Funding Talent recently sent out an email stating that they are removing the Elite, Phase 1 & 2 Challenge models effective immediately and permanently.
Funding Talent was highly rated amongst the top prop firms for a short period of time, they offered up to $300,000 in funding, scaling of 25% every three months and up to 90% profit split. They had a Flex Account that allowed you to fund your live account with profits made from demo accounts. Their business model was a game changer – or so it seemed. Here is why this scam will go down in history!
Funding Talents’ reason for removing the Challenge models is because the demand for the model caused hyper growth to their membership, 13,000 over 19 months of operation. Basically, the success of the model pretty much was the last straw that broke the camel’s back, in this case, the straw is available capital to payout profits and the camel’s back is the margin call that was long coming.
Remember, 90% of traders lose 90% of their capital within 90 days, this Challenge model went against that, in fact, it aided traders in making quick money. If a trader wins a trade, they request a withdrawal, this means Funding Talent has to pay the profits out of their own pocket. The trader makes money and Funding Talent loses money. – Now imagine thousands of traders requesting withdrawals.
But don’t worry, you the trader were thought of and given an ultimatum. In efforts to ‘silence the masses’, a new Edge model was introduced, meaning that Challenge model traders could continue trading with Funding Talent, in an evaluation-free environment. Should you not wish to settle for an Edge account, you are welcome to request a refund, BUT, your Phase 1, 2, or Elite account must have had at least 1 trade within the past 14 days of the Challenge removal decision, and the account must be active. You can also expect delays in responses as many traders have been affected by this decision. – So good luck!
Funding Talent has never had it easy, since they gained popularity, more and more complaints started popping up, from not receiving full payouts, unexpected account violations, and the list goes on.
So is this it? Is this the slow end of Funding Talent? Will they be able to recover from this? Rumor says that some members are only receiving 25% of their profit split across Challenge models.
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Have you been affected by this decision? Let us know your thoughts in the comments section below.