Audacity Capital, a prop trading firm headquartered in London, has been in operation since 2012 and offers funding programs for forex traders. While it has established a presence in the industry, there are notable concerns and red flags that traders should consider before committing to its programs. This article highlights the key issues that may make Audacity Capital less suitable for many traders.
1. High Upfront and Recurring Fees
One of the most significant red flags with Audacity Capital is the high cost associated with joining and maintaining their programs.
- Joining Fees: The Funded Trader Program requires a £199 joining fee, which is non-refundable.
- Monthly Fees: Traders must pay a recurring £99 monthly fee to remain in the program. These costs can quickly add up, making the program expensive compared to competitors.
- Evaluation Fee for Ability Challenge: The Ability Challenge charges a £149 fee, which is refundable only upon successful completion. This upfront cost adds financial risk for traders who may fail the evaluation.
Why It’s a Concern:
High upfront and ongoing fees can be a financial burden, especially when there are more cost-effective proprietary trading firms with refundable evaluation fees and no monthly charges.
2. Low Profit Split
Audacity Capital offers a 50/50 profit split for its funded traders, which is far below the industry standard.
- Industry Comparison: Many competitors, such as FTMO and FundedNext, provide profit splits starting at 70% and going up to 90% for consistent performers.
- Impact on Earnings: A 50% split means traders keep only half of their profits, significantly reducing potential earnings.
Why It’s a Concern:
The lower profit split makes it harder for traders to build substantial capital over time, particularly when paired with the firm’s high fees.
3. Restrictive Trading Rules
Audacity Capital enforces several trading restrictions that limit trader flexibility and strategy execution.
- No News Trading: Trading is prohibited during major news events, such as Non-Farm Payrolls (NFP), Federal Open Market Committee (FOMC) meetings, and central bank announcements. This rule can be a significant disadvantage for traders who specialize in news-driven volatility.
- Withdrawal Conditions: Traders must double their account balance before withdrawing profits, and they cannot trade during the withdrawal process. This interruption in trading continuity can disrupt performance and momentum.
- Asset Class Limitations: Initially, traders are restricted to forex trading and cannot trade other instruments like indices or commodities until reaching higher funding levels.
Why It’s a Concern:
These restrictive rules may not align with the strategies of many traders, limiting their ability to adapt to market conditions or fully capitalize on opportunities.
4. High-Risk Management Rules
Audacity Capital imposes strict risk management parameters that can be challenging for traders to adhere to:
- Maximum Daily Loss: Capped at 5% of the account balance.
- Overall Drawdown: Limited to 10%, which includes floating losses.
While these rules are designed to protect the firm’s capital, they can be overly restrictive during periods of market volatility.
Why It’s a Concern:
Tight risk limits leave little room for error, especially for traders employing long-term strategies or trading in volatile markets. Many competitors offer more lenient risk management rules.
5. Limited Asset Diversification
Traders under Audacity Capital’s programs are initially restricted to forex trading, with access to other asset classes like indices and commodities granted only at advanced funding stages.
- Competitor Comparison: Other proprietary trading firms, such as PaidPex and FTMO, offer access to a wide range of instruments, including cryptocurrencies, indices, and metals, from the outset.
- Impact on Strategies: The lack of diversification options limits traders who rely on non-forex markets to generate profits.
Why It’s a Concern:
Traders seeking to diversify their portfolios or capitalize on opportunities in other markets may find these limitations frustrating and restrictive.
6. Questionable Value for Money
Audacity Capital markets itself as a premium proprietary trading firm with access to mentorship and a collaborative trading environment. However, the value of these offerings is debatable:
- Educational Resources: The firm provides limited educational materials compared to competitors, leaving traders without sufficient support for skill development.
- Mentorship Quality: While mentorship is a selling point, the scope and depth of the guidance provided are unclear, and many traders feel the benefits do not justify the costs.
Why It’s a Concern:
The high fees and lackluster resources make it difficult for traders to see a return on their investment in the program.
7. Mixed Reputation and Feedback
While Audacity Capital has received some positive reviews, there are also numerous complaints and concerns from traders:
- Fee Complaints: Many traders express dissatisfaction with the recurring fees and feel that the firm prioritizes revenue from fees over trader success.
- Withdrawal Issues: Complaints about delays and complications during the withdrawal process raise concerns about the firm’s operational reliability.
- Strict Rule Enforcement: Traders have reported accounts being terminated for minor infractions, leading to frustration and financial loss.
Why It’s a Concern:
Mixed reviews and complaints suggest that the firm’s policies and practices may not align with trader expectations or industry standards.
8. Limited Payout Opportunities
The withdrawal process at Audacity Capital is another point of contention:
- Mandatory Account Doubling: Traders must double their account balance before withdrawing profits, which can be time-consuming and adds unnecessary pressure.
- Payout Frequency: Traders are not allowed to withdraw profits until specific milestones are reached, unlike competitors that offer bi-weekly or even instant payouts.
Why It’s a Concern:
Restricted payout options limit traders’ ability to access their earnings when needed, reducing flexibility and financial liquidity.
Conclusion
Audacity Capital may appeal to traders seeking a structured trading environment and capital scaling opportunities. However, the firm’s high fees, low profit split, restrictive rules, and limited flexibility make it a less competitive choice in today’s proprietary trading landscape.
Key Red Flags:
- High and Recurring Fees: Significant costs compared to competitors.
- Low Profit Split: Retaining only 50% of profits limits long-term earning potential.
- Restrictive Rules: Prohibitions on news trading and asset class limitations hinder trading opportunities.
- Limited Transparency: Concerns about the true value of mentorship and educational resources.
- Withdrawal Issues: Complicated payout processes and conditions reduce trader satisfaction.
Recommendation:
For traders looking for better profit splits, lower fees, and more flexibility, firms like FTMO, FundedNext, or PaidPex may provide a more supportive and rewarding trading experience. Always research thoroughly and compare options to find a proprietary trading firm that aligns with your goals and trading style.
