Category Archives: Forex Trading Articles

Forex and gold traders can obtain live trading capital and funded trading accounts from third party providers. Hundreds of thousands of traders are receiving funding for their trading account every year from the various capital and funding providers. Any forex trader who has a great trading system and is competent, skilled and profitable, but lacks the funds to trade live should investigate these funding companies.

How Much Capital and Funding Is Available ?

Prop firms provide traders with smaller accounts, but can also provide accounts with $1 million dollars or much more. For example they can provide a trader with $10,000 in capital with 100:1 leverage so you access $1 million in your live trading account for forex or gold trading.

If you start with small account you can double your capital with just a few profitable trades. Also you can open accounts with more then one capital provider, so the amount of capital you can obtain is somewhat unlimited.

Who Are The Best Prop Firms ?

Many companies provide live trading capital for forex traders. There are ratings services like The Trusted Prop and Propfirmmatch.com who provide lists of top 5 and top 10 prop firms. Traders can also follow them on twitter for updates. Prop firms like  FTMO  and the5ers consistently show up in the top 5. Since the number of prop firms is increasing fast, knowing the top 5 top 10 firms is important. Also look for funding firms with 100% payout record. Several traditional forex brokers are now opening funding subsidiaries to further legitimize this industry. You can also find independent ratings on websites like Trustpilot.

Advantages Of Using Capital From Prop Firms

If you dont have a lot of capital to properly fund a live forex trading account, prop firms will provide you with a much larger funded account. Even if you have the funds you may choose to use a capital provider and keep all of your funds invested. Most capital providers have an 80% profit split, you keep 80% of the money you make on your forex trades. Some capital providers have paid out over $50,000 on individual payouts and some prop firms have already paid out over $50 million total. Capital providers absorb the losses on he account so your risk of loss on bad trades is eliminated.

Procedure For Success

Find a trading system you really like that makes pips, then demo trade that system until you are confident. Review some the top 5 or top 10 funding providers and ask alot of questions. Then go a head and apply for funding with the one you prefer.

What is the End Game?

Why would someone obtain trading capital from a third party? Where do you want to be at the end of the journey? Our take: Your goal should be to trade successfully and split the profit with the funding provider. Take some withdrawals and build your own fund to open your own self-funded forex brokerage account for self-trading. Then close the funding account. You can always open another one later. An exception would be if you are getting a 90/10 split and have access to millions of dollars in capital and are happy with everything. You would only stay with a capital provider for the long term if the terms and conditions were exceptional. Otherwise open your own trading account and fund it yourself with capital provider withdrawals. Before starting the process make sure you understand your goals.

Trader Profile For Using A Funded Account

Basically if you do not have the necessary funding to fund your own account, but you have good and consistent trading skills, you are a candidate for usinga prop firm. Ideally, you should have a trading system that you like a lot, and is effective at making pips. Second of all you should have already set up a demo account and be demo trading the system you like, with at least some level success. With those two criteria in place you should start reviewing the funded forex account providers and look for a provider that fits your needs. If you are a rookie forex trader with little experience, you should avoid all live trading capital provider programs, you are not ready yet. Some traders have lots of capital but still want access to “other peoples money” orto keep their money invested in other investments.

As far as trading systems we believe you should have a rules based trading system, like the Forexearlywarning trading system. If you can consistently make positive pips when you use it, week after week, you should be ready to apply for funding.

Regardless of the trading system you select, you must like your trading system and understand it well via demo trading or possibly micro lot trading. You must be skilled at entering trades and managing trades with stops and scaling out lots. Forexearlywarning offer thorough market analysis, more exact trade entry points across 28 pairs, and very little drawdown on trade entries. The low drawdown will comply with most capital and funding programs.

Great Trading System To Use

Tradrs can trade various assets with a funded trading account. Some funding firms allow liquid assets like spot gold, forex pairs, equity indexes, futures. If you are interested in trading the top 28 forex pairs plus gold, please consider the Forexearlywarning trading system. It is a high profit potential trading system with a low drawdown. The Forexearlywarning trading system is easy to demo trade until you are consistent, then you can applying for a funded forex account.

Forexearlywarning provides daily trading plans for 28 pairs, and we focus on the higher time frames and trends, H4 and larger. The higher time frames will get you more pips and profits than scalping the same pairs over and over with technical indicators. Forexearlywarning also has professional alert systems and an excellent trade entry management system, The Forex Heatmap ® forex heatmap. The heatmap will assist with low drawdown trade entry points that satisfy most of the capital providers rules and guidelines. Also check out our gold trading system with correlated pairs chart setup, which we believe is the best gold trading system available.

An example trade signal for the GBP pairs on the heatmap is shown below, consistent, clear signals like this for trading are powerful and traders will have very little drawdown on trade entries, as to fully comply with the drawdown rules from most capital providers. Also, the GBP pairs are volatile and the total movement cycle was about 125 pips on the trade below. Strong results for any forex trader. This system works for the GBP pairs and a total of 28 pairs.

By offering 28 pairs plus gold, the Forexearlywarning trading system matches or exceeds the most actively traded and most liquid pairs in most capital provider programs. The heatmap system will provide traders with much lower drawdown on trade entry points so almost any capital program can be used.  With the Forexearlywarning trading system, you can easily make 10% on your account balance on one swing trade based on the H4 time frame. This will qualify you for more capital on some of the funded forex account.

Other advantages of using the Forexearlywarning trading system are that is can be easily demo traded. You must understand and like your trading system and enjoy using it before you apply for any third party funded account.

Conclusions about live trading capital programs: A large amount of capital is available to forex traders to fund their live accounts, and we predict that even more capital providers will be available going forward. The industry is growing. Any program that offers a fully funded forex trading account, that also covers your trading losses sound like a great offer.

Traders who have no capital or just a small amount of capital, who are skilled at making positive trades, should evaluate these funded forex account providers. Traders should remember that the trading rules vary between providers, so read each capital providers’ rules carefully, get everything in writing, like the fee structure and drawdown limits.

Finally, make sure you have a trading system that you believe in that is effective at making pips. We have a logical trading system at Forexearlywarning.  With a trading system like Forexearlywarning plus third party funding, a forex trading business is possible for very little cost to the end user/trader.