Finotive Funding is a proprietary trading firm that provides traders with access to significant capital through evaluation programs and instant funding options. With its structured rules and transparent processes, Finotive Funding caters to traders of all experience levels. This detailed guide explains their trading rules, risk management policies, and account guidelines to help traders navigate the platform successfully.
1. Account Types and Evaluation Programs
Finotive Funding offers two primary account types, each designed to cater to different trading preferences:
Evaluation Program Accounts
These accounts require traders to pass a two-step challenge to qualify for funded trading.
- Phase 1 (Challenge):
- Profit Target: 7.5% of the starting balance.
- Maximum Daily Drawdown: 5%.
- Maximum Overall Drawdown: 10%.
- Trading Days: Minimum of 5 required, no maximum time limit.
- Phase 2 (Verification):
- Profit Target: 5% of the starting balance.
- Risk Parameters: Same as Phase 1.
- Trading Days: Minimum of 5 required, no maximum time limit.
Instant Funding Accounts
For traders who want immediate access to capital, Finotive Funding offers instant funding options without an evaluation phase. These accounts come with predefined rules and profit-sharing agreements.
- Standard Instant Accounts:
- Daily Drawdown Limit: 5%.
- Overall Drawdown Limit: 8%.
- Aggressive Instant Accounts:
- Daily Drawdown Limit: 10%.
- Overall Drawdown Limit: 16%.
2. Risk Management Rules
Risk management is at the core of Finotive Funding’s policies, ensuring that traders exercise discipline and adhere to the firm’s standards.
Daily Drawdown Limit
- Calculated as the net equity drop within a single trading day. This includes realized and unrealized losses.
- The limit varies by account type:
- 5% for Standard accounts.
- 10% for Aggressive accounts.
Overall Drawdown Limit
- The total loss allowed from the starting balance of the account:
- 10% for Evaluation accounts.
- 8% for Standard Instant accounts.
- 16% for Aggressive Instant accounts.
Total Risk Rule
- Traders on Instant Funding accounts must ensure that the total risk on open trades does not exceed 50% of the daily drawdown limit. For instance, if the daily drawdown is $5,000, the combined risk on active trades must not exceed $2,500.
3. Trading Strategies and Restrictions
Finotive Funding promotes a fair and transparent trading environment by regulating certain strategies.
Allowed Strategies
- Expert Advisors (EAs):
- Traders can use automated trading systems on all accounts.
- Unlike previous policies, traders are no longer required to submit the source code of their EAs.
- There are no profit caps for EA users.
- Hedging:
- Permitted within the same account to manage risk.
Prohibited Practices
- News Straddling: Opening opposing trades to capitalize on volatility during high-impact news events.
- Cross-Account Hedging: Simultaneously holding opposing trades on separate accounts.
- Latency Arbitrage: Exploiting discrepancies in pricing due to server delays.
- Other Manipulative Tactics: Includes tick scalping and server execution manipulation.
4. Trading During News and Weekends
Finotive Funding accommodates diverse trading styles by allowing flexibility with news and weekend trades.
- News Trading:
- Permitted during high-impact events, except for restricted strategies like news straddling.
- Overnight and Weekend Holding:
- Allowed across all account types, enabling swing traders and long-term strategists to operate without restrictions.
5. Consistency Rules
Finotive Funding enforces consistency rules on Pro accounts to encourage disciplined trading behavior.
- Initial Limits: Based on the trader’s performance during the Evaluation stages and the first 30 days of live trading.
- Weekly Adjustments: Consistency parameters are recalculated weekly to reflect current trading patterns.
6. Leverage and Tradable Instruments
Finotive Funding provides generous leverage and access to a variety of trading markets:
Leverage
- Up to 1:400, depending on account size and type.
Tradable Instruments
- Includes:
- Forex pairs.
- Commodities.
- Indices.
- Cryptocurrencies.
This wide range of instruments caters to diverse trading strategies, from high-frequency scalping to long-term trend following.
7. Payouts and Profit Splits
Finotive Funding offers competitive profit-sharing and payout flexibility.
Profit Split
- Starts at 55% and increases to as much as 95%, depending on account performance and type.
Payout Frequency
- Payouts are available on-demand for Instant Funding accounts.
- Traders can request payouts after achieving profits, with no minimum trading days required.
8. Account Scaling Opportunities
Finotive Funding offers a robust scaling plan for successful traders.
- Eligibility: Based on consistent performance and adherence to risk management rules.
- Account Growth: Funded accounts can grow to a maximum size of $3,200,000.
- Performance Bonuses: High-performing traders may be eligible for additional rewards and benefits.
9. Compliance and Conduct
To maintain a professional and secure environment, Finotive Funding enforces strict compliance measures.
- Account Security:
- Any attempt to gain unauthorized access or manipulate the platform will result in immediate account termination.
- KYC Requirements:
- Traders must provide accurate personal information during account registration and verification.
Conclusion
Finotive Funding offers a structured and transparent environment for traders seeking funded opportunities. Its combination of flexible trading rules, generous profit splits, and a clear scaling plan makes it a viable option for disciplined traders. However, success with Finotive Funding requires strict adherence to its risk management policies and trading guidelines.
Traders should thoroughly review these rules to ensure alignment with their strategies and maximize the benefits of partnering with this firm.
