If you’re interested in trading and are looking for the best funded trader programs, this review is for you. Find out which funded trader program is best for you and your interests, and start swing trading, day trading, and intra-day trading for profit after evaluating these two forex prop firms.

This article will review two of the best funded trader programs: Next Step Funded and The Funded Trader.

While a funded trader program is the same everywhere, some differences can impact your ability to succeed. These prop firms offer traders the chance to trade with other people’s money and earn a share of the profits.

Let’s dive into what each prop firm is known for, how their challenges differ, and can set you up for success or failure. 

The first to look at is Next Step Funded, a popular funded trader program that aims to help aspiring traders maximize their success in prop firm challenges and set a foundation to achieve their goals. 

Next Step Funded makes participating in their program and getting funded accounts easy. 

To get a funded account, traders will complete a challenge successfully, which consists of reaching a specific profit target within a specified time frame, and upon a successful challenge, accounts are funded, allowing traders to start trading with the prop firm’s capital. 

One thing that makes this challenge unique is that Next Step Funded offers traders different funding levels based on their performance during the challenge. This graduated process lets traders progress, increasing funding with proven trading skills.

Another well-known prop firm is The Funded Trader. This UK-based funded trader program allows traders to trade with a funded account but, similarly, must pass a challenge first. 

Where Next Step Funded helps educate traders in real-time with actual results, this program does virtual trades to evaluate trading skills and risk management abilities (more on this later). 

Once accepted, the program offers different account sizes based on the trader’s preference and experience level. 

One notable aspect of The Funded Trader is that it allows traders to keep 90% of their profits, making it an attractive option for those looking for a high-profit potential.

So, how do you choose between these two prop firms from the best funded trader programs? Keep reading, and we’ll do a side-by-side analysis. 

Next Step Funded vs. The Funded Trader: The Challenges

Before starting with funded accounts, you’ll need to pass the first challenge. 

When trading funded accounts, you use the prop firm funds as leverage to purchase and hold more than you could otherwise. 

These funds give you more purchasing power, increasing your profit potential, but also come with some risk, which is why a trader, from day trading to swing trader, needs to pass a challenge and prove that they understand the process first. 

Next Step Funded Challenges

With Next Step Funded trader accounts, the beauty is that you can choose the type of challenge that suits your experience and interests. 

The higher the challenge you pass, the greater leverage you’ll have–meaning access to more equity to use in the future with your funded trader program.

In three simple steps, you’ll be able to take and pass the challenge and get approved for funded accounts quickly. 

The challenge is broken up into:

• Next Step Challenge
• Next Step Verification
• Next Step Trader
  

1. Next Step Challenge

When you take the Next Step Challenge, you’re given two options on which challenge to handle. Next Step Funded trader accounts make the process simple and user-friendly. Select and purchase either a 1-step or 2-step challenge, select your trading amount, and get started. 

1-Step Challenge: With the 1-step challenge, select amounts between:

• $15,000
• $25,000
• $50,000
• $100,000
• $200,000

After you select your challenge amount, simply use those funds to trade with a minimum 3-day to 60-day maximum with a 5% drawdown and a 12% Max. loss, all while targeting 10%-$1500.

2-Step Challenge: With the 2-step challenge, you’ll be taking on two different phases in your challenge to get your funded trader program set up. 

Like the 1-step challenge, choose between $15,000-$200,000 in funds. The difference is that the challenge is broken into two phases. 

Phase 1: Trades must occur in 5 minimum trading days with a maximum of 30 days to complete this phase. Daily drawdowns are 5%-$750 with Max. loss at 12%-$1,800 and target at 10%-$1,500.

Phase 2: Phase two starts the same, with a minimum of 5 days with a 60-day maximum window, with the same daily drawdowns, max—loss, and target range to pass. 

2. Next Step Verification

After successfully completing the challenge, you’ll need a simple identity verification (KYC) to become a funded trader. 

3. Next Step Trader

Finally, once you’ve successfully passed the challenge and have your ID verification, you’ll get approval for a funded account from our funded trader program to begin and share in the profits!

It’s that easy. 

The Funded Trader Challenges

Opposed to Next Step Funded’s easy challenge and verification, The Funded Trader makes it a little more convoluted. Similar to our challenge, The Funded Trader allows users two options: a 1-step and a 2-step challenge. 

1-Step Challenge

With the 1-step challenge, users are doing a simulated trade with a virtual target to achieve approval. 

Here’s the problem: When opening a funded trader account at Next Step Funded, we believe having a little skin in the game is worthwhile.

Swing traders typically make more risky trades without real risk than when they aren’t using their own money. However, once a trader has a funded account, they will be more conservative, meaning they may have passed the challenge but aren’t hitting the profit targets. 

2-Step Challenge

If you pass their first phase challenge, The Funded Trader has you repeat the process, trying to hit simulated virtual profits. Again, the problem is that your profits and targets can be misleading since you’re dealing in hypothetical trades rather than real ones. 

If you pass both steps, you can then get approval for a funded trader program that has the risk of higher slippage during volatility in the markets, and The Funded Trader even places a disclaimer stating that:

“Due to the nature of simulating the real market as closely as possible, strategies that are successful in the Challenge and Verification phases may not necessarily be profitable in the Funded phase.”

In other words, they’re telling you that even though you may have experienced some virtual success, chances are that you’re not guaranteed anything close to what you did in their challenge due to the nature of trading. 

It’s almost like they’re hedging their losses and setting up traders for the potential of underachieving, making their platform feel much more speculative in nature. 

In conclusion, while The Funded Trader may seem like a good option when considering the best funded trader programs, you’ll want to find one that is the most realistic to what you would expect once your account is approved and funded. 

Next Step Funded provides traders with the most real-world process, a wealth of information to maximize your funded accounts so that you can grow in your investment strategy, and some of the best funded accounts anywhere. 

If you want to expand your income potential or have a passion for trading and want to take it to the next level, consider becoming a funded trader. The top funded trader programs like Next Step Funded provide you with all the tools, tips, and strategies you will need for success. 

As opposed to financing your trading with your capital, being a funded trader means you have access to capital provided by a trading firm, giving you greater leverage to increase your profit potential. 

But don’t just jump into trading without some guidance and understanding. 

What is a Funded Trading Account?

You must understand the basics to start your journey as a funded trader. First, a funded account is a trading program that allows individual investors to make trades on behalf of a company using that company’s funds. 

The term for this program is proprietary trading, a program where an individual trader has access to capital from the company to make trades in financial markets. 

There are advantages that a funded trading account has that individual investors don’t, namely, access to more significant amounts of funds to leverage and increase profit potential. 

Additionally, because of the more significant amounts of capital, funded accounts provide less risk for traders than individual accounts. 

Next Step Funded provides access to capital in the FOREX market, a specific financial market specializing in foreign currency exchanges. 

If you’re curious about getting started with a funded trader account with Next Step Funded, it’s simple. To access our capital, you’ll need to take a funded trader account; you’ll need to buy a challenge and pass within a specified target to show your competence and ability to make a profit and limit losses. 

The Benefits of Becoming a Funded Trader

If you’re still on the fence about a funded trader program, let’s discuss some benefits that top funded trader programs like Next Step Funded can offer you as a trader. 

First, as we’ve discussed, one of the more significant benefits of day trading with a funded account is the unique access to additional capital. 

Funded traders can trade with more significant sums of money than they would otherwise have access to, potentially earning higher returns. This is especially beneficial for those needing more funds to participate in day trading.

Another critical advantage of becoming a funded trader is the potential for lower risks. By trading with a funded account, traders can absorb losses using the provided capital, making it easier to recover from setbacks and continue trading without significant personal financial losses. This provides traders with some security that may not otherwise be available.

Prop firms like Next Step Funded provide access to educational resources and specialized support so you can improve your knowledge base and trading skills and make more informed decisions. 

When you pass the challenge and begin trading on the NSF platform, you’ll have exclusive access to advanced trading tools, mentorship, and other educational materials that will help you increase your success in day trading. 

These tools, support, and guidance are invaluable for traders looking to up their game and become successful day traders.

Overall, funded trading accounts allow individuals to gain experience and earn substantial profits with lower risk than an individual trader.

How To Become A Trader: Your Quick Reference To Getting Started

If you’re ready to get started as a trader and make profits while minimizing your risk exposure, Next Step Funded is one of the top funded trader programs for novice and experienced traders. 

You’ll want to learn the basics of trading strategies, the ins and outs, and how to limit your risks. 

For you to succeed with your trading and investing strategies, it’s essential to develop a deep understanding of the various markets, including analysis skills, risk management, and trading psychology. 

At Next Step Funded, we make it easy to get started. In three simple steps, you’ll have access to our prop firm’s capital, allowing you to realize your profit goals. 

To get started, you’ll need to go through our evaluation phase, known as a prop firm challenge.

Pass The Challenge And Get Going

1. Apply for the challenge: Once ready, apply to our funded trading program. You’ll need to choose between our 1-step or 2-step challenge, where you can showcase your trading strategies and risk minimization strategies. 
2. Get Evaluated: After completion, you’ll choose the trading program that is right for your goals, get your funded trader account, and get started. 
3. Get Funded: Once approved, you’ll get access to the levels of capital that you choose so that you can begin your trading strategy. 

1. What’s Next On How To Become A Trader

Now that you’re ready to start, we’ve created a quick little reference guide to learn what will make your funded trader program successful.

2. Gain Knowledge And Experience

Once you pass your challenge and get approved, utilize our resources to educate your trading strategies. Understanding the basics and deeply analyzing market trends will educate you faster than any book or course out there. 

3. Set Clear Trading Goals

Define your trading goals and expectations, and set risk limits. By setting parameters to your trading strategy, you’re better able to make informed decisions rather than ride the emotional roller coaster. 

Setting and having clear goals will guide you in the right direction toward a profitable trading career. 

4. Develop a Consistent Trading Strategy

On top of having clear goals in mind, successful traders also develop well-defined trading strategies that they follow. These strategies will include clearly defined entry and exit points, risk management rules, and a plan for each trade. 

A good idea is to backtest your strategy to ensure there is a positive track record.

Another way to do this is by continuously evaluating trades and adjusting your approach based on insights and analytics to improve your skills and overall performance.

By understanding how to become a trader and leveraging the capital you have at your disposal as a day trading for beginners, you’ll develop a trading strategy that is setting you up for success. 

5. Have An Effective Risk Management Plan

Finally, when you start trading with Next Step Funded capital, the funded trader account will provide you with the capital to make trades that are beneficial to your profit goals. 

However, with every trade, it’s essential to understand that risks are involved, so it’s crucial to have an effective risk management plan in place. 

To create your effective risk management plan, you must establish precise risk tolerance levels that align with your risk appetite and financial goals. A good suggestion is to use stop-loss orders to automatically exit a trade when it reaches a predefined loss threshold, minimizing potential losses. 

Another key is monitoring market volatility to inform you of potential risks and adjust your trading strategy accordingly. 

If you’re ready to learn how to become a trader, learning on one of the top funded trader programs will give you a headstart to realizing your dreams. Get started trading today with Next Step Funded’s superior trading tools and gain access to capital to make your trading strategy successful.

If you’ve been curious about different ways to make money by trading in the markets, or maybe you’ve thought about day trading for beginners but getting involved feels so overwhelming by all its complexities and risks. 

Either way, one lesser-known way is to trade in the Forex markets, and if that’s something you’d like to know more about, then Next Step Funded might be the perfect next step for you.

Day trading can be an exciting and potentially lucrative venture for those with the proper knowledge and skills. Next Step Funded is the perfect stepping stone for beginners looking to enter the world of day trading.

With a funded program by Next Step Funded, you get the power of being a professional trader but with a system designed explicitly for beginner day traders, making it possible for anyone with the drive and determination to become a successful day trader.

Our funded accounts focus on buying and selling on the Forex. With the recent dissolution of MyForexFunds, the impact on the Forex trading market has been tremendous. 

But what is Forex, and how did the MyForexFunds closure impact day trading? 

First, understand that Forex is short-hand for Foreign Exchange markets. 

When you trade in Forex, you’re buying and selling foreign currencies and deciding on the value of those currencies based on fluctuations in the exchange rate. 

Those foreign currencies can be exchanged at various rates throughout the day due to local politics, national economic news, and geopolitical interests. 

So, as a day trader, your primary goal is to capitalize on this market volatility. 

Unlike long-term investors, you’re not concerned with the long-term prospects of a particular asset; your focus is on capturing intraday price fluctuations.

So what is MyForexFunds, and why does it matter? 

MyForexFunds was a popular site for Forex-funded accounts but was shut down, which caused disruptions and anxiety for many investors worldwide. 

These investors are worried about their assets and funded trader accounts, where Next Step Funded fills the vacuum. 

Our funded trader accounts have a lower threshold and provide robust risk management tools to help you navigate this exciting investment strategy. 

Funded Account Trading Tips

If you’re still curious about diving into Forex day trading, especially for beginners, you need to understand how it works and some of the best tips and strategies to follow. 

But first, understand the definition of a funded trader account. 

A funded trader program like Next Step Funded is a trading account allowing individuals like yourself to trade on the Forex markets using Next Step Funded capital. 

In other words, instead of using your own money, you’ll use Next Step Funded capital to buy on the Forex markets and sell them at a profit. This is known as leveraging and is common practice in various areas. 

As an example of leverage, think about a home mortgage. You signed a mortgage loan to purchase a home at a much higher value than the money you have. 

The way this works is that the bank loans you the money, whereas you pay down your debt to the bank as the home appreciates, making you a long-term profit. 

Trading for Beginners: Tips and Strategies

Understanding the nature of day trading for beginners is to understand what day trading means and that there are some risks involved. So now, let’s discuss some best practices, tips, and strategies for beginners interested in day trading in the Forex market:

1. Master a Few Currency Pairs

To start day trading for beginners, you’ll need to open an account and pass the challenge that you can handle the basics of day trading. Once you achieve the goal, typically within three days, you can get a funded trader account and work on your strategy, keeping up to 80% of the profits. 

As a beginner, starting with a limited number of currency pairs is best. Focusing on a few pairs lets you become intimately familiar with their price movements, news events that impact them, and overall behavior. As you gain experience, you can expand your portfolio.

2. Create a Trading Plan

You’ll want to have a trading plan in place as it acts like a roadmap to your success. You should include a breakdown of your risk tolerance, guidelines, rules that dictate your trading strategy, and straightforward entry and exit strategies. 

One of the biggest mistakes beginner traders make is to base their decisions on emotions and get caught up in the volatility of the exchanges. 

Stick to your plan and avoid impulsive actions driven by emotions.

3. Risk Management Strategies for Funded Accounts

Managing your risk is an effective tool crucial for both funded and independent trader programs. To protect your capital and not get overleveraged, here are a few pointers to keep in mind: 

• Position Sizing: Decide early what your risk tolerance is and use that to determine the size of your trades. Generally, don’t risk more than 2% of your capital on any single trade.
  
• Stop-Loss Orders: Stop-loss orders allow you to dictate when and how much you limit your potential for loss. With a stop-loss order, you set the amount and will automatically close your position if and when that preset price level is reached. 

This strategy is crucial in preventing further losses.

• Diversification: Another key to limiting exposure (risk) and gaining more is diversifying your strategy. Diversification is the process of using multiple options, rather than a single trade or currency pair, to help spread risk.
  
• Risk-Reward Ratio: When you target a trade, one thing to calculate is your risk-reward ratio for each trade. The best idea is to use a 2:1 ratio as your guideline, meaning that your potential reward should be at least twice the size of your possible loss.
  

4. Continuous Learning and Analysis

Since the Forex market is dynamic and volatile, you’ll want to invest time into continuously learning about different concepts, strategies, and markets to grow as a trader. 

For example, you’ll want to watch the international news for insights into local politics, global economic events, technical analysis, and trading strategies. 

An excellent way to learn and chart your growth is by keeping a trading journal to track your performance so that you can learn from your successes and failures.

Ready to get started in the world of day trading for beginners and experts? 

Next Step Funded provides plenty of opportunities for investors from all levels, from experts to rookie traders. We make funding easy and leverage our capital to help you make a profit. 

Some of the benefits of using Next Step Funded trading accounts include: 

• FX: Have the ability to trade over 40 major and minor FX pairs. 
• Metals: Easily modify your block data to meet your image, title, and text needs. 
• Oil: With Brent and WTI, you can access two of the largest global benchmarks for oil trading. 
• Indices: Get the power to trade the world’s most significant Stock indices instantly and around the clock. 
• Stock CFDs: Choose your positions on the major markets from Australia, US, LSE, and Xetra stocks, and either short or long. 
• Accessibility
• Low Initial Investment
• Technical Strategy and automation
• Potential For Fast Returns
• Easy Short Selling
• Liquidity
• Less Potential For Insider Price Manipulation
• Fewer Fees And Commissions
• Simple Tax Rules

Embarking on the day trading journey for beginners can be exciting and challenging. Remember that becoming a successful day trader takes time and effort, and Next Step Funded is the platform to help you achieve your goals. 

Whether your ultimate goal is to become a funded trader or simply to enjoy the thrills of short-term trading, your keys to success include education, discipline, and effective risk management.

It’s a journey that takes time and an open mind to continuously learn and create a strategy that allows for growth and improvement. 

Funded Account Trading Tips And Risk Management Strategies For Funded Accounts

Once you’re cleared to trade in the Forex markets with Next Step Funded, you will need a strategy to minimize risks and overexposure for your prop firm challenge to maintain your funded account. 

Maximizing success in prop firm challenges is crucial for traders looking to secure continuous funding for their trading accounts. 

You’ll need to showcase solid trading skills and implement effective risk management strategies while demonstrating your ability to generate consistent profits. 

Foundational to success is your knowledge and understanding of the markets through research, analysis, and adhering to strict risk management principles. 

We talk a lot about prop firm challenges, but what, exactly, are they? 

What Is A Prop Firm Challenge?

When you use a firm’s funds in a funded account provided by a proprietary trading firm to trade in the forex markets, that’s known as a Prop Firm Challenge.

During the challenge, traders are funded, and their trades are evaluated based on performance, risk avoidance, and management strategies, combined with analyzing informed trading decisions.

The challenge consists of multiple phases, each with specific objectives and requirements. As part of the challenge, you’ll need to demonstrate solid trading skills, showcase your trading style, and highlight your trading strategy throughout the challenge. You’ll be given a profit target required to be achieved within a specified time limit as part one of the evaluation. Part two involves being evaluated on the preset maximum loss limit and daily loss limit.

During a Prop Firm Challenge, the evaluation process will include the total number of profitable trades, drawdown limit, and trading abilities of the traders. 

Once successfully passed, traders who meet the challenge’s requirements will have more access to funds with a higher-funded trading stage.

Identifying skilled traders who can consistently generate profits while avoiding and managing risks effectively is the objective of a Prop Firm Challenge. 

And for newer traders, participating in the challenge will provide some invaluable insights and experience and prove your trading abilities with potential investors.

Trading Styles And Strategies Allowed in the Challenge

In a Prop Firm Challenge, traders of all experience levels are encouraged to showcase their trading skills and abilities.

You can choose to trade in: 

• Day Trading
• Swing Trading
• Scalping

Participants can choose the trading style that suits their preferences and trading objectives.

You’ll also be allowed to engage in a wide range of different strategies, including:

• Mean Reversion
• Trend Following
• Breakout Trading 
• News Trading

By having the flexibility to trade according to your own preferences, you’re better equipped to navigate the financial markets, make informed trading decisions, and succeed in the Prop Firm Challenge.

So, let’s dive deep into prop firm challenges, including a discussion on funded account trading tips and risk management strategies for funded accounts that will help you thrive in the world of forex trading.

Funded Account Trading Tips

To pass your Prop Firm Challenge, we need to examine risk management strategies for funded accounts so that you can establish a foundation of success built with some practical trading tips.

1. Understand The Prop Firm’s Rules and Requirements

Every prop firm will have some rules in place to participate, and while some may be the same from firm to firm, be sure to know the rules and requirements specific to your chosen prop firm for a funded trader program. 

Make sure you understand these rules and adhere to them, which will include risk limits, daily loss limits, and if they have any specific trading strategies that need to be followed. If you ignore these guidelines, you may get your account disqualified. 

2. Develop a Solid Trading Plan

Don’t wander from trade to trade and expect to find success. Success isn’t built by luck; it’s built by being strategic, so develop a well-structured trading plan that defines your goals, risk tolerance, and strategy. Include details of your plans, such as entry and exit points, position sizing, and maximum daily exposure. This plan will be your roadmap, and you’ll need to stick to it rather than make impulsive, emotional decisions. 

3. Diversify Your Trading

With any investing strategy, the more diversified you can be, the greater your profit possibilities are and the lower the risk associated with your positions. In other words, avoid putting all your eggs in one basket. Instead, have a lot of eggs in many different baskets. 

This will help spread any possible risk and reduce the impact that may take place from any particular, single-losing trade.

4. Use Proper Position Sizing

Managing risk includes diversification strategies, and another essential aspect includes developing proper position sizing. You never want to risk more than a small percentage of your trading account with any single trade. 

In general, 1-2% per trade is a good idea, but you can be more aggressive if you choose. The idea of limiting proper position sizing will help minimize the chance of catastrophic losses while also giving you a chance to recover from setbacks.

Risk Management Strategies For Funded Accounts

Ultimately, your goal is to make a profit while minimizing risks through risk management strategies for funded accounts to keep your account without disqualification.

Here are a few more strategies to help you avoid losses, ensuring long-term success with your funded trader program account. 

1. Stay Informed

Always stay updated with the latest market news and events that can impact your trades. Unforeseen news events can cause significant price movements and, if unprepared, lead to losses.

2. Avoid Revenge Trading

One of the biggest mistakes that inexperienced traders make is to be overly emotional in their trades, especially when suffering a loss. This is known as revenge trading and is not a good idea as it often leads to further losses. 

Stick to your trading plan, understand that loss is part of the process, and avoid unnecessary emotional decisions. 

3. Trading Hours

In the forex markets, there are different time zones for other markets. 

Understand the optimal hours to trade in your chosen market to avoid trades occurring during off-hours, which lead to thinner liquidity and increased volatility, factors of increased risk. By understanding market trading hours, you’re better equipped with risk management strategies for funded accounts.

4. Avoid Overtrading

In addition to revenge trading, overtrading is a common pitfall for many traders. This is often driven by the idea of FOMO (fear of missing out) but stick to your trading plan to avoid making any impulsive trades, especially if you can exceed your daily loss limit.If you’re interested in prop firm challenges, find a trusted partner like Next Step Funded. Once you complete your initial challenge, you’ll gain access to much larger funded accounts, and if you follow our tips for funded account loss prevention, you’ll be better equipped to find success in the forex markets.