What is FundingPips?
FundingPips is one of the most popular proprietary trading firms that allows traders to manage funded accounts without risking their own capital. Traders must first pass an evaluation challenge before receiving a funded account.
Before purchasing a challenge, it is important to understand the account rules to avoid unnecessary violations.
1. Maximum Daily Loss
The Maximum Daily Loss rule limits how much you can lose in a single trading day.
Example:
- Account Size: $10,000
- Daily Loss Limit: 5%
- Maximum Daily Loss Allowed: $500
If your equity drops more than the allowed daily limit, the account will be breached.
Tips:
✅ Use proper risk management
✅ Avoid revenge trading
✅ Reduce lot size after consecutive losses
2. Maximum Overall Loss
This rule limits the total loss allowed on the account.
Example:
- Account Size: $10,000
- Maximum Loss: 10%
- Maximum Drawdown Allowed: $1,000
If the account balance or equity falls below the permitted level, the account will be terminated.
3. Profit Target
To pass the evaluation phase, traders must achieve a specific profit target.
Typical targets:
- Phase 1: 8%
- Phase 2: 5%
The target may vary depending on the challenge type selected.
4. Consistency Rule
Some FundingPips account types include a consistency requirement.
This prevents traders from making most of their profits from a single trade while barely trading the rest of the challenge.
Best Practice:
Maintain consistent risk and avoid relying on one large winning trade.
5. News Trading Rules
FundingPips allows news trading on certain account types, while restrictions may apply on others.
Always check the latest rules before trading high-impact events such as:
- Non-Farm Payrolls (NFP)
- CPI
- FOMC Interest Rate Decisions
- ECB Rate Decisions
Trading during major news events can result in increased spreads and slippage.
6. Weekend Holding
Weekend holding permissions depend on the account model selected.
Before holding positions over the weekend:
- Verify your challenge type
- Check current FundingPips policies
- Understand potential market gaps
7. Expert Advisors (EA)
FundingPips generally allows Expert Advisors (EAs), provided they comply with company rules.
Prohibited practices may include:
- Latency arbitrage
- Tick manipulation
- Exploiting platform errors
- Copying trades from unauthorized sources
8. Risk Management Guidelines
Even if the rules allow larger risk, professional traders often risk only:
- 0.25% to 1% per trade
- Maximum 2-3 losing trades per day
- Focus on quality setups over quantity
This helps preserve capital and maintain long-term consistency.
Final Thoughts
FundingPips offers traders an opportunity to access funded capital, but success depends on understanding and respecting the account rules.
Before opening any challenge, make sure you fully understand:
- Daily Loss Limits
- Maximum Drawdown Rules
- Profit Targets
- News Trading Restrictions
- Consistency Requirements
The traders who survive longest are not necessarily those who make the most profit quickly, but those who manage risk consistently and protect their accounts.
Disclaimer: FundingPips rules may change over time. Always refer to the official FundingPips website for the latest terms and conditions before trading.
I currently use the prop firm below for my trading and evaluations.
It aligns well with my NY session approach and execution style.
If you want to explore it further, you can check it below:
FundingPips — Prop Firm
Used in my live trading & evaluations
Used for analysis, structure, and execution planning
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