Access Funding Capital
Funded trading firms offer traders the opportunity to trade significantly larger trading accounts and the firm splits the profit between the trader and themselves. This access to a much greater fund gets over the number one hurdle all traders face – a lack of significant capital. Proprietary trading firms in Chicago, Wall Street and the City of London have been doing this for years. “Prop” traders trade large funds on behalf of investors and get a split of the profits.
In the online funded trading business model, people pay a fee to the funded trading firm to be assessed as a good enough trader to be given access to larger capital sum. Our first thought was that the pass criteria was probably set so high that nobody would pass and the firms were just pocketing the fees with no real chance of success for the traders. We set out to find out.