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2-Step Next-Gen

2-Step Next-Gen Information

Updated yesterday

Phase 1 Profit Target (Challenge Phase)

8% | The account balance (not equity) must reach 8% profit relative to starting account balance. All positions must be closed.

Example:

  • Starting Account Balance = $100,000

  • Profit Target = $8,000

Phase 2 Profit Target (Challenge Phase)

5% | The account balance (not equity) must reach 5% profit relative to starting account balance. All positions must be closed.

Example:

  • Starting Account Balance = $100,000

  • Profit Target = $5,000


Rules and Objectives (Hard Breach)

Any violation of a hard breach rule or trading objective will result in the immediate termination of the account.

What happens when I violate a rule or objective?

  • Account Termination | In the event of a trading rule or objective being violated, the trader will lose trading access and privileges. To continue the evaluation and receive a funded account, the trader must go through a new evaluation.

  • No liability | The trader has no liability to any of the losses. This is the same for funded traders. However, any profit that they have made in the funded account during the trading period will be forfeited.

Violation Detection Process

We utilize three different scanning methods to ensure compliance with our trading rules:

  • Live Scanning: Continuous monitoring during the challenge phase.

  • Post-Challenge Scanning: In-depth analysis of trade logs after completing the challenge.

  • Manual Review: A thorough review before transitioning to a funded account or after a payout request.

Even if the system does not automatically mark an account as "Failed" immediately after a violation, accounts will still be reviewed at later stages.

If a violation is detected at any point, the account will be subject to termination.


Daily Loss Limit: 6%

6% | Current equity or balance must not reach -6% of the challenge account size relative to starting day's balance

Example:

  • Challenge account size = $100,000

  • 6% of Challenge account size = -$6,000

  • Starting Day's Balance = $107,000

  • Max. Daily Loss = $101,000

At any point within that day, the current equity or balance must not drop to $101,000.


Maximum Loss Limit: 12%

12% | Current equity or balance must not reach -12% relative to the challenge account size. This is fixed and does not trail higher when you’re in profit.

Example:

  • Challenge account size: $100,000

  • Max. Overall Loss: -$12,000

At any point during the evaluation, the current equity or balance must not drop to $88,000.


Inactivity Rule: 21 days

For both Challenge and Funded accounts:

  • If a trader does not place any trades for 21 days, their account will fail.

  • Once the account has failed, it cannot be reactivated.

Consistency is key to trading success, as regular participation and discipline help traders develop strong strategies and long-term profitability. By ensuring that only active traders maintain access, we can effectively allocate resources to those who are fully engaged in managing their accounts, creating a fair and competitive trading environment.


Unrealistic Trading Practices

What are Unrealistic Trading Practices?

Unrealistic trading practices refer to strategies or behaviors that are not indicative of genuine market analysis or sustainable trading. These include trades with extremely short holding times, which do not reflect realistic market conditions.

Volume-Weighted Average Holding Time (VWHT) Requirement:

To promote realistic trading behavior, all trades must meet a minimum VWHT threshold.

  • Holding Time: Duration (in minutes) a position is held before being closed.

  • Trade Volume: Size of the position for each trade.

  1. VWHT Below 2 Minutes:

    • If your VWHT is less than 2 minutes, your account will be flagged for Unrealistic Trading Practices.

    • Action Taken: The account will be terminated with the reason: "Unrealistic Trading Method."

  2. HFT Restrictions:

    • High-frequency trading strategies (including trades lasting 0–15 seconds) are considered unrealistic and unsustainable due to the inability to replicate such methods under live market conditions.


Additional Rules

Is copy trading allowed? - Allowed, terms apply

Allowed | Copy Trading Policy

  • Using copy trading software to copy trades between FundingTraders Next-Gen accounts is allowed.

  • Copy trading to other traders’ accounts is prohibited and may result in a violation under the Terms of Use Agreement.

  • Sharing signals with other traders is also not allowed.


Are EA/Bots allowed? - Allowed, terms apply

EAs/Bots: Allowed, but only those focused on risk management, as they promote disciplined and sustainable trading.

Example:

  • EAs: Position Size Calculator

  • Bots: Auto-position Size Execution

If you intend to use an EA or Bot, consult with us to ensure eligibility and compatibility with our platform.

Restricted Practices:

  • Off-the-Shelf EAs/Bots: Pre-built EAs purchased online are not permitted unless they serve risk management purposes.

  • Grid Trading EAs/Bots: Not allowed.

  • Hedge Trading EAs/Bots: Not allowed.

  • Scaling-In During Drawdowns: Only permitted once per drawdown.


Is HFT allowed? - Not allowed

High-Frequency Trading (HFT): Not allowed due to the challenges in replicating such strategies in live market conditions. This includes trades lasting 15 seconds or less, which are unsustainable due to latency limitations between funded traders' accounts and our master account.


Is news trading allowed? - Allowed, terms apply

Note: If account was bought before March 3, 2025, please refer to this News Trading Article (Click Here)

What Is Considered News Trading?

News trading is defined as opening, closing, or holding a trade within 5 minutes before or after a medium or high-impact news release. This time frame is critical as price fluctuations tend to be most aggressive, which can lead to execution risks, unexpected losses, or excessive profits based purely on market reaction rather than trading skill.

Note: The classification of medium and high-impact news events is based on ForexFactory's impact ratings.

Next-Gen Accounts

  • Challenge Phase: News trading is allowed, but if more than 50% of profits come from news events, the account may be subject to downscaling or retakes.

  • Funded Phase: News trading is strictly prohibited. Detection of news-based trades will result in profit deductions. If deductions surpass drawdown limits, the account will be terminated.

  • Exception: Trades opened at least 5 hours before a news event and closed within the restricted window will not be considered as news trading.

Next-Gen News Trading Exception:

To accommodate swing traders while preventing news gamblers, trades that are opened at least 5 hours before a medium or high-impact news event will be excluded from news trading restrictions and can be closed within the prohibited time window. The profits of these trades will be counted.

Trading Rule Clarification

  • Trades Opened 5+ Hours Before News: Profits are accepted if closed within the 10-minute window.

  • Trades Opened Less Than 5 Hours Before News: Profits are forfeited if closed within the 10-minute window.

  • Partial Order Closures: Closing any part of an order within the restricted window will mark the entire order as news trading.

  • Trader Accountability: Traders are responsible for adhering to the rules. If profit deductions exceed the daily loss or maximum loss limits, the account may be closed.

Medium or High-Impact News Restrictions

During medium or high-impact news events, trading activity is restricted within a 10-minute timeframe , which includes 5 minutes before and 5 minutes after the event. Opening, closing, or holding positions during this period is strictly prohibited for the affected currency pairs.

Additionally, any profits from trades executed or closed within the 5-minute window before or after the event will not be credited to the Master account.

Indices will also be included in news trading restrictions if they are heavily pegged to a specific currency's economic news. For example, US30 will be flagged for news trading during medium or high-impact US news events, just as DAX would be affected by EUR news and JPN225 by JPY news, subject to the same guidelines.

Examples:

  • Affected Currency Pairs: If a medium or high-impact news event influences USD, trading any USD-related pairs during this timeframe is not allowed.

  • Timing Restriction: If you initiate a trade before the news event but close it within the restricted period, any resulting profits will not be counted.

Note: Only the medium-impact news events explicitly listed below will be recognized as news. Any other medium-impact events not listed will not be taken into account.

Speech-Based Trading Restrictions

For speeches, the restriction applies from 5 minutes before the speech begins until 5 minutes after it concludes.

Medium and High-Impact News List: A dedicated tool will be provided to help traders easily identify restricted news events to ensure compliance.

Macroeconomic Announcements (⬅️Click Here)

Asset

News

USD

  • Unemployment Rate

  • Non-Farm Payrolls and Employment

  • PMI

  • ISM

  • CPI

  • PPI

  • GDP

  • Federal Funds Rates and Statements

  • FOMC

  • Trade Balances

  • Jobless Claims

  • Consumer Confidence

  • JOLTs Job Openings

  • Average Hourly Earnings

  • 10Y Note Auction

  • 30Y Bond Auction

  • Existing and New Home Sales

  • Durable Goods Orders

  • Speeches

EUR

  • PMI

  • CPI

  • GDP

  • Employment Change

  • Unemployment Rate

  • Retail Sales

  • Balance of Trade

  • ECB Rates and Statements

  • Deposit Facility Rate

  • Economic Sentiment Index

  • Business Climate

  • Consumer Confidence

  • Speeches

GBP

  • PMI

  • CPI

  • GDP

  • Nationwide House Prices

  • Mortgage Approvals

  • Retail Sales

  • Retail Price Index

  • Housing Price Balance

  • BoE Rates and Statements

  • Trade Balances

  • Industrial and Manufacturing Production

  • Unemployment Rates

  • Employment Change

  • Claimant Count Change

  • Consumer Confidence

  • Speeches

CAD

  • BoC Rates and Statements

  • PMI

  • CPI

  • GDP

  • International Merchandise Trade

  • Wholesale Sales

  • Housing Starts

  • Balance of Trade

  • Employment Change

  • Unemployment Rate

  • Retail Sales

  • Speeches

AUD

  • Cash Rate & RBA Statement

  • Employment Change/Unemployment Rate

  • CPI

  • GDP

  • Retail Sales

  • Speeches

NZD

  • Official Cash Rate & RBNZ Rate Statement

  • Employment Change/Unemployment Rate

  • CPI

  • GDP

  • Speeches

CHF

  • CPI

  • SNB Policy Rate

  • Speeches

JPY

  • PMI

  • CPI

  • GDP

  • Monetary Base

  • Leading Economic Index

  • Japan to Sell Bonds

  • Industrial Production

  • Merchandise Trade Balance

  • BoJ Rates and Statements

  • Retail Trade

  • Consumer Confidence

  • Balance of Trade

  • Speeches

Other:

  • OIL (USOIL & UKOIL)

  • Crude Oil Inventories


Guidelines

Leverage - 1:100

Up to 1:100 | Leverage varies for different instruments:

FX - 1:100

Metals: 1:50

Commodities: 1:50

Indices: 1:50

Crypto: 1:5

A 1:100 leverage on FX helps empower scalpers and day traders by being able to capitalize on intraday moves.


Minimum Trading Days (Challenge Phase) - 1 for 5k - 100k

Min. Trading Day of 1 for $5k-$100k account sizes.

Min. Trading Day of:

  • 7 for $200k account size

  • 25 for $350k account size

  • 40 for $500k account size


Min. Trades Requirement for 350k & 500k Accounts (Challenge and Funded Phase) - 15 & 20 trades

15 & 20 trades | $350k accounts must complete a minimum of 15 trades, 20 trades for $500k accounts. Each trade must account for at least +/- 0.20% of the challenge account size, promoting active, responsible, and strategic trading practices.


Is trading from multiple IP Addresses allowed? - Allowed

Allowed | While we do not have a strict rule against trading from multiple IP addresses, traders must exercise caution to ensure the safety of their accounts. It's crucial for traders to take responsibility for keeping their accounts secure and to avoid potential security risks.


Are VPNs allowed? - Allowed

Allowed | Traders are allowed to use VPNs for enhanced online security while trading on our platform. We prioritize privacy and flexibility, enabling traders to safeguard their accounts and trade with confidence. However, it's essential for traders to take responsibility for keeping their accounts secure by maintaining login credentials and remaining vigilant against potential threats.


Can I hold trades overnight/weekend allowed? - Allowed

Allowed | You are allowed to hold trades overnight and over the weekends.

While this flexibility is advantageous, it's vital to remain aware of specific considerations:

  1. Widened Spreads on Daily Rollover: When the Asian market opens, you may encounter widened spreads. It's important to factor this into your trading strategy and be prepared for potential changes in market conditions during this period.

  2. Wider than Usual Spreads on Monday Asia Open (Over the Weekend): Over the weekend, market dynamics can lead to wider spreads when trading resumes at the Monday Asia Open. This is a typical occurrence and should be considered in your risk management plan.

  3. Swap Rates: Please note that swap rates apply. Be sure to review the terms and conditions related to swap rates if they are relevant to your trading account type.

By staying informed about these aspects and incorporating them into your trading strategy, you can make more informed decisions and effectively capitalize on market opportunities while holding trades overnight or over the weekends. At FundingTraders, we aim to provide the support and flexibility necessary for traders to thrive in the dynamic world of financial markets.


Are there any lot size limitations? - None

None | We don’t have limits on lot sizes as different lot sizes are necessary for trading in different styles.

Swing traders typically use lower lot sizes due to farther stop loss placement. Vice versa for intraday traders and scalpers.

Note: We focus on the consistency of your position sizing. This includes, but is not limited to, consistently going all in/risking a significant % of your account balance in one trade. Violators are usually those who increase their position sizing during news events.

This will raise red flags and cause the team to investigate your trades - leading to a possible termination of the account due to dangerous risk management.


Stop Loss Requirement - None

None | Due to many traders using EAs/bots for their risk management automation, we do not require a stop-loss order.

However, we highly suggest that you always place a stop-loss order.


Payout

Consistency Score - 25%

We have a Consistency Score to encourage sustainable trading practices. The score ensures that a trader’s largest trading day is not due to full porting an account and is a calculated trade taken. Additionally, the consistency score is a soft breach. It will not terminate your account - you simply have to continue trading - no need to worry.

The consistency score is 25% on the Next Gen funded phase (does not apply on challenge accounts). This means that a trader's day with the highest profit should not surpass 25% of the current P&L to be eligible for payout.

Here’s the calculation:

This guideline aims to discourage reliance on one-time high-risk trades or news-driven strategies and instead promote a consistent approach.

Example 1:

If a trader earns P&L is $10,000, the trader’s largest trading day should be below $2,500 (25% of $10,000) or below to be eligible for payout. If not, the trader has to continue trading until the consistency score is 25% or below.

Breakdown:

  • Current profits: $10,000

    $10,000 * 0.25 (25%) = $2,500

  • 25% of current profits: $2,500

Example 2, Funded $100,000 account:

Day

Daily P&L

Current P&L

Largest Trading Day

Consistency Score

Payout Eligibility

1

$1,000

$1,000

$1,000

100%

No

2

-$500

$500

$1,000

200%

No

3

$1,500

$2,000

$1,500

75%

No

4

$1,000

$3,000

$1,500

50%

No

5

$1,500

$4,500

$1,500

33%

No

6

$1,500

$6,000

$1,500

25%

Yes

More Examples:


Next Gen Default Payout Schedule

The default first payout is available 7 days after the first trade on a funded account for the trading period. Subsequent payouts will also be available every 7 days.

Unlike other prop firms, we ensure that you have regular access to your hard-earned profits.

Payouts are only valid if the trader does not violate any trading rules or go against the signed terms of use agreement.

Any suspicious activity upon account review may delay this process. Please cooperate with us to resolve any false alerts quickly and receive your profit split without delays.


Account Reset While Payout is Being Processed

Next Gen accounts will automatically reset to its initial balance while your payout request is being processed, allowing traders to continue trading without interruption. This ensures that traders can stay active in the markets while still receiving their earned profits.

What are the payout methods?

Rise (2-7 business days)

Bank Transfer via Rise | You may receive your payout straight to your bank by using Rise Pay. The minimum payout amount to receive your payout via Rise is $200. User can withdraw via Bank Transfer and Crypto.

1. Sign up for Rise: https://pay.riseworks.io/auth/register
2. Request for payout via the Dashboard
3. Receive payout bonus!


Crypto (28-48 business hours)

Only if Rise is not available to user

Coinbase Commerce | Our choice of payout method is crypto (mainly USDT-ERC20)

Crypto is the fastest method we can process payout commissions (28-48 hours on average). The minimum payout commission requirement is $50.

1. Place your payout request via the Dashboard
2. Request for payout with your Account Number and Crypto Wallet Address

3. Receive payout bonus!

Note: All positions and limit orders must be closed before requesting a payout.


Refund Bonus Upon Payout

As part of our commitment to rewarding successful traders, we offer a Refund Bonus once you reach your first payout.

What is the Refund Bonus?

When you successfully reach your first payout, we will refund the amount you paid for your evaluation phase.

🔁 How is the refund processed?

  • Refund Method: You will receive the refund through your original payment method:

    • Card payments: Refunded back to the same card used.

    • Crypto (USDT-ERC-20): Refunded to a USDT-ERC20 address you'll have to send via Email once you have received your payout email which looks like this:

  • Timing: The refund is issued together with your first profit payout.

📝 Example

If you paid $149 for your evaluation and successfully completed it, your first payout will include your profit share + $149 refund.

❗Important Notes

  • The refund applies only on your first payout.

  • Ensure your original payment method is still valid at the time of payout.

  • In case of payment issues (e.g., expired card), contact our support team to arrange an alternative.


Profit Split at FundingTraders

80-100% | Our default profit split is capped at 80% to the trader and 20% to us.

  • Add-ons for 90% or 100% profit split is available upon checkout

  • The minimum payout is $50 profit on any account size

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