Best Funded Trader Programs in the UK
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Best Funded Trader Programs in the UK:
The5ers - profit split up to 100/0
Topstep - excellent choice for professional traders who can expect to earn up to 90% of their earnings.
FTMO - only for experienced traders, income is distributed in the ratio of 90/10% in favor of the trader.
Elite Trader Funding - the best option for remote funding, traders retain 80-100% of profits.
Earn2Trade - for professional traders, the profit share can be up to 80%.
In the world of trading, providing yourself with the financial backing to make trades can be the key to a successful career. The concept of funded traders has been gaining popularity in recent years, providing users with the opportunity to trade the market using the firm's capital. There are a number of programs in the UK that offer ambitious traders funding. In this article we will look at some of them, detailing their features and benefits.
Best Funded Trading Programs in the UK
The5ers - profit split up to 100/0
The5ers is a proprietary trading firm that offers traders three primary funding options with profit splits reaching up to 100% for the trader based on their performance and progress.
The Hyper Growth program is a single-step solution that allows traders to receive payouts starting from their first profit target. As traders hit milestones, their account size doubles rapidly. The entry fee starts from $260.
The High Stakes program uses a two-step model. Traders can scale their account size after each milestone for an entry point of $39.
The Bootcamp program caters to more conservative traders or those with limited capital. Traders only pay if they pass milestones successfully. Accounts grow through hitting targets in this model.
A key advantage is the lack of rigid deadlines - traders can progress at their own pace without time pressure. The5ers also provides frequent payouts, letting traders realize profits while growing accounts. The environment supports various strategies like news trading, algorithms, and offers competitive fees.
Beyond funding, The5ers nurtures a supportive trader community and gives access to education, webinars, and personalized assistance. It embraces diverse strategies, allowing each trader to leverage their unique approach.
Topstep is a great option for futures trading
With its brand power and reputation as an industry innovator and one of Inc 5000’s fastest-growing companies, Topstep has earned the trust of many traders. To participate in the funded account program, all traders begin with the Trading Combine. You can open a real-time simulated futures account with $50K, $100K, or $150K buying power.
During the Trading Combine, you can earn a funded trading account if you demonstrate consistent profitability and manage risk appropriately. Using Topstep's capital, you can trade in real time without personal financial risk, with funds provided by Topstep.
As quickly as within eight trading days, traders can qualify to receive a funded account (the amount of funding provided is determined by the Trading Combine plan).
The first $10,000 in profits you make can be withdrawn in full, and 90% of profits exceeding that amount can be withdrawn.
With Topstep, payout requests are processed on a daily basis (payout requests made prior to 10 a.m. CT are processed on the same day).
Topstep’s trader development services include instruction from professional traders, tools, and daily live videos, along with personalized analytics on performance and bonuses for traders.
Trading platforms supported include TSTrader, TradingView, NinjaTrader, Sierra Chart, MultiCharts, R|Trader Pro, and many more.
For a $50k account, Topstep pricing starts at $165 per month. $100k accounts cost $325 per month, and $150k accounts cost $375. Free trials are also available for 14 days.
FTMO - profit distribution in the ratio of 90/10% in favor of the trader
FTMO is a prop trading firm that specializes in Forex trading, and has won several awards in the field. FTMO traders received over $23,000,000 in payouts in 2021 with an average payout processing time of 8 hours.
To qualify for a funded trading account at FTMO, you must complete three steps.
Within 30 days, you must reach the defined profit goals of the FTMO Challenge.
Once you've successfully completed the FTMO Challenge, you enter the 60-day Verification process.
FTMO will offer you an account range of $10,000 to $400,000. This is after you pass the two-step evaluation process with the Challenge and Verification.
Traders keep 80% of their profits for withdrawal according to the 80:20 profit split. In addition, for funded accounts with account sizes of $2,000,000 or greater, traders have the option to increase their profit split up to 90:10 with a Scaling Plan.
There are 44 currency pairs and 10 cryptocurrencies you can trade. You can also trade stock CFDs, commodities, and indices.
FTMO excels at currency trading, while Topstep excels at futures trading.
Free versions are available of the three most popular trading platforms, MetaTrader 4, MetaTrader 5 and cTrader.
In order to participate in the FTMO Challenge, traders must pay a one-time fee. USD, GBP, EUR, CZK, CAD, AUD and CHF can be used to fund the account, but only Euro can be used to pay the challenge fee. For the $10k account, the participation fee starts at 155 EUR. For the $25k account, the cost is 250 EUR, for the $50k account, 345 EUR, for the $100k account, 540 EUR, and for the $200k account, 1,080 EUR.
Elite Trader Funding is the best option for remote funding
With Elite Trader Funding's EOD program, you get the best value in futures evaluations with end-of-day drawdown. One-step evaluations with single overall trailing drawdown are a lower-cost option for traders looking to avoid daily drawdown limitations of EOD drawdown programs.
If you are an aggressive trader looking to use Elite Trader Funding programs, you can sign up for Elite Trader Funding Fast Track evaluations where you can receive up to $6,500 in drawdown allowance for just $150. You’ll also receive $160 of Free Data once you’re qualified for live funding.
A $25K Mini Track Evaluation starts at $45 and must be completed within a maximum of 14 calendar days and a minimum of 10 trading days (not much wiggle room). This option requires you to be a seasoned trader with a high level of confidence and expertise in day trading futures.
Also worth noting are the Free Data Specials on the $100K and $250K evaluations and the resets on the EOD and 1step, but not on fast tracks. As a fourth type of evaluation, Elite offers Static Drawdown Evaluations, which are exactly what their name suggests. Evaluations of this type have a maximum loss and no trailing drawdown. It’s also important to note that the minimum allowed balance doesn’t change over time.
Earn2Trade is the best choice for professional traders
For $150 a month, Earn 2 Trade offers a Gauntless Mini account with $25K. When you choose the $350 a month option, you can get up to $150K.
In the beginning, you might want to settle for the $150 monthly fee option if you are still developing your trading confidence. Within the first month of receiving this, you might aim for $1750 and above according to the mentorship you’ve been provided with.
By doing so, you won't need to spend any additional money to upgrade your account to the $350 a month option.
Additionally, achieving this feat will give you access to proprietary trading partner accounts.
Upon reaching this point, you'll have access to:
A beginner crash course that would otherwise cost $249.
Access to a trading simulator.
Access to Journalytix.
Rules and Regulation
Regulation
Operation of prop firms in the UK doesn’t require licenses, since traders complete challenges on demo accounts and then choose either copying signals from demo accounts or trading with partnering brokers. Brokers that partner with prop firms must be licensed by the FCA (the Financial Conduct Authority). Additionally, all prop firms operating in the UK must be registered with the Companies House.
Investor protection
- In case of rights violation, traders can file complaints with:
- FCA, if traders work with a broker that partners with a prop firm;
- PRA (the Prudential Regulation Authority);
- ESMA (the European Securities and Markets Authority), if traders a working with financial services providers;
- Self-regulatory organizations (SRO), if a prop firm or a broker are members of those;
- Local law enforcement bodies, if financial fraud is suspected.
Taxation
Tax brackets in the UK offer flexibility and the potential for optimization, especially if the prop firm utilizes a spread-betting model. Capital gains differentiation also applies. Overall, taxes can exceed 20%.
Funded Trading Programs in the UK Compared
For a quick overview of the funded trader programs discussed here, we compiled a table highlighting the important points.
| Best for | Trial period | Profit Share | Cost | Markets | |
|---|---|---|---|---|---|
| The5ers | Beginners and professionals | Unlimited | up to 100% | from $39 | Forex, Commodities, Indexes, Cryptocurrencies, and Energy |
| Topstep | New day traders | 14 days | 100% | $495 for 3 month membership, $990 for 6 month membership | Futures |
| FTMO | Experienced traders | 14 days | Up to 90% | $139.50 to $972 | Forex, indices, commodities, stocks, crypto |
| Elite Trader Funding | Remote funding | 14 days | 100% of the first $12,500 of profit in funded account and 80% profit split thereafter | $45 to $75,000 | |
| Earn2Trade | Professional traders | 15 days | 80% | Bootcamp: $2,499 The Gauntlet: $429 The Gauntlet Mini: $150, $170, $245, $315, or $350. | Futures |
How Do I Become a Fully Funded Trader in the UK?
To become a fully funded trader in the UK, you should first learn the necessary groundwork, practice on a demo account to perfect your trading strategy and skills without real money at stake, and then take the next steps:
Check out the list of companies that offer funded programs for traders.
Submit a bid by providing your trading history, performance metrics and any other requested information.
Next, if your candidacy is approved, you need to go through an evaluation process, which may involve trading on a simulated account for a certain period of time.
Once you have secured funding, you will need to stick to the goals set by your firm. Follow your trading plan and don't take on too much risk early on.
What Is The Logic Behind Prop Trading?
An excellent question we ask today is - what is the logic behind prop trading? Why would a firm offer traders their funds to trade on? It’s simple. The idea behind it is to generate profits for the trading firm by taking advantage of market opportunities and utilizing the skills and expertise of the firm's traders.
Here are some key points that explain it further:
Profit generation
Prop trading firms aim to maximize their profits by using one tool in their arsenal - understanding the traders’ thinking. Because the users are not using their own funds to trade, they are more likely to take more risks, which helps the firms gain insight into their reasoning and leverage that to gain maximum profits.
Research and development
By allowing users to take more risk in their trading, prop firms are able to gather information on how users make trading decisions, what they are more likely to invest in, and even the most preferable trading hours. This research can be then used to further develop the tools of the account.
Talent attraction and retention
The idea of providing traders with funds to trade on such that they don’t have to dig into their pockets attracts multiple untapped talents in the industry. Once they gain the profits, these talents have the potential of turning into repeat users for the account.
Maintain all gains
Because everything is traded on the firm’s account, the firm gets to maintain all the gains and maximise their profits from the trades.
Have an edge over competitors
Firms engaged in proprietary trading have an edge over their competitors in terms of the insightful information they gather from their users which they leverage to maximise their profits, retain the customers and develop their accounts.
How to Choose a Funded Trading Program in the UK
Choosing a funded program in the UK requires careful consideration of several factors to make sure it fits your trade objectives, preferences and level of experience. Here is a comprehensive guide to assist you in making a well-informed decision:
Explore different programs: look for reputable firms with successful track records, licenses and positive trader reviews.
Familiarize yourself with the requirements: each company sets its own selection criteria, so familiarize yourself with the requirements beforehand to see if your candidacy matches the firm's needs.
Consider the financing structure: review the profit-sharing scheme, and ask the company for more information on program-related fees and expenses.
Evaluate the level of support: choose companies that offer comprehensive training, mentoring and ongoing support.
Familiarize yourself with the terms and conditions: you need to understand how the firm's offerings fit your trading style, so take a detailed look at the amount of funding, available assets and trading platforms, daily and total drawdown limits, withdrawal policy, etc.
Expert Opinion
Funded accounts seem an attractive option for many traders and are perceived by them as a risk-free path to significant earnings. However, that is not entirely true, and like any path in trading, it cannot be easy and accessible to everyone. To some extent, it can indeed be one of the development options for an experienced trader who has a chance to pass the evaluation phase. For a mid-level trader who has been trading profitably for some time with their small capital, trying copy trading programs as a source of trading signals might be more feasible. This allows for development while continuing to work with a psychologically comfortable amount. For novice traders, participation in prop trading challenges is not recommended due to the high skill requirements for candidates.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
FAQs
How do I become a fully funded trader in the UK?
To become a fully funded trader in the UK, you need to choose a company, apply for a competitive program, pass a test during which you must fully demonstrate your skills and knowledge. If all goes well, you will be given access to a funded trading account with real money to trade with.
Which prop firm is best for UK traders?
The5ers is an excellent choice for traders from the UK. Among the advantages of the company are: high trader's income (up to 100% of the money earned), a wide range of assets for trading, no restrictions on the use of strategies, availability of all necessary documents to carry out activities.
Is funded trading legal in the UK?
Yes, funded trading is not prohibited in the UK, but traders should be aware of the fact that companies offering this service are not regulated by the Financial Conduct Authority). Due to the lack of regulation, you need to be especially careful when choosing a reliable company to cooperate with. Analyze other users' reviews to assess whether the advertising promises are true.
Is it hard to be a funded trader in the UK?
Being a funded trader in the UK is challenging, as a combination of several factors are essential to success, including a trader's ability to analyze the markets, develop effective strategies and make informed trading decisions quickly.
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Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).
