The 5%ers is a proprietary trading firm offering funded accounts to forex, stock, indices, and crypto traders who can demonstrate consistency and proper risk management. While the firm provides great opportunities, understanding their rules and payout system is essential for any trader planning to join.
Overview of the Challenges
The 5%ers, a reputable prop trading firm, offers a range of challenge models designed to evaluate a trader’s skill, risk management, and consistency. These challenges serve as a gateway to obtaining a funded trading account.
1. Instant Funding Program
- Objective: Start trading immediately without a demo challenge.
- Rules: Traders are provided with a live account. The goal is to maintain a specific profit target without exceeding risk limits.
- Profit Targets:
- Low-risk plan: 6% profit target with a maximum drawdown of 4%.
- Aggressive plan: 12% profit target with a maximum drawdown of 6%.
- Account Sizes: Accounts range from $6,000 to $20,000, with scaling options up to $4 million.
2. Freestyle Program
- Objective: Pass a trading test while using any style or strategy.
- Profit Target: Achieve a profit of 10% within a set time frame.
- Rules:
- No restrictions on lot size, trading style, or risk.
- Maximum drawdown applies (varies by account size).
3. High Stakes Program
- Objective: For traders seeking larger capital quickly.
- Profit Target: Achieve up to 16% profit.
- Risk: Aggressive leverage and drawdown rules apply, tailored for high-stakes accounts.
Trading Rules: What Traders Can and Can’t Do
The 5%ers emphasizes disciplined trading. Below are the key rules:
What Traders Can Do
- Use All Trading Styles: Scalping, swing trading, and long-term strategies are allowed.
- Hold Trades Overnight and Over Weekends: Unlike some firms, The 5%ers permits holding positions outside of market hours.
- Trade Any Instrument: Traders can access forex, stocks, indices, and cryptocurrencies.
- Use Expert Advisors (EAs): Automated trading systems are allowed, provided they adhere to risk management rules.
- Withdraw Partial Profits: Traders can request payouts without reaching full profit targets.
What Traders Can’t Do
- Exceed Risk Limits:
- Daily loss limits and overall drawdown must not be breached.
- For example, exceeding a 4% drawdown on a low-risk plan results in disqualification.
- Trade News Events Without Caution: High-impact news trading is allowed, but risky behaviors around volatility can lead to account reviews.
- Engage in Unapproved Copy Trading: Copying trades from other accounts must be pre-approved.
- Use Martingale Strategies: Doubling down on losing trades is prohibited.
- Open Excessive Lot Sizes: Traders must stay within the risk parameters for their account size.
How Payouts Work
The 5%ers has a clear and straightforward payout process, but traders must meet certain conditions:
Payout Rules
- Profit Split: Traders keep between 50% to 100% of their profits, depending on their performance and account scaling.
- Low-risk accounts start at a 50% split, increasing as traders progress.
- High-risk or aggressive plans may offer higher splits earlier.
- Scaling Opportunities: Profitability allows traders to scale their accounts up to $4 million while maintaining profit splits.
When Do Payouts Occur?
- Regular Schedule: Traders can request payouts at the end of each trading month.
- Minimum Withdrawal Threshold: Payouts require a minimum profit threshold, which varies by account type.
- Processing Time: Withdrawals are processed within 7 business days after a request is approved.
Payment Methods
- The 5%ers supports various payment methods:
- PayPal
- Bank transfers
- Cryptocurrency (Bitcoin and Ethereum)
Other Key Rules to Note
- Account Suspension: Violations of drawdown rules or maximum daily loss limits result in immediate suspension of the account.
- Scaling Rules: Traders must achieve a profit milestone (e.g., 10% or 12%) before their account size is scaled up.
- Refund Policy: Entry fees for challenges are typically non-refundable unless explicitly stated.
- Trading Platforms: The firm primarily uses MetaTrader 5 (MT5), offering advanced tools and customization.
Final Thoughts
The 5%ers stands out for its flexibility, allowing traders to use diverse styles and instruments. However, strict risk management and clear guidelines ensure only disciplined traders succeed. Understanding the rules and payout process is critical to making the most of what this firm has to offer.
For those who can meet the firm’s standards, The 5%ers offers a solid pathway to funded trading and potential financial growth. However, traders must approach with care, adhering to the outlined rules to avoid account termination or disqualification.