Funded accounts are a prominent tool in the trading world. Although most people associate them with forex trading, they apply to cryptocurrencies too. Finding the right funded account provider that suits your needs is essential as there are different factors to consider.
Understanding The Funded Account Concept
As the name suggests, a funded account is an account – associated with a broker or other trading service provider – in which funds reside. However, unlike a normal account, the end-user does not commit those funds. Instead, several service providers will fund the account with a certain balance and grant access to users who can provide viable trading strategies. As a result, gaining exposure to such an account is nearly risk-free and offers tremendous flexibility for the trader.
While that may seem attractive, keep in mind there is no “free playing with someone else’s money .”Even though the account is funded, it is still up to the trader to make the most of it. Moreover, several providers will introduce severe requirements users need to meet or lose access to the funded account altogether. Your earnings directly correlate to your market performance, and not putting in the work means not making any money.
The benefits of a traded account include:
- Not putting your own capital at risk
- Trading any time for any place
- A chance at making money every month if you perform well in the market
- Online clout is tied to your skills, as funded accounts are not available to anyone.
- No need to find clients, as you are not a portfolio manager.
Of course, all of these benefits come paired with steep expectations. Therefore, your performance needs to be top-notch to ensure you can continue to access the funded account.
A Few Aspects To Consider
To unlock the benefits of a funded account, users need to put in a fair bit of work, time, and effort. Learning the ropes, showing consistency, following risk management guidelines, portfolio management, and keeping up with evaluation targets are all essential. While less stress is involved in funded account trading, meeting goals remains crucial. Failure to do so will lead to account termination sooner or later.
Moreover, depending on your provider, you will need to consider the following requirements:
- Profit target: the number of days you have to hit a specific profit level.
- Minimum trading days: how many days you need to trade for every month
- Maximum daily loss: the maximum percentile of your balance you can lose on any given day
- Maximum overall loss: the overall loss your account can sustain before access is cut.
- Available leverage: Leverage is a great way to improve your earnings and incur substantial losses.
- Bonuses: Depending on the provider, you may earn a bonus if you perform well
- Payout structure: How often you get paid (weekly, bi-weekly, or monthly)
Most funded account providers will offer lucrative benefits in one or several of these areas. However, they may be less lenient in other areas. Therefore, it is essential to weigh up the benefits and potential drawbacks before signing up with a provider. Moreover, it is worthwhile to see if you can score a funded account that lets you trade cryptocurrencies, as there is tremendous money to be made in this industry.
Finding Funded Crypto Accounts
Using a platform like Funded-account.com makes it straightforward to compare the different funded account providers on the market today. More importantly, you will have good options for funded accounts regarding stocks and crypto trading. The team will add detailed reviews on every provider soon, yet users can find all relevant information from looking at the listings today.
As global interest in funded account trading grows, access to multiple different markets and industries will become the norm. Any provider offering a funded crypto account today is ahead of the competition. Mainstream interest in Bitcoin, Ethereum, and other digital assets has picked up strongly, yet not everyone wants to trade them with their own funds.
A funded crypto account would let users perform their strategy on crypto markets without worrying about committing money. However, it would still provide valuable data as users will have to adjust their approach quickly when markets become rather volatile. That volatility can be beneficial in bullish conditions and create opportunities when markets are bearish.
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