Funding accounts, also known as trading funding accounts or funded trading accounts, are a specialized form of funding used in the trading and investment world. These accounts are provided by funding companies to individual traders. The main idea behind funding accounts is to allow traders to trade the financial markets using capital provided by the funding company rather than their own money.

1. Provided Capital: Instead of using their own money, traders receive initial capital from the funding company. This capital can vary in amount depending on the company and the specific agreement, but is often substantial and can reach significant figures.
2. Profit Sharing: In exchange for the capital provided, traders share a portion of the profits generated with the funding company. The percentage of profits shared and the terms of the agreement may vary from firm to firm.
3. Risk Management: Many trading funders offer risk management tools and strategies to help traders protect the capital provided and avoid significant losses. If the trader wins, the company wins.
4. Evaluation and Testing: Before receiving a funded account, traders usually undergo an evaluation or testing process to demonstrate their trading skills and competence. This helps funders select qualified traders.
5. Training and Support: Some funders offer training and support programs to help traders improve their skills and performance.
6. Diverse Markets: Funding accounts may be available for trading in a wide variety of financial markets, such as stocks, currencies(forex funded accounts), futures and commodities such as gold.
7. Trader Independence: Despite receiving capital from the funding company, traders maintain some independence in their trading decisions and strategies.

1. TopstepTrader: TopstepTrader is a popular funding account platform that offers funding and testing programs for futures and forex traders. They have a variety of account options and initial capital sizes.
2. FTMO: FTMO is another funding company that specializes in forex trading. They offer a rigorous evaluation and, once approved, traders can access an account funded with equity from the company.
3. Earn2Trade: Earn2Trade provides funding programs for futures and forex traders. They offer a variety of accounts and provide training and support to traders.
4. The5%ers: This company focuses on forex traders and offers an evaluation and funding program. Traders can access funded accounts once they pass the evaluation phase.
5. OneUp Trader: OneUp Trader offers a funding platform for futures and forex traders. They have different account options and an initial assessment to determine the trader’s ability.

1. Initial Capital: Gain access to substantial initial capital to trade the financial markets, without the need to invest your own money.
2. Risk Management: Often, these accounts come with built-in risk management, which can help you protect your capital and avoid significant losses.
3. Profit Sharing: In many cases, the profits earned are shared between the trader and the funding company, which can be an additional source of income.
4. Training and Support: Some funding companies offer training and support to their traders, which can be beneficial, especially for those who are just starting out.

Frequently Asked Questions