for Phase 1, 5% for Phase 2 |
#3 5%ers
The 5%ers is the third-best winner in our funded forex account comparison list due to its long-term growth and career-focused approach. We tested its Bootcamp Program, which offers low-cost entry options of $95 for a $100k challenge and $225 for $250k, providing traders with the chance to progress through a three-phase challenge with leverage of 1:10. The payout ratio starts at 75/25 and increases as traders scale up their accounts.
One aspect we appreciated in our review is their Hyper Growth Program, which lets traders manage up to $4 million with 100% profit retention after reaching 10% growth milestones. This program is well-suited for those who want instant funding with minimal time pressure.
Key Facts About 5%ers
| Feature | The5%ers |
|---|---|
| Headquarters | Ra’anana, Israel. |
| Available Platforms | MetaTrader 4 (MT4), MetaTrader 5 (MT5) |
| Free Trial | No |
| Profit Split | 50% (scaling up to 100%) |
| Fee Structure | One-time registration fee, starting at $95, varies by account size |
| Leverage | Bootcamp- 1:10 Hyper Growth- 1:30 High stakes- 1:100 |
| Payouts | Bi-weekly payouts available |
| Evaluation Period | No time limit for completion |
| Profit Target | 10% for standard plans, 20% for accelerated accounts |
#4 The Trading Pit
The Trading Pit follows as our fourth winner on this list, primarily because of its broad range of markets and asset classes for traders. In our review, what stood out was their flexible evaluation process that focuses on performance-based scaling and customized trading strategies.
Unlike many firms, The Trading Pit evaluates traders through a variety of metrics, including risk management, rather than focusing solely on profit targets. The platform gives traders access to no-limit progression, with the ability to scale their account size as their performance improves.
Key Facts About The Trading Pit
| Feature | The Trading Pit |
|---|---|
| Headquarters | Liechtenstein |
| Available Platforms | MetaTrader 4, MetaTrader 5 |
| Free Trial | No |
| Profit Split | Up to 80% |
| Fee Structure | From $99 |
| Leverage | Up to 1:50 |
| Payouts | Friday, weekly |
| Evaluation Period | 90 Days |
| Profit Target | From 10% |
#5 FTMO
FTMO is a veteran in the funded forex trading space and takes the fifth spot in this comparison. During our tests, we found their evaluation process to be both rigorous and rewarding. FTMO offers up to $200,000 in funding after passing its two-step evaluation, with a profit split reaching up to 90%.
We also found that their forex funding process is structured into two phases: the Challenge and the Verification. Traders are required to meet a set profit target starting at $1000 and avoid violating a $500 loss limit.
Key Facts About FTMO
| Feature | FTMO |
|---|---|
| Headquarters | Prague, Czech Republic |
| Available Platforms | MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, DXtrade |
| Free Trial | Yes |
| Profit Split | 90% |
| Fee Structure | €89 for the smallest $10,000 account. |
| Leverage | Up to 1:100 |
| Payouts | Monthly payouts with no withdrawal fees. |
| Evaluation Period | 4 Trading days |
| Profit Target | 10% during the FTMO Challenge and 5% during the Verification phase |
What is a Forex Funded Account?
A Forex Funded account is a trading account provided by a proprietary trading firm (often referred to as a “prop firm”) where traders are given access to capital to trade the foreign exchange market on behalf of the firm.
These accounts are typically issued to traders who pass a rigorous evaluation process, proving their profitability, risk management, and consistency over a series of trades. In return, traders receive a share of the profits generated, while the prop firm bears the risk of any losses.
How To Create a Forex Funded Account?
To create a Forex funded account, you will need to follow these steps:
- Research and Choose a Prop Firm: Start by selecting a reputable proprietary trading firm that offers funded accounts, such as FTMO, MyForexFunds, or the 5%ers.
- Sign Up on the Firm’s Website: Register by providing your personal information and any required identification. Most firms will need proof of identity and trading experience.
- Select a Funding Model: You can choose between two options: an instant funded account or a challenge account, where you must pass a trading evaluation to qualify for funding.
- Pay the Fee: Depending on your selected funding model, pay the applicable fee.
- Receive the Funded Account: Upon successful completion of the challenge or payment of the fee, you will receive access to the firm’s capital through a funded account.
- Begin Trading and Withdraw Profits: Start trading using the firm’s capital and follow its risk guidelines. You can withdraw profits based on the firm’s profit-sharing agreement, often after meeting specific profit targets.
How We Selected the Best Funded Forex Accounts At WR Trading
At WR Trading, selecting the best-funded forex accounts was a meticulous process based on specific criteria that prioritize trader experience, success potential, and overall platform quality. We used a structured evaluation process to assess each prop firm, focusing on the following factors:
Funding Models and Profit-Sharing
Various funded forex accounts offer different models, making funding options and profit-sharing schemes vital. Our analysis included account sizes and the percentage of profits kept by traders.
We compared these figures to industry standards, using resources such as the Financial Conduct Authority (FCA) official website to confirm firm regulations and funding practices, ensuring transparent profit-sharing models.
Account Scaling Potential
At WR Trading, we reviewed the growth opportunities offered by each firm, especially the scaling plans that allow traders to increase their capital based on consistent performance.
Risk Management Policies
Our final analysis focused on risk management policies. We ensured firms provided balanced policies protecting capital while allowing traders to apply their strategies. Many firms align with best practices as advised by the official website of the International Organization of Securities Commissions (IOSCO).
Pros and Cons of Forex Funded Accounts
Many traders fancy the idea of using forex-funded accounts to scale their operations since they pose minimal personal risks. Having tested multiple funded accounts to weigh their benefits against their limitations, we discovered certain advantages and drawbacks:
Pros
- Access to Capital
- Lower Personal Risk
- Profit Potential
- Scaling Opportunities
- Professional Growth
Cons
- Profit Sharing
- Limited Trading Freedom
Advantages
- Access to Capital: Traders can access large amounts of capital without needing to risk their own money.
- Lower Personal Risk: Losses are borne by the prop firm, allowing traders to focus on a strategy without risking personal funds.
- Profit Potential: Traders can earn substantial profits through high-profit splits, often between 70-90%.
- Scaling Opportunities: Many firms offer scaling plans, allowing traders to manage larger accounts as they prove consistency.
- Professional Growth: Funded accounts provide a pathway for traders to develop their skills in a structured, risk-managed environment.
Disadvantages
- Profit Sharing: The firm often takes a portion of profits acquired which reduces the overall earnings.
- Limited Trading Freedom: Some firms impose restrictions on the strategies traders can use, such as banning scalping or overnight trading.
Instant Funded Forex Accounts vs Challenge Forex Funded Accounts
In the funded forex account space, traders typically encounter two main types of accounts: Instant Funded Forex Accounts and Challenge Forex Funded Accounts.
We found that instant-funded forex accounts are ideal for skilled traders who want to bypass long evaluation processes and begin earning quickly. After paying a fee, traders can start trading with the firm’s money.
Challenge accounts, on the other hand, require traders to complete a multi-stage evaluation process before they can access funded capital. Our observation at WR Trading suggests that challenge accounts are better suited for traders who are confident in their skills and are willing to invest time and effort to prove their performance.
Limitations of Forex Funded Accounts
Forex-funded accounts present numerous opportunities for traders, but they also have specific limitations that can impact trading performance and long-term success. Here are some aspects you should be aware of:
- Profit Splits: Typically, traders are required to split their profits with the proprietary firm, often ranging from 50% to 80%, depending on the program. This reduces the total profits earned by the trader, even though they’re using the firm’s capital.
- Strict Risk Management Rules: Most funded accounts come with stringent risk management guidelines, such as daily and overall drawdown limits. Traders who violate these rules run the risk of losing the funded account entirely.
- Time Pressure: For those opting for challenge-based accounts, the requirement to meet profit targets within specific time frames can add pressure. This time constraint might lead to forced trades or riskier decisions, especially if traders are struggling to meet the challenge goals within the set period.
Popular Platforms
Several platforms stand out in the industry of prop trading firms and are incorporated into various funded forex platforms for different trading styles. Here’s an overview of some of the most popular platforms:
- MetaTrader 4 (MT4)
- MetaTrader 5 (MT5)
- cTrader
- NinjaTrader
- TradingView
Conclusion
Overall, each of these funded forex accounts offers unique features tailored to different types of traders, whether you’re looking for aggressive growth, high flexibility, or career development. We at WR Trading recommend checking out the features that stand out to you before selecting a prop firm offering a forex funded account.
Frequently Asked Questions on Funded Forex Accounts
How Does The Profit-sharing Model Work?
Profit-sharing in funded forex accounts involves splitting the profits made from trading between the trader and the company. Most prop firms offer profit splits ranging from 50% to 90% in the trader’s favor. The exact percentage depends on the firm and may increase based on performance milestones.
Do I Need To Risk My Own Money When Using a Funded Account?
No. In most funded forex accounts, you trade with the company’s capital after passing an evaluation. However, some prop firms may require an initial fee to cover the evaluation or access to a demo account.
Can I Use My Trading Strategies With a Funded Account?
Yes, most firms allow traders to use their preferred strategies, whether it’s scalping, day trading, or swing trading. Some firms have specific guidelines, so reviewing each firm’s trading rules is essential before starting.
Resources
- https://www.reuters.com/markets/us/global-fx-trading-hits-record-75-trln-day-bis-survey-2022-10-27/
- https://www.fca.org.uk/
- https://www.iosco.org/
- https://instantfunding.io/#instant_phase
- https://fundednext.com/
- https://the5ers.com/
- https://ftmo.com/en/#maximum-daily-loss
- https://www.thetradingpit.com/
