Forex funded account management refers to the professional handling of a trading account that's been provided—or “funded”—by a third party, often a proprietary trading firm. In this model, a skilled trader does not use their own capital but instead manages a firm’s capital under specific conditions. The goal is to generate consistent returns while adhering to risk management rules.
Key Features:
- Capital Access Without Personal Risk: Traders access large sums of capital provided by the firm, allowing them to trade significant volumes without risking their own money.
- Performance-Based Payouts: Profits are usually shared between the firm and the trader, often with the trader receiving a fixed percentage (e.g., 70% of profits).
- Risk Management Rules: These accounts have strict guidelines (like daily loss limits or max drawdown rules) to protect the firm’s capital.
- No Upfront Loss: Since the firm takes on the financial risk, the trader’s losses are typically covered, provided rules are followed.
Who It's For:
This setup is ideal for skilled, disciplined traders who may not have sufficient personal capital but are capable of generating steady returns. It offers them a chance to turn their trading expertise into a full-time or side income without needing to invest large amounts of their own money.