Bright Funded is a relatively new proprietary trading firm, established in September 2023 and registered in the Netherlands. The firm promises traders access to substantial trading capital, targeting those who can demonstrate discipline, consistency, and profitability. Despite its attractive marketing and offerings, there are several reasons why Bright Funded might not be the best choice for traders. Below, we’ll explore their rules, who they are, and potential concerns.
Who is Bright Funded?
Bright Funded entered the prop trading space in late 2023, positioning itself as a transparent and supportive firm for traders. The firm claims to prioritize trader education and transparency, providing evaluation programs to assess trading performance and offer funded accounts.
- Mission: To enable traders worldwide to access capital without risking personal funds in live markets.
- Headquarters: Netherlands.
- Market Focus: Appeals to forex, cryptocurrency, and index traders, with some inclusion of commodity markets.
- Platforms: Proprietary trading platform and mobile app designed to facilitate a seamless trading experience.
While the firm’s ambitions are notable, its recent establishment and lack of a track record raise concerns about its reliability and long-term sustainability.
Evaluation Process and Rules
Bright Funded uses a two-step evaluation process to assess traders. This system is similar to what many proprietary trading firms offer but includes a mix of flexibility and restrictions.
Step 1: Initial Evaluation
- Profit Target: 8%.
- Drawdown Rules:
- Daily Loss Limit: 5%.
- Overall Drawdown: 10%.
- Minimum Trading Days: 5.
- Time Limit: No maximum time limit to complete the evaluation.
Step 2: Verification Phase
- Profit Target: Reduced to 5%.
- Risk Rules: Same as Phase 1 (5% daily loss limit, 10% maximum drawdown).
- Minimum Trading Days: 5.
- Time Limit: None.
Other Key Rules
- News Trading: Allowed but monitored. Engaging in risky news-based trading strategies can lead to account suspension.
- Overnight and Weekend Holding: Permitted, providing flexibility for swing traders.
- Prohibited Strategies:
- Copy trading.
- Latency arbitrage.
- Excessive use of high-frequency trading methods.
- Consistency Rules: Traders are expected to maintain a consistent trading approach. Large deviations in trade size or strategy can lead to warnings or account termination.
Drawbacks of These Rules:
- The daily loss limit of 5%, while standard, can be restrictive during periods of market volatility.
- The trailing drawdown rule (if applied) penalizes unrealized profits, potentially stifling long-term strategies.
- Restrictions on certain automated strategies and copy trading may deter traders who rely on these methods.
Funding and Profit Sharing
Bright Funded offers traders a share of the profits they generate after passing the evaluation process.
- Initial Funding: Ranges from $10,000 to $200,000, depending on the account type and performance during the evaluation.
- Profit Split: Starts at 80%, with no clear indication of whether this increases over time.
- Payout Frequency: Traders can request withdrawals monthly, with processing times averaging 3-5 business days.
Concerns with Profit Sharing:
- The starting profit split (80%) is competitive but lags behind firms offering higher splits from the outset (e.g., 85%-90%).
- Lack of clarity on whether profit splits improve with consistent performance.
- Limited payout methods may frustrate traders looking for faster and more flexible withdrawal options.
Trading Instruments and Platforms
Bright Funded provides access to a range of trading instruments, covering popular markets:
- Forex Pairs: Major, minor, and exotic currency pairs.
- Cryptocurrencies: Includes Bitcoin, Ethereum, and other popular digital assets.
- Indices: Global indices such as NASDAQ, S&P 500, and FTSE.
- Commodities: Includes precious metals like gold and silver.
The firm’s proprietary trading platform is designed for simplicity, offering basic charting and analysis tools. While functional, it lacks the advanced features provided by industry-standard platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Concerns with Platforms:
- The proprietary platform’s limited tools and resources may not appeal to experienced traders who rely on sophisticated analytics.
- The absence of widely used platforms like MT4 and MT5 restricts trader flexibility and compatibility with custom indicators or automated strategies.
Evaluation Costs
Bright Funded charges fees for its evaluation programs, which are non-refundable unless explicitly stated. These fees vary depending on the account size but are generally higher than industry averages.
- Entry-Level Accounts: $150 for a $10,000 account.
- Mid-Level Accounts: $350 for a $50,000 account.
- High-Level Accounts: $900+ for $200,000 accounts.
Concerns with Costs:
- The fees are on the higher end compared to firms offering similar evaluation models.
- Traders must pay the full fee for each retake if they fail, making the process costly for those needing multiple attempts.
- No refund of evaluation fees upon failure, unlike some competitors that provide a refund after passing.
Potential Red Flags
- Limited Track Record
- As a new entrant in the proprietary trading space, Bright Funded lacks the proven reliability of well-established firms like FTMO or FundedNext.
- Limited user reviews make it challenging to verify the firm’s credibility.
- Profit Split Limitations
- The profit split starts at 80%, but there’s no clear path for traders to achieve higher splits. This is less competitive than firms offering splits of up to 90% from the beginning.
- Evaluation Rules
- The strict daily loss and overall drawdown limits leave little room for error, especially during volatile market conditions.
- Restrictions on certain trading strategies may deter algorithmic and high-frequency traders.
- Platform Limitations
- The lack of support for industry-standard platforms like MT4 and MT5 reduces the appeal for experienced traders.
- The proprietary platform lacks advanced features, making it unsuitable for those relying on comprehensive technical analysis.
- Transparency Issues
- Key details about account scaling, payout structures, and long-term trader incentives are vague or missing from the firm’s documentation.
Conclusion
While Bright Funded has potential, its lack of an established track record, restrictive rules, high evaluation fees, and platform limitations raise concerns. Traders considering Bright Funded should weigh these drawbacks against their trading style and priorities.
For those seeking a firm with more transparency, advanced platforms, and proven reliability, exploring well-established options like FTMO, FundedNext, or PaidPex may be more beneficial. Conduct thorough research and consider alternatives before committing to Bright Funded.