Funded Trading Accounts: Advantage & Benefits 2022

A funded trading account is an ideal method for aspiring traders with significant potential to pursue a successful career in day trading. A funded stock trading account enables traders to trade without having to use their own money. However, if they want to trade in the live markets without the worry of losing their money, this is an option.

A funded trading account is a major key to financial freedom and independence for competent traders. Once traders have proven their mettle and their ability to make successful and profitable trades, they no longer have to worry about having enough capital to trade or the risks involved. The best thing about trading with a hybrid strategy is that it doesn’t require the trader to pick up every trade from day one. Instead, funded traders can earn a large percentage of the profits they create by using a hybrid strategy.

It is not simple to become a funded trader and obtain a funded stock trading account. To be a funded trader, you must work very hard and overcome numerous challenges.. They must follow the rules and be skilled at Risk Management and Profit Management to become a funded trader.

Funded Trading Account Amount

The amount of money you have in a funded trading account will undoubtedly influence the amount of income you make from your investment. In most cases, the amount can range from approximately $10K to $25K. This means that funded traders may receive up to $25K in their trading account as capital to trade.

However, the account’s value varies significantly from one proprietary trading firm to another. This also depends upon the ability and skills of the trader. You must have previously been authorized as a trader before you can apply for the fund. If you aren’t, individuals who are qualified will get a higher amount of money to trade with.

At the same time, the amount in the funded stock trading account keeps on accruing as traders continue to prove their potential. The trading balance in a funded trading account can rise if the trader meets profit objectives consistently and stays clear of the daily and total loss limits.

For example, Tradenet offers a $14,000 funded account to the traders who win their trading challenge while following the rules. Traders are enabled to trade  with a demo account with a balance of $10,000 as part of the challenge..  At the end of the five trading days of the challenge, if the trader has achieved a net profit target of $500 and has maintained a daily loss limit of $100 and total loss limit of $300, he wins access to the $14,000 funded trading account. This account allows traders get to retain up to 70% of their profits and assume zero risks.

Advantage of a Funded Trading Account

The main benefit of a funded trading account is the opportunity to trade without risking one’s own money. After traders demonstrate their capability to make consistently profitable trades, they become eligible to trade using the firm’s capital. The scenario is ideal for traders who are highly educated and capable but lack the financial resources to start trading immediately.

Thus, through a funded trading account, such skillful traders can trade without assuming the liabilities. They also get a significant percentage of the profits generated, on top of that. It, therefore, becomes a win-win situation for the funded traders.

A funded stock trading account also allows traders to access state-of-the-art trading platforms, trading tools, trading advice, and alerts, as well as live trading rooms to chat with top traders and learn from the experts.

Benefits of a Financed Trading Account

After you’ve learnt the theory of day trading, you may practice trading in a variety of ways, including paper trading and demo trading. Some of the alternatives include as follows: A funded stock trading account offers numerous advantages over the other approaches.

Paper trading is, literally, the process of entering trades on paper. The method is used by many traders to practice their trades; however, the process eliminates accuracy and practicality and ignores bad trades while giving undue importance to good trades.

On the other hand, in demo trading, traders use a real platform to enter trades but on simulated market conditions. The trades are not real and neither is the money and markets. Traders using demo trading accounts do learn to use real trading platforms and real trading tools, but as there is no real money involved, traders don’t get to handle the real psychological pressure of risking their money.

The difference between these two types of trading accounts is that funded trading accounts can trade in real markets with real money, whereas un-funded trading accounts cannot. Traders using a funded trading account engage in genuine markets with actual money, just like traders who use a margin account. Traders do not risk their own capital, yet they learn efficient risk management

Funded trading accounts provide excellent opportunity for qualified traders to join the top game and earn financial and professional independence without having to start with cash or take risks of losing it.

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