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Apex Trader Funding is widely regarded as a good prop firm, particularly for traders who are disciplined enough to manage its specific trailing drawdown rule. Its primary appeal lies in offering large capital accounts through a straightforward one-step evaluation process, often available at significant discounts. This makes it an accessible option for traders seeking to leverage their skills without risking substantial personal capital.
Table of Contents
- What Is Apex Trader Funding and How Does It Work?
- The Evaluation Process: What Does It Take to Get Funded?
- Understanding the Critical Rules: Where Traders Succeed or Fail
- The Payout Structure: How and When Do You Get Paid?
- Weighing the Pros and Cons of Apex Trader Funding
- Who Is the Ideal Candidate for Apex?
- Building Your Trading Career: Prop Firms and Personal Accounts
- Frequently Asked Questions About Apex Trader Funding
What Is Apex Trader Funding and How Does It Work?
Apex Trader Funding is a proprietary trading firm that offers traders access to its capital. The model is straightforward: traders pay a fee to take an “evaluation,” which is a test of their trading ability in a simulated environment. If a trader passes the evaluation by meeting specific profit targets without violating any rules, they are offered a funded “Performance Account.”
With a funded account, traders operate with the firm’s capital and keep a large percentage of the profits they generate, typically up to 90%. The firm assumes the financial risk, while the trader provides the skill. This arrangement allows talented individuals to trade significant account sizes they might not otherwise have access to, removing the barrier of insufficient personal capital and the psychological pressure of risking their own money.
The Evaluation Process: What Does It Take to Get Funded?
The path to a funded account is centered on the evaluation process. This is the firm’s method for vetting traders and ensuring they can manage risk while generating consistent profits. Unlike many competitors, Apex has streamlined this process significantly, making it one of its most attractive features.
The Simplicity of a One-Step Evaluation
A major differentiator for Apex is its one-step evaluation. Many prop firms require traders to pass two distinct phases, each with its own profit target and duration. Apex consolidates this into a single stage. A trader simply needs to hit the specified profit target without breaching the drawdown limit. There is no minimum or maximum number of trading days to achieve this, offering flexibility to traders who may be profitable but not on a rigid timeline. Once the profit target is met, the evaluation is passed.
Profit Targets and Available Account Sizes
Apex offers a wide range of account sizes, each with a corresponding evaluation fee, profit target, and drawdown limit. This allows traders to select a plan that matches their risk tolerance and trading strategy. The profit target is typically a percentage of the starting account balance. For example, a $50,000 account usually requires a $3,000 profit target.
The firm is famous for its frequent and aggressive promotions, often offering discounts of 80% or 90% on evaluation fees. This dramatically lowers the cost of entry and allows traders to attempt the evaluation multiple times for a relatively low investment.
| Account Size | Profit Target | Trailing Threshold | Contracts Allowed |
|---|---|---|---|
| $25,000 | $1,500 | $1,500 | 4 |
| $50,000 | $3,000 | $2,500 | 10 |
| $100,000 | $6,000 | $3,000 | 14 |
| $250,000 | $15,000 | $6,500 | 27 |
| $300,000 | $20,000 | $7,500 | 35 |
Understanding the Critical Rules: Where Traders Succeed or Fail
While the profit target is the goal, the rules are the boundaries. Violating a key rule, particularly the drawdown, is the most common reason traders fail an evaluation or lose a funded account. Understanding these rules is not just important; it is essential for success.
The Trailing Threshold Drawdown Explained
The most critical and often misunderstood rule is the trailing threshold drawdown. Unlike a static drawdown that is fixed to the initial balance, Apex’s drawdown trails your account’s peak balance. It is calculated based on your highest unrealized profit, also known as “peak intraday balance.”
Here is a practical example: On a $50,000 account with a $2,500 trailing drawdown, your liquidation threshold starts at $47,500. If your account balance increases to $51,000, your new threshold is not $47,500 anymore. It trails up to $48,500 ($51,000 – $2,500). If your account then reaches a peak of $52,000, your threshold moves up to $49,500. However, the threshold stops trailing once it reaches the initial starting balance of the account. This means for the $50k account, the trailing drawdown stops moving up once your failure threshold hits $50,000. This is a significant advantage, as it effectively becomes a static drawdown once you are sufficiently in profit.
This rule requires immense discipline. A trader could have a highly profitable day, see their threshold move up significantly, and then give back those profits, finding themselves much closer to the new, higher failure threshold than they were at the start of the day.
Flexibility in Trading Style: News, EAs, and More
Beyond the drawdown, Apex is known for its liberal trading rules, which is a major draw for many.
- News Trading: Traders are generally permitted to trade during major news events, a practice forbidden by many other prop firms.
- Holding Positions: You can hold trades overnight and over the weekend without restriction.
- Trading Systems: The use of Expert Advisors (EAs), bots, and other automated or copy-trading systems is allowed, provided you are not mirroring the exact same trades across multiple accounts simultaneously.
This flexibility empowers traders to employ their preferred strategies without having to alter them to fit a restrictive rulebook. It accommodates scalpers, swing traders, and algorithmic traders alike.
The Payout Structure: How and When Do You Get Paid?
Getting funded is only half the journey; the ultimate goal is to generate profits and receive a payout. Apex has a clear, albeit specific, payout policy. The profit split is highly favorable: the trader keeps 100% of the first $25,000 in profits per account and 90% thereafter. This is one of the most generous splits in the industry.
To be eligible for a payout, you must trade for a minimum number of days. Payout requests can be made twice per month on designated dates. The process is designed to be consistent, but traders must adhere to the schedule and meet the minimum trading day requirements. The funds are typically transferred via wire or crypto, providing modern and efficient payment options.
Weighing the Pros and Cons of Apex Trader Funding
To determine if Apex is the right fit, a balanced look at its advantages and disadvantages is necessary.
| Pros (Advantages) | Cons (Disadvantages) |
|---|---|
| Simple One-Step Evaluation: Faster and more straightforward path to funding. | Trailing Threshold Drawdown: Can be difficult for undisciplined traders to manage. |
| Generous Payout Split: 90% profit share is at the top of the industry. | Monthly Data Fees: Funded accounts require a monthly data/platform fee. |
| Frequent Deep Discounts: Evaluation fees are often 80-90% off, reducing entry costs. | Specific Payout Schedule: Payouts can only be requested on certain days of the month. |
| Flexible Trading Rules: Allows news trading, overnight holds, and EAs. | Customer Support: Can experience delays during periods of high demand. |
| Multiple Accounts Allowed: Traders can manage up to 20 Performance Accounts at once. | Psychological Pressure: The trailing rule can create pressure to not let any profit slip. |
Who Is the Ideal Candidate for Apex?
Apex Trader Funding is not a perfect fit for everyone. The ideal candidate is a trader who possesses several key traits. First and foremost is discipline. The ability to manage the trailing drawdown by taking profits methodically and not letting winning trades turn into significant losses is paramount. A trader who understands and respects this rule has a much higher chance of long-term success.
Additionally, traders who utilize proven, consistent strategies—whether manual or automated—are well-suited. The firm’s allowance of EAs and news trading makes it a haven for systematic traders. Finally, it is an excellent choice for individuals who are confident in their ability to hit a profit target but lack the personal capital to make their efforts worthwhile on a small, personal account.
Building Your Trading Career: Prop Firms and Personal Accounts
Proprietary trading firms represent one powerful avenue for scaling a trading career. They provide the leverage and capital that can accelerate a trader’s journey. However, it’s also wise to consider the entire trading ecosystem. For many, the ultimate goal is to trade independently without any of the rules or restrictions imposed by a third-party firm.
Building a personal track record on a high-performance, low-cost platform is a viable and empowering alternative. Trading platforms like Cointracts are designed for serious futures traders, offering institutional-grade tools, deep liquidity, and some of the lowest fees in the industry. By growing a personal account on such a platform, you retain 100% of your profits, have complete control over your strategy, and are not subject to any drawdown rules or evaluation pressures. For traders who value autonomy, using a powerful platform to compound their own capital can be an even more rewarding path.
Frequently Asked Questions About Apex Trader Funding
What happens if I fail the Apex evaluation?
If you fail the evaluation by hitting the drawdown limit, that specific evaluation account is closed. However, because of the frequent discounts, you can often purchase a new evaluation for a low price and try again. There is no penalty or waiting period for starting over.
Is Apex Trader Funding a scam or legitimate?
Apex is widely considered a legitimate company within the prop trading space. They have a long track record of paying out millions of dollars to funded traders and have a massive community of users. As with any prop firm, success is dependent on the trader’s ability to follow the rules.
Can I use a trading bot or EA with Apex?
Yes, Apex is one of the more friendly firms when it comes to automated trading. The use of EAs and bots is permitted, which is a significant advantage for traders who rely on algorithmic strategies.
What platform can I use to trade with Apex?
Apex primarily supports futures trading on platforms compatible with Rithmic or Tradovate, which are leading data providers. This includes popular platforms like NinjaTrader, TradingView, and many others, giving traders a wide choice of professional-grade software.
