The REAL Truth About Funded Accounts

Summary

In this video, the speaker discusses the rising issues with funded accounts and prop firms, especially their unsustainable business models that rely on challenge fees rather than actual trading profits. He emphasizes that while funded accounts can be a useful tool for those without capital, the goal should be to transition to live trading. The speaker recommends a trusted firm, Funder Pro, which trades with real funds and provides consistent payouts. He also shares a crucial tip for passing funded account challenges: only trade A+ setups and avoid trading daily to increase your chances of success.

Takeaways

• 😀 Funded accounts are tools, not the end goal; they can be unpredictable and shouldn't be relied on long-term.
• 😀 The safest way to trade is with your own money, but prop firms help people without capital to trade larger amounts.
• 😀 Many prop firms are shutting down or excluding US clients due to unsustainable business models and dishonest practices.
• 😀 A common problem with many prop firms is claiming you're trading with live funds when in reality, you're trading with demo funds.
• 😀 Prop firms make money by selling challenges, but they can't pay out large wins because they don’t always have real funds.
• 😀 Some firms make up excuses or random rules to avoid paying traders when they win large amounts.
• 😀 It's important to research prop firms thoroughly to avoid scams and ensure they actually trade with live funds.
• 😀 Funder Pro is a reliable prop firm that uses real funds for trading and pays out traders consistently.
• 😀 The business model of Funder Pro is sustainable because they trade with actual funds, unlike many other firms.
• 😀 The key to passing funded account challenges is to only trade your A+ setups and avoid trading every day.
• 😀 If you're struggling to pass challenges, stop chasing trades and focus on the high-probability setups that align with your strategy.

Q & A

Why are so many prop firms shutting down or restricting US clients?

Many prop firms are shutting down or restricting access to US clients due to unsustainable business models, where they rely heavily on challenge fees rather than live trading funds. This can cause problems when they can't pay out traders' profits, leading to closures or restrictions.

What is the main issue with prop firms claiming to trade with live accounts?

The main issue is that many prop firms tell traders they are trading with live accounts after being funded, but in reality, they are often still using demo accounts. This creates an unsustainable business model, as they don't actually have the live funds to pay out traders' profits.

Why are funded accounts considered unpredictable?

Funded accounts are considered unpredictable because the firms offering them often don't have enough real capital to cover the profits traders make. This can result in firms making excuses, like claiming rule violations, to avoid paying out when traders earn significant profits.

What is the sustainable model for a prop firm?

A sustainable model for a prop firm is one that actually trades with real funds, not just demo accounts. This allows them to pay out traders' profits with money they've truly earned from the markets, ensuring long-term viability.

Which prop firm does the speaker recommend, and why?

The speaker recommends Funder Pro because it uses real funds for trading, ensuring payouts to traders are consistently possible. The firm has a sustainable business model and offers fast payouts, which is a key reason for its reliability.

What is the significance of Funder Pro's one-step challenge?

Funder Pro's one-step challenge is significant because it only requires traders to pass one challenge before getting funded, unlike other firms that require passing two stages. This makes the process quicker and more straightforward for traders.

What key tip does the speaker provide for passing funded account challenges?

The key tip is to not trade your funded account every day. Instead, focus on taking only A+ setups for trades. This helps minimize bad trades and maximizes the chances of passing the challenge by meeting profit targets more consistently.

Why should you avoid trading funded accounts every day?

You should avoid trading funded accounts every day because A+ trade setups don’t occur daily. Trading every day leads to taking bad trades that can hinder progress towards the profit targets necessary for passing the challenge.

What role do challenge fees play in the sustainability of prop firms?

Challenge fees play a significant role in the sustainability of many prop firms. These firms often rely on the revenue from these fees to pay out traders' profits. However, if too many traders win and need large payouts, the firm may struggle to pay them, especially if they aren’t trading with real funds.

How can traders ensure they choose a reputable prop firm?

Traders should do extensive research before choosing a prop firm. This includes checking if the firm trades with live funds, whether they have a good track record of paying out traders, and if they engage with their community through channels like Discord or Telegram.