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Are Funded Futures Trading Programs a Scam?

are funded futures programs a scam

A question often asked – are these funded futures trading programs a scam? It seems too good to be true right? Companies will provide the capital for you to trade with after passing a simple evaluation? Well as a funded trader with multiple companies and for many years I’m here to explain to you why they are NOT a scam. As well I’ll explain what the opportunity is and the logic behind the business of funded futures trader programs.

Before we get into the details of funded futures programs being a scam (or not a scam), if you are interested in looking more into them I encourage you to look at my Reviews of Funded Futures Programs page, as well as my Deals and Promos page. As a funded trader I know the in’s and out’s of who is good, who isn’t good, and how to get the best possible deal.

Overview of Funded Futures Programs

Let me start by explaining just what the funded futures companies are. Feel free to skip if you are already familiar in detail.

To trade in the futures markets takes a significant amount of capital. When you trade futures you have to put up Margin for each contract traded. Depending on the product and your brokerage this can be a few hundred dollars to thousands per contract. Someone trading 10 contracts of Crude Oil for example might need over $10,000 just to trade, not even allowing a buffer for possible losses.

As well depending on what country you live in, access to the futures markets can be severely limited. In Canada for example there really is only a few futures brokers and the margins are very excessive. Opening an account as well can be difficult, you have to prove you have an excessive net worth.

Funded Futures Trading Companies – Who They Are and What They Do

Enter Funded Futures Trading Companies aka Proprietary Firms (Prop Firms). These are companies who are looking to partner with great traders. They have the capital to deploy, and by having possible traders go through an evaluation, those who pass will have demonstrated their ability. The prop firms are happy to partner with these traders and allow them to trade their capital.

So that is the first main point – these companies have everyone go through an evaluation. Honestly, most won’t succeed. It’s estimated about 5% of traders are actually profitable.

By having a stable of successful traders, the funded futures trading companies are essentially diversifying their portfolio as well. If they have 100 traders who each has their own niche and technique, but all who have proven they have what it takes, the prop firms can feel comfortable.

Next reason these companies partner with traders – there is a profit split. Most of your profits you will keep, the norm is 90%, with 10% going to the prop firm. Of course they want you to succeed. If for example you made $10,000 in a week and requested a withdrawal you would get $9,000 and they would keep $1,000. It’s a win win.

You might say well I want to keep it all. Certainly you can go open your own account, but remember the first part of this article. It takes big money to have access to lots of contracts. These companies are providing you with anywhere from $25,000 to $300,000 in an account to trade.

To circle back to the word “scam”, the reality is these firms just aren’t. People who usually accuse the funded futures trading companies of being a scam are the traders who can not pass, and feel like it’s somehow not their own personal fault, but the company’s fault. Which isn’t the case. I’ve seen people blame the companies, the software, the market, their computer, anything but themselves.

In Conclusion – Funded Futures Companies Are NOT A Scam – Just Opportunity

Trading is difficult. There’s a reason the success rate is low. You have to have patience and discipline. But if you have your trading down and want to embrace some great opportunities to be funded, I highly recommend it. I’m funded by over 5 companies, in excess of $2 million in funding at the time of writing this.

Now that you know prop firms are not a scam, maybe you are ready to learn more. I recommend these articles I’ve written:

Interested To Learn More?

My website will be a valuable resource for you. I’ve spent the last several years updating it with information for traders both in the futures space in general, as well as the funded futures trading space.

  • Read my Funded Futures Trader Evaluation Reviews – learn who I recommend. As someone who has gone through and passed about every program out there, I only recommend the best of the best.
  • Ready to get started? I have several exclusive Deals and Promos on Funded Futures Evaluations. I only work with companies I recommend and am personally funded with as well.
  • Sign up for Email Alerts about new trader evaluation promos. Companies will often run flash sales, and usually they are pretty great. I’m the first to know and let you guys know.
  • I write Articles About Futures Trading. Several different topics, I encourage you to learn more about the industry.
  • I have a Free Futures Trading Course you can learn more about how to trade. 100% free, no upsells. Nothing on my website is for sale, only deals, discounts and information for you all, all for free.
  • Check out my other Free Resources – I’ve put together a list of podcasts, YouTube videos, book recommendations and more for you to help learn futures trading.

Ready to get started? Check out my Deals and Promotions page for the best current trader evaluation deals and discounts. I get access to exclusive discounts for you!

My top rated trader evaluation is Apex Trader Funding. Always use code CAN50 for 50% off any evaluation! I’ve passed multiple $300K evaluations with Apex, and it has changed my life.

apex trader funding

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Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: 

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

You can read more here: Risk Disclosure

Affiliate Disclosure:

The external links on my site and in my video descriptions to trader evaluation companies and software companies are primarily affiliate links. I earn a commission from these companies on any sale made from people visiting these links. That said, I only recommend companies and software I personally use and actually do recommend. Believe me, I turn down a lot of companies who approach me. You can read my full Affiliate Disclosure here.

Additional Disclosure:

The content provided is for informational purposes only. I do my best to keep the content current and accurate by updating it frequently. Sometimes the actual data, rules, requirements and other can differ from what’s stated on our website. CanadianFuturesTrader.ca is an independent website. You should always consult the rules, faqs, knowledge base and support of any of the websites and companies we link to or talk about on our site. The information on their site will always be what ultimately dictates the current rules of their program, software or other. While we are independent, we may be compensated for advertisements, sponsored products, or when you click on a link on our website. The contributors and authors are not registered or certified financial advisors. You should consult a financial professional before making any financial decisions.