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.
Daily Loss Limit
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% | 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
To maintain fairness and promote consistent trading discipline, the following rule applies to both Challenge and Funded accounts:
Rule
The 30-day inactivity period begins on the day the account is purchased—not from the date of last activity.
If no trades are placed within this period, the account is automatically failed due to inactivity.
Once failed for inactivity, the account is permanently closed and cannot be restored or reactivated.
Why This Rule Exists
Consistency is one of the core drivers of trading success. Regular participation helps traders:
Build disciplined trading habits
Refine and strengthen strategies
Improve long-term profitability
By ensuring that only active traders maintain access, we can:
Allocate resources more effectively
Keep the trading environment competitive
Reward those who are fully engaged in managing their accounts
Summary
To keep your account active, you must place at least one trade within every 30-day period.
Unrealistic Trading Practices
Unrealistic Trading Practices are strategies or behaviors that do not reflect sustainable or genuine market participation, such as placing trades with extremely short holding times or employing methods that cannot be replicated in live trading conditions.
Unrealistic Trading Practices include any approach that lacks real market analysis or long-term viability.
Most commonly, this refers to trades with very short holding times that do not reflect realistic market execution, such as scalping for seconds or trading in ways that evade real-world slippage and liquidity.
Volume-Weighted Average Holding Time (VWHT) Requirement
To encourage authentic trading, all trades must meet a minimum VWHT threshold:
Holding Time: The duration (in minutes) a position remains open before closing.
Trade Volume: The size of each position, giving more weight to larger trades.
If a trader's VWHT is less than 2 minutes, the account is considered to be using unrealistic trading practices and will be flagged for review:
Action Taken: The account will be terminated for "Unrealistic Trading Method."
Formula:
Summation of Holding Time X Trade Volume / Summation of Trade Volume = VWHT
High-Frequency Trading (HFT) Restrictions
High-frequency trading (HFT) strategies, especially those involving trades lasting from 0–15 seconds, are considered unrealistic and unsustainable in this context:
Such techniques cannot be reliably duplicated under live market conditions due to issues like execution speed, slippage, and liquidity.
These strategies are therefore not allowed and will lead to account termination.
Summary
Traders must hold positions for a realistic period (VWHT of at least 2 minutes weighted by trade volume). Practices that involve fleeting trades or HFT methods are not allowed, helping maintain an authentic and sustainable trading environment.
High-Frequency Trading (HFT)
High-Frequency Trading (HFT) is not allowed on funded accounts due to the challenges of reproducing such strategies in real-world market conditions, especially because of unavoidable latency between a funded trader’s account and the master account. This restriction specifically applies to trades lasting 15 seconds or less, which are unsustainable because real execution speeds, even on advanced infrastructure, are subject to technology and distance limitations.
However, if a trader executes a single trade below 15 seconds, it may be permitted as an isolated event. Repetitive trades of this nature, though, will lead to the account being flagged, and eventually failing, due to the use of prohibited HFT strategies.
Summary
HFT (trades ≤ 15 seconds): Not allowed, due to unsustainable latency and execution limitations.
1-off trade: May be permitted.
Repeated trades: Will result in account failure for unrealistic trading methods.
This ensures trading practices remain fair and realistically achievable for all participants.
Grid Trading
At FundingTraders, grid trading is strictly prohibited because it poses elevated risk and can distort fair market participation. Grid trading involves placing multiple buy and sell orders at varied price intervals to profit from fluctuations within a set range, but it can rapidly lead to large drawdowns in volatile markets and misrepresent true trading activity.
What is Grid Trading?
Grid trading is a strategy in which multiple buy and sell orders are placed at different price levels above and below the current price. As price oscillates, each order captures minor profits. However, if the market moves strongly in one direction, it can trigger a string of orders that magnifies losses far beyond those of conventional trading techniques.
For example, a trader sets buy orders at $100, $105, $110 and sell orders at $115, $120, $125. If price bounces within this range, orders close for small gains. If price trends sharply, for example below $100, losses from multiple positions can accumulate quickly.
Why Grid Trading is Prohibited
Risk Amplification: Grid trading can lead to rapid, substantial drawdowns, especially during market breakouts or strong trends, exceeding normal risk management thresholds
Market Manipulation: The practice of layering numerous bids or asks may create an artificial appearance of market liquidity or movement, which goes against the spirit of fair trading.
Violation of Responsible Risk Rules: Because grid trading relies on aggressive position stacking, it often violates principles of disciplined risk-taking required to protect both traders and the broader community.
Summary
Grid trading is not allowed under any circumstances. Traders using grid strategies may face penalties, including possible disqualification from funded accounts. This policy helps maintain a safe, fair, and transparent environment for all traders.
Guidelines
Additional account and trading guidelines.
Copy Trading
Allowed
Using copy trading software between your own FundingTraders Next-Gen accounts.
Using copy trading software to copy trades from your accounts on other brokers/firms into your FundingTraders Next-Gen account.
Not Allowed
Copying trades from accounts owned by other traders.
Sharing signals with other traders.
Are EA/Bots allowed?
At FundingTraders, the use of EAs (Expert Advisors) and Bots is permitted, but only if they are focused on risk management and help foster disciplined and sustainable trading practices.
Allowed
EAs and Bots designed solely for risk management purposes, such as:
Position Size Calculator EAs
Auto-position Size Execution Bots
Consultation Required
Before using any EA or Bot, traders are encouraged to consult with the support team to confirm eligibility.
Restricted Practices
Off-the-Shelf EAs/Bots
Pre-built EAs purchased or downloaded online are not allowed, unless the tool is exclusively dedicated to risk management (e.g., determining position size).
EAs that automatically place trades on the account are not permitted, unless the EA has been programmed or developed personally by the trader.
Grid Trading EAs/Bots
Strictly not permitted due to the high risk and aggressive strategy involved.
Hedge Trading EAs/Bots
Not allowed, as these do not align with the firm’s risk and trading guidelines.
News Trading
Note: If account was bought before March 3, 2025, please refer to this News Trading Article (Click Here)
Challenge Phase Rules
News trading is permitted during the Challenge phase. However, there is an important restriction:
If more than 50% of your total profits are generated from news events, you will be required to retake the Challenge.
This rule is in place to prevent traders from relying primarily on news-driven speculation to pass the evaluation.
Funded Phase Rules
News trading is strictly prohibited.
Any detection of news-based trades will result in profit deductions from your account.
If these deductions exceed the allowed drawdown limits, your account will be terminated immediately.
Timing Restrictions
During medium- or high-impact news events, trading is restricted within a 10-minute window:
5 minutes before the event
5 minutes after the event
Within this timeframe, opening, closing, or holding positions is strictly prohibited. Any profits generated from trades executed or closed during this period will not be credited to the Master account.
Affected Instruments
All currency pairs linked to the news event are restricted, along with indices tied to the relevant currency’s economic news.
For example:
US30 will be flagged during medium- or high-impact US news events.
DAX will be restricted during EUR-related news events.
JPN225 will be restricted during JPY-related news events.
These instruments are subject to the same news-trading guidelines and restrictions.
Special Exceptions/Key Differences
To support swing traders while preventing news-based speculation, the following rules apply:
Trades opened 5 or more hours before a news event: Profits are accepted, even if the positions are closed within the 10-minute restricted window.
Trades opened less than 5 hours before a news event: Profits will be forfeited if the positions are closed or held within the 10-minute restricted window.
Macroeconomic Announcements (⬅️Click Here)
Macroeconomic Announcements (⬅️Click Here)
Asset | News |
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EUR |
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CAD |
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AUD |
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Minimum Trading Days (Challenge Phase Only)
For accounts sized $5k–$100k, the minimum trading day requirement is 1 day. Specifically, for 2-step accounts, this minimum applies to the combined total of trading days across both Phase 1 and Phase 2, not separately per phase.
$5k–$100k
Minimum trading days required: 1
$200k
Minimum trading days required: 7
$350k
Minimum trading days required: 25 (previously offered)
$500k
Minimum trading days required: 40 (previously offered)
2-Step Accounts
The required minimum trading days is the sum of trading days in both Phase 1 and Phase 2 combined (so, only 1 day in total is needed, regardless of how it's distributed between the phases).
This rule allows maximum flexibility while maintaining a simple participation requirement.
Example
Trade 1 day in Phase 1 and 0 days in Phase 2 = meets minimum.
Trade 0 days in Phase 1 and 1 day in Phase 2 = meets minimum.
The sum across both phases must be at least 1 trading day.
Min. Trades Requirement for 350k & 500k Accounts (Challenge and Funded Phase)
For FundingTraders, $350k challenge accounts must complete at least 15 trades, while $500k accounts require a minimum of 20 trades to qualify. Each trade must represent at least ±0.20% of the challenge account size, encouraging active, responsible, and strategically sized participation.
Purpose: This requirement ensures traders are actively engaged and using sound position sizing, not simply placing minimal or insignificant trades.
Strategic Focus: Each trade must carry meaningful risk or reward, supporting the development of real, sustainable trading habits.
Is trading from multiple IP Addresses allowed?
Traders at FundingTraders are allowed to use VPNs for enhanced online security while trading on the platform. This policy is designed to support privacy and flexibility so traders can safeguard their accounts and operate with confidence.
However, it is the trader’s responsibility to maintain the security of login credentials and remain vigilant against possible threats. Using a VPN does not absolve the obligation to keep account details private and secure; neglecting this may expose accounts to risks.
Allowed
VPNs can be used for increased account security and privacy.
Traders’ Responsibility
Protect login credentials
Monitor for unusual activity
Stay alert against phishing or unauthorized access
This approach ensures both maximum flexibility and a secure environment for every trader.
Can I hold trades overnight/weekend allowed?
Next-Gen accounts are allowed to hold trades overnight and over the weekends. This flexibility empowers traders to execute swing strategies and manage positions in alignment with their analysis.
Widened Spreads on Daily Rollover
During the Asian market open, spreads may widen significantly. Incorporate this into your trading plan to avoid unexpected losses or margin issues.
Wider Spreads on Monday Asia Open
At the Monday market open, following the weekend, spreads are often substantially wider than usual. This can result in less favorable fills or increased slippage for positions held over the weekend.
Swap Rates Apply
Swap rates (overnight fees) are charged for positions held overnight or over weekends. Review the relevant terms for your account type to understand potential costs.
By staying informed and integrating these considerations into a sound risk management strategy, traders can make the most of this flexibility while minimizing potential drawbacks. FundingTraders is committed to supporting a transparent and trader-friendly environment.
Lot Size Limit
FundingTraders does not impose lot size limits for most account types, allowing traders to choose position sizes appropriate to their trading style, whether swing trading, intraday, or scalping. The focus is on the consistency of position sizing, not the absolute size of lots opened.
No Lot Size Limit
No restrictions for most accounts; different strategies require different lot sizes. Swing traders typically use lower lots due to wider stops, while scalpers and intraday traders may use higher lots with tighter stops.
Consistency Required
Position sizing must be consistent. Persistently “going all in” or risking a significant percentage of the account on one trade, especially increasing size during news events, will raise red flags.
Red Flag Behavior
Sudden or inconsistent increases in position size, particularly around economic news, will trigger review. Accounts exhibiting dangerous risk management may be terminated following investigation.
Traders should always aim for responsible, steady risk management. Extreme or inconsistent lot sizes are specifically monitored to protect both the individual and the community from undue risk.
Stop Loss Requirement
There is no requirement to place a stop-loss order on trades at FundingTraders, recognizing that many traders use EAs or bots for automated risk management. This flexibility accommodates those who automate protective measures through their own systems.
However, it is highly recommended to always use a stop-loss order as a best practice. Setting a stop-loss helps manage risk, prevent unexpected large losses, and maintain account discipline, especially in volatile or fast-moving markets.
Not Required
No mandatory stop-loss order on each trade, due to the allowance for risk-managed EAs/bots.
Strongly Advised
Always use a stop-loss order to ensure robust risk management and account protection.
Traders should review their strategy and automation setup to confirm that risk controls are in place, even if stop-loss orders are not manually applied to every trade.
Leverage
FundingTraders supports up to 1:100 leverage, with specific ratios for each instrument class to suit different trading strategies and manage risk appropriately.
1:100 leverage on FX Majors gives scalpers and day traders the flexibility to capture intraday price movements with smaller margin requirements.
Lower leverage on other asset classes reflects their unique volatility and risk profiles.
All traders are encouraged to use leverage responsibly and practice robust risk management to maximize opportunity without exposing accounts to excessive risk.
This tiered leverage structure ensures both opportunity and account protection, aligning with FundingTraders’ focus on sustainable trading.
FX: 1:100
Indices: 1:50
Metals: 1:50
Commodities: 1:50
Crypto: 1:5
Commissions
At FundingTraders, the commission structure is straightforward and designed to be transparent throughout different account phases.
Commission applies to all instruments in the funded phase only, unless you opt for special add-ons.
Add-ons
Swap-free, Zero Commissions
If this add-on is selected, funded accounts are not subject to the standard $3/lot commission.
Important Details
Without Add-ons
Funded accounts are subject to a $3/lot roundtrip commission on all instruments, except Indices.
With “Swap-free, Zero Commissions” Add-on
No commissions are charged; swap-free trading is also enabled.
This clear commission policy allows traders to plan their cost structure accurately and choose add-ons to match their preferences.
Payout
Payout eligibility requirements and information
Consistency Score
The Consistency Score is a trading rule designed to encourage sustainable and reliable profit generation, not just high-risk, one-off gains. A trader’s largest profit day should not exceed 25% of total profits to qualify for payout eligibility during the Next Gen funded phase. Partial trades are counted on the day the position is fully closed. This ensures profit allocation reflects actual realized outcomes, not interim fluctuations.
The Consistency Score puts a threshold to the influence of outlier trading days, ensuring payouts are reserved for traders with steady performance. The largest trading day’s profit must be less than or equal to 25% of the total profit at any point. If the score exceeds this limit, trading must continue until compliance is achieved.
How to Calculate
(Highest Trading Day Profit / Total Trading Days PNL) x 100 = Consistency Score
To qualify for payouts, the result should not be greater than 25%.
How to Lower Your Score
If the Consistency Score is above 25%, use this formula to find the minimum total profits needed to meet the rule:
Highest Trading Day Profit / 0.25 = Required Total Trading Days Profits
Quick Examples
Example 1
Total Trading Days PNL: $12,000
Largest trading day: $3,000
Consistency Score = 100 × (3,000 / 12,000) = 25%, Eligible
Example 2
Total Trading Days PNL: $8,000
Largest trading day: $2,500
Consistency Score = 100 × (2,500 / 8,000) = 31.25%, Not eligible
To become eligible: $2,500 / 0.25 = $10,000
Keep trading until Total Trading Days PNL are at least $10,000
Example 3
Total Trading Days PNL: $6,000
Largest trading day: $1,500
Consistency Score = 100 × (1,500 / 6,000) = 25%, Eligible
Summary
To ensure payout eligibility, keep the largest profit day at or below 25% of current profits at all times. This approach rewards consistent, lower-risk trading performance and discourages a reliance on single large trades or lucky events.
Payout Schedule
Important: For accounts purchased before June 30, the 7-day payout schedule is the default, even without the add-on.
Accounts purchased June 30 onwards will follow the provided guidelines below:
Every 14 or 7 days | The default first payout is available 14 days after the first trade on a funded account for the trading period.
7-Day Payout Add-On: If you have this add-on, you are eligible to receive your first payout just 7 days after the first trade on your funded account. This also applies to all subsequent payouts.
Unlike other prop firms, we want to make sure that you have regular access to the hard-earned profits you have made.
Payout is only valid if the trader does not violate any trading rule or go against the signed terms of use agreement.
Any suspicious activities upon review of the account can delay this process. Please cooperate with us in order to receive your profit split quicker if it is a false alert.
Account Reset While Payout is Being Processed
Next-Gen accounts at FundingTraders are automatically reset to their initial balance while a payout request is being processed, allowing traders to continue trading without any interruption. This unique feature ensures ongoing market participation and uninterrupted trading activity even during the payout approval period.
If an account fails within 48 hours of a payout request, the payout will be denied. The account will then be reinstated, and the payout amount will be credited back to the account balance.
Payout Methods
1. Rise (Bank Transfer)
Processing Time: 24–48 hours, weekends not included
Minimum Payout: $200
Method: Direct bank transfer via Rise Pay
How to Collect:
Sign up at Rise: https://pay.riseworks.io/auth/register
Request payout through the FundingTraders dashboard
Receive your payout bonus!
Bank transfer and crypto withdrawal both available via Rise.
2. Crypto (via Coinbase Commerce)
Processing Time: 24–48 hours, weekends not included
Minimum Payout: $50
Eligibility: Crypto payout available only if Rise is not an option
Primary Method: USDT-ERC20 via Coinbase Commerce
How to Collect:
Request payout through the dashboard
Provide your account number and crypto wallet address
Receive your payout bonus!
Notes
All positions and limit orders must be closed before placing a payout request.
Payouts are subject to minimum thresholds, depending on the payout method.
This setup ensures both speed and flexibility while letting traders maintain market activity due to the account reset feature during payout processing.
Refund Bonus Upon Payout
FundingTraders provides a Refund Bonus as a unique benefit for traders who reach their first payout. When you qualify, the fee you paid for your evaluation phase is refunded, helping you maximize your trading rewards.
What is the Refund Bonus?
Upon reaching your first payout, you receive a refund of the amount paid for your evaluation phase.
How is the refund processed?
Card Payments: Refunded directly to the same card originally used.
Crypto Payments (USDT-ERC-20): Refunded to a USDT-ERC20 address; you will be asked for this address via email after you receive your payout notice which looks like this
Timing
The refund is processed together with your first payout.
Example
If you paid $149 for your evaluation and passed, your first payout will include the profit share you earned plus the $149 refund.
Important Notes
The refund bonus is issued only with your first payout.
Make sure your original payment method remains valid at the time of payout.
For expired or problematic payment methods, contact FundingTraders support to arrange an alternative.
The refund bonus applies to all account types except Instant Funding.
Profit Split
FundingTraders offers a default profit split of 80% to the trader and 20% to the firm. For those seeking a higher payout, add-ons are available during checkout to increase the profit split to 90% or even 100%.