Nordic Funder presents itself as a proprietary trading firm offering traders the opportunity to manage substantial capital. However, upon closer examination, several aspects of their rules and policies raise concerns about whether this firm is a good fit for traders. Below, we take a critical look at the rules of Nordic Funder and highlight why traders may want to think twice before committing.
1. Evaluation Process: Not as Simple as It Seems
Nordic Funder, as a prop trading firm, employs a one-stage evaluation process that may initially appear straightforward but comes with conditions that can frustrate traders.
- Profit Target: Traders must achieve a 10% profit target without breaching strict drawdown rules.
- Why This Could Be Problematic: With tight risk management rules (detailed below), achieving this target can become a nearly impossible balancing act, especially during volatile market conditions.
- No Time Limit: While the absence of a time limit might seem like a positive, inactivity of just 30 days leads to account closure.
- The Catch: This means traders must stay consistently active, even if market conditions are unfavorable, forcing trades that may not align with their strategies.
2. Risk Management Rules: Too Restrictive for Most Traders
Nordic Funder enforces some of the strictest risk management rules in the prop trading industry, which can severely limit traders’ ability to succeed.
- Maximum Daily Loss: Limited to 4% of the previous end-of-day balance.
- Why It’s a Problem: Even a single bad day can disqualify you, regardless of your overall profitability or trading plan.
- Maximum Trailing Loss: A 10% trailing loss is applied to the highest account balance achieved.
- The Issue: This rule punishes traders for attempting to grow their accounts aggressively, as even temporary pullbacks in unrealized gains can trigger disqualification.
3. Trading Conditions: Limited Flexibility and Hidden Costs
- Leverage Restrictions: Standard leverage is capped at 1:10, with an option to pay for higher leverage (up to 1:20).
- Why This Is Concerning: Most traders expect competitive leverage as a standard feature, not as an add-on cost.
- Weekend Holding Surcharge: Trades held over the weekend require an additional 10% fee.
- The Catch: Swing and long-term traders are penalized for strategies that involve holding positions for extended periods.
- Instrument Limitations: Nordic Funder restricts trading to specific asset classes, and while forex and indices are available, the absence of broader markets like stocks and cryptocurrencies limits diversification.
4. Scaling and Profit Sharing: Overly Ambitious Goals with Minimal Rewards
- Scaling Opportunities: Accounts are scaled in increments once a trader achieves a 10% profit target. While this sounds appealing, the rigid scaling process caps growth at $1,000,000, which is slower than many competitors.
- Profit Split: Traders start with a 75/25 split (in favor of the trader), which can increase to 90% based on performance.
- Why This Falls Short: Many prop firms start with higher splits (80-85%) without requiring traders to prove themselves further. The conditions for increasing profit splits are not clearly defined, leaving traders in the dark about how to maximize earnings.
5. Prohibited Practices: Rules That Limit Creativity
Nordic Funder prohibits several trading practices that are commonplace among many successful traders.
- High-Frequency Trading (HFT): Completely banned due to alleged replication issues.
- Why It’s Limiting: Traders who rely on rapid market analysis and quick execution strategies are excluded.
- Commercial Expert Advisors (EAs): The use of pre-programmed trading tools is prohibited.
- The Problem: Traders looking to leverage automation for efficiency or back-tested strategies will find Nordic Funder restrictive.
- Hedging Between Accounts: Any hedging across multiple accounts is forbidden, even if it aligns with a trader’s risk management plan.
6. Payout Delays and Transparency Issues
- Profit Withdrawals: Payouts are subject to administrative reviews, which traders report as being slow and cumbersome. Payments can take up to two weeks, far slower than industry leaders.
- Fee Transparency: Traders have complained about hidden costs, such as platform fees and leverage upgrade charges, which are not clearly communicated during onboarding.
7. Inactivity Policy: Penalizes Patience
Accounts that remain inactive for 30 days are automatically closed, regardless of the trader’s profitability or market conditions.
- Why This Is Problematic: This policy pressures traders into taking unnecessary risks during periods of low market volatility, potentially jeopardizing their accounts.
Final Thoughts: Is Nordic Funder a Good Choice for Traders?
While Nordic Funder markets itself as a trader-friendly prop firm, its restrictive rules, hidden costs, and lack of flexibility tell a different story. The tight risk management policies and slow scaling process make it difficult for traders to achieve meaningful growth, while the limited instrument availability and prohibited practices exclude many trading strategies.
For traders seeking transparency, better profit splits, and supportive risk management, Nordic Funder may not be the best choice. There are more flexible and trader-friendly prop firms available that prioritize trader success over stringent restrictions and hidden fees.