Proprietary funding companies provide traders with funds to demonstrate their trading talent. They offer substantial capital to the traders, which they can use to bring significant profits. The 100k lending account is sponsored by a prop firm, with the trust that the trader will invest the money mindfully and lead to an exemplary financial gain. The profit is then divided between the parties according to the agreed-upon ratio.
In this article, we shall discuss securing and succeeding with a 100k funding trading account and guide traders on winning this game of trading.
Understanding the 100K Account
Simply put, a 100k account is a way for prop firms to help traders scale up their trading volumes. They have to initiate with sizable capital and can then augment the size of accounts—so much so that they can even move up to two million dollars. It’s a fantastic opportunity for a talented trader who wants to trade at a large scale but doesn’t have enough personal finances.
Through these funded accounts, traders get the much-needed backing from a firm. By using the right strategy and risk management procedures and adhering to the company’s rules, they can prove their informed investment decision-making capabilities. Once a trader successfully secures a 100 K account, other firms and competitors in the industry start viewing him as a serious participant in the trading industry.
Every trader dreams of trading more prominent positions. The risk is limited with the 100 K account, as the trader doesn’t have to put his finances at stake. Still, he gets the opportunity to scale up his trading.
Firms offer this opportunity to traders as they want someone to grow their capital through a mutually beneficial relationship. This is why they only trust and provide the capital account to traders who’ve proven their worth through various tests.
How to Qualify for a 100K Funded Trading Account?
A firm would only provide a 100 K funding trading account to a random trader if testing him first. The trader has to win the firm’s trust by showcasing exceptional trading skills and the ability to manage financial risk.
Securing a 100k-funded trading account from the One Step challenge prop firms requires demonstrating your trading skills, discipline, and ability to manage risk effectively. Here’s a breakdown of the steps and challenges you’ll need to go through to qualify for such an account.
Steps Required to Secure a 100K Funded Account:
To secure a 100k funded account, the trader needs to follow some simple steps. They start by signing up with a prop firm. The trader needs to perform his research and look for the prop firms that provide an appropriate funding solution.
Once the company is decided, the trader must sign up by proving your trading talent. There would be an evaluation process by the company that needs to be passed to be capable of having the 100 K funded account for trading purposes.
These prop firms use a two-phase evaluation to assess the capability of the contending traders. They have predefined profit targets that the traders need to accomplish to be capable of using a 100k funded trading account. They must make this profit while sticking with the company’s risk management rules.
Top Prop Firms Offering 100K Funded Trading Accounts
Numerous prop firms offer these trading accounts to users, and the most prominent are FTMO, the 5%ers, MyForexFunds, The Funded Trader, and Funding Pips. These firms have predefined rules and regulations that the trader needs to adhere to. In addition, each one has a distinct profit-sharing model and fee structure. However, one common thing is the evaluation test that the trader must pass to get the funding account.
Advantages of a 100K Funded Trading Account
The advantages associated with the 100K funded account are unlimited. The biggest one is access to massive capital. $100k is no joke, and when traded mindfully, it can multiply exponentially. Traders without substantial personal funds always look for safe and reliable ways to diversify their trades.
Using a prop firm’s money rather than risking your own minimizes the trader’s risk of going bankrupt. It also allows him to scale up in the industry and play a bigger game by using his trading capabilities.
How to Pass a 100K Prop Firm Challenge
Here are a few tips that every trader must consider while taking the 100K Prop Firm Challenge:
- Be sure to review all the rules and targets. Devising and following the right strategy will help you reach the targets.
- Follow a low-risk strategy and place not more than 2% of the funds on a trade. It will ensure you don’t get beaten up by a massive loss.
- Avoid making emotional decisions. Instead, control your sentiments reasonably, which may persuade you to make impulsive trades over a quick win.
Final Thoughts
If you are a trader who wants to play a big game in the market but needs personal funds for that, don’t worry! The best futures prop firms ensure you get a 100k-funded trading account to showcase your capabilities. Even for prop firms, it’s a winning situation when a capable trader takes up his capital and plays with it wisely in the finance industry. The profit-sharing model allows the firm to define its share in the profits.
