Prop Firm Comparison - Traders With Edge (2024)

FAQs

Is Traders with Edge legit? ›

Is Traders With Edge Legit? Yes, Traders With Edge is a legit company.

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

By perfecting your trading plan, practicing consistently, mastering risk management, developing emotional discipline, keeping detailed records, and learning from your mistakes, you can significantly enhance your chances of success in these assessments.

This is a popular way for traders to prove their skills and potentially secure funding from a prop firm. However, passing this challenge can be quite daunting and requires a lot of hard work and dedication.

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

Understanding the Prop Firm Challenge

This is because some sources have the failure rate of prop trading challenges at 90%. So for every 10 traders that buy a challenge, 9 will fail. That can be a lot of money for a prop firm.

You have to stick to the strict trading rules set by The5ers and Smart prop trader and show proof of profitability in order to pass a 5k prop firm account. This includes achieving profit targets, preserving a modest drawdown, and adhering to their risk management policies.

How many people fail prop firm challenges? ›

Studies have shown that around 4 out of 10 people pass the first stages of any Prop Firm Challenge, and 2 out of the 4 make it through to get a Funded Account. But only 1 person ends up getting paid.

Start with a Small Challenge

If you're new to prop trading challenges, consider starting with a smaller one. This allows you to gain experience and confidence without risking a significant amount of capital.

To pass this trading account challenge and secure the position of a prop-funded trader, it is crucial to have an in-depth understanding of the financial markets and the potential to make profitable trades while managing risks effectively.

A trading edge can be a strategy, but it can also be a personality trait or skill that keeps losses smaller while trading. Losses are guaranteed to occur, so an edge either helps you win more trades, or it may help to win big when you do win and keeps losses small when you do lose.

Check with your local council

If you have more than one council, choose the county council. Search the council website for 'approved traders' or 'Trading Standards'. Trading Standards is a council department that makes sure companies don't break the law when selling to customers.

A trading edge is a technique, observation or approach that creates a cash advantage over other market players. It doesn't have to be elaborate to fulfill its purpose; anything that adds a few points to the winning side of an equation builds an edge that lasts a lifetime.

“In theory, a trading edge is a certain approach, observation, or special technique that gives a trader a cash-generating advantage over others in the market." ( TheBalanceMoney.com) To state it simply, an “Edge" is nothing but a strategy that would give a positive expectancy when deployed over a certain period.