Funded Trading, The Next New Account Funding Option or The Latest Scam

If you are trading your own funds instead of another you are encouraged to look for a broker with the lowest barriers to entry so as to improve your chances of making money. This means finding the best broker with the lowest spreads, and minimum deposits to maximize your trading potential. To find such a broker I recommend you use WikiFX. This app is connected to all the regulatory boards in the world so they are able to connect you to the best-regulated brokers with the lowest spreads. They also keep a list of all the brokers who are known to have poor service and have been listed as scams, So you are able to avoid the bad apples of the forex industry before you lose your money. So for any query, you may have concerning brokers, look no further than WikiFX.

What do funded trading programs offer？

For the most part funding programs allows traders to gain access to massive amounts of money to trade with. The profits made with that money are shared according to an agreed profit split with the most common profit split being 60-40, 60% to the trader and 40% to the firm. So firms offer better or worse profit share, it just depends on the funding provider. To enter these firms one is required to pass a series of tests. This can be a demo trading account test where participants are required to reach a certain profit target to qualify. To get the opportunity to be tested one must pay some kind of subscription fee or test fee which leads to the shady manner in which some of these firms are making a profit, which is not gaining from real funded traders but benefiting from those who fail.

Trading is not an easy skill as 90% of traders are known to fail. These firms know that and hence they want as many people to register for the funding tests and fail. Most of these firms are counting on the fact that over 90% of the people who will register to trade their test will fail it and will charge high registration fees and in addition, make the test that much harder. They will even advertise better profit share deals and offer big trading accounts, but this is all meant to encourage more participants and gather more money that way. It is recommended that you then think about becoming a funded trader and that you choose a good funding program. There are a number of good ones out there you just have to be willing to look. Try and find programs that offer your subscription fee back or that offer unlimited tries.