FTUK account types and drawdown provides a wide range of account types suited to various trading philosophies and skill levels. A proprietary trading firm called FTUK (Forex Traders UK) has drawn a lot of interest from the prop trading community due to its emphasis on disciplined risk management, transparent regulations, and flexible account offerings. Both new and seasoned traders looking to grow their trading without jeopardizing personal funds are drawn to FTUK because of FTUK account types and drawdown policy. This article examines the many FTUK account types and the drawdown, their distinctive characteristics, and the crucial part drawdown plays in the organization’s risk management framework.
An Overview Of FTUK Trading Model
The standard prop firm model is used by FTUK, where traders pay a fee to take part in an evaluation procedure and are granted access to a funded trading account after completing it successfully. The trader and the firm split profits, and when traders show steady performance, there is a chance for account scaling and larger profit splits.
One-step and two-step challenges, as well as an instant funding option, are among the funding initiatives that make FTUK unique. FTUK account types and drawdown is designed to accommodate varying trading preferences, levels of experience, and risk tolerances.
FTUK Account Types
It offers three main account types:
One-Step Challenge
- Structure: Traders must achieve a set profit target in a single evaluation phase.
- Profit Target: Typically 10% of the starting balance.
- Drawdown: Trailing drawdown, usually 6%–8% depending on the account size and level.
- Daily Drawdown: Commonly set at 4%–5% of the highest equity or balance at the day’s start.
- Leverage: Up to 50:1, scaling with account progression.
- Minimum Trading Days: Usually four.
- Assets: Forex, indices, commodities, metals, and crypto.
- Profit Split: Starts at 50%, increasing to 80% with consistent performance.
- Scaling: Account size can double at each 10% profit milestone, up to $6.4 million.
For traders who are confident in their abilities to meet the profit target while controlling risk and who prefer a simplified evaluation with fewer obstacles, the one-step challenge is perfect.
Two-Step Challenge
- Structure: Traders must complete two evaluation phases, each with its own profit target and drawdown rules.
- Phase 1: Higher profit target (typically 10%) and more lenient drawdown.
- Phase 2: Lower profit target (typically 5%) and tighter drawdown.
- Drawdown: Static drawdown applies in both phases, usually 10% in phase one and 5% in phase two.
- Daily Drawdown: 5% per day in both phases.
- Minimum Trading Days: Three per phase.
- Leverage: Up to 50:1.
- Profit Split: Starts at 50%, can rise to 80%.
- Fee Refund: Evaluation fee is refunded upon successful completion and first payout at Level 2.
The two-step challenge is ideal for traders who would rather be evaluated more gradually and given another opportunity to demonstrate consistency and risk management.
Instant Funding Program
- Structure: No evaluation phase; traders gain immediate access to a funded account after paying an upfront fee.
- Profit Target: 10% for scaling.
- Drawdown: 6% maximum loss.
- Daily Drawdown: 6%.
- Leverage: 1:10 to 1:50, depending on account size.
- Profit Split: Starts at 50%, can increase to 80% based on performance.
- Account Sizes: Ranges from $5,000 to $100,000 and beyond.
- Minimum Trading Days: None.
- Maximum Trading Period: Unlimited.
- Fee Structure: Because there is no review process, the initial cost is higher than for challenge accounts.
For seasoned traders with a solid track record who wish to skip the challenge procedure and begin trading live capital right away, instant funding is ideal.
Drawdown: The Core of FTUK’s Risk Management
The foundation of FTUK’s risk management strategy is drawdown limitations. They are intended to foster disciplined trading practices and shield the trader and the firm from disproportionate losses.
Types of Drawdown at FTUK
Trailing Drawdown
- Definition: The highest equity or balance attained during the evaluation is used to determine the maximum loss permitted. The drawdown barrier rises but never falls as the account size increases.
- For instance, if your equity falls to $23,500 at any point and your maximum amount is $25,000 with a 6% trailing drawdown, your account will be canceled.
Static Drawdown
- Definition: The maximum loss does not increase as profits are generated; rather, it remains fixed in relation to the initial balance.
- Application: 10% in phase one and 5% in phase two of the two-step challenge.
Daily Drawdown
- Definition: Depending on the type of account, this limits the maximum loss that can occur in a single day, usually between 4% and 6%.
- Calculation: Based on the higher of the starting balance or equity at the beginning of the trading day (5pm EST).
Drawdown in Practice
The drawdown regulations are rigorously followed. Regardless of past performance or proximity to the profit target, account termination occurs immediately upon breach of the maximum or daily drawdown. This guarantees that traders establish and uphold strong risk management procedures, which are necessary for sustained trading success.
Scaling and Profit Split
FTUK incentivizes consistent performance by offering a scaling plan and increasing profit splits:
- Scaling: A trader’s account size can double up to a maximum of $6.4 million every time they reach a 10% profit milestone.
- Profit Split: As traders advance through account levels and show consistency, the profit split might increase from 50% to 80%.
This structure rewards discipline and provides a clear pathway for traders to manage larger amounts of capital and earn a greater share of profits.
Additional Features and Rules
- Leverage: Varies according to account and asset level; at higher levels, forex leverage can reach 50:1.
- Asset classes include cryptocurrency, metals, commodities, forex, and indexes.
- News Trading: Accepted as an add-on in challenge accounts and in the rapid funding program.
- Weekend Holding: All account types are allowed.
- Expert Advisors (EAs) and Copy Trading: Permitted, although copying between FTUK accounts is restricted.
- Payouts are made every two weeks by default, although there is a weekly payout option. Payouts are processed fast—often in a matter of hours.
- Fee Refunds: The evaluation charge is reimbursed at Level along with the initial award for one-step and two-step challenges.
Trader Experience and Considerations
The goal of FTUK’s business model is to draw in talented, disciplined traders who can work within tight risk guidelines. Although the firm’s regulations are clear, they are strict; even for accomplished traders, breaking the drawdown limitations can spell the end of their trading career. Only the most dependable and cautious traders advance due to this strict criterion.
Both good and bad experiences have been recorded by traders about FTUK. While some have experienced delays or communication problems regarding reimbursements, many commend the company for its support, quick growth, and clear guidelines. Like any prop company, success hinges on knowing and following all the rules, particularly those pertaining to drawdown.
Conclusion
Because of its aggressive scaling prospects, clear drawdown criteria, and variety of account kinds, FTUK distinguishes out in the prop trading market. FTUK provides a route to significant money and profit possibilities, regardless of whether you’re a methodical trader who prefers a structured review or a self-assured, seasoned trader looking for immediate funding. However, only the most dependable and disciplined traders will prosper due to the firm’s stringent adherence to drawdown limitations.
Anyone thinking about FTUK must comprehend the subtleties of each account type and the consequences of drawdown. Traders can unlock substantial benefits and advance their trading careers with FTUK by becoming proficient in risk management and trading within the firm’s guidelines.
Frequently Asked Questions
Which assets are available for trading on FTUK accounts?
- Trading in a variety of asset types, including FX, indices, metals, commodities, and cryptocurrencies, is permitted by FTUK. Depending on the type of account, news trading and weekend holding are typically allowed.
How does the profit-sharing scheme operate?
- For regular traders, profit splits can rise to 80% from the starting 50%. Depending on their account and performance, traders can get rewards every two weeks or on demand. Every time a trader reaches the profit target, which is typically 10%, the account can be scaled by doubling the capital.
Can I trade during news events and hold positions over the weekend?
- Yes, all FTUK accounts are eligible for weekend holding. The One-Step Challenge and Instant Funding accounts allow news trading, giving traders who employ news-based methods more freedom.
What occurs if I exceed the daily loss or drawdown caps?
- Regardless of prior gains or progress, the funded or evaluation account is immediately terminated upon any violation of the maximum drawdown or daily loss limits. Disciplined risk management is guaranteed by this stringent enforcement.