The Forex Funder is a forex proprietary trading firm that provides traders with access to large sums of capital in the Forex market in exchange for a share of their profits. It targets traders who have skills but lack the financial backing to trade at a larger scale. On paper, it’s a simple setup: you trade with their money, and you both benefit if you’re profitable. But as always, the reality is a bit more complicated than it sounds.
How The Forex Funder Works and Operates
To get started with The Forex Funder, you’ll need to go through an evaluation process (there are four different types). This is their way of assessing if you’re a capable trader who can handle the firm’s capital responsibly. The evaluation begins with trading on a forex demo account, where you are required to meet strict profit targets (depending on your evaluation type), usually around 6-10%, without breaching the predefined drawdown limits. These drawdown limits, which typically range from 5-10%, are non-negotiable, meaning even a single mistake can terminate your evaluation.
Passing both phases means you’re finally “funded” and can trade with the firm’s capital on a live forex account. But even then, the rules don’t ease up. You must continue to adhere to drawdown restrictions, trading limits, and weekly profit expectations. They might also have specific rules on the maximum lot sizes you can trade or the types of currency pairs allowed. Any deviation from these rules can result in losing your funded account, even if you were otherwise profitable.
What You Can Expect When Trading with The Forex Funder
- Profit splits: Once you’re trading with real capital, you’ll be entitled to a portion of the profits you generate. Typically, you keep around 70-80%, while the firm takes the remaining cut. While this sounds generous, keep in mind that you’re the one putting in all the effort and skill.
- Monthly payouts: You’ll receive payouts on a monthly basis, assuming you’ve made profits. However, some traders report delays in receiving their earnings, so don’t expect your money to arrive instantly.
- Fee structure: There’s an upfront fee to enter the evaluation phase, which can range from $100 to $500, depending on the account size you’re aiming for. This fee is non-refundable, even if you fail the evaluation. It’s essentially a pay-to-play model, and the costs can add up quickly if you don’t pass on your first attempt.
Pros and Cons of Using The Forex Funder
Pros
Cons
A Sceptical Look: Is The Forex Funder Worth It?
The Forex Funder appears to be an appealing solution for traders looking to access more capital, but the reality is far from simple. The evaluation process is designed to be tough, and it feels as though the firm profits just as much from traders who fail as from those who succeed.
Even after passing the evaluation, maintaining your funded status is a constant battle against their strict rules, and it often feels like they’re looking for reasons to disqualify traders. Additionally, some traders have reported issues with payouts and sudden changes in trading rules, raising questions about transparency and fairness.
Reviews: What Traders Are Saying About The Forex Funder
Feedback from Reddit and Forex forums reveals mixed opinions about The Forex Funder, with many traders expressing scepticism.
Positive feedback: Some traders who managed to pass the evaluation phase appreciate The Forex Funder’s prompt payouts and profit splits. They mention that if you have the discipline and skills, it’s a decent way to access larger capital without risking your own money.
Negative feedback: However, the majority voice frustration over the strict and unforgiving evaluation rules. Many traders feel that the drawdown limits are designed to be difficult, leading them to believe that The Forex Funder profits more from failed evaluation fees than from funding successful traders. There are also complaints about communication issues and delays with the support team.
Reddit thread: “Friend.. why choose a unreliable prop firm??? They don’t even have interviews or something. On there website and who is the CEO of this prop firm? No one knows! Why don’t stick to the most heard prop firms like FTMO, etc? This is also your fault man.”
User Anouartheydh on Forex Peace Army: “Do NOT trust The Forex Funder! They reject all withdrawal requests and no one ever gets paid. This company is a total fraud. Everyone reading this should report them now to stop these scammers! THEY REJECT PAYOUTS FOR STUPID RULES.”
The general consensus: Overall, the sentiment leans toward scepticism. While some have found success, many feel that The Forex Funder’s strict rules make it tough to maintain a funded account, suggesting that it may not be as straightforward as it appears. If you’re considering joining, be prepared for a challenging process with high risks.
Final Thoughts: Should Real Traders Use The Forex Funder?
The Forex Funder might be an option for experienced traders who are confident in their ability to hit profit targets while staying within strict drawdown limits. However, for the average trader, it’s a high-risk, high-pressure environment that might do more harm than good.
If you decide to try your luck with The Forex Funder, be prepared for a costly and challenging process that may not necessarily lead to the financial freedom you’re hoping for. The reality is that, for most traders, the risks and stress involved could outweigh the benefits. The Forex Funder is not the easy answer to your trading aspirations—it’s a tough game with no guarantees of success.
Verdict: The Forex Funder isn’t a straightforward path to forex trading success. Approach it with caution, keep your expectations realistic, and understand that their business model is structured in a way that benefits the firm more than the trader.