A funded account is a demo account that a proprietary trading firm provides to traders to evaluate their trading skills.
They have to follow specific rules, such as keeping losses below a certain limit and reaching profit targets. In return, they get a share of the profits they make while trading.
The Funded Accounts, offered by CTI, a proprietary trading firm, open up new opportunities for traders to access significant capital and trade with enhanced leverage.
Here's how these funded accounts work:
Application and Evaluation
To secure a funded account, traders must first pass an evaluation phase that tests their trading skills and risk management discipline. This often involves trading in a simulated market over a set period while meeting specific guidelines.
Initial Funding
Once traders pass the evaluation, they are allocated a funded account. The initial funding typically ranges from $1,000 to over $100,000, depending on the funding program chosen and pricing plans.
Profit Sharing and Scaling Up
Funded accounts operate on a profit-sharing model, where traders receive a share of the profits.
For Example, using your own money to fund a trading account has its limitations.
Achieving a 10% return on a $100,000 personal account yields only $10,000 while risking the total amount, or you would have to save up $100,000 before you could ever deposit $100,000 with a broker.