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If you’re interested in trading and are looking for the best funded trader programs, this review is for you. Find out which funded trader program is best for you and your interests, and start swing trading, day trading, and intra-day trading for profit after evaluating these two forex prop firms.
This article will review two of the best funded trader programs: Next Step Funded and The Funded Trader.
While a funded trader program is the same everywhere, some differences can impact your ability to succeed. These prop firms offer traders the chance to trade with other people’s money and earn a share of the profits.
Let’s dive into what each prop firm is known for, how their challenges differ, and can set you up for success or failure.
The first to look at is Next Step Funded, a popular funded trader program that aims to help aspiring traders maximize their success in prop firm challenges and set a foundation to achieve their goals.
Next Step Funded makes participating in their program and getting funded accounts easy.
To get a funded account, traders will complete a challenge successfully, which consists of reaching a specific profit target within a specified time frame, and upon a successful challenge, accounts are funded, allowing traders to start trading with the prop firm’s capital.
One thing that makes this challenge unique is that Next Step Funded offers traders different funding levels based on their performance during the challenge. This graduated process lets traders progress, increasing funding with proven trading skills.
Another well-known prop firm is The Funded Trader. This UK-based funded trader program allows traders to trade with a funded account but, similarly, must pass a challenge first.
Where Next Step Funded helps educate traders in real-time with actual results, this program does virtual trades to evaluate trading skills and risk management abilities (more on this later).
Once accepted, the program offers different account sizes based on the trader’s preference and experience level.
One notable aspect of The Funded Trader is that it allows traders to keep 90% of their profits, making it an attractive option for those looking for a high-profit potential.
So, how do you choose between these two prop firms from the best funded trader programs? Keep reading, and we’ll do a side-by-side analysis.
Next Step Funded vs. The Funded Trader: The Challenges
Before starting with funded accounts, you’ll need to pass the first challenge.
When trading funded accounts, you use the prop firm funds as leverage to purchase and hold more than you could otherwise.
These funds give you more purchasing power, increasing your profit potential, but also come with some risk, which is why a trader, from day trading to swing trader, needs to pass a challenge and prove that they understand the process first.
Next Step Funded Challenges
With Next Step Funded trader accounts, the beauty is that you can choose the type of challenge that suits your experience and interests.
The higher the challenge you pass, the greater leverage you’ll have–meaning access to more equity to use in the future with your funded trader program.
In three simple steps, you’ll be able to take and pass the challenge and get approved for funded accounts quickly.
The challenge is broken up into:
- Next Step Challenge
- Next Step Verification
- Next Step Trader
- Next Step Challenge
When you take the Next Step Challenge, you’re given two options on which challenge to handle. Next Step Funded trader accounts make the process simple and user-friendly. Select and purchase either a 1-step or 2-step challenge, select your trading amount, and get started.
1-Step Challenge: With the 1-step challenge, select amounts between:
- $15,000
- $25,000
- $50,000
- $100,000
- $200,000
After you select your challenge amount, simply use those funds to trade with a minimum 3-day to 60-day maximum with a 5% drawdown and a 12% Max. loss, all while targeting 10%-$1500.
2-Step Challenge: With the 2-step challenge, you’ll be taking on two different phases in your challenge to get your funded trader program set up.
Like the 1-step challenge, choose between $15,000-$200,000 in funds. The difference is that the challenge is broken into two phases.
Phase 1: Trades must occur in 5 minimum trading days with a maximum of 30 days to complete this phase. Daily drawdowns are 5%-$750 with Max. loss at 12%-$1,800 and target at 10%-$1,500.
Phase 2: Phase two starts the same, with a minimum of 5 days with a 60-day maximum window, with the same daily drawdowns, max—loss, and target range to pass.
- Next Step Verification
After successfully completing the challenge, you’ll need a simple identity verification (KYC) to become a funded trader.
- Next Step Trader
Finally, once you’ve successfully passed the challenge and have your ID verification, you’ll get approval for a funded account from our funded trader program to begin and share in the profits!
It’s that easy.
The Funded Trader Challenges
Opposed to Next Step Funded’s easy challenge and verification, The Funded Trader makes it a little more convoluted. Similar to our challenge, The Funded Trader allows users two options: a 1-step and a 2-step challenge.
1-Step Challenge
With the 1-step challenge, users are doing a simulated trade with a virtual target to achieve approval.
Here’s the problem: When opening a funded trader account at Next Step Funded, we believe having a little skin in the game is worthwhile.
Swing traders typically make more risky trades without real risk than when they aren’t using their own money. However, once a trader has a funded account, they will be more conservative, meaning they may have passed the challenge but aren’t hitting the profit targets.
2-Step Challenge
If you pass their first phase challenge, The Funded Trader has you repeat the process, trying to hit simulated virtual profits. Again, the problem is that your profits and targets can be misleading since you’re dealing in hypothetical trades rather than real ones.
If you pass both steps, you can then get approval for a funded trader program that has the risk of higher slippage during volatility in the markets, and The Funded Trader even places a disclaimer stating that:
“Due to the nature of simulating the real market as closely as possible, strategies that are successful in the Challenge and Verification phases may not necessarily be profitable in the Funded phase.”
In other words, they’re telling you that even though you may have experienced some virtual success, chances are that you’re not guaranteed anything close to what you did in their challenge due to the nature of trading.
It’s almost like they’re hedging their losses and setting up traders for the potential of underachieving, making their platform feel much more speculative in nature.
In conclusion, while The Funded Trader may seem like a good option when considering the best funded trader programs, you’ll want to find one that is the most realistic to what you would expect once your account is approved and funded.
Next Step Funded provides traders with the most real-world process, a wealth of information to maximize your funded accounts so that you can grow in your investment strategy, and some of the best funded accounts anywhere.
