What is Funding Pips?
Funding Pips is a proprietary trading firm that allows traders to prove their skills through an evaluation process before giving them access to capital. Once traders successfully pass the evaluations, they gain access to live funded accounts, enabling them to trade larger amounts without using their own money.
The firm has created a platform where traders of all experience levels can grow and scale their operations by trading company-provided capital. Traders can manage accounts that range in size from $10,000 to as much as $2 million, depending on the evaluation model and account type. In exchange for providing this capital, Funding Pips offers traders a competitive profit split, allowing them to retain between 80% and 90% of the profits they generate.
The business model of Funding Pips is based on identifying and nurturing skilled traders. Instead of focusing on traders with a high-risk appetite, the firm places strong emphasis on disciplined, consistent, and well-planned trading strategies. This focus on risk management sets it apart from other trading platforms that may encourage more speculative behavior.
The Evaluation Process
Before gaining access to a funded account, traders must pass an evaluation process that assesses their ability to manage risk and consistently generate profits. Funding Pips offers different evaluation models that traders can choose from based on their experience level and trading style.
Here are the three main evaluation models:
1. One-Step Evaluation
The one-step evaluation process is designed for traders who are confident in their trading abilities and can generate significant profits over a shorter period. In this model, traders need to reach a specific profit target while adhering to strict risk management rules. For example, traders are usually required to achieve a 10% profit target without violating daily loss limits or drawdown limits.
This evaluation process can be appealing for traders who prefer to demonstrate their skills quickly, but it demands discipline and precision to avoid disqualifying errors.
2. Two-Step Evaluation
The two-step evaluation process is one of the more popular choices among traders as it provides a balanced approach to evaluating a trader’s consistency and risk management.
- Phase 1: In the first phase, traders must achieve an 8% profit target while managing their risk within specific parameters. These parameters include a daily loss limit of 5% and an overall maximum loss limit of 10%. Traders must demonstrate their ability to trade consistently without violating these rules.
- Phase 2: If traders pass Phase 1, they move to Phase 2, where the profit target is reduced to 5%, but the same risk management rules apply. The second phase allows Funding Pips to ensure that the trader can continue performing well under more relaxed profit requirements while still adhering to disciplined risk management.
The two-step process is great for traders who need a bit more time to prove their skills without the pressure of hitting high profit targets in a short period.
3. Three-Step Evaluation
This evaluation model is designed for traders who prefer an even more gradual and structured approach to the evaluation process. In the three-step evaluation, each phase requires traders to achieve a 5% profit target, with the same risk management rules applying throughout all three phases.
The three-step process allows traders to prove their consistency and risk management skills over a longer period, making it a great option for traders who want to take a cautious and patient approach.
Trading Platforms Offered by Funding Pips
One of the key advantages of Funding Pips is the variety of trading platforms available to traders. The firm recognizes that traders have different preferences when it comes to platforms, so it offers a range of choices that cater to various trading styles and strategies.
1. MetaTrader 4 (MT4)
MT4 is one of the most widely used trading platforms in the world. It is popular for its user-friendly interface, extensive charting tools, and support for automated trading strategies through Expert Advisors (EAs). Traders who prefer simplicity and reliability often choose MT4 for its time-tested features.
2. MetaTrader 5 (MT5)
MT5 is an upgraded version of MT4 and offers a more advanced set of features, including additional charting tools, more timeframes, and the ability to trade a wider range of financial instruments. MT5 is a better option for traders who want more advanced analytical tools and more complex order types.
3. cTrader
For traders who want a more transparent and modern platform, cTrader offers an alternative to the MetaTrader suite. It is known for its fast execution speeds, customizable layout, and comprehensive risk management tools. cTrader also provides traders with access to advanced features like algorithmic trading.
By offering access to these popular trading platforms, Funding Pips ensures that traders have the flexibility to trade on the platform that suits them best.
Profit Splits and Payouts
One of the most attractive aspects of Funding Pips is its generous profit-sharing model. Traders who pass the evaluation process are entitled to retain between 80% and 90% of the profits they generate on their funded accounts. This profit split is highly competitive compared to other proprietary trading firms, many of which offer lower percentages.
The profit split can increase over time as traders demonstrate consistent performance. For example, traders who maintain strong performance for an extended period may qualify for a 90% profit split, which maximizes their earnings potential.
Additionally, Funding Pips offers a flexible payout process. Traders are eligible for weekly payouts, with the first payout available just seven days after the initial trade on the funded account. This ensures that traders can access their profits quickly and efficiently.
Fees and Rules
Like most proprietary trading firms, Funding Pips charges an evaluation fee to cover the costs of assessing a trader’s abilities. These fees vary depending on the account size and evaluation model chosen by the trader. It’s important to note that the fees are non-refundable, so traders should carefully consider which evaluation model suits them best before committing.
Traders must also adhere to strict rules throughout the evaluation process. These rules include maximum drawdown limits and daily loss limits, which are designed to ensure that traders follow disciplined risk management practices. Violating these rules during the evaluation phase can result in disqualification, so it’s essential for traders to fully understand and follow the guidelines set by Funding Pips.
Pros of Funding Pips
- Generous Profit Splits: With profit splits ranging from 80% to 90%, Funding Pips offers traders a significant share of their earnings, which is higher than many competitors in the industry.
- Multiple Evaluation Models: Traders can choose from one-step, two-step, or three-step evaluations, allowing them to select the process that best fits their trading style and goals.
- Wide Range of Platforms: Funding Pips supports popular trading platforms like MetaTrader 4, MetaTrader 5, and cTrader, catering to traders with different preferences and needs.
- Scaling Potential: Traders who perform well can increase their account size over time, giving them the opportunity to manage larger capital as they demonstrate consistency and profitability.
- Weekly Payouts: The ability to receive payouts weekly ensures that traders can quickly access their profits, which is especially attractive for active traders.
Cons of Funding Pips
- Strict Risk Management Rules: Traders must adhere to stringent rules regarding maximum drawdown and daily loss limits, which can be challenging for some, especially during volatile market conditions.
- Evaluation Fees: The evaluation process requires traders to pay non-refundable fees, which can be a financial commitment for those who don’t pass the evaluation on the first try.
- Disqualification for Rule Breaches: Even minor rule breaches during the evaluation can result in disqualification, meaning traders must be highly disciplined to avoid errors.
Conclusion
Funding Pips stands out as a competitive and flexible proprietary trading firm, offering traders the opportunity to manage significant amounts of capital without risking their own money. With its variety of evaluation models, a wide range of supported trading platforms, and generous profit-sharing schemes, Funding Pips is an attractive option for traders of all experience levels.
While the evaluation process can be challenging, the rewards of passing it are substantial. Funding Pips’ emphasis on risk management and disciplined trading makes it a reliable partner for traders seeking long-term success in the markets.
