The growing popularity of Prop firms in trading have instilled a new hope among traders with limited finance who otherwise cannot leverage their trading skills because success in trading is also about more funds in addition to the traders’ skills and expertise. Prop firms conduct evaluation of traders’ skills and expertise to check eligibility and fund successful traders with amount ranging from thousands to millions of dollars. Prop firms charges an evaluation fee and puts traders on demo account to let traders trade and prove their skills for the said funding. However, most traders fail to clear the evaluation test and end up losing the non-refundable evaluation fee. Only 10 out the 100 accounts make it to the end and the rest ends up only paying the evaluation fee to the firm.
Why most traders fail
The question arises as to why so much of traders fail in the very first stage. Is it only because many traders do not possess the skills and temperament for availing these huge funds as promised by prop firms. Of course, firms have the right to let traders pass through tough test because they cannot trust a naïve with millions of dollars. But there is much more to it than traders’ lack of skills and expertise. Majority of prop firms design their revenue generation model around traders’ failure and that is where the problem lies. Firms design their evaluation terms and conditions in a way that ensures traders fail the test and firms get to keep the non-refundable evaluation fee. One of the most cleverly designed failure model is to exploit the traders by either putting up limits on maximum and minimum trading day or doing away with them completely with no limit. In this article, we will show how they act as major hurdles for trader and how Funded Nation removes this major hurdles by adopting a balanced approach to ensure traders success.
Our No Maximum Trading Day Limit allows you freedom and removes hurdles impacting your success
We have designed our business model t
