What’s a funded account? It is a type of account that a company gives you in exchange for being a good trader. The way it works is that they allow you to trade with a demo account. This, from 1 to 3 phases. And thus test your skills and once you go through them and are profitable, they will give you a real account with money! Awesome right?
For example, you start with 1000 dollars, and you make up to 20,000 dollars. The companies will take 20, 30 or 25% of the profits. And the rest is for you, which is great! This means that you can have from 75% to 80% in profits. So, it is best to put your emotions away and allow your portfolio to be even bigger. This would be like trading for a bank.
Funded Account Rules!
Of course, there are some rules to have a funded account. For example, we know they have different phases. Traders must pay a fee for the test account. And they must be successful in order to advance to the risk assessment stage. There, trading skills and disciplines will be demonstrated. These would be the rules.
Now, looking at the phase targets, some of the funded accounts show 8% profit on profits during the month. And the max loss is 5% every day of floating losses. This means that if you enter a position for 10 lots and it goes in the opposite direction, it will take 5% of your account. Even though it hasn’t closed yet, this is because you lost the rule.
It means that every day you have this 5% to be able to lose. And, if you lose this for a month every day your account may be banned. Phase 2, which is the final step! Once you pass the stage and your results are verified you will be offered capital to trade with the company. So, if you are a responsible trader, you will receive 80% profit. As you can see this is wonderful! But you must be persistent and study a lot before you start.
Pros and Cons of Funded Accounts
Now, what are some pros and cons of having a funded account? The pros of having this type of account are that you do not trade with your money. Another benefit would be that you get the accounts for a very low value.
And now, a disadvantage is that you trade with MT4. This is not one of the preferred platforms by many traders. You can use CTrader or something like that or use MT5. When you get an account funded one way or another you feel some kind of pressure. And this is something you don’t have with a personal account. So, think a lot before taking a decision.
Funded Account Pricing
Now, we want to show you the prices that E8 Funding, a nice platform, offers you! They offer 4 options as starters.
– 228 dollars, and you get 25,000
– If you choose 338 dollars, you get 50,000
– Then if you select 588 dollars you get 100,000
– Finally, with 988 dollars you get 250,000
All of these can be paid through Bitcoin. It is the best option, since it is not very convenient to put your credit card anywhere online. The advice is to start with a funded account as a beginner. And, once you get the hang of it and feel confident you can use the other account types.
How to avoid losing your account?
It is something very important to know! You will have to increase your 8% each month. This is so you can concentrate on increasing 1% each day. You can afford to lose just 1% a day too.
So, focus on a single strategy and if you follow it for at least 2 weeks you will be able to move on to the next phase. But if you take too much risk in this trade you will lose. Be careful and practice well on demo accounts. Finally, we recommend that if you do not find a good entry during the day, do not trade during the day. Please, do not force a trade. You must try to focus on a single strategy for these types of challenges!
Funded accounts are great! If you don’t have a lot of money to invest but you already know how to trade, we think this is worth it! It’s a very good opportunity to test your skills and earn a lot of money at the same time. These accounts are low risk, so give them a try. We hope that the information in this article can be helpful. We’ll leave you the link of E8 Funding so you can visit it! And, don’t forget to share this information with your friends!