What Is Funding Pips?
Founded in 2023, Funding Pips is a proprietary trading firm headquartered in Dubai, UAE. The firm was created with a clear focus on supporting traders by offering them access to funded accounts, allowing them to trade without risking their own money. This model has become popular among traders who may not have access to large capital but possess the skills to generate profits in the markets.
The main principle of Funding Pips is to find and nurture talented traders, giving them the chance to manage accounts with sizes up to $2 million. In return for passing a structured evaluation process, traders receive a significant portion of the profits they generate, ranging from 80% to 90%.
Unlike traditional retail trading, where traders use their own funds, Funding Pips covers the capital. This arrangement benefits both the firm and the trader, as the firm earns a share of the profits while the trader takes home the bulk without having to risk their own funds.
How the Evaluation Process Works
Before a trader can receive a funded account, they need to prove their trading capabilities by passing an evaluation. This evaluation ensures that the trader can manage risk effectively, generate consistent profits, and follow trading rules. Funding Pips offers three types of evaluation models: the one-step evaluation, the two-step evaluation, and the three-step evaluation.
1. One-Step Evaluation
In the one-step evaluation, traders must hit a predetermined profit target without breaching any risk limits. Typically, this means achieving a 10% profit while keeping drawdowns within set limits. The daily loss limit is usually set at 5%, and the overall drawdown limit is 10%. This evaluation model is suitable for traders who prefer to demonstrate their abilities quickly.
However, the one-step evaluation comes with strict rules, and even minor breaches can disqualify traders from receiving a funded account. As such, it’s important for traders to have a disciplined approach, ensuring they do not exceed the daily or total drawdown limits.
2. Two-Step Evaluation
The two-step evaluation is more popular and structured than the one-step model. It consists of two phases:
- Phase 1: The trader is required to reach an 8% profit target while adhering to strict risk management rules, including a daily loss limit of 5% and a maximum drawdown of 10%. This phase typically lasts 30 days, but traders can complete it earlier if they meet the profit target before the time limit.
- Phase 2: Once the trader successfully completes Phase 1, they move to Phase 2, where the profit target is reduced to 5%. The risk management parameters remain the same, and the trader must continue to demonstrate consistency and discipline.
The two-step evaluation provides a more balanced way of assessing a trader’s skills and ability to manage risk over a longer period.
3. Three-Step Evaluation
For traders who prefer an even more gradual evaluation process, the three-step model is ideal. In this structure, each of the three phases has a 5% profit target. The rules around risk management, such as the daily loss limit and maximum drawdown, remain consistent across all phases.
The three-step evaluation allows traders to show their consistency over a longer period and can be beneficial for those who prefer to ease into the evaluation rather than rush through it.
Trading Platforms at Funding Pips
Funding Pips understands that traders have different preferences when it comes to trading platforms. To accommodate these preferences, the firm offers access to several popular platforms, ensuring that traders can work in the environment that best suits their trading style.
MetaTrader 4 (MT4)
MetaTrader 4 is one of the most widely used trading platforms globally. Its user-friendly interface, extensive charting tools, and ability to automate trading strategies through Expert Advisors (EAs) make it a popular choice for traders of all experience levels. MT4 is known for its reliability and is favored by traders who value simplicity and functionality.
MetaTrader 5 (MT5)
MetaTrader 5 is the successor to MT4 and offers more advanced features, such as additional timeframes, more complex order types, and access to a wider range of financial instruments. Traders who want more sophisticated tools and who work with multiple asset classes often choose MT5 for its versatility.
cTrader
cTrader is another platform offered by Funding Pips, known for its fast order execution and intuitive interface. It is particularly favored by short-term traders and those who use scalping strategies. cTrader also provides transparency and advanced analytical tools, making it ideal for traders who want deeper insights into market movements.
Profit Splits and Payouts
One of the most attractive features of Funding Pips is its generous profit split arrangement. Traders who successfully pass the evaluation process are entitled to keep between 80% and 90% of the profits they generate on their funded accounts. This is a higher percentage than what many other proprietary trading firms offer, making Funding Pips an appealing option for traders who want to maximize their earnings.
The profit split can increase over time based on the trader’s performance. Consistently profitable traders may qualify for the highest split of 90%, which allows them to keep an even larger portion of their gains.
Funding Pips also offers a flexible payout process. Traders can withdraw their profits weekly, with the first payout available just seven days after the initial trade on the funded account. This means that traders can quickly access the profits they generate, giving them the liquidity they need to reinvest or cover personal expenses.
Fees and Risk Management Rules
To participate in the evaluation process, traders must pay a non-refundable evaluation fee. The amount of this fee depends on the account size and the type of evaluation selected. While the fees are not refundable, they cover the cost of the evaluation and provide traders with the opportunity to manage significant amounts of capital once they pass.
Funding Pips also enforces strict risk management rules. These rules include maximum drawdown limits and daily loss limits, which traders must adhere to at all times during the evaluation. Breaching these rules can lead to immediate disqualification, so it’s essential for traders to understand and follow the guidelines closely.
Pros of Funding Pips
- High Profit Splits: With up to 90% profit splits, Funding Pips offers traders a significant share of their earnings.
- Multiple Evaluation Models: Traders can choose from one-step, two-step, or three-step evaluations, depending on their preference.
- Weekly Payouts: Traders can receive payouts weekly, allowing for quick access to profits.
- Wide Platform Choice: With access to MT4, MT5, and cTrader, traders can select the platform that best suits their needs.
- Flexible Scaling Options: Consistent performance can lead to account scaling and larger capital allocations.
Cons of Funding Pips
- Strict Rules: Risk management rules are strict, and even minor breaches can disqualify traders.
- Non-Refundable Fees: The evaluation fees are non-refundable, which could be a disadvantage if the trader doesn’t pass on their first attempt.
Conclusion
Overall, Funding Pips provides an excellent opportunity for skilled traders to access significant capital and enjoy high profit splits without risking their own money. The firm’s flexible evaluation models, variety of trading platforms, and attractive profit-sharing scheme make it a strong contender in the proprietary trading space.
However, it’s important for traders to be mindful of the firm’s strict risk management rules and to be prepared to pay the non-refundable evaluation fees. For those who can navigate these challenges, Funding Pips offers a rewarding path to trading success.
