You need money to makemoney as a trader. Leverage only gets you so far. Prop firms that offer fundedaccounts to retail traders fill a critical role, providing traders capital togrow.
But they won’t handover their money to just anyone. They want you to prove your trading chops.Each company requires something different.
So, how do you choosethe right prop firm partner?
Many traders seekingout a funded trading program look at the cost of entry as a primary criterion,but that’s the last thing you should worry about. The devil is truly in thedetails, as each firm has their own set of trading rules and characteristics.
SurgeTrader,for example, offers a one-step funding model, where traders take an Auditionwith simple rules and no time restrictions.
Upon completion of theevaluation, traders receive funding — up to $1 million — and keep 90% of theprofits they earn. The SurgeTrader program represents a significant departurefrom other similar firms in several key areas.
Funded with Real, LiveCapital
SurgeTrader fundsaccounts with real money, aligning the interest of the trader and the firm.Most other firms do not fund accounts with actual capital, and instead keeptraders on a demo account, only paying out the winners.
This creates aninherent adversarial relationship, where payouts are often delayed or avoided.SurgeTrader stands by their traders with their own money as a cornerstone ofthe program.
Simple Trading Rules& Only One Phase
The SurgeTrader funded trader program features just a few simple trading rules and only one phase.Pass the evaluation and you’re in. Many firms feature programs with several complexrules, so make sure you understand them before partnering with a prop firm.
Not only that, but manyfunded trader programs feature a multi-phase evaluation process. Traderssucceed, only to have to do it all over again to receive a funded account.
No Time Limits
SurgeTrader believesthat traders should have all the time they need to let their strategy develop.
At SurgeTrader, retailtraders can pass the Audition at their own pace — whether that’s in 30 minutesor 30 months. Often, other prop firms require that traders comply with stringenttime restrictions to qualify.
Traders must, forexample, trade for at least ten days and pass within thirty days, while makinga minimum of fifteen trades. Make sure to check the fine print.
Incredible CustomerSupport
The extent of customer serviceat SurgeTrader goes above and beyond competitors. Whether by phone, chat oremail, traders can speak to a live person, nearly around the clock. Traders, bynature, work on rapid timelines and want answers fast — and SurgeTrader serves theirtraders on that short timeline.
10 Questions to Ask aPotential Prop Firm Partner
For retail traders outthere, it’s helpful to understand what questions you should be asking of apotential prop firm with whom you are considering working. But which questionsshould you ask?
Lucky for you,SurgeTrader is sharing their experience with you and pulling back the curtainto reveal ten questions you should ask any potential funded account firm.
(At SurgeTrader, theanswers to all these questions and more are available in their FAQs.)
What exactly are all the trading rules I need to follow?
Almost withoutexception, prop firms require traders to undergo an assessment from the outset.Each firm has their own set of trading rules. These “rules” form the bedrock toany evaluation, and they boil down to a few key elements:
· Time – Is there a minimum or maximum numberof trading days?
· Target – What is the profittarget required to pass the evaluation?
· Drawdowns – How much can you incur for a daily, weekly, or total drawdown?
But beware of othertrading rules and fine print outside of those core components.
What portion of profits am I entitled to once I’m funded?
While prop firmsprovide the capital, traders do the heavy lifting. Traders can find alldifferent levels of profit split — from 50% all the way up to 90%.
Can I get quick customer service?
Even with the best-laidplans, issues can and will arise. Whether it’s the market, the broker or thetrading platform, there are often curveballs when you least expect it.
Nothing is more frustratingthan trying to reach customer service and waiting on a call-back, especiallywhen the situation is serious.
Customer service canand should be available during regular business hours to handle your questions,whether it’s rules compliance or ensuring your account is funded.
When I pass the audition, I get a real money tradingaccount funded, right?
As we mentioned above,not every prop firm drops you into a real account once you pass your evaluation.In fact, some NEVER do! So, make sure you find out EXACTLY how you are fundedonce you pass your audition.
Which assets are tradable?
Prop firms and theirbrokers provide access to different tradeable products — like forex, crypto,indices, stocks and more. The firm you pick should match your specific needs. Thismay be easy if you specialize in just one forex pair.
However, if you utilizecross-asset strategies for hedging and risk management, make sure you select a firmthat carries enough products for you to work effectively and take advantage ofnew trends.
How fast does the firm pay my profits on a withdrawal?
For those who earn aliving trading, regular, timely withdrawals are an essential part of theirbusiness.
Some firms can takeweeks to pay out your money and require substantial documentation. Reputablecompanies provide multiple methods of withdrawal and can send you money quickly.
How long does it take for me to get a funded account afterI pass?
Once you pass youraudition, you want to begin trading as soon as possible.
Any company with enoughliquidity should be able to get your account set up and funded within a fewdays at the most — with the quickest firms taking 24-48 hours or less.
Is the fee for the assessment a one-time fee or a monthlysubscription?
Fees should betransparent and easy to understand. You should know going into the evaluationwhat you need to pay and when. Some firms charge monthly fees while others putyou through multiple steps or ‘challenges’ as part of their evaluation process.
Is there a discount for a repeat assessment if I don’tpass?
Not everyone succeedsat their first audition. You’ll typically find companies will offer discountson future assessments or a limited number of retries. Understand what happensif you miss the mark on the evaluation and if there is a goodwill discount forretries.
Is there a time window in which I must pass?
Although we touched onthis earlier, it’s a key point of differentiation. Many firms restrict tradersto complete their assessment within a month or some other set time.
This can force tradersto make questionable decisions to meet the deadlines, something traders shouldtry to avoid.
Ultimately, everytrader is on the hunt for an edge — in the markets and with whichever prop firmthey might choose.
Make sure you understandthe small differences in the funded trader programs available, because thesmall differences can have a huge impact on your trading, strategy, and yourlikelihood of achieving your objectives.
