Funded Trading Accounts: Should you become a Forex Prop Trader?

Every new trader dreams of flashy cars and the lifestyle that is all over their social media feed, but how do you get there without risking your life savings? Is it possible to make it in an industry where the adage Money makes money really does hold true?


Most successful traders are trading for a prop firm, they have none of their own money on the line, they have proven their consistency and are funded traders trading a prop firm’s capital through a funded trading account and taking a percentage of the profits as a commission.


By completing an evaluation of your trading skills, you are able to become a forex prop trader and trade capital that is far beyond the reach of the average savings account.


Taking profits that on a small account would barely be enough to buy a few cups of coffee to profits that could fund the lifestyle you are looking for.


Let’s look into the process of getting yourself a funded account and the benefits of them.


Once a trader feels they have attained a level where they are able to make consistent returns on their account, they are able to get a funded trading account through a prop firm, in which as a trader proves themselves and reaches predefined profit targets, the account size is increased, and the trader trusted with more risk.

There are a number of prop firms out there, so be sure to do your research. For this example, we will be using City Traders Imperium as an example, as they have options to suit all trading styles and attractive profit shares.

By using a simple comparison of a personal account of $ 1000.00 and the purchase of a $ 20,000.00 Funding account which at the time of writing costs $ 1199,66

let’s look at if this can take us from part-time traders to something more substantial.


Assuming we make a reasonable profit of 5% a month, let’s look at the 2 accounts side by side.


Starting on our personal account day 1, we have $1000.00 at the end of month 1, we have made our target of 5% and have a new balance of $1050.00. Assuming no withdrawals at the end of 12 months, our progress would look like this:

Starting BalanceMonthly ProfitClosing BalanceTotal Profit
Month 1$1,000.00$50.00$1,050.00$50.00
Month 2$1,050.00$52.50$1,102.50$102.50
Month 3$1,102.50$55.12$1,157.62$157.62
Month 4$1,157.62$57.88$1,215.51$215.51
Month 5$1,215.51$60.78$1,276.28$276.28
Month 6$1,276.28$63.81$1,340.10$340.10
Month 7$1,340.10$67.00$1,407.10$407.10
Month 8$1,407.10$70.36$1,477.46$477.46
Month 9$1,477.46$73.87$1,551.33$551.33
Month 10$1,551.33$77.57$1,628.89$628.89
Month 11$1,628.89$81.44$1,710.34$710.34
Month 12$1,710.34$85.52$1,795.86$795.86



So, after 1 year of consistent trading, you have increased your balance by a respectable 79.58% or $795.86.


Now, let’s compare the same trading performance on the $20 000 funded forex account, remembering to factor in that the account will be increased when predefined targets are reached, as well as you being paid a profit share.

Starting BalanceMonthly ProfitClosing BalanceTotal Profit
Month 1$20,000.00$1,000.00$21,000.00$700.00
Month 2$20,000.00$1,000.00$21,000.00$700.00
Month 3$40,000.00$2,000.00$42,000.00$1,400.00
Month 4$40,000.00$2,000.00$42,000.00$1,400.00
Month 5$80,000.00$4,000.00$84,000.00$3,200.00
Month 6$80,000.00$4,000.00$84,000.00$3,200.00
Month 7$160,000.00$8,000.00$168,000.00$6,400.00
Month 8$160,000.00$8,000.00$168,000.00$6,400.00
Month 9$320,000.00$16,000.00$336,000.00$12,800.00
Month 10$320,000.00$16,000.00$336,000.00$12,800.00
Month 11$640,000.00$32,000.00$672,000.00$25,600.00
Month 12$640,000.00$32,000.00$672,000.00$25,600.00



So, After 1 year of trading the same way as you would have traded your $ 1000.00 account, you have withdrawn a total of $ 100,200.00, and still, you haven’t reached the maximum account balance offered, which can reach as high as $ 4,000,000.00, which at the same monthly profit percentage will pay out a profit share of $ 200,000.00.


I think the answer to the question of whether funded forex accounts can pay the bills is a resounding yes.


A more detailed breakdown of all of how you can become a forex prop trader can be found on the pages of the prop firms of your choosing.


Obviously, these calculations are based on theoretical results, and as a trader, you know that these can vary depending on the market environment and each individual trader’s results.

It is essential to do your due diligence with your research into the right prop firm for you and calculate your expected results based on your previous trading.

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