It is important to have the proper resources to support your trading journey in the field of trading. Many traders, particularly beginners or those with low resources are sometimes affected by a lack of enough funds. Funded trading accounts can help traders access large amounts of money without having to risk their own money. The number of low-cost financed trading accounts has increased in 2024 and provides more options than before. But how can you identify the best options? If you don’t know, let’s talk about what cheap funded trading accounts are and how to find the best one for your needs.
What is a Funded Trading Account?
Traders who successfully complete an assessment or challenge can access funds from a proprietary trading business also known as a prop firm through a funded trading account. The company receives a portion of the trader’s profits in return for the capital. With the help of prop firms traders don’t have to worry about losing their own money and can concentrate on executing their strategies.
The Cheapest One Step Challenge or Assessment Phase often includes meeting pre-established profit targets while following rules on time limitations, risk control, and drawdowns. After passing the test, you can begin trading live accounts and have access to the company’s cash.
Why Choose Cheap Funded Trading Accounts?
While funded trading programs are an excellent way to expand your trading without risking your own money, many have significant upfront fees. The amount of these fees varies from hundreds to thousands of dollars. Cheap-funded trading accounts provide aspiring traders with an economical method to have access to funds without paying large initial costs. Reduced costs enable you to pass evaluations, have access to high-quality trading resources, and start earning money without having to make a significant initial investment.
Key Features to Look for in Cheap Funded Trading Accounts
When you choose a funded trading account it is important to consider some important features including:
Low Entry Fees
Whenever you see low-cost funded trading accounts, the first thing that you consider is their entry fee. Each firm has its own fee structure so compare the initial fee of each firm and then choose the one that has lower registration or evaluation fees. The low-cost factor is more beneficial for those traders who have limited budgets to access capital. Select the best firm according to your budget.
Flexible Evaluation Rules
After the fee look in detail about the firm evaluation rules. Some firms are very strict about their evaluation rules but the best-funded trading firms will offer flexible rules according to your trading style. Flexible evaluation means the time limits that firms give to meet profit targets, drawdown limits that must be manageable, and the clear and transparent rules of these firms. All these factors make a firm more flexible for the traders so must ensure all.
Payout Conditions
Another important factor in any funded trading account is how much of the profits you are allowed to keep. Mostly prop firms take a percentage of your profit in return for the capital they provide you. The percentage of this profit is also different in firms so must make sure that this profit split is favorable. Most firms provide a standard split of 70-80% in favor of the trader but some firms provide better splits as well as some additional bonuses.
Available Trading Instruments
Different prop firms provide different markets and instruments for trading. When you choose a prop firm must be sure that the trading instruments provided align with your preferred markets whether it’s Forex, commodities, indices, or cryptocurrencies.
Risk Management Rules
Prop firms never tolerate higher risks so funded trading programs have strict risk management guidelines to protect their capital. Make sure you feel comfortable with their daily drawdown limits, maximum loss thresholds, and overall risk parameters. Risk is a crucial factor so choose it with great care.
How to Succeed with Funded Trading Accounts
Before starting trading, understand the rules of the firm you have chosen like daily drawdown limits, overall loss thresholds, and profit target requirements to succeed with your cheap funded accounts. Then, according to these rules, make your trading plan. It includes your entry and exit points, risk management strategy, and how you will handle market volatility. Stick to your trading plan, avoid over-leveraging, and stay within the program’s rules. Most funded account programs reward consistent trading over short-term profits. So be consistent in your trading performance.
Top Cheap Funded Trading Accounts
If you don’t know any cost-effective firms, let us help you and provide you with some ideas on the cheapest firms.
- FTMO: FTMO has relatively low fees for evaluations as compared to its competitors and has flexible trading conditions. Traders can access up to $200,000 in capital with a profit split of up to 90% in their favor. Their evaluation fees start as low as $155.
- FundingPips: FundingPips provides a capital allocation of up to $500,000 and a profit split of up to 80%. Their initial fee is also very affordable for the traders and have scalable plans.
- MyForexFunds: Another popular choice for budget-conscious traders is MyForexFunds. The evaluation phase has affordable fees starting at $84, with a profit split of up to 85%.
- The 5ers: The 5ers also provide instant funding and only one firm that allows traders to skip the evaluation phase and trade with live capital. The profit split starts at 50% and their Fees are among the lowest in the industry, starting at $95 for evaluation programs.
Final Thoughts:
In 2024 cheap funded trading accounts provide a more convenient method to traders who have different levels of skill to earn money without having to risk their own money. Understanding the evaluation terms, risk management guidelines, profit splits, and trading circumstances is essential to choosing the ideal account.
