Trading seems complex but it isn’t. The trading industry is diverse, whether you have sufficient capital or not you can have a successful trading Journey with direct funding prop firms.
How is that so? With prop trading firms you can exhibit your trading skills even if you don’t have enough funds. Prop trading firms make trading possible for everyone.
Let’s explore what prop trading firms are, how they work, traditional vs direct funding prop firms, and why traders prefer prop firms nowadays.
What is a Prop Trading Firm?
A proprietary trading firm or prop firm is a company that works on the principle of give and take.
These firms provide skilled traders with sufficient funding capital so they can trade at a bigger stage instead of putting their limited funds at stake. In return, these prop firms keep a certain amount or specific percentage from the profits earned by traders.
Prop Firms allow traders to trade with high-profit share, more leverage, and fewer risks. Traders have the option to deal with various assets.
How Does Prop Trading Work?
Prop trading firms usually have two main funding models:
Evaluation Model
Evaluation or Challenge models have different phases or stages to test the trading skills. Prop firms set particular criteria and conditions for each phase. It could be 1 step, 2 step, Or even 3 Step series.
The Traders must pass these challenges or evaluations to be eligible for Instant Funding. Traders need to achieve preset profit targets and adhere to strict risk management rules including drawdown limits and more. After that traders can get access to the firm’s capital.
Prop firms with this model are called Traditional Prop Firms.
Instant Funding Model
The instant Funding model, as the name says, provides traders with instant access to capital.
It allows traders to bypass or skip the evaluation process entirely and get immediate access to trading capital. Traders don’t need to pass any challenges to prove their skills.
This is ideal for experienced traders who want to skip time-consuming and exhausting evaluations and start trading to make direct profits.
This model allows traders to start trading with real money right away, usually with fewer restrictions, no pressure, and a great profit split ratio.
Prop Firms with this funding model are called Modern Prop Firms or Direct Funding Prop Firms.
Direct Funding Prop Firm Vs Traditional Prop Firms
As we have mentioned, Direct funding prop firms are a type of prop trading firm that works on the Instant Funding Model.
In contrast, traditional prop trading firms typically require traders to pass an evaluation phase or meet specific criteria to filter skillful traders
Let’s have a detailed comparison between Direct Funding and Traditional Prop Firms.
| Feature | Direct Funding Prop Firms | Traditional Prop Trading Firms |
| Evaluation Process | No evaluation or challenge; traders get funded instantly. | Requires passing an evaluation phase (usually with demo accounts). |
| Access to Capital | Immediate access to real trading capital. | Access is granted only after completing the evaluation. |
| Risk | Traders face live market risk from the start. | Risk is managed through demo trading during the evaluation process. |
| Upfront Fees | Higher upfront fees for instant capital access. | Fees are usually tied to the evaluation process (may be refunded). |
| Profit Split | Profits are shared between the trader and the firm. | Profits are shared similarly, but typically after evaluation success. |
| Suitability | Best for experienced traders looking to start trading right away. | Best for newer or intermediate traders wanting to prove their skills. |
| Trading Restrictions | Fewer restrictions, and more flexibility in trading strategies. | May have stricter rules during the evaluation phase. |
| Risk Management | Real-time risk management from day one. | Risk management skills are tested during the evaluation process. |
Funded Squad: A Game-Changer in Prop Trading
Let’s talk about the best direct funding prop firms in 2024. Recently launched Funded Squad is breaking new ground by offering instant funding accounts at the cheapest prices in the Industry.
Other direct funding prop firms provide Instant Funding but at exceptionally high prices, but Funded Squad is providing it for almost 50% less.
You can access a $25,000 account for just $249 and a $50,000 account for $449.
This Instant Funding model is a win-win for traders because of its low price and high-profit shares where traders can completely skip the entire Evaluation.
Benefits of Funded Squad’s Instant Funding Accounts
Here’s what makes Funded Squad different from other prop trading firms:
- Immediate access to capital so that traders can focus fully on trading rather than never-ending evaluation.
- Lowest Industry Prices
- Up to 90% of profits, making it one of the highest profit split.
- Every time you reach a 10% profit, Funded Squad doubles your account size, allowing you to grow your capital up to $1 million.
Conclusion
In the rapidly evolving world of trading, prop firms like Funded Squad are leading the charge by offering traders the tools and capital they need to succeed without the barriers of traditional evaluation models. If you’re ready to take your trading to the next level with instant funding, join Funded Squad today and experience the future of prop trading.
