How to get funded trading accounts UK. Full instructions

When traders realize that trading does not bring enough profit, they try to increase it. Some open more trades, while others increase the volume of such trades. However, neither of these options guarantees higher profits, while the risks grow disproportionately. The best solution is funded trading accounts UK, which can be obtained by passing the selection process in a prop company. Let’s figure out how this service works in the financial markets in the UK.

What are funded trading accounts UK

As you know, there are large financial funds engaged in raising and managing capital. This system appeared many years ago and quickly gained popularity. There were two main sides—investors and managers. Over the years, the algorithm became more efficient, and funds attracted hundreds of billions. Such a fund had entire departments of traders engaged in opening trades using invested capital. Investment departments in banks operate on a similar algorithm.

A new stage in the development of such trading was the emergence of private companies. Trading for a prop firm is generally similar to trading in a financial fund, except here, the capital belongs to the company. It is usually provided by the company’s owners. They have earned money, and now their goal is to achieve stable capital growth without participating in the trading process themselves. For this purpose, they create multiple funded trading accounts, selecting managers for them from among private traders.

Most of these companies today operate as remote prop trading firms UK. This means that traders work from home. Everything is just like regular trading. The best traders may be offered a place in the company’s office—in this case, you will go there as if it were a regular job.

How to get funded trading accounts UK

Obtaining such an account is not an easy process since we are talking about tens of thousands of dollars. In classic capital management, you bear a certain responsibility, but in prop trading, a trader can trade without worrying about risks. Simply put, the profit will be shared between the trader and the company. However, if the managing trader makes mistakes during trading and the account balance decreases, they do not compensate for these losses in any way. This raises the question—how does the company decide who gets a funded account? For this, there is a selection procedure called a challenge.

Challenges for accessing funded trading accounts UK

The company needs to test the candidate in action. What could be better than observing their trading in real time? This is exactly how a challenge works. A trader is given a specific profit target to reach on a demo account issued to them. For example, this could be a 10% target with no time limit. Note that the absence of time limits is a huge advantage. Best prop firms for futures trading do not impose restrictions, but in other companies, they are quite common.

So, you must trade profitably. But even that is not enough. If your account balance dropped to 50% of the initial amount and then quickly recovered, this clearly signals that you lack skills in risk control. Money management is the fundamental basis of prop trading. Therefore, during the challenge, you are also given a loss limit. These limits are expressed as percentages and come in two types—daily and overall. In the first case, you are given a maximum loss limit for a single trading day, and in the second, an overall loss limit relative to your account balance.

Finally, you must trade in a way that ensures a smooth balance increase. You might earn 20% profit in a single trade, but this carries too much risk and could simply be a matter of luck. That’s why, in the challenge, you need to show at least a few profitable days. If you follow a systematic trading strategy, this requirement should not be a problem.

To participate in a challenge, you need to pay a certain fee. The higher the fee, the more capital the company will provide you after successfully completing the challenge. In some cases, the company also offers a refund and returns the money you spent on the challenge.

Advantages and disadvantages of funded trading accounts UK

No investment service can offer you the advantages that proprietary trading provides. You enter an environment with clear and fairly simple conditions. In case of success, the available funded trading accounts UK can offer amounts you could never have imagined before. Reaching such capital on your own would be extremely difficult. In funded trading programs, you have access to capital under much more favorable conditions compared to something like a PAMM service.

The challenges are usually considered a disadvantage. This is a mandatory step in proprietary trading, and there is no way around it. If you truly want to take your trading to a fundamentally new level, you will have to put in the effort. There is always the option to find a simpler challenge or use Add-ons, which somewhat simplify the challenge process. As for the time spent on the challenge, here’s what can be said: your first profit on a forex funded account UK will be many times greater than what you could earn on your own trading account in the same period. You should see this as an investment—you are investing your time and effort in obtaining significant capital for trading.

What is prohibited on funded trading accounts UK

Since companies use different interaction algorithms with traders, misunderstandings may arise. What do prop firms do to protect their interests? Most often, they simply prohibit the use of certain trading systems. Here are a few examples of such restrictions:

• Trading without loss limits. The company needs to understand when a trader’s signal will be canceled and when they will fix a loss.
• Intraday trading or high-frequency scalping in particular. The company’s logic here is that it may lag behind in opening mirrored trades on its capital.
• Using EA. If the company does not understand how an advisor works, it may prohibit its operation.

In the challenge description, you will find only general trading conditions, followed by additional terms for your forex funded account. However, to determine what is prohibited, you will need to review the company’s entire website. If there is no description of restricted trading methods, make a request to the company. They will explain how you are allowed to trade and what is specifically prohibited. This way, you can avoid losing income or even your forex funded account.

How to choose a forex funded account UK

Can it be said that there is an absolute leader in the prop trading industry? In reality, no. Everything depends on which parameters are most important to you. For a trader with a small amount, best funded broker is a company with low challenge costs and a maximally accessible amount. There are quite a few such funded trading accounts UK. However, traders who find it difficult to manage risks often look for companies with lenient challenge conditions or even opt for instant funding.

When searching for suitable prop firms, also pay attention to trader reviews. Often, they provide a lot of useful information about hidden conditions as well as the technical aspects of trading. A simple example is the end of a trading day and the start of a new one. At this time, market liquidity decreases, and some brokers significantly widen spreads. In some cases, this widening can be so extreme that it triggers traders’ stop losses, which, in turn, may cause them to fail the challenge.

Tips for beginners on trading funded trading accounts UK

The offered funded trading accounts are your opportunity to completely change your trading results. You should take both the selection of a challenge and the challenge itself as seriously as possible. When starting a challenge, try to focus entirely on the task. A trading system with clearly defined rules often helps with this. If it has shown good results when trading on your own account, it will also be profitable during the challenge. Do not deviate from the rules and open trades only when the system gives a signal. The desire to get funded trading accounts as quickly as possible is understandable, but your success also depends on how patient you are. Completing the challenge in a week is possible, but it increases the risks. However, if you trade systematically, the chances of success will increase significantly. The main thing is to stick to your system’s rules.