Propriety trading firms invest their own capital, rather than their clients’, to generate profits. In this review, we look at one of the top forex prop trading firms in 2022: The 5%ers. Read on for fees, spreads, accounts and the withdrawal process. Find out how to get started with The 5%ers.
What Is The 5%ers?
The 5%ers’ Funding Traders & Growth Program was launched in 2016 with the aim to provide full-time traders with readily available capital. The platform was founded by Gil Ben Hur and Snir Achiel. The two were skillful day traders but lacked sufficient capital to create serious returns. Upon seeing the demand for a platform that allowed skilled traders to make profits without risking their own capital, The 5%ers were born.
The firm allows users to prove their trading skills using an evaluation program known as Level 1. Traders pay a one-off participation fee and receive an account funded with the firm’s capital. If the trader successfully completes the profit targets outlined in Level 1, they receive a fully funded account and will have the opportunity to continue increasing the capital they trade with.
How It Works
The 5%ers allow investors of all levels to begin trading and make profits. Users are given the opportunity to generate real profits during the entire process, including evaluation. There are a variety of accounts based on capital level and risk schemes, which provides opportunity for traders of all strategies – more detail on this later.
Once you have decided which capital and risk level is best suited for you, simply log in, pay the one-off participation fee and begin trading. The program was previously hosted on MetaTrader 4 (MT4) but is now hosted on MetaTrader 5 (MT5). MetaTrader 5 is among the most advanced platforms and is used by forex brokers and traders worldwide. It is available on desktop as well as mobile and can be downloaded on the Google Play and Apple App stores.
To become a fully funded prop trader with The 5%ers, users are evaluated through a Level 1 account. Traders pay a one-time fee to gain access to this account through which The5ers evaluate your trading personality. The low-risk evaluation program requires traders to sustain a 6-7% gain in net profit, while the higher risk “aggressive” program requires traders to maintain a net profit rate of 12%. The goal of the Level 1 solution is to prove to The 5%ers your ability to sustain profits while minimising risk.
The rules of the account are as follows:
- Reach the profit target
- Stay above the maximum stop out limit
- Do not exceed the maximum leverage rate
- Maintain a reasonable stop loss for your trades
Once you have successfully reached the target goals of the Level 1 account, you will receive your first payout and The 5%ers’ trading contract. This means you become an official Funded Traders Partner receiving a larger fully funded account and monthly profit payouts. Every time you reach your profit targets, your account will be closed, and you will receive a new Funded Forex Account with more capital and fresh profit targets.
The 5%ers Accounts
Account types at The 5%ers are broken down by capital and risk. After successful completion of the first level, the trader’s capital is increased x4. For every other level, capital is doubled. The risk schemes are designed to accommodate investors with different strategies:
- Risk Manager Program – This scheme is designed for traders who prefer lower risk strategies. The first level of this program requires your funded forex account to maintain a 6% gain in net profit, with an allowance of a 4% maximum loss, a mandatory stop loss, and leverage as high of 1:6. For all other levels, the profit target is 10%. On the first level of this program, traders are required to meet their profit target within 180 calendar days. After that there is no time limit for active traders to reach their targets.
- Aggressive Trader Program – This scheme is geared toward traders using higher risk strategies who prefer a greater challenge. On the first level, traders must maintain a 12% net profit and 25% on all further levels. Leverage of up to 1:30 is available and there is no mandatory stop loss. On the first level of this program, traders are required to meet their profit target within 60 calendar days.
On The 5%ers.com, there are four levels of funded capital accounts, each available on the low-risk or aggressive program:
- $24,000 – Users are supplied with $6,000 instant funding. The one-off participation fee is $275.
- $40,000 – Users are supplied with $10,000 instant funding. The one-off participation fee is $450.
- $52,000 – Users are supplied with $13,000 instant funding. The one-off participation fee is $565.
- $80,000 – Users are supplied with $20,000 instant funding. The one-off participation fee is $875.
The 5%ers provides the funds for your Level 1 process, with most of your participation fee going towards protecting your funds from losses. The maximum lot size at The 5%ers is capped at 0.65.
The trading securities offered by The 5%ers are as follows:
- Forex majors: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, NZD/USD, USD/CHF.
- Forex crosses: AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, CAD/CHF, CAD/JPY, CHF/JPY, EUR/AUD, EUR/CAD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/NZD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/JPY, GBP/NZD, NZD/CAD, NZD/CHF, NZD/JPY.
Spreads on major currency pairs like the EUR/USD, GBP/USD, and USD/JPY range from 0.2 pips to 0.9 pips during standard market conditions and the commission rate is $4.5. Overnight swap fees are collected and/or paid nightly.
Profits & Withdrawals
Traders using a fully funded account with The 5%ers.com receive a 50% share of any profits. Once you have completed the first stage of the program, your 50% share will be added to the new account. From Level 2, traders can withdraw their profit share at any time using the Profit Payout button on the dashboard.
Withdrawals up to $1,000 are issued by PayPal and anything over $1,000 will be paid by bank transfer using TransferWise. Traders receive one fee-free payout each calendar month with any further withdrawals charged at a minimum of $15 or 3% handling fee.
The 5%ers is a private fund, not a financial institute, and therefore there is limited regulatory oversight. The fund holds ownership of a forex trading account via a regulated broker. The 5%ers uses a variety of online brokers at the same time, however for confidentiality reasons, the names of these brokers are not disclosed.
Investors with The 5%ers are service contractors and not clients of the broker. As a service contractor, traders are provided with more security than with traditional forex brokers as they do not risk their own capital.
The 5%ers team is based at 3 Rapaport st, Kfar Saba, Israel. Their office hours are:
- Sunday – Thursday: 07:00 – 17:00 GMT
- Fridays: 07:00 – 12:00 GMT
You can get in touch with the customer service team via telephone or email:
- +1 (929) 955 5595
- +44 (20) 8068 0793
Unfortunately, The 5%ers does not offer a live chat service, which can be a helpful feature for traders who need prompt support.
The 5%ers also aims to educate and connect traders from around the world. The website offers an extensive blog where users can read up on everything from forex trading psychology to the latest news on gold and indices. There are free trading courses, webinars and live events as well as workshops such as the supply and demand workshop which explains the fundamentals of trading theory and practice.
Benefits of prop trading with The 5%ers.com include:
- Instant funding
- Referral program
- Your own capital is not at risk
- Funding of up to $1.28 million
- Advanced MetaTrader 5 platform
- Extensive trading courses, webinars and workshops
Some downsides to prop trading with The 5%ers include:
- Limited leverage options – 1:6 for low-risk accounts and 1:30 for aggressive accounts
- Time limits for Level 1 accounts – 180 days for low-risk and 60 days for aggressive
- No live chat feature
Final Word On The 5%ers
Prop trading with The 5%ers is an exciting opportunity for experienced investors. The 5%ers.com allows users to prove their worth as a trader with a fully-funded account. The firm has many positive reviews online and offers a host of educational materials. The leverage options offered by The 5%ers are limited vs the likes of FTMO or CTI, however successful investors have the opportunity to trade with more than $1 million when their returns reaches the respective targets.
How Much Money Do I Need To Prop Trade With The 5%ers?
Once you have decided which capital and risk level is suitable for your needs, you will need to pay a one-time participation fee. This range from $275 for the $24,000 account to $875 for the $80,000 account.
Is The 5%ers.com Regulated?
The 5%ers holds forex trading accounts with regulated brokers and platforms. However, as a private fund they themselves do not need to be regulated.
Who Can Trade With The 5%ers.com?
If you are 18 years or older you can trade with The 5%ers, no matter where you’re based. However, you will need to prove your ability before you can access large amounts of capital.
How Do I Start Trading With The 5%ers.com?
To start trading with The 5%ers, simply decide which capital and risk level is best suited for you, pay the one-off participation fee, and your account will be loaded with real funds immediately.
What Leverage Is Offered At The 5%ers.com?
The low risk programs offer a margin of 1:6 while with the aggressive programs, the leverage is 1:30.