In recent years, the trading world has experienced a significant transformation thanks to the emergence of funding companies. These companies, also known as prop firms, are radically changing the way traders access the capital needed to participate in financial markets.
Funding companies offer traders the opportunity to manage large sums of money without having to contribute their own capital. This system is based on overcoming a challenge or evaluation test where traders must demonstrate their skills under certain conditions. By passing this challenge, the trader gains access to a funded account to trade in the markets.
Within this sector, some of the most prominent companies are FTMO, The5ers, DarwinexZero, and AXI Select. These firms provide affordable evaluations and allow for managing significant capital. For those with talent but lacking resources, they represent a gateway to the trading market. With an initial investment of about 490 euros, a trader can manage an account with $100,000 and aim for a modest monthly return of 2-3%, resulting in gains between 2500 and 3000 euros, figures not to be underestimated for many.
However, the path to access these accounts involves certain costs and risks. The registration fee for the evaluation is the first challenge, and the most demanding tests, although offering greater benefits, have a higher cost. The real risk lies in not passing the test, which implies losing the registration fee.
A topic of discussion is the regulation of these prop firms. Currently, they are not regulated because they do not operate with real money in the CFD markets, but in a simulated environment that replicates market movements. Although they do not require the same regulation as a traditional broker, this does not affect their legitimacy. However, traders are advised to be aware of their participation in an unregulated market.
There are success stories of traders who, after passing the evaluation and paying the corresponding fee, manage to achieve great monthly returns thanks to funded accounts. For these traders, who otherwise would not have access to the necessary capital, prop firms represent a real opportunity to showcase their trading talent and achieve financial freedom.
In conclusion, funding companies have been a true revolution in the trading world. With a modest initial investment, they offer talented traders access to significant capital, allowing them to generate significant income without needing to contribute their own money. Despite not being regulated, their popularity continues to rise, paving a new path for those who want to excel in the world of trading, regardless of their financial situation.
Source: MiMub in Spanish
