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Investment
Funded Trader
A trader who passes a challenge to get access to a prop firm's capital and keeps a large share of the profits.
Funded trader programmes exploded in popularity after 2020. Traders get capital without using their own money, but they must follow strict drawdown and risk rules. Many traders now prefer this over using their own small accounts.
It's like passing an audition to borrow a racing car and keeping most of the prize money if you win.
Real world: A trader pays a small fee to join a prop firm challenge. If they hit profit targets without breaking risk rules, the firm gives them a £50,000–£500,000 funded account. The trader keeps 70-90% of profits.
💡 Funded trading lets talented traders control big money without needing a rich bank account.