- Up to $1,000,000 in funding.
- Bi-weekly payouts.
- Overnight holding.
- Weekend holding.
- News trading.
- New Prop Firm.
- Tight daily drawdown.
Who they are:
FMS – Funding Made Simple, based in the United States, started out in April 2021. Their goal is to find passionate and experienced traders from around the world who can succeed in the markets with or without their help. FMS offers funding of up to $1,000,000 with profit splits of 80%! They have over 22,000 traders around 71 different countries. FMS have made noise in the funding industry. – Here’s why.
What they offer:
Funding Made Simple offers 6 standard account types. From as little as $100 you could get funded with a $5,000 account and for $1,250, you would get funded $200,000. Sounds good right? Well, let’s dive into the trading rules.
All standard accounts have a 10% maximum drawdown, and a 5% daily drawdown. The profit target sits at 10% too.
The Evaluation Process is done through a Phase 1 and a Phase 2 cycle. For Phase 1, the Profit Target is 10% with no minimum trading days, and the Trading Period is up to 30 days. For Phase 2, the Profit target is 5% with a minimum of 10 trading days, and the Trading period is up to 60 days. – Not bad, but remember your drawdown limits!
FMS allows you to trade forex pairs with 100:1 leverage, commodities with 40:1 leverage, indices with 30:1 leverage, and cryptocurrencies with 2:1 leverage.
So using the $5,000 account as an example, here is what you’re dealing with.
A 10% Maximum drawdown = $500 ($5,000/10), a 5% Daily drawdown = $250 ($5,000/5%) and a 10% profit target = $500 ($5,000/10%). All this for $100. So technically, you’d pay $100 for a maximum drawdown of $500.
Realistically put, using risk management, you’d be able to take 5 trades with a $100 stop loss for each trade at a lot-size of 0.10 using a 10 pip stop loss, or 0,5 using a 20 pip stop loss – So if you manage to hit your stop loss 5 times in a row, you’ve managed to violate the drawdown rule, but remember, there is also a 5% daily drawdown limit… which is set at $250. So per day, you are actually limited to let’s say 5 trades with a $50 stop loss for each trade. Your lot size will now sit at around 0.5 with a 10 pip stop loss or 0.2 with a 25 pip stop loss. – You see the limitations here?
Is FundingMadeSimple for me?
Well, it is important to know that each prop firm has its advantages and disadvantages, and these differences attract all kinds of traders. As we know, each trader is unique to their own style and preferences. So ultimately, it is best to know what it is you are looking for in a prop firm before approaching one. Do you want a high-profit split? easier trading restrictions? smaller profit target? longer trading days? It is all up to you and the available selection might just intimidate you!
So if you are looking for a prop firm with a 2-phase evaluation test, high-profit split, and large funding, then FMS could be for you. For day traders and swing traders, you will be happy to know that weekend holding, news trading, and overnight holding are also allowed. The only prohibited strategies are the use of any type of EA’s, micro-scalping, and copy-trading. – Not bad.
With over 124 reviews and a rating of 4.0/5 on Trustpilot, this is a legitimate prop firm offering funding of up to $1,000,000 upon completion of the 2-Phase Evaluation Process, a high 80% profit split, and bi-weekly payments. However, their drawdown limits may have you trading in a tight space and ultimately have you looking for another prop firm.
That is it for this review, if you would like to sign up with FMS, then click here! Please leave a comment below, and don’t forget to share this review by clicking the FaceBook Share button above this review.