Prop trading was introduced after the 1980s along with hedge funds, and gained popularity within a few years. They grew and started expanding globally with technological advancements.
Now in this modern era of prop trading, the difference between instant funding and traditional prop firms has become a key discussion point. With the rise of prop firms like Funded Squad, which offers instant funding prop firm accounts, traders now have more flexibility and options than ever before.
In This Blog Post, Explore what separates instant funding from the traditional models of prop firms and how Funded Squad is revolutionizing the game for traders.
What Are Traditional Prop Firms?
Traditional prop firms typically offer capital to skilled traders who pass through a rigorous evaluation process. This model usually involves completing challenges, achieving profit targets, and following strict drawdown limits.
These evaluations or challenges aim to distinguish between less-experienced and deserving traders but it can be time-consuming, stressful, and costly for those repeatedly trying to pass the evaluation.
Key features of traditional prop firms:
- Multiple Evaluation Phases: Often involves two or three phases.
- Profit Targets: usually High, around 8% to 10%.
- Strict Drawdown Limits: Traders must maintain risk management within tight drawdown limits.
What are their largest drawbacks?
Time and emotional pressure. Many traders fail to pass the challenge due to the intense demands, resulting in significant losses. No Guarantee, Traders invest their savings in getting accounts, but there’s no guarantee that they will get it return as Profits. Disqualification costs them usually and they are left with nothing.
Instant Funding: A Game Changer
Instant funding prop firms like Funded Squad eliminate the need for a long neverending evaluation process. Instead of suffering through challenges, traders can skip the evaluation altogether and access simulated trading capital instantly.
Funded Squad allows traders to start trading in seconds, with $25,000 instant funding accounts available from just $249. There’s no waiting for an evaluation or battling stress-inducing profit targets. Instead, traders can focus on doing what they do best: trading.
Key benefits of Instant Funding Prop Firms:
- No Evaluation: Skip the multi-step process and trade immediately.
- Lower Costs: Starting at $249 for a $25,000 account.
- Guaranteed Payouts: Up to 90% profit share with On-demand payouts.
Direct funding prop firms vs Traditional Prop Firms:
| Feature | Instant Funding (e.g., Funded Squad) | Traditional Prop Firms |
| Funding Access | Instant, no evaluation required | Requires passing a multi-step evaluation |
| Initial Costs | Low upfront fee | Higher upfront costs and recurring fees |
| Profit Target | Low (e.g., 6% at Funded Squad) | Higher (typically 8-10%) |
| Drawdown Limits | Up to 6% daily, 12% overall | Lower, typically around 5-10% |
| Profit Split | Up to 90% | Usually 70-80% |
| Scaling Plan | Double account size at every 10% profit | Slower scaling, a smaller percentage increases |
| Payout Frequency | Instant payouts on demand | Monthly or bi-weekly payouts |
| Risk for Traders | No risk of losing personal savings | Risk of paying for multiple evaluations |
| Flexibility | More flexible, no time limits for hitting targets | Time-constrained evaluations |
Why Funded Squad’s Instant Funding Model Stands Out
At Funded Squad, traders get the lowest profit target in the industry which is just 6%, compared to the 8-10% at other traditional firms. This lower target makes it significantly easier for traders to meet their goals and start earning payouts from the very beginning.
Additionally, Funded Squad offers a scaling plan where traders can double their account size with every 10% profit. They can scale up to $1M by hitting their profit targets. The firm’s guaranteed payouts ensure that traders enjoy swift and secure profits through RISE integration, allowing for instant payouts on demand.
Funded Squad’s benefits include:
- Lowest Profit Target: Only 6% compared to the standard 8-10%.
- 100% Scaling Plan: Double your account size with every 10% profit.
- Instant Payouts: Get up to 90% of your simulated profits with payouts on demand.
Read more, click here to know about the 5 Advantages of Using Instant Funding Prop Firms for Traders
Comparing Funded Squad to Traditional Prop Firms
Here’s a quick comparison between Funded Squad and other traditional prop firms.
| Feature | Funded Squad | FTMO | FundedNext |
| Instant Funding Account | Yes (from $249) | No | No |
| Profit Target | 6% | 10% | 10% |
| Scaling Plan | 100% account growth | 25% growth | 40% growth |
| Drawdown Limit | 6% daily, 12% overall | 5% daily, 10% overall | 5% daily, 10% overall |
| Profit Split | 85%-90% | 80% | 80% |
| Time Limit | No | Yes | Yes |
With this comparison, it’s clear that Funded Squad stands out as a Direct funding prop firm for traders seeking instant access to funding, lower targets, and higher scalability. While traditional firms have their strengths, Funded Squad offers a faster, more trader-friendly model.
Conclusion: Which Prop Firm Model is Right for You?
If you’re a trader looking to bypass the stress of traditional evaluations and start trading with real capital, an instant funding prop firm is the way to go.
With Funded Squad, you can access funding immediately, enjoy the lowest profit targets in the industry, and scale your account faster than with traditional prop firms. It’s a clear choice for traders looking for flexibility, speed, and guaranteed payouts.
Join Funded Squad today and take your trading to the next level!
