Best instant funding Forex prop firm in 2024 - Fidelcrest
Best instant funding prop firms are:
Fidelcrest - accounts for traders of different experience levels, no requirement of minimum trading days.
5%ers - instant access to funded accounts without evaluation, 50/50 profit split.
BluFX - funding from $10,000 to $100,000 without challenges, no one-time fee.
Glow Node - scaling profit splits up to 90% under a flexible funding system.
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The world of finance continually amazes with new opportunities both vast and varied. Among the more intriguing avenues for strategically-minded individuals are proprietary trading firms, otherwise known as prop shops, which provide funded accounts tailored for the most promising traders. By assessing applicants' skills and market acumen through competitive evaluations, these innovative companies aim to cultivate rising stars. Within this article we uncover several top-tier prop firms standing at the cutting edge of their industry. In particular, we explore how some enable live trading from day one through "instant funding" programs. Though requiring dedication as with any field, for the right candidate such accelerated programs may spark truly unprecedented potential. Let's learn more about both the rewards and responsibilities inherent to this ambitious yet attainable path.
What are the challenges with instant funding accounts?
Instant funding accounts have a higher fee and reduced profit split compared to evaluated accounts. Traders also have limitations on trade parameters.
How much capital can traders access?
Funding amounts vary by firm but range from $10,000 to over $1,000,000 generally. The highest tiers are reserved for experienced traders with proven strategies.
Do traders need to pay monthly fees?
Some firms charge monthly fees while others charge a single subscription fee. Fees vary based on account size and firm but are generally reasonable for professional traders.
How much experience is required?
While beginners can apply, funded accounts usually require 6-12 months of live trading experience with proven performance to mitigate risks.
Proprietary trading, commonly referred to as prop trading, is a dynamic and lucrative form of trading wherein financial firms utilize their own funds to generate direct market profits. Unlike traditional trading, where firms act as intermediaries executing trades on behalf of clients, prop traders solely aim to capitalize on market activity. By engaging in the buying and selling of diverse financial instruments such as stocks, bonds, commodities, currencies, and more, prop traders strive to generate substantial profits for their respective firms.
One of the prominent advantages of prop trading lies in the enhanced access to capital and the opportunity to work alongside seasoned traders. This conducive environment provides prop traders with invaluable exposure to industry experts, allowing them to observe and learn from the best in the field. Surrounded by experienced professionals, prop traders gain valuable insights, refine their trading strategies, and make informed decisions. Moreover, prop traders often have the privilege of accessing no-risk accounts, which enables them to learn and practice trading without exposing their own capital to potential losses.
Prop trading encompasses a diverse range of markets, each with its own distinct characteristics and opportunities. The Forex market, also known as the foreign exchange market, holds a prominent position within prop trading. It involves the trading of currencies from various nations, with the aim of capitalizing on fluctuations in exchange rates. The Forex market operates around the clock, providing ample opportunities for traders to engage in high-volume, fast-paced transactions. The volatility and liquidity of this market make it an enticing choice for prop traders seeking substantial gains.
Another noteworthy market within prop trading is the stock market. Prop traders keenly analyze and trade stocks of publicly listed companies, seeking to profit from price movements and fluctuations. By leveraging their firm's capital, prop traders can engage in large-scale trades and take advantage of both long and short positions in the stock market. With access to advanced tools and technologies, prop traders can swiftly identify potential opportunities and execute trades, aiming to generate profits through astute market timing and effective risk management.
Experts have identified the following firms in the list of Best instant funding Forex prop firms in 2024:
Fidelcrest provides two distinct types of instant funding accounts, specifically tailored to suit traders with varying levels of experience. The Pro Trader Program caters to seasoned traders who possess well-developed risk management skills and reliable trading strategies. Within this program, traders can opt for either a Normal Account or an Aggressive Account, featuring initial balances ranging from $150,000 to $1,000,000. It is important to note that the option to commence with a capital of $1,000,000 is exclusively available to Normal Pro Traders.
To attain the status of a funded trader at Fidelcrest, the completion of a comprehensive two-phase evaluation process is required. The initial phase, known as the Fidelcrest Trading Challenge, grants traders the opportunity to engage in trading activities with an account size of their preference. Should an initial attempt prove unsuccessful, there is no cause for concern, as traders are accorded unlimited opportunities to make subsequent endeavors.
For novice traders seeking to refine their trading skills before venturing into larger account management, the Micro Trader Program is an ideal choice. This program imparts fundamental risk management skills and presents traders with the opportunity to commence earning profits upon successful completion of a single evaluation phase.
In contrast to certain other firms, Fidelcrest refrains from imposing a minimum requirement of trading days to qualify for a funded account. As a result, traders can swiftly secure funding, with instances of same-day account funding possible.
A key aspect that Fidelcrest prides itself on is its exceptional Customer Support Team, accessible across the globe. This affable and knowledgeable team remains available through Live Chat, ensuring traders' queries and concerns are promptly addressed, with responses typically provided within a matter of minutes.
As one of the oldest and most reliable prop firms in the industry, The 5ers has gained a solid reputation for its commitment to supporting traders' growth and success. The firm specializes in Forex trading, offering traders the opportunity to trade live accounts right from day one without the need for trial accounts. This means that traders can start applying their trading strategies and techniques immediately, experiencing the real market environment and potential profits. Traders choosing 5%ers can enjoy instant funding without the need for evaluation, allowing them to start trading on a live account immediately. The profit split is an equal 50/50, and timely monthly payments are guaranteed. Additionally, traders have the freedom to use any trading strategy, and there is a one-time fee with no recurring monthly payments. 5ers also provides traders with the flexibility to trade in their preferred style, whether it's manual trading, using expert advisors (EAs), or copy trading. This accommodates diverse trading preferences and allows traders to leverage their strengths.
5%ers offers two account types with distinct features:
Risk Manager Program: This program provides a relaxed trading environment with no time pressure. Traders have a 6% or 7% profit target on Level 1, and they can withdraw their earnings as they progress. The program also offers 10% profit targets for doubling the account size. The leverage provided is 1:10, allowing traders to maximize their trading potential
Aggressive Trader Program: Designed for those seeking an exciting trading experience with fewer rules, this program sets a 12% profit target on Level 1. Traders can withdraw their profits as they grow their account. The program also offers 25% profit targets for doubling the account size. With leverage of 1:30, traders have the opportunity to amplify their trading positions
Both account types at 5%ers aim to cater to different trading preferences and risk appetites. Traders can choose the program that aligns with their trading style and goals, providing them with flexibility and potential for growth in their funded forex account.
BluFX stands out among leading prop firms with its unique instant funding options and two distinct growth features. Unlike other firms, BluFX does not charge a one-time fee but instead requires a fixed monthly subscription fee based on the chosen account type and size.
Traders can opt for the instant funding program accounts, which come with a withdrawal profit target of 5%, a scaling profit target of 10%, and a maximum loss limit of 10%. However, there are limitations on lot sizes, and trades cannot be held over the weekends. Copy trading services and EAs are also not allowed. While BluFX has a monthly subscription fee and relatively low leverage compared to other industry-leading proprietary trading firms, its attractive scaling plan sets it apart. It should be noted that the accounts require a monthly subscription fee, and traders must adhere to lot size limitations and trade with low leverage of 1:3.
With the advantage of instant funding, traders can access capital ranging from $10,000 to $100,000 without the need to pass a challenge. By approaching trading with the right strategies, traders have the potential to make Forex their primary source of income. BluFX does not charge spreads or trading fees on transactions, as these charges are determined by liquidity providers and depend on various factors such as chosen assets and global market conditions.
Glow Node presents traders with three account options featuring flexible funding conditions. Traders can choose to undertake either a 1-phase or 2-phase challenge, or they can opt for instant funding. With instant funding, traders contribute 10% of the maximum drawdown limit to their Glow Node account. For instance, if they select a $100,000 balance with a $5,000 drawdown, they transfer $500 to their account. If traders' accounts reach the maximum scaling, they can be eligible for a refund of this fee. The profit split initially begins at 80% and has the potential to increase to 90% during scaling, distinguishing Glow Node as one of the few firms in the market that provides instant funding under such terms.
Traders are given the flexibility to choose among a standard account, an accelerated challenge option, or an account with instant funding. The minimum deposit required is $450, while the maximum balance attainable is $100,000, with a total drawdown limit of up to 5%. Glow Node also offers a fee refund option, enabling traders to reclaim their evaluation fee. To qualify for this refund, traders need to withdraw at least 15% of their profits and achieve a maximum scaling target equivalent to (scaled * 5).
Glow Node Prop Firm additionally offers supplementary features that cater to traders' preferences. These include the ability to hold trades over weekends, allowing traders to take breaks from their trading accounts during weekends. Moreover, traders can extend their weekend trading days to optimize their daily profits. The firm also supports copy trading from external accounts owned by friends or colleagues, enabling traders to replicate trades into their Glow Node accounts. However, trading off another account within the firm, including one's own account, is strictly prohibited.
👍 Pros
• Immediate live trading: One of the main advantages of instant prop trading is the ability to start trading on a live account immediately, bypassing the need to go through a lengthy evaluation process. This saves time and allows traders to gain real-world trading experience right away
• Potential cost savings: If a trader starts making profits on a live prop trading account, those profits can potentially cover the fees paid to the prop firm. In contrast, virtual profits made on a demo account during the evaluation process do not have the same financial impact. Therefore, successful trading in a prop trading firm can lead to cost savings in the long run
• Lower risk of scams: Prop trading firms typically have a more rigorous evaluation process to select traders who will be funded. By opting to start trading immediately, traders reduce the risk of falling victim to scammers who may take evaluation fees and then make traders fail the evaluation deliberately. Choosing a reputable prop trading firm helps mitigate the risk of scams
👎 Cons
• Higher upfront fees: Prop firms may require higher fees from traders who wish to start trading without going through the evaluation process. This is because the firm takes on greater risk by funding traders without evaluating their trading abilities. Traders should be prepared to pay higher upfront fees if they choose to skip the evaluation
• Reduced profit split: Traders who start trading without evaluation may face a less favorable profit split compared to those who have successfully passed the evaluation process. While prop firms often take a smaller percentage, such as 20%, of the profits earned by traders who have passed evaluation, traders who join without evaluation may face profit splits of 50% or higher. This means a larger portion of profits goes to the prop firm, impacting the trader's overall earnings
| Aspect | Retail Trading | Prop Trading |
|---|---|---|
|
Skill Level |
Suitable for experienced traders with substantial capital |
Assets for copy trading
Ideal for beginners with limited experience and capital |
|
Independence and Flexibility |
Offers greater independence and flexibility in trading decisions |
Assets for copy trading
Provides less flexibility and follows firm's trading strategies |
|
Fees and Commissions |
Costs vary based on broker's fee structure and trading activity |
Assets for copy trading
Generally lower fees due to competitive pricing and large trades |
|
Leverage |
Limited leverage due to regulatory requirements and equity rules |
Assets for copy trading
Access to higher leverage levels, depending on firm's policies |
|
Profit Potential |
Potential gains depend on trader's capital and strategy |
Assets for copy trading
Higher purchasing power and significant profit potential |
In terms of skill level, retail trading is better suited for experienced traders with substantial capital, whereas prop trading is ideal for beginners with limited experience and capital, as it provides educational programs and funded trader offers. Retail trading offers greater independence and flexibility in trading decisions, while prop trading follows the trading strategies set by the firm.
Regarding fees and commissions, retail traders have various options with different fee structures, while prop trading generally offers lower fees due to competitive pricing and the large trades conducted by prop shops.
Leverage differs significantly between retail and prop trading. Retail traders face regulatory requirements and equity rules, limiting their access to leverage. In contrast, proprietary traders can utilize leverage based on the risk capital in their accounts, providing higher purchasing power and significant profit potential.
When considering combining both types of trading, it is possible but requires careful consideration. Retail trading can be a complementary side gig to prop trading, but both activities need to align in terms of trading strategies and markets. The dedication and effort required to successfully engage in both activities may be challenging in the long term if they differ too much from each other.
The legality of proprietary trading varies depending on the individual or entity engaging in the activity. In most cases, proprietary trading is considered legal unless specific regulations or restrictions are imposed. However, there are certain exceptions, particularly for influential banks in the aftermath of the 2008 financial crisis.
Following the 2008 financial crisis, regulatory measures were put in place to address the risks associated with proprietary trading by banks. In response to the crisis, the Volcker Rule was introduced in the United States as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This rule prohibits banks from engaging in proprietary trading, with the aim of safeguarding the stability of the financial system.
While banks are restricted from proprietary trading, other financial institutions and individuals, such as hedge funds, investment firms, and individual traders, are generally permitted to engage in proprietary trading activities within the boundaries of applicable regulations. These entities and individuals invest their own capital in various financial instruments with the intention of earning direct market gains.
On a side note, it's also important to note that regulatory frameworks governing proprietary trading may differ across jurisdictions. Each country has its own set of regulations and restrictions that dictate the legality of proprietary trading within their respective markets. Market participants are expected to comply with these regulations to ensure transparency, fairness, and the overall integrity of the financial markets.
Regulators and financial authorities, such as the Securities and Exchange Commission (SEC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, and other similar entities worldwide, oversee and enforce these regulations to protect investors, maintain market stability, and prevent fraudulent activities.
Furthermore, while proprietary trading may be legal, it is subject to certain regulations and risk management requirements to ensure that trading activities do not pose excessive risks to the entities and individuals involved or to the broader financial system. Regulatory bodies often impose capital adequacy requirements, risk management guidelines, and reporting obligations to mitigate potential risks and promote responsible trading practices.
Experts have highlighted the following key factors to consider when choosing a prop firm:
When assessing profit distribution in prop trading firms, it is crucial to consider not only the percentage of profits allocated to traders but also the fairness of the distribution method. Some firms may offer tiered profit-sharing structures, where traders who consistently perform well receive a higher percentage of profits. Additionally, it is essential to understand how often profit distributions occur, whether they are made on a monthly, quarterly, or annual basis, as this can impact a trader's cash flow and financial planning.
While profit targets are an important aspect of prop trading, traders should carefully assess the realistic achievability of these targets. Extremely high-profit targets may lead to excessive risk-taking or placing undue pressure on traders, potentially affecting their decision-making and mental well-being. Finding a balance between challenging profit targets and maintaining a sustainable trading approach is crucial for long-term success within a prop trading firm.
Evaluate each prop trading firm's risk management framework and policies. This includes understanding how risk is monitored, assessed, and mitigated and the level of support and guidance provided to traders in managing risk. A well-established risk management framework ensures that traders have the tools and resources to protect capital and navigate volatile market conditions effectively.
Consider prop trading firms' technological capabilities and infrastructure. This encompasses the stability and speed of trading platforms, access to real-time market data, and the availability of advanced order types and execution tools. A robust technological infrastructure is essential for executing trades efficiently and capitalizing on market opportunities.
Assess each firm's research and analysis resources. This includes access to market research reports, technical analysis tools, economic calendars, and news feeds. Comprehensive research and analysis resources can significantly enhance a trader's decision-making process and inform them about market trends and events that may impact their trades.
Consider the level of support and mentorship the prop trading firm provides. This can include access to experienced mentors or senior traders who can provide guidance, feedback, and support in refining trading strategies. A supportive and collaborative environment can foster growth and accelerate a trader's learning curve.
Research the track record and reputation of the prop trading firm in the industry. Look for firms with a solid reputation for transparency, integrity, and ethical practices. It can be beneficial to seek feedback from current or past traders associated with the firm to gain insights into their experiences and the overall credibility of the firm.
Prop traders have the potential to earn significant incomes, especially those who achieve consistent success in their trading activities. While actual earnings can vary depending on several factors, including trading skill, market conditions, and the specific prop trading firm, successful prop traders can typically expect to earn between $100,000 and $200,000 per year. These figures represent the potential earnings for experienced and highly profitable traders.
It is important to note that prop trading firms often offer a tiered compensation structure based on the trader's performance. As traders progress and demonstrate consistent profitability, they may become eligible for higher profit splits and additional incentives, which can significantly boost their earnings. This incentivizes traders to continually improve their trading strategies and aim for consistent profits.
It's also worth mentioning that entry-level positions in prop trading may offer slightly lower initial earnings compared to more experienced traders. However, reputable prop trading firms typically provide competitive compensation packages even for entry-level traders, ensuring that their remuneration aligns with industry standards. As traders gain experience, refine their trading skills, and achieve profitability, they can expect their earnings to increase over time.
Successful prop traders can make between $100,000 and $200,000 per year. The key factors influencing their income are:
Skill and Experience: Prop traders with many years of experience and advanced trading skills tend to earn higher incomes. Risk management skills, technical and fundamental analysis, and a deep understanding of market dynamics influence earnings. A trader typically gains all these skills after years of trading and constant improvement.
Assets Traded: The specific types of assets a trader specialises in significantly impact earnings. Certain assets have a higher profit potential than others due to the high risk associated with the market. Markets like cryptocurrencies, commodities, equities, or forex have varying risk levels and profit potential.
Performance-Based Compensation: Various prop firms provide a performance-based compensation structure. Prop traders earn a share of the generated profits. Thus, exceptional trading performance leads to higher earnings.
Market Conditions: Market volatility and economic conditions do influence trading opportunities. Traders who adapt well to the changing market conditions increase their potential earnings by capitalising on opportunities.
Capital Allocation: Some prop firms, including Fidelcrest, allocate trading capital based on the traders’ performance. Fidelcrest provides multiple account levels with different capital allocations. These varying allocations enable traders to scale their earnings as they progress.
Borrowing from the Fidelcrest example, the amount you can earn depends on your trading skills, account level, and profits generated while operating within the firm’s risk management guidelines. Before kickstarting your trading journey with them, you must review and understand the firm’s terms and conditions.
Fidelcrest offers different account levels depending on the trader’s skills and experience. Each account has different subscription fees, capital allocations, and profit-sharing ratios. Let’s explore how much you can earn with Fidelcrest:
Normal Risk Account: The individual trader is eligible for a profit of 80% with a 20% share for the firm. If traders generate $10,000 in profits, they can earn $8,000, which is 80% of their profits.
Aggressive Risk Account: The individual trader can secure a profit of 90%, with a 10% share for the firm. The earning potential at this level is substantial since traders earn $9,000 from every $10,000 generated in profit.
Instant funding prop firms are a reasonable solution for traders who already have a stable income from trading but lack significant capital. Since obtaining funding in such prop firms can be done in 1 or a few days with moderate expenses, this option is in high demand. However, it's essential to understand that some form of evaluation stage will still be necessary. After obtaining funding, traders will need to continually prove their skills in trading and risk management in practice.
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.
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
Proprietary trading (prop trading) is a financial trading strategy where a financial firm or institution uses its own capital to trade in various financial markets, such as stocks, bonds, commodities, or derivatives, with the aim of generating profits for the company itself. Prop traders typically do not trade on behalf of clients but instead trade with the firm's money, taking on the associated risks and rewards.
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.
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).
