Selecting the proper prop trading account is an important decision that will make your way as a trader. Funded accounts are among the most used terms in prop trading. In this article, we will look at the most significant information you need to know about these kinds of accounts, their disadvantages, and the truth behind them.
Are you considering searching for what the industry advocates for and seeking a funded account in your trading path? You do not know how it works and wonder if that is possible. Is it even real? This complete guide touches on the basics of funded accounts and what we provide at The Trading Pit to assist in making an informed decision.
In prop trading, you could encounter tempting propositions like “trade with our capital” or assurances like fully funded accounts. However, this article is meant to demystify these terms for you.
Definition of Funded Accounts and Earning Accounts
· Funded Accounts: Many prop firms propose these accounts to their traders, allowing them access to their capital. In turn, the company shares some of its profits with traders. Still, this cannot be the case as all the funds are virtual, and all the accounts are in a demo environment or simulated.
· TTP Earning Accounts: The Trading Pit Earnings Accounts are a door to significant accomplishments. Once clients complete a challenge successfully are awarded a signal provider contract. This contract allows them to participate in simulated trading on demo accounts based on virtual assets, allowing financial instrument transactions by providing Buy and Sell signals using the generated data. Clients are compensated for these valuable trading insights. Each challenge is associated with a dedicated Scaling Plan that provides the Profit Target and acceptable drawdown for an account. In attaining this Profit Target, apart from being reimbursed, the account type scales up to a higher level with an increased capital base. As our clients develop their trading skills, they grow into various account levels, some of which allow for the retention of profits up to 80%. The objective is steady account increase and high earnings potential.
What Most Prop Firms Sell as Advantages of Funded Accounts
· Trading with the firm’s money
· Risk-Free trading
· Real Accounts in a live environment
Truths about Funded Accounts
A prop firm cannot offer real trading capital unless the trader becomes a licenced professional trader employed by the given firm.
Benefits of Earning Accounts:
· No misleading information
· No fine prints
Funded Accounts: Navigating the Fine Print for Beginners
Understanding the funded account’s intricacies is essential. Read carefully what these prop firms promise and find out about possible trading restrictions and other terms to understand fully what you’re getting into.
Choose a prop firm that clearly communicates what you are signing up for and puts your trading career first. Remember that continuous skill improvement, effective risk management and discipline are vital to success.
The Trading Pit’s Regulatory Background
The Trading Pit is the premier proprietary trading firm that cultivates your talent for trading and lays the foundation for success in the trade industry. Our sole agreements with famous certificate programs, hedge funds and asset management companies are strengthening our distinctive place in the market.
The Trading Pit is based on the loyalty to legal and regulatory compliance right at its centre. We’ve consulted noted capital markets law experts to ensure that all facets of our business, including agreements we form as innovative partnerships with proprietary traders, fully comply with legal principles. These models are not concocted for compliance only; transparency and mutual growth are built on their foundation for shared success. The Trading Pit is designed with one goal: your matters in the trading sphere.
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Disclaimer: All accounts provided to our clients are demo accounts with virtual funds. All trading activities occur in a simulated environment.
