How Many Traders Pass The Evaluation Stages And Become Funded?

In this blog post, we will be talking about the success rate of individual traders that pass the evaluation stages and become funded with some additional interesting statistics that we have come across while studying the proprietary trading firm industry. The numbers are taken from statistics that have been published by the proprietary trading firms themselves. That being said, let’s start with the first interesting topic.

The 90-90-90 rule

It is a rule that is quite well-known in the trading community, and it displays the following characteristics. 90% of forex traders lose 90% of their capital within 90 days of trading. Based on those numbers, traders are more and more likely choosing proprietary trading firm funding instead of depositing their hard-earned money onto brokers to trade their own capital. Despite the fact that they will be earning a profit split instead of keeping all the profits when trading with their own capital, they still choose the proprietary trading firm because of the limited risk. 

Let’s see the statistics from My Forex Funds about the process of individual traders becoming funded with them. The evaluation is made out of two phases before becoming funded. In phase one, the trader is required to reach a profit target of 8% without surpassing the 5% daily or 12% maximum drawdown limits. This has to be done with 5 minimum trading day requirements in a 30 calendar days period, where the trader is able to request a 14 calendar-day extension if certain factors are met. In addition, traders that have a profit on their account without actually reaching the profit target are eligible for unlimited free retries. However, in phase two, the trader is required to reach a profit target of 5% without surpassing the 5% daily or 12% maximum drawdown limits. This has to be done with 5 minimum trading day requirements in a 60 calendar days period. After passing both evaluation phases, you receive a funded account with which you can generate profits and start earning profit splits.

Now that we have gone through the structure of the evaluation phases, let’s see the number of successful traders who participate in this program. 14% of traders who participate manage to pass phase one, while only 27.5% of those 14% pass phase two. Based on those statistics, we can clearly see that not many traders pass the evaluation phases and reach funded status. However, when looking at the percentage of traders that actually reach their first payout, it is significantly lower. Only around 3.5% of the traders that reached funded status successfully received their first payment. Let’s look at those numbers for October 2021 and November 2021.

October 2021

• Passed phase one: 18%
• Passed phase two: 31% of the traders that successfully passed phase one
• Reached first profit split: 4% of traders that successfully passed phase two
• Number of new accounts: 3,544
• The total amount paid out: $1,482,627.31
• Most traded pair: XAU/USD
• Most profitable pair: GBP/AUD
• Least profitable pair: GBP/JPY

November 2021

• Passed phase one: 10%
• Passed phase two: 24% of the traders that successfully passed phase one
• Reached first profit split: 3% of traders that successfully passed phase two
• Number of new accounts: 5,718
• The total amount paid out: $2,848,357.40
• Most traded pair: XAU/USD
• Most profitable pair: XAU/USD
• Least profitable pair: GBP/JPY

Additional interesting statistics from My Forex Funds’ trading data:

• Over 60% of traders don’t use a stop-loss.
• The traders who have managed to get to their 4th payout cycle all have a risk management strategy of below 3% risk on any given day.
• Profitable traders are in the market less than 4 hours per day.
• The most profitable traders don’t hold trades overnight.
• Traders who hold trades over the weekend have a 60% higher chance of failing or losing their accounts.
• During higher market volatility, more traders fail because of a lack of risk management discipline.
• All traders who have received a record payout have lost their accounts within three weeks due to excessive risk.

My Forex Funds February 2022 statistics

My Forex Funds released an article about their statistics from February 2022, and the results were quite incredible. In that single month, they processed $6,202,217.52 in payouts, with the largest payout being $53,707.70. They also included the percentages of traders that passed phases one and two. 31% of traders passed phase one, while only 14% of traders passed phase two. As we know, My Forex Funds are funding traders worldwide, 34% of them being based in America, 23% from Europe, 22% from Africa, 18% from Asia, and 3% from Oceania. This was based on the total number of live-funded traders at the time, which was 7,018. This number included traders that were funded with all of the funding program types that they are offering. Traders found the most success by trading GBP/CAD and the least success when trading XAU/USD. Another interesting fact was that there were six traders who reached 8 or more payouts but lost their accounts in February 2022 due to the ‘’volatility bloodbath’’ that was going on in the market. During this month, My Forex Funds processed 2,708 payouts, meaning that the average payout was $2.290.33.

FTMO statistics for 2021

FTMO has previously released its statistics for 2021, where they mentioned a lot of interesting facts about the numbers that were processed during the year.

Throughout 2021, there were over 960,000 created trading accounts through their platform, which include FTMO challenges, verifications, funded accounts, and free trials. There were over 90,000,000 trades executed during 2021, which means almost 3 new trades each second for an entire year.

When looking at payouts that were distributed by FTMO during 2021, they managed to forward $29,000,000 in payouts to all of their traders. This was an incredible number. Especially if you take into consideration that they paid out traders from over 180 different nationalities worldwide. While trading, traders, on average, executed 117.9 trades during one trading period on their FTMO accounts while earning an average of $4,685.

When covering the account types that traders chose, 87% opted to go for the normal account type with classic trading conditions. In the middle of the year, when they started offering swing-type accounts, 11% of all of their clients chose to purchase that account type. And lastly, the remaining 2% of traders decided to choose the aggressive risk account type.

With FTMO, most traders decided to trade gold (XAU/USD), making it the most popular instrument of 2021. When looking at currencies, the leading one was EUR/USD, which was followed by GBP/USD, GBP/JPY, USD/CAD, and AUD/USD. And as expected, among indices, the most popular were US30 and US100.

And lastly, when looking at account currencies, 70% of FTMO’s traders opted to go for USD accounts. 15% of traders went for account funding in EUR and 13% for account funding in GBP. Despite the fact that they are a company based in the Czech Republic and are offering accounts in the CZK as well, those are only chosen on specific occasions. The same can be said for newly introduced currencies such as CAD, AUD, and CHF. In total, the following currencies that were lastly mentioned cover the remaining 2% of account funding and are slowly gaining in popularity month after month.

Fidelcrest statistics for February 2022

Fidelcrest has previously also made a news article about February 2022 trading data and has provided us with some interesting statistics and facts regarding their community of traders. These statistics are not based on the average payouts and trading instruments being traded but will instead cover other interesting factors that show us the habits of traders that are currently working with the firm.

Extra trading data of Fidelcrest traders:

• Over 35% of traders don’t have stop-losses during the challenge.
• Funded traders are, on average, in the markets less than 5 hours per day
• Consistently profitable traders have excellent risk management, not losing more than 2.6% daily.
• The most profitable traders don’t hold trades overnight and during the weekend.
• Traders that hold trades during the weekend fail their challenge 30% of the time.
• The lot size used is increased up to 400% during high-impact news releases.
• Most traders fail during phase two due to a lack of patience, even though the time limit is 60 calendar days.

The Funded Trader’s total payouts

The Funded Trader is a proprietary trading firm that was incorporated in May 2021 and is currently one of the industry-leading proprietary trading firms available for traders. They have been launched for 19 months now and have hit an incredible amount of 30 million in payouts that were distributed to their traders since their incorporation.

The Funded Trader 30 million payouts:

– 17 million of the payouts were distributed to their traders through Deel.

– 8 million of the payouts were distributed to their traders through cryptocurrencies.

– 5 million of the payouts were distributed to their traders through Wise.

Note that the period for them to reach 30 million in distributed payouts was from May 2021 to January 2023!

Conclusion

In conclusion, we can see that there is a huge number of statistics types that proprietary trading firms can offer. It is not necessarily only the payout, profit, and trading instrument numbers. It is always interesting to hear about the payouts and how much traders receive. However, there are also other statistics, such as how many traders pass the evaluation and receive a profit split compared to how many traders actually fail and never get their first payout. That being said, be sure to work on your trading strategy and risk management strategy while also learning all of the terms and conditions of proprietary trading firms that you are interested in before joining them to maximize your chances of successfully becoming funded. And, of course, being able to be profitable after that to receive your profit splits for all of your hard work!