Trading with FundingTraders is an exciting opportunity for those looking to access more capital and grow their trading careers. But with this opportunity comes a set of important rules that you need to follow to keep your account in good standing. These rules are designed to help you manage risk and trade responsibly, which are both key to long-term success. In this article, we’ll go over the main rules you should keep in mind when trading with FundingTraders.

Max Risk Limit Per Trade :-

One of the most important rules when trading with FundingTraders is the 2% risk limit per trade. This means that when you set your stop loss, it should not be more than 2% of your account balance. Going over this limit is risky and could be seen as gambling, which is not what trading is about. Sticking to this rule will help you manage your risk and protect your account from big losses.

Minimum Number of Trades for Account Sizes of $350k and $500k :-

If you have a $350k or $500k account, there are extra rules you need to follow during the evaluation phase.

For a $350k account, you need to make at least 15 trades, and each trade should show a profit or loss of at least 0.2%. For a $500k account, the requirement is to make at least 20 trades, with each trade showing a profit or loss of at least 0.2%. These rules are in place to ensure that you are consistently making careful and well-thought-out trading decisions.

IP Address Rule :-

You can trade from different IP addresses when trading with FundingTraders, which is great if you’re on the move or trading from different locations. However, you need to be careful to keep your account secure. Make sure you’re not sharing your login details with anyone and be cautious about where you access your trading account. Any unusual activity from multiple IP addresses could raise security concerns and put your account at risk.

VPN Rule :-

FundingTraders allows the use of VPNs (Virtual Private Networks), which is helpful if you prefer to keep your online activities private. However, while using a VPN is allowed, make sure you’re not using it to break any of the platform’s rules. Misusing a VPN could lead to problems with your account.

Copy Trading Rule :-

Copy trading is allowed with FundingTraders, but there are some conditions. You can copy your own trades across different accounts, but copying trades from other traders is not allowed. Also, you’re not allowed to provide trading signals to others. Breaking this rule could lead to strict penalties, including losing your account.

EA (Expert Advisor) Rule :-

Expert Advisors (EAs) are automated systems that can help with trading. FundingTraders allows the use of EAs, but there are some specific guidelines.

You need to get approval from FundingTraders for the EAs you want to use. Only EAs that meet their criteria are allowed. Off-the-shelf EAs, especially those bought online, are generally not allowed unless they’re used for risk management. High-Frequency Trading (HFT) strategies, which involve making lots of trades in a short time, are also prohibited. This includes manually closing trades within 15 minutes and using grid trading systems. If you’re using an EA, make sure it aligns with FundingTraders’ rules to avoid any issues.

Prohibited Trading Strategies :-

There are certain trading strategies that are not allowed by FundingTraders because they are considered too risky or manipulative.

The Martingale System, where you double down on losing trades hoping to recover your losses, is not allowed. This strategy can lead to huge losses and is not permitted by the firm.

Arbitrage trading, where you make profits by taking advantage of small price differences between markets, is also prohibited. This strategy is seen as unsustainable and not allowed.

News Trading :-

News trading is a strategy where traders make decisions based on market-moving news. FundingTraders allows news trading, but there are some risks involved. During major news events, market gaps and widened spreads are common, which can lead to slippage on stop-loss orders. This means that the price at which your stop loss is executed may be different from what you expected. While news trading is permitted, relying too heavily on it is not recommended, especially during the evaluation phase. FundingTraders provides an event calendar on its dashboard to help you stay updated on upcoming news events.

Holding Trades Overnight and Over the Weekend :-

You’re allowed to hold trades overnight and over the weekend with FundingTraders. However, there are some things to keep in mind. If you haven’t purchased any add-ons, you may have to pay swap rates, and spreads can widen during the Asian trading session or at the start of the day. This could impact your profits, so it’s important to be aware of these factors when holding positions for longer periods.

Inactivity Rule :-

To keep your account active, you need to make at least one trade every 30 days. If you don’t trade within this time frame, your account may be considered inactive and could be terminated without a refund. This rule is in place to encourage traders to stay engaged with the market and keep trading regularly.

Conclusion

Trading with FundingTraders is a great way to access more capital and take your trading to the next level. However, it’s important to follow the firm’s rules to maintain your account and achieve long-term success. By sticking to the 2% risk limit, completing the required number of trades, and using approved strategies and tools, you can trade confidently and responsibly. Remember, successful trading is about more than just making profits—it’s about managing your risk and making smart decisions.