More and more traders are interested in financed accounts. That is, work as traders for companies that offer real accounts and then distribute the benefits, if any. If it is lost, the loss is limited and is supported by the financing company, never the trader.
Sounds great, but what is behind these companies and under what conditions are more profitable for traders? Or rather, at what stage of the trader’s life should it be possible to operate with these types of accounts?
The best answer I can offer readers who want to try this kind of adventure is from my own experience
First, it is interesting to see which company offers the best conditions and the one that seems most serious. As a filter I applied that they were regulated in the US and that they offer futures to operate and not other products (neither forex, nor CFD’s, nor binary options, etc). There are two companies worldwide worth mentioning and studying: Oneup Trader and TopStep Trader. And of the two, the second one seemed to me that the conditions offered were better to prove it.
Said and done. The tests consist of two stages of evaluation. And you have to meet a series of rules: meet some objectives, limit losses and operability to reach the funded account.
I chose an intermediate account of $ 50,000. In this case, in the first evaluation you have to operate a minimum of 5 days and reach $ 3,000 of benefit. Of course respecting some more filters and other contract restrictions used.
Can you pass the number one test using the custom robot for this account and respecting its conditions? Here are the results: 5 days, 3000 profit and test passed. I mention that the “surveillance” in front of the screen has been permanent to better control the rules of the broker. It has not been plugging in the robot and forgetting about it.
After the first stage, in the second stage, a minimum of 10 days of operation are needed, with fewer contracts but with more DD restrictions, and with the same goal of $ 3,000.
Re-customizing the robot inputs and adjusting it to the required schedule and the products available to operate, was the robot able to pass the second test in the record time of 10 days? Here we have the answer:
As you can see, the two tests have been passed in a minimum time of 5 + 10 days. It took longer (almost 1 month) for the paperwork to open the real account, after the tests, than the evaluation tests themselves.
I have been asked if they put a catch after the two audited tests. The answer is no. They don’t fault, but paperwork is too slow to open the real account.
I also mention that in the real account the conditions are even a bit more severe than to operate as far as DD is concerned, although nothing that cannot be adjusted in the robot.
Clarification of some questions that may arise:
1.- Does the robot serve to pass and get a financed account?
A: Yes, but with vigilance. It is not plug and forget. It requires prior practice and some experience and training.
2.- Is a funded account good for the trader?
A: Yes, in the case of not having enough savings to start. Yes, in the case of having some trading systems that instead of testing them with your money, you will try them in an account of another.
3.- At what stage of trading learning is it good to evaluate yourself with a financing company?
A: Evaluation tests, because of the restrictions they have, are the best way to learn and exercise discipline. As one skips a rule, it is out. And you will have to pay a “fine” to start over.
The best stage to trade in an evaluation account is when a trader has or believes to have a trading system, he has practiced it in demo, but before moving on to trading with his real money, he is doing become a funded account trade audited by a company. If you pass the tests, you will have your prize: a real trading account.
4.- Is it worth all this effort?
A: Yes. For assumed risks, for what is learned, for how cheap it can be to learn discipline in a self-taught way. And once it is able to generate those benefits, the distribution with the financing company is very advantageous for the trader, without having to risk anything or any responsibility (the first $ 5000 of the benefits are in total for the trader and from 5001 $ will be distributed at 80% for the trader and 20% for the company). It’s not bad at all.
There are many more details and things to tell and discuss on this subject. On the Internet there are quite a few videos comparing trading companies and they talk about their advantages and disadvantages.
For me it is one more experience, it seems very interesting and is different.
And the important thing is that it has been possible to adapt the robot for the different types of account, number of contracts to operate and risks admitted, having accounts financed from 30,000 to 150,000 USD in Topstep Trader and in other brokers up to 250,000 euros.47