Tips for Passing a Funded Account Challenge (2024)

FAQs

How to pass the funded account challenge? ›

You need to have a solid understanding of how to manage risk in order to succeed. This involves setting stop losses, using leverage appropriately, and having a solid understanding of market trends. Keep in mind that the goal is not to make a quick profit, but to sustainably grow your account over time.

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.

It would be naive to assume that you can pass these challenges overnight. The reality is, for most profitable traders, this will still take between 4-5 months of trading. Once you've passed the trading challenge, you'll be funded!

Statistics on Funded Trading Payouts and the 1% Myth

The claim that only 1% of traders succeed is a pervasive legend, but the reality is a bit more forgiving. While trading is no cakewalk, the actual success rate might be closer to 5%. So, it's not quite as exclusive as you might have thought.

What happens if you lose money on a funded account? Since retail prop trading firms keep traders in demo accounts, the only thing that happens is that traders lose access to funded demo accounts if they violate the maximum drawdown level.

Requesting your commission payout is an easy process. Nonetheless, there are a few important procedures to make note of: Payouts are only processed every 30 days from the previous payment date. The minimum withdrawal amount as an affiliate is $100.

You must be profitable and fulfill certain trading objectives which makes it even harder. Less than 1% of traders who attempt the challenge pass and get funded. It's best to invest in a few challenges. Instead of purchasing a 200K FTMO Challenge, take five smaller 10K challenges.

How many people fail funded challenges? ›

Studies have shown that around 4 out of 10 people pass the first stages of any Prop Firm Challenge, and 2 out of the 4 make it through to get a Funded Account. But only 1 person ends up getting paid.

After you pass all the Trading Objectives in your FTMO Challenge, you will see a notification in your Account MetriX informing you about your success, and you won't need to trade the account anymore as your Trading Objectives are marked as passed.

The FTMO Challenge is a great way to prove your trading skills and get funded. However, it is not easy to pass, and many traders fail. The Challenge requires you to make a profit within a certain time frame while following strict risk management rules.

There is no time limit within which you need to pass the Profit Target, the Trading Period is indefinite. As soon as all the Trading Objectives of your FTMO Challenge are met and your results are reviewed, you can proceed to the Verification phase. The minimum time to complete an FTMO Challenge is 4 trading days.

Retail prop traders will trade in demo accounts, making all profits and losses theoretical, meaning they are not liable for any losses. So, what happens if you lose money on a funded account? Traders who violate the maximum drawdown rule lose access to the account and must pay and pass the challenge again.

You will be removed from the Premium Programme if one of the following situations occurs: You fail the FTMO Account which is part of the Premium Programme. You fail 3 accounts regardless of the of the stage (FTMO Challenge, Verification, FTMO Account) You breach the contractual requirements of the Premium Programme.