Author: Eduardo Montero
Last Updated on May 16, 2023
The Funded Trader is a prop trading firm operated by The Funded Trader LLC founded in 2021 and headquartered in Liberty Hill, Texas (USA). Despite having a shorter track record than some of its competitors, it is having a huge growth thanks mainly to its low access fees (refundable) and its simple trading rules with much more accessible requirements than other prop firms as we will see more in depth in this review.
The Funded Trader offers traders from all over the world the possibility to pass the evaluation process of any of its programs, demonstrating their trading skills and the ability to control risks properly, to become a funded trader in a risk-free environment in which they receive a significant percentage of the profits generated by trading (80% for the trader by default and can go up to 90% through the scaling plan).
This prop firm has developed 4 programs to suit various trader profiles: Standard Challenge, Rapid Challenge, Royal Challenge and Knight Challenge. Accounts can reach up to $600,000 of capital and grow up to $1.5 million with the scaling programme.
In the Standard Challenge and Rapid Challenge programmes you can choose between Swing mode where you are allowed to keep trades open over the weekend and Regular mode where you are not. In the Royal Challenge and Knight Challenge programmes you can also use Expert Advisors. Strategies such as scalping are allowed on any funded trading account.
In any of the programs, the fee for accessing the evaluation process is a one-off payment (there are no monthly charges as in other proprietary trading firms) and is fully refundable once the challenge has been passed.
In addition you can currently take advantage of this discount coupon from The Funded Trader and have the double benefit of saving 15% of the access fee on any account and receiving a 110% refund once you pass the evaluation process.
The Funded Trader also offers you the choice of 2 online brokers to execute the trades: Eightcap and Purple Trading (except for using the MetaTrader 5 trading platform or in the Knight Challenge programme where only Eightcap is available).
Profit payments are processed quickly and can be requested every 14 days, every 7 days or at any time depending on the chosen account.
Is The Funded Trader reliable?
The Funded Trader is a prop firm that enjoys a very good reputation as we will see in the next point in which we will analyse the opinions of its users.
It was founded in 2021, so it has less experience in the prop firm sector than companies such as Topstep or FTMO.
Despite this, it already has the trust of thousands of traders around the world and is experiencing strong growth thanks to its funded account programs with more advantageous features than other of its main competitors.
In addition, the founders of The Funded Trader already have experience in the online trading industry having come from projects such as The Forex League and VVS Academy.
The company behind The Funded Trader brand is The Funded Trader LLC.
It is headquartered in Texas and although prop trading companies do not need to have specific financial regulation, since the capital operated by the trader belongs to the prop firm itself and not to the trader, being a company based in the United States is an extra guarantee of security compared to other companies that could be located in countries with less stringent regulations or in tax havens where they could disappear overnight.
In the following image we can see more information about The Funded Trader LLC:
What are the opinions of The Funded Trader users?
User reviews are one of the best tools for finding out the reliability of a certain product, service or company before buying or contracting its services. In the case of prop trading firms, they are also very useful for evaluating the quality of service of each company and discovering its strengths and weaknesses.
To analyse the opinions of the users of The Funded Trader, we have used, among others, the reference portal for this type of valuations: Trustpilot. This is the valuation of The Funded Trader at the time of writing this analysis article:
As you can see the average rating of The Funded Trader is 4.7 stars out of 5 from a total of over 6600 reviews submitted to the Trustpilot portal. The high number of reviews corroborates the popularity of this brand and the fact that it has such a high rating in a high number of reviews shows that most users are satisfied with the quality of The Funded Trader’s service as a proprietary trading firm.
Of the 6698 registered reviews 88% rate The Funded Trader with 5 stars.
We will now analyse some individual reviews and comments trying to find the main advantages and disadvantages of this prop firm:
We have located as main advantages in several reviews the quality of customer service, the speed of payments and the offers and promotions that The Funded Trader offers to access the challenges of their funded accounts.
We have also found some opinions on aspects of The Funded Trader that could be improved, for example some traders complaining about the spreads and commissions.
It seems that The Funded Trader is trying to improve this aspect and in recent months has reduced the commissions per lot when trading Forex and metals and does not apply fixed commissions on indices and cryptocurrencies. Regarding spreads, traders can find certain differences depending on the instrument to be traded depending on whether the broker used is Eightcap or Purple Trading (as long as the platform is MT4 as MT5 is only available with the Australian based broker Eightcap).
Some users also see it as a disadvantage that The Funded Trader does not guarantee that trades, once passed the evaluation process, will be executed on a live account. Most of the major prop firms offer their traders a demo account during their evaluation phase and then provide a funded live account after the evaluation phase. Some others, such as FTMO, offer only the possibility to trade on a demo account. In the case of The Funded Trader they state that they provide a demo account with real market quotes and that the trading data is sent to a partner firm which copies and takes trades to the real market as it deems appropriate according to its risk criteria. This aspect should not represent a disadvantage for the trader as long as the proprietary trading firm acts transparently and rigorously complies with the conditions of financing, profit split,…
How does The Funded Trader work?
The Funded Trader’s operation is quite similar to that of other of best prop trading firms with certain differences as we will see in terms of pricing and risk criteria. All the programmes they offer have a challenge where you have to demonstrate that you have a profitable trading strategy and can keep risk under control.
Once you pass the challenge, you will get access to a funded account that can handle up to $600,000 and with a profit share that can reach 90% for the trader. In addition, the fee you have paid to access The Funded Trader challenge is refunded once you pass the evaluation and become a funded trader.
How does the The Funded Trader evaluation process work?
With the exception of 1 of the programs (the Knight Challenge) where the evaluation process consists of only one phase, in all the others there are 2 phases called TFT Challenge (phase 1) and Verification (phase 2) .
If you prefer, you can check out these comparison tables to see which are the best no evaluation prop firms that provide instant access to a funded account.
Available programs and fees
The Funded Trader offers 4 different programs:
1- Standard Challenge
In The Funded Trader’s Standard Challenge program there are 2 phases of evaluation. The first phase (TFT Challenge) has a maximum duration of 35 days and the second phase (Verification) has a maximum duration of 60 days. You can advance to the next phase by completing the objectives without having to wait the remaining time.
There is a minimum of 3 trading days in each phase.
In phase 1 the profit target is 10% and the maximum risk levels are 6% maximum daily loss and 12% maximum loss.
In phase 2 the profit target is 5% and the maximum risk levels are the same as in phase 1: 6% maximum daily loss and 12% maximum loss.
There are 2 modes to choose from:
Swing: the maximum leverage is 1:60 and allows open positions to be held over the weekend.
Regular: the maximum leverage is 1:200 and does not allow open positions to be held over the weekend.
You can withdraw profits 30 days after your first trade after passing the evaluation process and thereafter you can request bi-weekly payouts.
Account sizes available:
- $10,000
- $25,000
- $50,000
- $100,000
- $200,000
- $300,000
- $400,000
TFT Standard Challenge access fees range from $129 to $1,958 depending on the account size chosen.
The Funded Trader’s Standard account scaling plan allows the trader to increase the account size by 25% every 3 months by meeting the targets (having made a profit for at least 2 out of 3 months with an average return of 6% over the 3 month period or a monthly return of 2%).
2- Rapid Challenge
In The Funded Trader’s Rapid Challenge program there are also 2 evaluation phases. As in the Standard programme, the first phase has a maximum duration of 35 days and the second phase has a maximum duration of 60 days. You can advance to the next phase by completing the objectives without having to wait the remaining time.
In this case there are no minimum trading days in each phase so you can advance faster than in any of the other programmes. In this list you can see other prop firms with no minimum trading days.
In phase 1 the profit target is 8% and the maximum risk levels are 5% maximum daily loss and 8% maximum loss .
In phase 2 the profit target is 5% and the maximum risk levels are the same as in phase 1: 5% daily drawdown and 8% total drawdown.
As in the previous programme, there are 2 modes to choose from:
Swing: the maximum leverage is 1:30 and allows you to hold open positions over the weekend.
Regular: the maximum leverage is 1:100 and does not allow open positions to be held over the weekend.
Profits can be withdrawn after 14 days and will be paid out within 24 hours of request.
Account sizes available:
- $10,000
- $25,000
- $50,000
- $100,000
- $200,000
TFT Rapid Challenge access fees range from $129 to $899 depending on the account size chosen.
The Funded Trader’s Rapid account scaling plan allows traders to increase their account size by 10% each time they make a 10% profit on their initial account balance.
3- Royal Challenge
The Funded Trader’s Royal Challenge program is similar to the two previous ones we have seen with the exception that this one allows the use of Expert Advisors (EAs) and trading during the publication of economic news.
In the Royal Challenge programme there are 2 evaluation phases. As with the Standard and Rapid programmes, the first phase has a maximum duration of 35 days and the second phase has a maximum duration of 60 days. You can advance to the next phase by completing the objectives without having to wait the remaining time.
There is a minimum of 5 trading days in each phase.
In phase 1 the profit target is 8% and the maximum risk levels are 5% maximum daily loss and 10% maximum loss.
In phase 2 the profit target is 5% and the maximum risk levels are the same as in phase 1: 5% daily drawdown and 10% total drawdown.
In this case there are no 2 modes to choose from as in the previous programmes and the maximum leverage is 1:200.
Once you pass the evaluation process, you can withdraw profits after 30 days.
Account sizes available:
- $50,000
- $100,000
- $200,000
- $300,000
- $400,000
TFT Royal Challenge access fees range from $289 to $1869 depending on the account size chosen.
The scaling plan for the Royal accounts is identical to that of the Standard accounts: the account size can be increased by 25% every 3 months by meeting the objectives (having made a profit for at least 2 out of 3 months with an average return of 6% over the 3 month period or a monthly return of 2%).
4- Knight Challenge
The main difference between The Funded Trader’s Knight Challenge programme and the previous ones is that there is only one step in the evaluation phase. It also allows the use of Expert Advisors (EAs) as in the Royal, which are not allowed in the Standard and Rapid programmes.
There is no maximum number of days in the single assessment phase of the Knight Challenge programme and there are no minimum trading days, so you can pass the assessment as soon as you reach the set targets.
In the evaluation phase the profit target is 10% and the maximum risk levels are 3% daily drawdown and 6% total drawdown.
Again there are no 2 modes to choose from as in the Standard and Rapid programmes and the maximum leverage is lower (1:30).
Once you pass the evaluation process, you can withdraw profits after 7 days.
Available account sizes:
- $25,000
- $50,000
- $100,000
- $200,000
TFT Knight Challenge access fees range from $189 to $939 depending on the account size chosen.
The Knight account scaling plan allows the account size to be increased by 25% and in addition the daily drawdown will increase from 3% to 4%. Performance is reviewed every 3 months and the targets are to have made a profit for at least 2 of the 3 months with an average return of 6% over the 3 month period or a monthly return of 2%.
The Funded Trader rules to comply with
In general, we can say that the trading rules of The Funded Trader are quite simple compared to those of other prop trading firms with many more requirements (e.g. My Forex Funds, FTMO,…).
The risk criteria are more or less demanding depending on the programme you choose.
For example, the “softest” are those of the Standard programme (6% daily drawdown and 12% total drawdown) while the “hardest” are those of the Knight programme (3% daily drawdown and 6% total drawdown).
You should have a good understanding of the rules to be followed in each programme and see which one can best fit your trading strategy to choose the right one for you.
Then there are other restrictions to take into account:
For example, as we have seen, automated tading robots (EAs) are only allowed in the Royal Challenge and Knight Challenge and forbidden in the Standard Challenge and Rapid Challenge (both in Regular and Swing mode).
Regarding other trading styles, The Funded Trader allows scalping on all accounts, both during the Challenge and on funded accounts. Weekend cryptocurrency trading is not allowed if you trade with the Purple Trading broker, but it is allowed with the Eightcap broker in the Standard, Rapid, and Royal Challenge programmes.
You can see all the trading rules of The Funded Trader on their official website: https://thefundedtraderprogram.com
Financial assets available
As mentioned above, The Funded Trader allows trading with 2 different brokers: Purple Trading and Eightcap. The catalogue of financial instruments available may vary slightly between them, so it is advisable to check the offer of both brokers if you are interested in a specific instrument.
Mainly you will be able to trade with:
- Major Forex currency pairs
- Indices such as NDX100, SPX500, US30, ASX200, GER30, FRA40, UK100, JPN225 or EURSTX50.
- Metals such as gold and silver.
- Brent and WTI oil.
- Cryptos such as Bitcoin, Bitcoin Cash, Litecoin or Ethereum in its cross with the USD.
If you are interested, here you have a list of prop firms for stocks. There are also traders who specialise in futures trading. If this is your case, here are the best prop firms for futures.
Leverage
The leverage available varies depending on the program chosen, the Swing or Regular mode (for those that allow you to choose) or the financial instrument you are going to trade. The maximum level available is 1:200.
There are also variations in some programmes depending on whether you are in the evaluation phase or in a funded account.
This is an example of 1 of the programmes:
Standard Challenge Program Leverage
1 – Regular Mode
1.1 – Challenge Phases
- Forex 1:200
- Metals and Commodities 1:40
- Indices 1:20
- Cryptocurrencies 1:2
1.2 – Funded Accounts
- Forex 1:100
- Metals and Commodities 1:40
- Indices 1:20
- Cryptocurrencies 1:1
2 – Swing Account Mode
2.1 – Challenge Phases
- Forex 1:60
- Metals and Commodities 1:20
- Indices 1:5
- Cryptocurrencies 1:1
2.2 – Funded Accounts
- Forex 1:30
- Metals and Commodities 1:10
- Indices 1:5
- Cryptocurrencies 1:1
Trading platforms
The Funded Trader allows you to choose the broker to trade with during the process of buying access to the challenge of any of its funded accounts.
Depending on the broker you choose, the trading platforms you can use will vary.
In the case of choosing the Eightcap broker, you can use the MetaTrader 4 or MetaTrader 5 platform. Eightcap is an Australian broker authorised and regulated by ASIC (Australian Securities & Investments Commission). This broker offers its services to traders from all over the world and it is quite common to see it as an intermediary in the operations of many of the major proprietary trading firms.
MetaTrader is the most popular trading platform in the world today. It is available for all types of devices with Mac, Windows, Android or iOS operating systems.
The other possible option is to choose the Seychelles-based broker Purple Trading. In this case you will only be able to trade with the MetaTrader 4 platform.
Scaling plan
The Funded Trader’s scaling plan allows you to increase the percentage of profit sharing (from 80% by default to 90% for the trader) and also to increase the capital of your funded account. The conditions will depend on the programme you have chosen.
For example in Standard Challenge, Royal Challenge or Knight Challenge if you meet the targets you will be able to increase your account size by 25% every 3 months (you must have made a profit for at least 2 of the 3 months with an average return of 6% over the 3 month period or a monthly return of 2%).
In the Rapid Challenge programme the scaling plan will allow you to increase the size of your funded account by 10% every time you make a profit of 10% on the initial account balance.
More details can be found on the The Funded Trader website.
How does the The Funded Trader funded account work?
Profit split
The default profit sharing percentage for all funded accounts in The Funded Trader is 80% for the trader and 20% for the prop firm. As we have seen above this percentage can be increased to 90% for the trader with the scaling plan.
Withdrawal of profits
Regarding the withdrawal of profits at The Funded Trader we have found quite a lot of positive feedback as mentioned at the beginning of this review. Most traders are satisfied with the receipt of payments and the processing time from request (usually no more than 24 hours).
The time it takes to receive the first payment and the frequency of subsequent payments will depend on the programme chosen.
The fastest is the Knight Challenge where you can withdraw profits within 7 days. Then there is the Rapid Challenge where you can withdraw profits after 14 days. The slowest are the Royal Challenge and the Standard Challenge where you can withdraw after 30 days (although in the Standard Challenge you can request fortnightly payments after receiving the first payment after 30 days).
Regarding payment methods, you can choose between the main cryptocurrencies or Deel (intermediary that offers several payment options such as bank transfer, Paypal, Coinbase, Payoneer, Revolut, Wise,…).
Tools and educational material
The Funded Trader offers a wide range of tools and training material in various formats: almost daily videos on YouTube, podcasts, blog articles, interviews with the best funded traders,…
On their website you can access the Knowledge Center to learn in advance all the trading rules and objectives of each of the programs.
On their Discord channel you can access trading tips, interact with their community of users and much more.
The Funded Trader also organises attractive monthly competitions that represent a good opportunity to win important prizes.
Customer support
The quality of The Funded Trader’s customer service is another of the strong points we saw when analysing the main opinions of its users.
You can contact them at any time by email (support@thefundedtraderprogram.com) or via the online chat available on their website.
Personally, I have used the chat on several occasions and I have always received a quick response. I think it is a very agile way of resolving doubts quickly and I think that all prop trading firms should have this service nowadays to help their users. Fortunately, it is becoming more and more common to find a live chat service in this type of companies.
Conclusion
In conclusion, let’s summarize all the advantages and disadvantages that we have seen throughout this review about TFT (The Funded Trader).
Pros of The Funded Trader
- The Funded Trader has an excellent rating of 4.7 of 5 from over 6600 user reviews on Trustpilot.
- There are fewer trading rules than in other prop firms and they are easy to understand.
- The 4 types of programs offered are very adaptable to any type of trader. Each one has profit objectives and risk criteria that are more or less restrictive and you can pass the Challenge in more or less time. Any trading strategy is allowed in any of the programmes.
- The Standard Challenge has much more accessible risk criteria than other prop firms: 6% daily drawdown and 12% total drawdown.
- The maximum leverage level is high: up to 1:200.
- The catalogue of financial instruments to trade is wide (Forex, Metals and Commodities, Indices and Cryptocurrencies).
- Profit withdrawals are processed quickly and there are multiple payment methods to choose from.
- Challenge access fees are one-off, refundable and low compared to other prop trading firms.
Cons of The Funded Trader
- The Funded Trader does not offer a free trial.
- Shorter track record (since 2021) than other competitors.
- Commissions and spreads are a bit high on some financial instruments.
- Once you pass the Challenge the funded account remains a demo account and they reserve the right at their discretion to copy or not copy trades in the real market. This is no impediment to receiving your profits but it does raise questions as to whether there may eventually be a conflict of interest between the company and its funded traders.
The Funded Trader’s main differences from other prop trading firms
One of the main differences of The Funded Trader is its simple trading rules. They would be in line with other prop firms with simple rules such as SurgeTrader and are much less complex than those imposed by companies such as My Forex Funds or FTMO.
Thanks to its 4 different programs and account sizes it can be perfectly adapted to many different trader profiles. It is one of the prop firms with the most affordable risk requirements (e.g. in the Standard Challenge programme it allows a 6% daily drawdown and a 12% total drawdown). Other prop trading firms such as Topstep have stricter risk criteria (2% Daily loss limit / 4% or 3% Max trailing drawdown).
On the minimum trading days there are also good conditions. For example, in the Standard Challenge there is only a minimum of 3 trading days in each phase (in FTMO the minimum is 10 days) and in the Rapid Challenge and Knight Challenge there are no minimum trading days. In addition, in the latter program the evaluation process is a single phase.
In terms of access fees, they are cheaper than other prop firms. Here you can see a comparison of the cheapest prop firms sorted by the price of their access fees.
In addition, The Funded Trader often offers promotions and discount coupons that allow you to save money.
You can find out more about The Funded Trader and open an account with them via their website:
https://thefundedtraderprogram.com
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Author: Eduardo Montero
I'm Eduardo Montero. Computer scientist by profession and passionate about online trading with more than 10 years of experience in the financial markets. I'm the author of hundreds of articles published in other websites about the online trading industry. Learn more about me here: About the author.