Trader To Know Before He purchase Forex Funding Challenge 2022

Nowadays Prop Firms Funding Challenges Are Getting New Hype As People Are Going For online Funding Models Which Promise You to Give profit Sharing In Your profits. Some Small Traders Who Have Very less capital Goes For The Funding Model Looking to Trading Much more Capital Through Prop Firms. People Purchase The Model Which Gives Them More Profits Or Double their Account Every month But The Bitter Truth is in Funding Models 90% of Traders Who Takes Funding Challenges Fail To Pass Their Evaluation models. This Can Be happen With Any Reason Due to Not Followings the Rules of prop Firms Or Taking many risks With Without Putting a Stop to loss. But Think About the Traders Who Pass Funding Models And Make Good Money How They Are Getting Payout Every month. While They Are Doing Something Different Which Others 90% of Traders Don’t Follow And Fail. Let’s See what are the Parameters a Trader Should look Before Purchasing A prop Firm Challenge.

Why Forex Prop Firms money ?

Prop Firms Are Like Banks That provide you with their capital to Do your Trading Business. In the Forex Industry, Most Traders Lack the capital To Trade a Bigger lot size in the Forex Market. prop firms’ money Can help Them with The lack of a capital problem. people Generally choose prop firms to have a larger Account size and have growth In their Funding process. Prop firms increase the capital when someone hits the profit Target with proper risk management. some Prop Firms In Forex Industries Goes With Max 4 Million Dollars in Funding. By looking At the Large Account size People Go For The challenge But After Taking There challenges Some Breach the rules And end up Having losses and closing of there propping firm Account. Prop Firm’s challenge is For The Traders Who Can Make consistent returns With a Discipline approach. The mindset should be clear that prop firms make you pay when you make profits so Without blowing the account if you’re a Fresh to Forex Then You should make yourself consistent then come and take the challenge.

Things You Should Check Before Considering Taking Prop Firm Challenges

Profit sharing With clients From 50% to 90%

Most of us Thinking why prop firms Funded us and even why they put so much money in our Trading Account Without knowing us or having anything in the mortgage. Because of the Profit split that the firm share with us. Different Forex online prop firms fund us and in return, they ask for a profit split. most of the Prop trading Firms have like 70:30 split of profit. where you get 70% of the profits and the broker takes 30% in starting phase. some also provide 90% profit splits but it depends on the broker to broker. You should know what’s the amount of split you will get on your profits. people buy Funding Challenges and get trapped on their profit split where the prop firm even takes a 50% split. comparing the profit split of prop firms gives us the advantage of having a good return on profits.

Time period to complete Profit Target And Evaluation Phase in Funding challenge

Prop firm challenges have certain time limits where they give us the task to complete the funding challenge while it can be a 1-month verification or 6 months to achieve the Profit Targets. This period also affects your mental status and consistency to make money suppose you are a swing Trader and You’re Waiting for your setup you are in the challenge phase of 1 month and the target is 8%. But Days left and your setup has not been made then you go for taking a wrong setup where you Fail the challenge and also the fees which you have invested to get the challenge.

Holding Positions for weekend or more

Forex Trading has many risks and according to a report, most traders lose Heavily while they hold their Trades for longer Terms. The market can Turn Against you at any time Put you in a serious Drawdown and makes your profitable week a losing streak. so if you prefer opening your positions and holding them for the weekend you should check whether the prop firm allows you to do that. This can be due to many reasons but I think prop firms want you to take less risk while going for their challenges. most people don’t see the risk and they lose their challenges. So when you go for taking a challenge you should be checking the over weekend positions holdings rules by prop firm.

Proper payouts and payment system for deposit and withdrawal

Having a proper payout is very important for Traders who are likely to manage their expenses and other things. Different prop firms have different payout in months or bi-weekly. some prop firms have rules as a monthly payout and some have a weekly payout. it’s your choice on how you wanted to get a payout on month or week. And most important thing you have to have on your checklist is their deposit and withdrawal method. do they provide multiple payment options on their platforms? some countries have made regulations regarding the outflow of Dollars so going for the local payment option will give you an edge like crypto transfer, bank transfer, card transfer, Neteller, or Skrill account.

Providing Suitable Market Conditions

A trader is also successful because his broker provides him with better market conditions where he Executed his trade and takes the edge of the market conditions provided by the broker. Here in the prop firm industry, there are two types of Liquidity providers one is an A book and the other is a B Book provider. A Book provider has less spread and much more liquidity compared to B Book Broker. It’s important to know where the prop firm uses liquidity from Banks ( A Book Liquidity provider) Or Its working on Back Hand. If the prop firm gives you a much larger spread then a scalper Trader will lose money because whenever he will set his stop loss it will have a much greater chance to hit SL because of the dynamic changing of spread. Market conditions are very important because when a News Trading event happens There are the king of slippage and Orders are getting filled in at a Higher or lower price. prop firms like 5%ers and Mint Funding Gives More Time to pass Funding challenge to traders.

Not Changing There rules After Enrolling for Prop firm Challenges

Many prop Firms Have Done this to There Traders Where they change the rules after they enroll for the trading challenges and There Terms and Rules will be easy for the traders to achieve but when after some months those easy rules for evaluation just disappear and they put even hard rules and Terms So that Trader loose money and not pass the evaluation. Prop firms should make the rules which support traders which gives both prop firms and traders Gains. a trader should always choose a prop firm on which the rules of the Prop firm challenge are easy. Check for the best prop firm which will give you Suitable Rules for evaluation and in other things of Trading.

Scaling up account On Archiving Profit Targets And Maximum scaleup

A Trader manages prop firm capital to Get maximum account size and to scale up his account to millions while achieving his profit target. most prop firms nowadays have a plan to scale traders’ accounts up to 4 million while some have scaleup plans like 1 million USD. Traders should not focus on the scale of their accounts in the first year of trading because we all know it’s a dream with high risk. Traders will choose the firm which provides them with a maximum of 4 million USD. Trading a large-scale prop firm capital is a Trader’s Goal and he can achieve this with consistency and patience. check for the max scaleup firms which will help you to achieve your dreams.


Q: Does all prop firm have A Book Liquidity provider?

Ans:- No ( Depends on there tie up with institutions)

Q: which is the Best profit split?

Ans:- 80% split is standard in forex industry

Q: Does forex prop firms are Regulated?

Ans;- No

Q: Does Prop firm have rules to manage there capital?

Ans:- Yes ( Rules of Trading)


When choosing prop firms these are the main factors that you have to check and go through there are so many but this will give you an edge on getting prop firm challenges and enrolling them and have a good trading journey.

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