Varying limits of funded accounts

Do you have what it takes to be a trader? Because it is not an easy task to be one. The job puts the trader under a lot of pressure of performing well as money is at stake. The trader has to make intelligent decisions by using speculation skills and market statistics. It is preferred to make speculations with calculated risks to avoid huge losses.

It is ironic that many traders are talented, have great speculation skills, and understand the trading platforms and markets quite closely, but lack an adequate amount of capital to take part in trading. Realizing that not all traders have essential funds many companies and funding firms have come forward who hire such talented and skilled traders by offering them fully funded accounts to showcase their talent. In such a setup all the money comes from the funding company and the trader is not required to pool even a single dime in the capital. It’s’ like the trader is working as an employee for the company and invests their funds.

In return for services, the trader gets a monthly fee or a specified percentage of earned profits. Usually at the start the firm judges or evaluates the knowledge of the trader and offer them a monthly fee, but later after achieving a specific milestone the trader is offered more like a partnership where he/she can get a certain percentage of profit.

There are generally two types of setups or procedures based on which funding firms hire the traders. The first one is where they evaluate the expertise and knowledge of traders by taking a test (mostly through a simulation) and later when the trader pass the test then he/she is hired. Another way is to immediately hire the eligible applicants by offering them access to an instant funding account and then access their skills based on which their future is decided with the funding firm.

You must be wondering what sort of funds firms offer to the traders. Well, of course, they cannot offer unlimited funds to traders. Firms offer funded accounts with certain restrictions, limits, and milestones to traders and they have to prove their skills by working under those boundaries. Firms can offer a 5k to 500k account limit to traders.

A 10k funded account is most often offered to traders in both evaluation-based and instant hiring. It means that the maximum fund trader will get from the firm will be 10k. This fund is given for a limited time which is often referred to as a challenge or working period. The trader is given access to trading platforms with specified minimum and maximum trading days. The trader has to work for at least minimum trading days so that the firm can monitor the trader’s performance and investing strategy. Firms also specify maximum daily loss and a maximum overall loss for traders to restrict their leverage. The maximum loss limit on a 10k funded account is usually 1k but the limit also depends on the funding firm. Lastly, a profit target is also assigned to each trader. Let’s say that the trader has a target to earn 1k profit on a 10k funded account in 30 days. If the trader achieves this milestone then he/she will be hired for the long term and we will continue to scaling them to a bigger trading account. Get start with instant funded account today.