Fundingpips account types and drawdown provides a range of account types catered to varying skill levels and trading preferences. In recent years, prop trading has changed quickly, giving traders the opportunity to access large amounts of cash without having to risk their own money. FundingPips, one of the top firms in this field, has drawn notice for its competitive profit splits, trader-friendly drawdown regulations, and variety of account types. This article offers a thorough examination of FundingPips account types and drawdown assessment procedures, which supports long-term trading with the firm.
An Overview of FundingPips
After completing a rigorous examination process, traders can use FundingPips’ funds to trade. FundingPips is a proprietary trading firm. By enabling both new and seasoned traders to showcase their abilities and generate significant gains through a profit-sharing plan, the firm aims to democratize access to trading funds. The flexibility to expand accounts up to $2 million, a variety of Funding pips account types and drawdown, customizable trading regulations are what make FundingPips unique.
FundingPips Account Types
By providing a variety of account types that are suited to various trading styles, levels of experience, and risk tolerances, FundingPips serves a wide range of traders. Among the primary account kinds are:
Evaluation Challenge Accounts
The majority of traders start with these accounts. Traders must successfully complete an assessment process aimed at evaluating their risk management and trading abilities before they can trade real capital. Several challenge models are available on FundingPips:
- One-Step Evaluation
- Two-Step Evaluation
- Three-Step Evaluation
- FundingPipsX Challenge
- Zero Model (Trailing Drawdown)
Each model has unique requirements for profit targets, drawdown limits, and trading conditions.
One-Step Evaluation
- Profit Target: 10%
- Daily Drawdown Limit: 4%
- Maximum Drawdown: 6%
- Minimum Trading Days: 3
- No time limit to pass the challenge, allowing traders to progress at their own pace.
- Account Sizes: $5,000 to $100,000
Two-Step Evaluation
- Profit Targets: 8% (Phase 1), 5% (Phase 2)
- Daily Drawdown Limit: 5%
- Maximum Drawdown: 10%
- Minimum Trading Days: 3 per phase
- Account Sizes: $5,000 to $100,000
Three-Step Evaluation
- Profit Target: 5% per phase (three phases)
- Daily Drawdown Limit: 4%
- Maximum Drawdown: 6%
- Minimum Trading Days: 3 per phase
- Account Sizes: $10,000, $25,000, $100,000
FundingPipsX Challenge
- Two-Step Evaluation: Specifics similar to the standard two-step, but with unique features and possibly different drawdown/profit targets.
Zero Model (Trailing Drawdown)
- Maximum Trailing Loss: 5% (trails account equity until 5% profit is reached, then locks at initial balance).
- Profit Target: Varies by challenge.
- Unique for its trailing drawdown mechanism, which dynamically adjusts risk as the account grows.
Master (Funded) Accounts
A master account, which enables traders to trade real capital and receive a portion of the gains, is granted to traders upon successful completion of the evaluation. Traders can grow their accounts up to $2 million by reaching scaling milestones and maintaining continuous performance. The account size is the same as the evaluation account.
Trading Platform Account Types
FundingPips also offers several trading account structures to suit different trading styles and preferences:
Account Type: Standard STP
- Features: No commission, spreads from 1.0 pip, direct market access
- Ideal For: Beginners, steady cost seekers
Account Type: ECN
- Features: Commissions ($3.5/side), spreads from 0.0 pip, deep liquidity
- Ideal For: High-frequency, scalpers
The Account Type: ECN Plus
- Features: Lower commissions ($2.5/side), institutional liquidity, professional trading environment
- Ideal For: Large volume, expert traders
Account Type: Islamic
- Features: No swap fees, spreads from 1.0 pip, $2.5 commission/side, Sharia-compliant
- Ideal For: Long-term, Islamic finance needs
Drawdown: The Heart of Risk Management
One important risk factor in prop trading is drawdown. It alludes to the highest amount that can be deducted from the account’s initial balance or high-water mark. There are two primary drawdown restrictions used by FundingPips:
Daily Drawdown Limit
This is the maximum loss a trader can incur in a single trading day, usually calculated as a percentage of the starting balance or previous day’s equity.
- One-Step: 4% daily drawdown
- Two-Step: 5% daily drawdown
- Three-Step: 4% daily drawdown
- General Range: 4-6% depending on account type
Maximum (Overall) Drawdown
This is the total maximum loss allowed from the initial account balance. Breaching this limit results in account termination.
- One-Step: 6% maximum drawdown
- Two-Step: 10% maximum drawdown
- Three-Step: 6% maximum drawdown
- Zero Model: 5% trailing drawdown, which locks after a 5% profit is achieved
Trailing Drawdown (Zero Model)
- The trailing drawdown tracks the growth of the account’s equity. The drawdown limit “locks in” at the starting balance if the account generates a 5% profit, giving you more flexibility to take risks as your account grows.
How Drawdown Rules Work in Practice
Drawdown rules are strictly enforced at both the evaluation and funded stages:
- A trader’s account is closed if they ever surpass the daily or maximum drawdown.
- To prevent going above limitations, traders are advised to utilize stop-losses and appropriate position sizing.
- For traders who scale rapidly, the Zero Model’s trailing drawdown is especially crucial since it shields the trader and the company from unwarranted losses.
Profit Split and Scaling
FundingPips offers one of the industry’s most attractive profit-sharing models:
- 80% of the initial profit is split with the trader.
- Scaling strategy: Account sizes can grow to $2 million and the profit split can go to 100% if traders reach performance benchmarks.
- Top achievers might receive monthly incentives and on-demand rewards.
Trader Flexibility and Platform Access
FundingPips is notable for its trader-friendly policies:
- Most assessments don’t have a time limit.
- No limitations on trading styles: News trading, overnight/weekend holding, and EAs are all permitted.
- No restrictions on lot size: Trade as much or as little as you choose.
- Supported on several platforms: cTrader, MT4, MT5, and others
- Easy for beginners: It is accessible to novice traders due to its forgiving rules and low minimum account sizes.
Conclusion
By providing a large range of account types, adaptable trading regulations, and some of the most aggressive drawdown and profit split policies in the market, FundingPips has established itself as a top prop provider. FundingPips offers choices to meet your demands, whether you are an experienced trader searching for complicated account types and growth chances or a beginner looking for a simple evaluation.
The absence of time constraints and trading limitations permits a more organic and sustainable trading experience, while the firm’s stringent yet equitable drawdown policies guarantee that traders and the firm are shielded from undue risk. With the potential to scale to $2 million in funding and earn up to 100% of profits, FundingPips offers a compelling opportunity for traders ready to prove their skills and manage risk effectively.
By understanding the nuances of each account type and adhering to the drawdown parameters, traders can maximize their chances of long-term success in the competitive world of proprietary trading.
Frequently Asked Questions
What are the profit split arrangements at FundingPips?
- When traders reach performance goals and grow their accounts, their initial profit split of 80% can increase to 100%. Payouts can be made on-demand or on a regular basis, and profit splits are applicable to funded Master accounts.
Is there a deadline for finishing the assessment?
- The majority of FundingPips evaluation accounts don’t have time restrictions, so traders can advance at their own speed. The FundingPipsX and other specialized challenges may be the only exceptions. Each phase must have a minimum of three trading days. .
What trading platforms and instruments does FundingPips support?
FundingPips supports multiple popular platforms including MT4, MT5, cTrader, Match-Trader, and TradeLocker. Traders can access a wide range of instruments:
- Forex (major, minor, exotic pairs)
- Commodities (gold, oil)
- Stocks (global equities)
- Cryptocurrencies
Leverages vary by instrument, e.g., 1:100 for forex, 1:50 for currency pairs, 1:20 for indices and gold, 1:10 for energy products.