Funded Trading Plus Prop Firm Payout Structure: How It Works

Funded trading plus payout structure is one important factor that can have a big impact on a trader’s experience and profitability. Funded Trading Plus (FTP) is becoming more well-known in the field of prop firm trading as a prop firm that gives traders the opportunity to trade with firm funds and split the profits they make. The details of Funded Trading Plus payout system, including its elements, advantages, and things to think about for aspiring traders, are covered in detail in this article.

What Is Funded Trading Plus

Funded Trading Plus (FTP) is a prop firm that gives traders access to large amounts of capital so they can trade a variety of financial products, such as stocks, currency, commodities, and cryptocurrencies. The business plan of the firm is to draw in skilled traders by giving them the chance to trade with Funded trading plus funds and rewarding them according to their results. Funded trading plus payout system strikes a compromise between risk management and profitability.

Important Elements of Funded Trading Plus Prop Firm Payout Structure

Funded Trading Plus payout structure is made up of a number of essential elements that cooperate to compensate traders and guarantee the longevity of the firm. Here’s a closer look at each part:

1. Profit Distribution

The profit-sharing mechanism lies at the heart of funded trading plus payout system. The trader’s and the firm’s share of trading activity earnings is determined by this model.

• 80% of your simulated profit made during the FT+ Trader phase can be withdrawn by you upon request , this is automatically calculated when you make a payout request. When you are an FT+ Trader and you make 20% simulated profit on your simulated-live account, you can request to be upgraded to a 90/10 simulated profit split. You can then request to move to 100/0 once you reach 30% of simulated profit!
• The profit-sharing plan offered by Funded trading plus could have tiers, wherein an increase in the trader’s percentage is contingent upon meeting predetermined profit targets or exhibiting steady performance over an extended period of time. This tiered structure incentivizes traders to aim for improved performance and larger profits. 

2. Bonuses Based on Performance

Funded Trading Plus provides bonuses based on performance as an additional means of encouraging exceptional work. Bonuses are extra cash given to traders who surpass certain performance targets. Typical performance indicators consist of:

• Profit Objectives: Traders may qualify for bonuses if they meet predetermined profit thresholds. Based on the trader’s account type and trading history, these goals are established.
• Excellence in Risk Management: Traders that exhibit outstanding risk management, such as keeping a modest drawdown while attaining large returns, may be eligible for additional bonuses. This encourages careful trading and efficient risk management.
• Consistency: Bonuses are frequently given to traders who continuously produce excellent results over long stretches of time. This promotes consistency and continued greatness.
• Performance-based bonuses are intended to provide traders with additional incentive to perform by identifying and rewarding those who go above and beyond the parameters of their standard profit-sharing agreement.

3. Limitations on Drawdown and Risk Handling

It is imperative that the firm and its dealers practice effective risk management. To guarantee that cash is safeguarded and losses are kept under control, Funded trading plus employs precise drawdown caps and risk management procedures. Important elements consist of:

• Maximum Drawdown Limits: The maximum amount that can be lost from a trading account’s peak equity is specified by the drawdown limits. A trader may be subject to trading activity restrictions or payout structure modifications if their drawdown surpasses these caps. To keep inside these bounds and steer clear of unmanageable losses, traders need to exercise close risk management. The maximum drawdown limit is 6%, This is the total amount of simulated relative drawdown for this evaluation.
• Daily Drawdown Limit: This is the total amount of simulated drawdown that is allowable in a single day. The daily drawdown limit is 4%.
• Rules for Risk Management: Funded Trading Plus mandates that traders follow certain principles for risk management, including stop-loss orders, position sizing, and overall risk exposure. These regulations are intended to shield the company’s capital and stop significant losses. Sustaining long-term performance and a balanced trading strategy require effective risk management.

4. The Charge Schedule

Various fees that Funded trading plus may impose may have an impact on a trader’s net profits. Among these costs are:

• Our initiatives are meant to be clear-cut, open, and equitable. We follow straightforward guidelines. Our belief is that placing deadline pressure on individuals leads to poor judgments, which is why we don’t charge monthly fees. There are no monthly fees with this program. The program fee is a one off charge.

Advantages of the Funded Trading Plus Prop Firm Payout Structure

The Funded trading payout system has the following benefits:

1. Encourages Excellent Performance

The goal of the profit-sharing plan and performance-based compensation is to encourage traders to give their best effort. Through a direct link between reward and performance, Funded trading plus guarantees that traders are motivated to meet and surpass their goals.

2. Gives Access to cash: 

By using Funded trading plus’s cash, traders can trade bigger positions and possibly make more money than they could if they used their own money. This large amount of funds available to them is a big benefit for experienced traders who want to take advantage of every trading opportunity.

3. Promotes Efficient Risk Handling

Trading discipline is encouraged by Funded trading plus emphasis on drawdown limitations and risk management guidelines. This emphasis on risk management promotes long-term trading performance by safeguarding the capital of the trader and the company.

4. Provides Adjustability

Traders can select an arrangement that best fits their trading style and goals from a variety of account types and payment structures. Because of this adaptability, traders can customize their trading experience to suit their unique requirements and tastes.

Obstacles Associated With Funded Trading Plus Prop Firm Payout Structure

Although the Funded trading plus payout system has numerous advantages, there are drawbacks and things to keep in mind as well:

1. Complicated Charge Schedules

The computation of net profits may become more difficult if there are many fees and performance-based charges. To properly evaluate their prospective profits and make sure they are comfortable with the terms, traders must have a complete understanding of all charge structures.

2. Limitations on Drawdown:

Strict drawdown limitations can be difficult to adhere to, particularly in times of extreme market volatility or unfavorable trading circumstances. In order to keep within these bounds and prevent any limitations on their trading activity, traders need to exercise extreme caution in risk management.

3. Contractual Liabilities:

The terms and conditions specified in the contracts that traders have with Funded trading plus must be followed. This entails being aware of risk management guidelines, fee schedules, performance measures, and profit-sharing ratios. To ensure a pleasant trading experience and prevent misunderstandings, it is imperative that you thoroughly go over these terms.

Advice for Intending Traders

Here are some pointers to help prospective Funded trading plus members successfully navigate the compensation structure:

• Recognize the Fee Structure: Examine all trading-related fees, such as performance fees and monthly or yearly fees. Make sure you comprehend the effect these costs will have on your overall earnings.
• Examine Account Categories: Select an account type based on your trading objectives and style. When choosing an account, take into account elements like trading conditions, fees, and leverage.
• Become acquainted with the rules of risk management: Make sure you are aware of the drawdown limitations and risk management procedures for Funded trading plus. Maintaining your trading activity and safeguarding your funds depend on you following these guidelines.
• Analyze Performance Metrics: Be aware of the goals and performance standards that determine who is eligible for bonuses and increased profit-sharing ratios. To maximize your revenues, concentrate on attaining or surpassing these KPIs.
• Communicate Clearly: Please be clear in your communication with the Funded trading plus support team if you have any queries or concerns regarding the payout structure or your contract. A seamless trading experience can be ensured and potential problems can be avoided by addressing any uncertainties up front.

In summary

Funded Trading Plus payout structure strikes a mix between profitability and efficient risk management, providing traders with a compelling chance to utilize the company’s money to their advantage while earning rewards for their achievements. Trader decision-making and experience can be maximized by comprehending the profit-sharing model, performance-based bonuses, drawdown restrictions, and charge structures.

For a trading experience to be effective and long-lasting, it is necessary to thoroughly go over every component of the payout structure and follow the trading guidelines set forth by the company. Trading within the context of Funded trading plus and reaching financial objectives is possible for traders who have the appropriate mindset and knowledge.

Frequently Asked Questions

1. What is funded trading plus?

• Funded Trading Plus (FTP) is a prop firm that gives traders access to large amounts of capital so they can trade a variety of financial products, such as stocks, currency, commodities, and cryptocurrencies.

2. What is the Funded trading plus charge schedule?

• There are no monthly fees with this program. The program fee is a one off charge.

3. What is the maximum and daily drawdown limit?

• The maximum drawdown limit is 6% while the daily drawdown limit is 3%. There are consequences if this limits are exceeded