Contents
- What is evaluation and why do prop firms require it?
- Advantages and disadvantages of prop firms without evaluation
- List of prop firms without evaluation
- Final thoughts
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.
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.
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.
List of prop firms without evaluation
Here is the list of prop firms that allow you to trade with them without evaluation. Some of them 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. 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.
- £119/£150 - $3,500 - $896,000
- £299/£410 - $10,000 - $1,280,000
- £349/£550 - $15,000 - $1,920,000
- £499/£950 - $22,500 - $2,880,000
Profit target: 10%.
Maximum overall drawdown: 6%.
Leverage: Depends on the account level. Up to 1:50 on Low-Risk accounts.
Trade instruments: Forex, metals, indices, and commodities.
Addons: FTUK offers a variety of powerful addons. Unlock level 8 (essentially, double the maximum trading capital)— +10% to the fee. Double maximum trading days— +15% to the fee. Joining fee refund— +25% to the fee. Evaluation retake— + 50% to the fee.No stop-loss — + 20%.
Minimum trading days: None.
Payout rate: Depends on the account level. Starts at 50%, goes up to 80% at the maximum level.
Trading platform: MetaTrader 4.
Payment options: Payouts are transferred via the trader's Deel account. Through Deel, the trader can be paid using the following methods: bank transfer, Deel card, Coinbase, PayPal, Payoneer, Revolut, Wise.
Other features: One-to-one, trader interviews, a private session with a support coach available at a request. Expert advisors and robots are allowed. Trade copying is allowed from a non-FTUK account to a FTUK account but not between different FTUK accounts. Overnight, scalping, news, weekend trades are allowed. Hedging allowed. Payouts can be received at a request as long as the traders' share is above one of the following figures: £150, €200, $250.
Conclusion: FTUK provides a very appealing offer for those traders who want to choose Instant Funding. Very few limits on how you trade (even hedging is allowed, which is unusual), a scaling program, a payout rate that can go above the standard 80%, very good leverage on higher levels of the account, a wide range of trading instruments, a chance for 1-to-1 coaching— all these can be considered good reasons to think about joining this trading firm. There are some less positive features, though. Probably the biggest negative for those traders who want to start earning profits immediately is the requirement to reach the profit target on level 1 of your trading account. It makes the instant funding option look very similar to the option with evaluation. Besides that, low maximum drawdown, small leverage on lower levels on the account, and the mandatory stop-loss for low-risk accounts can make FTUK somewhat less appealing to traders.
EarnForex rating: ⭐⭐⭐⭐⭐ (5/5)
The 5%ers
The 5%ers offer two schemes to choose from:
- Instant funding with two modes and three balance options. All modes and options support up to $4M growth with extended 10%/25% profit targets:
- $24K, start with $6K, stop-out $5.75K, 50%/50% payout split— €235 fee:
- Low Risk— profit target 6%, 1:10 leverage, 1.5% stop-loss required, max time 180 days.
- Aggressive— profit target 12%, 1:30 leverage, max time 60 days.
- $40K, start with $10K, stop-out $9.6K, 50%/50% payout split— €385 fee:
- Low Risk— profit target 6%, 1:10 leverage, 1.5% stop-loss required, max time 180 days.
- Aggressive— profit target 12%, 1:30 leverage, max time 60 days.
- $80K, start with $20K, stop-out $19.2K, 50%/50% payout split— €745 fee:
- Low Risk— profit target 7%, 1:10 leverage, 1.5% stop-loss required, max time 180 days.
- Aggressive— profit target 12%, 1:30 leverage, max time 60 days.
- $24K, start with $6K, stop-out $5.75K, 50%/50% payout split— €235 fee:
- 100K Bootcamp— three challenges with 6% profit target, 5% max loss, 1:10 leverage, 12 months total time for three stages, €85 fee:
- Challenge #1: $25K start
- Challenge #2: $50K start
- Challenge #3: $75K start
- Funded conditions: $100K-$4M balance, 5% profit target, 4% max loss, 1:10 leverage, up to 80%/20% profit split (starts with 50%/50%), additional €215 fee.
News trading: Allowed
Account currencies: US dollar
Trading instruments: Forex, gold & silver, indices
Commission: $4/lot round trip
Trading platforms: MetaTrader 5
Free trial: No
Payment options: Bank transfer, credit/debit cards, giropay, EPS
Other features: long-term trading possible, news trading possible, free webinars, psychological coaching.
Website languages: English, Spanish, Arabic
Conclusion: The 5%ers offers a great account range of accounts for no evaluation prop trading. Combined with their support for the MetaTrader 5 platform and reasonable trading restrictions, it makes an excellent choice if you want to start trading immediately. On the not so bright side, the leverage offered by The 5%ers is rather low.
EarnForex rating: ⭐⭐⭐⭐ (4/5)
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 a better profit split and no monthly fees after two phases of evaluation. The firm has an unusual requirement for a phone interview (with the option of a face-to-face interview if you live in London) before deciding whether to fund you.
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. The account size starts at $15,000 on stage 1 and can grow up to the maximum of $480,000 on stage 6.
Account size: $15,000; $30,000; $60,000; $120,000; $240,000; $480,000.
Registration fee: £298.
Monthly fee: £99.
Maximum lot size: Starts at 0.5 at stage 1 and is double at each of the subsequent stages up to the maximum of 16 at stage 6.
Maximum overall drawdown: 10%.
Profit target: 10% to go to the next stage (unless you reached the last stage) and to be able to withdraw profits.
Trading instruments: Forex in the first three stages; Forex, indices, and commodities in the last three stages.
Minimum trading days: None.
Trading platform: MetaTrader 4.
Payout rate: 50%.
Payment options: through the firm's app or by sending an email.
Other features: weekend trading available at a request, news trading not allowed, expert advisors allowed.
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 lasts 30 days, the second stage is called Verification and lasts 60 days. To pass each stage, the trader is required to reach the 10% profit target within the allotted time limit.
Account size and registration fee: The registration fee depends on the account size the trader applies to:
- $15,000— £149
- $30,000— £269
- $60,000— £369
- $120,000— £629
Minimum trading time: 7 days.
Maximum daily drawdown: 7.5% for Challenge, 5% for Verification and Live Account.
Maximum overall drawdown: 15% for Challenge, 10% for Verification and Live Account.
Trading platform: MetaTrader 4.
Payout rate: 75%.
Trading instruments: Forex, gold, and certain indices such as GER30, US30, US500, and NAS100.
Leverage: 1:100.
Payment options: Credit/debit card, PayPal, bank transfer, Bitcoin, Skrill.
Other features: Interview required; expert advisors allowed; news, weekend, and overnight trading allowed during the two stages of evaluation; monthly profit withdrawal; consistency rule; refundable registration fee if you pass the Verification stage.
Conclusion: AudaCity Capital has both registration fees and monthly fees, and that alone can make traders consider the firm's offer of the Funded Trader Program unappealing. There are other negatives as well— a limited lot size on lower levels of the account, withdrawal only after reaching the profit target, limited trading instruments, limited methods of money withdrawal. Among more positive features are a decent drawdown limit and a scaling plan.
EarnForex rating: ⭐⭐⭐⭐ (4/5)
Apply for an immediate funding account with AudaCity Capital!
City Traders Imperium
City Traders Imperium has three main trading programs: Standard Funded Trader Program, Classic Funded Trader Program, and Daily Trading Funded Trader Program. The only difference between the Standard and Classic programs is the conditions for passing evaluations. There is no difference between them once you have been funded. You can also decide to skip the evaluation via the Direct Funding Program, getting funded immediately. The registration fee is much higher in this case, though. The Daily Trading program is targeted toward traders who want to trade with higher risk and higher rewards. The company also provides educational courses as well as the option for 1-to-1 mentoring.
Standard, Classic, and Direct Funded Trader Programs
The only difference between those programs is the evaluation requirements (or lack thereof). Once the account is funded, its size can double each time the trader reaches the 10% profit target up to $2 million.
Evaluation requirements:
Standard program:
- Maximum evaluation time: 6 months.
- Profit target: 9%.
- Maximum absolute drawdown: 5%.
- Minimum active trading days: 30 days.
Classic program:
- Maximum evaluation time: 12 months.
- Profit target: 7%.
- Maximum relative drawdown: 5%.
- Minimum active trading days: 30 days.
Account size and registration fee: The registration fee depends on the account size and the funding program. They are shown in the following format: account size— Standard program fee/Classic program fee/Direct Funding fee.
- $10,000— £119/£109/-
- $20,000— £209/£199/£999
- $40,000— £389/£379/£1,799
- $50,000— £459/£449/£2,199
- $70,000— £659/£649/£3,099
Maximum absolute drawdown: 5% for funded accounts.
Stop-loss risk: 1.5% per position.
Trading instruments: Forex, gold, indices.
Leverage: 1:10.
Trading platform: MetaTrader 5.
Payment options: Credit/debit card, cryptocurrencies (only for paying fees, no withdrawals in cryptocurrencies are available at this time), and bank wire.
Payout rate: 60%.
Other features: Discounts for evaluation programs traders who have failed evaluation or the Direct Funding program, KYC documents required, affiliate program, educational courses, monthly withdrawals, weekend trading allowed, news trading allowed (the only exception is that no new trades allowed three minutes before and three minutes after High Impact news— news marked in red on the Forex Factory Economic Calendar), trade copying allowed (though you are required to provide proof that you are copying your own trades), algorithms and expert advisors allowed with some exceptions.
Daily Trading Funded Trader Program
To get funded, a trader needs to pass the two-stage evaluation program. Once funded, the trader can grow their account size by 30% each time the 10% profit target and several other requirements are reached up to the maximum account size of $200,000.
To get funded, a trader needs to pass two phases of evaluation:
Assessment phase
- Maximum time limit: 45 days.
- Minimum active trading days: 10 days.
- Profit target: 10%.
Qualification phase
- Maximum time limit: 45 days.
- Minimum active trading days: 10 days.
- Profit target: 5%.
Account size and registration fee:
- $10,000— £109 fee
- $25,000— £169 fee
- $50,000— £289 fee
Maximum daily drawdown: 4%.
Maximum overall drawdown: 10%.
Payout rate: 70% after the first 10% profit target, 80% afterward, 90 after reaching the 10% profit target and several other requirements, 100% after reaching those requirements three times.
Stop-loss: Required.
Leverage: 1:33.
Trading platform: MetaTrader 5.
Other features: News, overnight, and weekend trading allowed with no restrictions; KYC documents required; hedging allowed; copying trades allowed only from your accounts (you will need to provide proof that you are copying your own trades); refund of the registration fee with the first drawdown; one free retake of evaluation if you were in profit during the qualification phase.
Conclusion: City Traders Imperium has extensive training courses, which helps it to stand out from other similar prop firms. Besides that, a higher than the normal payout rate, a scaling program, a decent range of trading instruments, and extremely few limits to how you trade can also be reasons to consider joining City Traders Imperium if you are interested in the Direct Funded Trader Program. Among the negatives are a low drawdown limit, small leverage, and mandatory stop-loss.
EarnForex rating: ⭐⭐⭐⭐ (4/5)
Get funded instantly with CTI!
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.
