ETX Funding is a prop trading firm that offers traders the opportunity to access significant capital in exchange for meeting specific performance criteria. While their programs appear attractive on the surface, understanding the fine print is critical. In this comprehensive review, we’ll explore ETX Funding’s rules, payouts, and challenges to help you decide whether this platform aligns with your trading goals.
Rules: A Framework for Discipline
ETX Funding’s rules aim to cultivate disciplined trading, but their strict guidelines might not suit every trader’s style.
Daily and Overall Drawdown Limits
ETX Funding imposes tight daily and overall drawdown limits to minimize risk. While this promotes careful trading, it can feel restrictive, particularly for those who use strategies requiring temporary drawdowns before achieving gains. Many traders have found themselves disqualified after a single unexpected market move.
Restrictions on Trading Styles
Certain trading styles, such as holding positions overnight or during major economic news releases, are prohibited. While these restrictions protect the prop trading firm from high-risk trades, they may hinder traders who excel in volatile markets or prefer long-term strategies.
Payouts: Competitive but with Conditions
ETX Funding advertises lucrative profit splits for traders who meet their evaluation criteria, but the payout process has some caveats.
Profit Split Details
The platform offers profit splits of up to 80%, making it competitive compared to other prop trading firms. However, new traders often start with a lower percentage that only increases with consistent performance.
Delayed Processing Times
While ETX Funding promises regular payouts, traders have occasionally reported delays in receiving funds. These delays, combined with vague communication, can cause frustration and uncertainty.
Challenges: Rigorous Yet Achievable?
ETX Funding’s evaluation process tests a trader’s skills and discipline through a series of challenges.
Aggressive Targets
The evaluation challenges require traders to meet ambitious profit targets within a specific timeframe. While achievable for some, these targets can pressure traders to take higher risks, increasing the likelihood of rule violations.
Costly Retakes
Failing a challenge means paying for a retake. Although common in the industry, the strict evaluation parameters make retakes a frequent expense. Traders have expressed concerns about the financial burden this creates, especially for those just starting.
Conclusion: Is ETX Funding a Good Fit?
ETX Funding provides a structured approach to prop trading, offering access to significant capital and competitive profit splits. However, its restrictive rules, challenging evaluations, and occasional payout delays may not appeal to every trader.
If you thrive under strict guidelines and have the patience to navigate their system, ETX Funding could be a worthwhile platform. For others, exploring alternative firms with more flexibility and transparency might be a better option.