Let me tell you one thing... IF you are a successful trader and do not opt for prop firms like FTMO, you MUST re-assess things!
Entrepreneurs outlay thousands of dollars to setup a business and gradually pay back their initial investment through time. Usually within a few years in the case of a highly successful business.
FTMO's business model essentially requires you to make an initial investment of about $650 USD to potentially get access to $100k USD in funding. Not only that, they pay back this participation fee upon your first profit split withdrawal. Now, if you are a successful trader, I would assume you're at least generating 2% on average per month. Lets now do some quick math... 2% x $100k = $2k... FTMO pays out 70% of that to the trader, so you would be pocketing $1,400 USD. Very quickly, any rational trader sees the golden business model here.
People may say "Why do you need funds from a prop firm if you're already a successful trader?"Let me give you a quick answer to that.
Why should I put my own capital at risk to generate a profit?
Why should I put my own capital at risk to generate a profit?
FTMO's business model allows traders to partially participate in the upside (70% of profits is allocated to the trader), and fully mitigates the trader's risk by removing any liability involved with losing funds. The only thing at risk is your initial investment which represents less than 1% of the allocated funds. Even if you outlay the initial investment a few times before being allocated funds, it is still a viable business model if you ask me.
Unfortunately, there are many traders that lack the necessary skills that apply to these funding programs, hence why it seems like these firms are making a big majority of their profits through the participation fees. This is just the reality of retail traders... 80-90% of them fail within 90 days.
Keep in mind that you can always trade your own funds along side prop firm funding. Let's take me for example, I trade my own funds within Hannoun Capital - Alternative Investment Fund, as well as multiple accounts from different funding programs. I use a Local/Remote Trade Copier which allows me to connect all my slaves account (receivers) to 1 master account (provider). This removes the burden of manually managing multiple accounts. Finally, I also run everything on my VPS of choice in order to manage my trades from my phone from anywhere and be assured that everything is being replicated from the provider account to the receivers.
The next time someone tells you that you're a fake trader, of have no funds because you trade a funded account, please redirect them to this article!
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The materials, resources, commentaries, content, tools and information provided by Maroun4x Trading Academy (12050528 Canada Inc.) are for general information and educational purposes only and are not intended to be a guide or investment advice or financial advice and must not be relied on as such. Day trading carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. You should obtain professional investment and financial advice tailored to your specific circumstances.
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