Third Party Copy Trading Risk in Prop Firms

E8 Funding
Account size up to

$1,000,000

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E8 Funding combines essential trader information, top-tier technology, and a focus on discipline and long-term consistency, creating a unique, user-friendly experience for traders.
True Forex Funds
Account size up to

$400,000

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True Forex Funds necessitates traders to demonstrate their skills through a 2-Phase Evaluation Program, seeking disciplined traders capable of achieving Profit Targets and Trading Objectives.
City Traders Imperium
Account size up to

$2,000,000

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With four decades of expertise, CTI provides traders with the opportunity to trade multiple assets and aims to pave their path towards financial freedom through three diverse funding programs.
The5%ers
Account size up to

$4,000,000

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The5%ers Funding Traders & Growth Program aims to empower full-time traders with higher capital, with the program launched in 2016 by a dedicated and passionate team based in London and Israel.
FundedNext
Account size up to

$4,000,000

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FundedNext aims to financially empower forex traders with up to $300,000 and provides four different funding program options suitable for all trading preferences.
Funded Trading Plus
Account size up to

$2,500,000

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Funded Trading Plus is rapidly growing, offering straightforward rules, competitive pricing, and up to a 90% profit split. The firm's programs range from $12,500 to $2,500,000 in size.
Finotive Funding
Account size up to

$11,410,000

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Finotive Funding, founded by Oliver Newland, seeks to overcome the capital barrier for full-time traders by offering a unique process to help retail traders grow their capital significantly.
The Funded Trader
Account size up to

$1,500,000

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The Funded Trader believes in providing retail traders with opportunities to raise capital based on their performance and commitment to their business, focusing on diverse market conditions.
Lux Trading Firm
Account size up to

$1,000,000

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Lux Trading Firm, based in London and Slovakia, specializes in supporting experienced prop traders, providing them with the capital and tools they need to excel in unpredictable market conditions.
Leveled Up Society
Account size up to

$2,000,000

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Leveled Up Society seeks passionate and experienced traders, offering them capital and higher profit opportunities, along with excellent trading conditions, competitive prices, and reliable payouts.
Fidelcrest
Account size up to

$2,000,000

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Fidelcrest, a globally operating company, aims to help retail traders make consistent gains over longer periods by providing access to larger capital.
Blue Guardian
Account size up to

$2,000,000

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Blue Guardian assists skillful traders in maximizing their talents by providing funded accounts, acknowledging that success in financial markets requires a well-developed strategy and sufficient starting capital.
MyFundedFX
Account size up to

$1,500,000

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MyFundedFX offers two challenge programs that allow profitable traders to trade without risking personal capital, covering all losses while providing payment based on a percentage of profits.
Smart Prop Trader
Account size up to

$2,500,000

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Smart Prop Trader offers access to live-funded accounts to traders successful in their two-step evaluation program, targeting disciplined and talented traders who respect their trading rules.
FTMO
Account size up to

$2,000,000

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FTMO's unique 2-step evaluation course for Traders seeks to discover trading talents and provide them with opportunities for financial independence.
FTUK
Account size up to

3x $5,760,000

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FTUK believes in giving everyone a chance, making trading affordable and scaling client's capital as they master new trading skills, supporting traders worldwide regardless of experience.
Goat Funded Trader
Account size up to

$800,000

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Goat Funded Trader commits to providing exceptional trading experience with 24/7 customer service, refundable fees, low profit targets, the best trading tools, and competitive spreads and commissions.
Funded Academy
Account size up to

$10,000,000

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Funded Academy is a team of traders striving to create a competitive environment with better rules, larger account sizes, and life-changing payouts.
Funding Pips
Account size up to

$2,000,000

5% off
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Funding Pips provides a two-phase evaluation and funded phase based on their belief that traders progress through three stages in their journey, supporting them in overcoming funding challenges.
TradingFunds
Account size up to

$2,000,000

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TradingFunds takes pride in their cutting-edge prop trading experience, having a verifiable success history, and is seen as a reliable ally for traders worldwide.
Glow Node
Account size up to

$1,000,000

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Glow Node, a proprietary trading firm, offers a premium funding plan for traders worldwide, aiming to help traders profit by allowing them to work with more substantial capital amounts.
Alpha Capital Group
Account size up to

$2,000,000

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Alpha Capital Group offers up to $2,000,000 in funding to profitable traders who can demonstrate risk management skills and consistent profits, offering numerous benefits to assist on their trading journey.

Understanding Third Party Copy Trading Risk and Prop Funding

Proprietary (prop) trading is a business model by which a company makes profits through trading while assuming all the associated risks and rewards. There has been a growing trend of third-party copy trading in the prop trading world, which comes with both benefits and risks.

What is Third Party Copy Trading?

Third-party copy trading refers to the use of automated or algorithm-based trading strategies usually provided by an external source. In this model, a prop trader copies the trading strategies used by other successful traders, with the intent to replicate their success.

Benefits of Third Party Copy Trading in Prop Funding

Time-Efficiency

This form of trading saves time because there is no need for traders to conduct in-depth market analyses, especially when they do not have the skills or time to do so.

Reduces Emotional Trading

By copying a trade, a trader takes the emotional aspect out of their trading decisions, thereby reducing the odds of making a poor trade out of fear or greed.

Negatives of Third Party Copy Trading in Prop Funding

Potential Financial Loss

Even if a strategy has been successful in the past, there's no guarantee it'll work in the future. If a copied trade is unsuccessful, the copier may incur substantial financial losses.

Reliance on Others

While copying trades can be a quick route to success, it also reduces the trader’s independence. There's a risk of becoming overly reliant on others.

Finding the Right Prop Funding Company

It's crucial to find a prop funding company that provides clear guidance on copy trading. The company should not only provide support in identifying suitable trading strategies to copy but also inform traders of the associated risks.

Closure Remarks

Understanding third-party copy trading risks in prop funding is crucial for a balance between profit-making and risk exposure. It’s about leveraging the benefits and mitigating the negatives to achieve a successful trading experience.

Importance of Due Diligence

Remember, the success of third-party copy trading depends largely on your diligence in picking not only the right strategy but also the right prop funding company.