Forex Prop Firms Without Evaluation

Prop firms are becoming more and more popular among Forex traders, both new and experienced ones. A prop firm is a firm that provides a trader access to capital for them to trade on the firm's behalf. Of course, a firm would not give money to anybody just to lose them completely. Therefore, the vast majority of prop firms have an evaluation program to weed out unsuccessful traders, though there are some exceptions.

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What is evaluation and why do prop firms require it?

Before funding a trader, a prop firm wants to be certain that they are capable of making a profit. That is why prop firms have an evaluation process. While different firms can have different names for the process, its nature is largely the same. To get access to funding, a trader has to achieve a specified profit target, usually within a set period of time and limits, such as a maximum drawdown and a maximum loss allowed. Often the evaluation process has multiple phases, each with its own target and limits. If a trader passes the evaluation, it proves to the firm that they are able to earn money,

Yet there are prop firms that can grant you access to funding immediately. While there are very few of them, they do exist.

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Advantages and disadvantages of prop firms without evaluation

Trading with a prop firm without a lengthy evaluation process might seem enticing to Forex traders. But there are reasons why you may still prefer passing the evaluation. So let us discuss the advantages and disadvantages of trading with prop firms without evaluation.

Advantages

The advantages of starting to trade on a live account immediately should be obvious for most traders. Nevertheless, let us list them here:

• You save time by avoiding an evaluation process, which can take a month or even longer.
• You can save money if you start to make a profit on a live account, which can cover whatever fees you have paid to the firm. In contrast, your virtual profits on a demo account made during the evaluation process will not help you cover your evaluation fees regardless however well you trade.
• The chance of being scammed is arguably lower as taking evaluation fees and then making you fail the evaluation is a very popular tactic among scammers.

Disadvantages

While the advantages of trading without evaluation are obvious for the most part, there are serious disadvantages as well. The main disadvantage is that prop firms will want more money from you to counter the risk of funding you without evaluation. There are two ways for firms to do that:

• Upfront fees — prop firms have much higher fees for traders who want to trade without evaluation than for those who have passed the evaluation.
• Profit split — prop firms typically have a worse profit split when you want to trade without evaluation. While prop firms will often take just 20% of your profits if you have passed the evaluation, it is not unusual for the firm to demand 50% of profits from traders who have joined them without evaluation.

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List of prop firms without evaluation

Here is the list of prop firms that allow you to trade with them without evaluation. Some of the no evaluation prop firms provide a choice whether you want to trade with or without evaluation, while others have no evaluation process at all. The list contains fees, requirements, conditions, and other details about the firms. The conclusion portion for each firm takes into account only funding schemes without evaluation.

FTUK

FTUK provides a scaling account size. A trader starts at level 1 account and can go up to level 7 (level 8 available as an addon). Each level has an increased account size as well as other benefits. To reach a new level, a trader needs to achieve a profit target.

FTUK offers two funding programs:

• Evaluation — starts on a demo account at level 1, goes to a live account at level 2. Profit earning starts at level 2. Lower registration fees.
• Instant Funding — starts on a live account at level 1. Profit earning starts at level 1, though the trader needs to reach the level 1 profit target to be able to withdraw funds. Higher registration fees.

Registration fee and account size: Funds on your account can be in one of the three currencies: USD, EUR, GBP. To save space, the following list will only show the values in dollars. The list has the following format: registration fees for evaluation/instant funding accounts - starting account size at level 1 - maximum account size at level 7.

• $149/$200 - $3,500 - $448,000
• $349/$500 - $10,000 - $1,280,000
• $449/$750 - $15,000 - $1,920,000
• $599/$1,200 - $22,500 - $2,880,000

The 5%ers

The 5%ers offer three schemes to choose from:

1. Hyper Growth Program with three balance options. All options support up to $4M growth with an extended 10% profit target, 1:30 leverage, no time limit for evaluation, and payout split up to 100%/0% after funding:

2. High-Stakes Challenge — a high-risk high-reward scaling program with 2-step evaluation:

3. 100K Bootcamp — three challenges with 6% profit target, 5% max loss, 1:10 leverage, and no time limit. Stop-loss risking no more than 2% of account balance required in all positions and orders.

Account size/Cost: $20,000/Free; $100,000/$95; $250,000/$225.

AudaCity Capital

AudaCity Capital offers two plans. The Funded Trader Program allows you to start trading on a live account immediately while the Ability Challenge offers better conditions. A free trial is available.

1. Funded Trader Program offers immediate funding with scaling account size. Each time the trader reaches the profit target of 10% of the account size, the trader can withdraw profits and the account size is doubled.

2. Ability Challenge requires a trader to pass a two-step evaluation before getting access to a live account. The first step is called Challenge and the second stage is called Verification. To pass each stage, the trader is required to reach the profit target.

Account size and registration fee: The registration fee depends on the account size the trader applies to:

• $10,000 — $129/€119/£99
• $15,000 — $189/€169/£149
• $30,000 — $339/€309/£269
• $60,000 — $459/€429/£369
• $120,000 — $779/€719/£629
• $240,000 — $1,559/€1,449/£1,269

General conditions

City Traders Imperium

City Traders Imperium has three main trading programs: 2-Step Challenge Funding Program, 1-Step Funded Trader Program, and No-Evaluation Funding Program. Besides the number of evaluation steps (or the absence of evaluation in case of the No-Evaluation program), the programs differ in application fees, available account sizes, and scaling plans. The No-Evaluation program also has lower maximum leverage for Forex traders. The company also provides educational courses as well as the option for 1-to-1 mentoring.

1. 2-Step Challenge Funding Program — a program with the cheapest entry fee, the largest possible account size, and the best initial profit split, but also the hardest to get funded:

2. 1-Step Funded Trader Program — a program with a higher entry fee, a smaller maximum account size, and worse initial profit split, but with easier to pass evaluation:

3. No-Evaluation Funding Program — a program with the highest entry fee, the smallest number of available account sizes, worst initial profit split, and smaller leverage for Forex traders, but with immediate funding:

City Traders Imperium has following features regardless of the chose program:

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Final thoughts

All of the proprietary firms that offer the option of funding without evaluation have similarities but each one of them has some distinct features that may either attract traders or push them away. Hopefully, our list can help you make an informed choice. If you need more details, you can visit the site of the firm you are interested in.

Overall, the funding schemes without evaluation look extremely risky with a high upfront cost, a low payout rate, and often restrictive rules. Only traders who can afford to lose the registration fee and are certain that they can be profitable should consider this kind of funding scheme. That said, experienced traders may consider joining firms like FTUK or City Traders Imperium to start earning money immediately while having few restrictions and a decent payout rate.

If you want to share your opinion, observations, conclusions, or simply to ask questions regarding Forex prop firms without evaluation, feel free to join a discussion on our forum.