Audacity Capital, founded in 2012 and headquartered in London, UK, is a proprietary trading firm that offers access to trading capital through programs like the Funded Trader Program and the Ability Challenge. While the firm has been active for over a decade and boasts a strong reputation in some circles, its high fees, restrictive rules, and limited flexibility raise concerns for traders. This detailed review examines the firm’s rules, potential red flags, and why it might not be the best choice compared to other proprietary trading firms.
Who is Audacity Capital?
Audacity Capital positions itself as a global leader in proprietary trading, focusing primarily on forex trading. The firm claims to offer traders the tools, funding, and mentorship required to succeed in trading. It caters to both experienced traders and those seeking a structured trading environment with access to significant capital.
Key Features:
- Established Reputation: Over a decade of operation.
- Global Reach: Claims to have traders across more than 50 countries.
- Capital Scaling: Offers traders the opportunity to scale accounts up to $480,000.
- Mentorship and Community: Promotes a collaborative trading environment with access to educational resources.
Programs and Rules
Audacity Capital offers two main programs: the Funded Trader Program and the Ability Challenge. Both programs come with strict rules and structured frameworks.
Funded Trader Program
- Initial Capital: Traders start with $15,000 and can scale up to $480,000 based on performance.
- Profit Split: Traders receive a 50/50 split, which is lower than the industry standard.
- Scaling Plan:
- Account balance doubles each time traders achieve a 10% profit target without breaching risk parameters.
- Accounts can be scaled up to $480,000 over time.
- Risk Management:
- Maximum Daily Loss: 5% of the account balance.
- Maximum Overall Drawdown: 10% of the account balance.
- Trading Restrictions:
- No News Trading: Trading is prohibited during major news events such as NFP, FOMC meetings, and central bank announcements.
- Withdrawals: Traders must double their account balance and withdraw profits before resuming trading.
Ability Challenge
- Evaluation Process:
- Phase 1: Achieve a 10% profit target while adhering to a 7.5% daily drawdown limit.
- Phase 2: Achieve a 5% profit target with a 5% daily drawdown limit.
- Minimum Trading Days: Requires a minimum of 4 trading days.
- Evaluation Fee: £149, refundable upon successful completion of both phases.
- Scaling Plan: Once funded, traders transition to the Funded Trader Program, starting with $15,000 and scaling based on performance.
Red Flags and Concerns
While Audacity Capital offers structured funding opportunities, several aspects of the firm may raise concerns for prospective traders.
1. High Fees
- Joining Fee: The Funded Trader Program requires an upfront £199 joining fee and a recurring £99 monthly fee. These fees can add up significantly over time.
- Evaluation Fee: The Ability Challenge charges a £149 fee, which is only refundable upon successful completion. This represents an upfront financial risk.
- Comparison: Many competitors offer refundable fees upon successful completion or lower upfront costs.
2. Low Profit Split
- Audacity Capital offers a 50/50 profit split, which is significantly lower than other firms in the industry. Many competitors, such as FTMO and FundedNext, start at 70% or higher, with potential increases to 90%.
- This lower split means traders retain less of their hard-earned profits, which can be a significant drawback for those seeking high returns.
3. Restrictive Trading Conditions
- No News Trading: Prohibiting trading during major news events limits opportunities for traders who specialize in volatility-driven strategies.
- Withdrawal Conditions: Traders must double their account balance before withdrawing profits, forcing them to pause trading during the withdrawal process. This disrupts continuity and may affect performance.
- Limited Asset Classes: Traders are restricted to forex trading until they reach higher funding levels. This lack of diversity may not suit traders looking to explore indices, commodities, or cryptocurrencies.
4. Questionable Value for Fees
- While the firm promotes mentorship and community, the value of the monthly fee is not clear. Many traders feel that the recurring costs outweigh the benefits provided.
- Educational resources and mentorship are less comprehensive than those offered by competitors, leaving some traders feeling unsupported.
5. Reputation and Mixed Reviews
- While Audacity Capital holds a positive rating on platforms like TrustPilot, some reviews highlight issues such as slow communication, dissatisfaction with recurring fees, and concerns about withdrawal processes.
- The firm’s strict approach to rule enforcement has led to complaints from traders who feel penalized for minor infractions.
Why Audacity Capital May Not Be the Best Choice
Despite its long-standing presence in the proprietary trading industry, Audacity Capital falls short in several key areas:
- Cost: The combination of high joining fees, monthly fees, and evaluation costs makes the program expensive compared to competitors.
- Profitability: A low 50/50 profit split significantly reduces traders’ earnings, especially when competitors offer splits of 70% or more.
- Flexibility: Restrictive rules, such as prohibiting news trading and limiting asset classes, hinder traders’ ability to fully utilize their strategies.
- Support: While the firm promotes mentorship, the educational resources and support are not as robust as those provided by other firms.
- Reputation: Mixed reviews and complaints about fees and rule enforcement suggest that the firm may not prioritize trader success.
Conclusion
Audacity Capital provides a structured pathway for traders to access funded accounts, but its high fees, restrictive conditions, and low profit splits make it less competitive than other proprietary trading firms. For traders looking to maximize their profits and enjoy greater flexibility, firms like FTMO, FundedNext, or PaidPex offer more attractive alternatives with higher profit splits, lower fees, and fewer restrictions.
Before committing to Audacity Capital, prospective traders should thoroughly evaluate its rules, costs, and potential drawbacks. Conducting due diligence and comparing it with other proprietary trading firms is essential to finding the best fit for your prop trading goals and strategies.