Introduction: Apex Trader Funding Review
Welcome, readers! In this article, I, Vishwesh, will provide a comprehensive review and breakdown of Apex Trader Funding, one of the prominent funded trader program companies in the market.
Let's delve into what Apex Trader Funding offers, the eligibility criteria, and my overall insights on their services.
Understanding Apex Trader Funding
Apex Trader Funding is a well-known funded trader program company that offers various options for traders looking to enhance their skills and trade with increased capital.
Key Points:
- Minimum Number of Trading Days
- Trailing Threshold
- Maximum Position Size
- News Trading
- Number of Steps
These are some of the essential aspects that Apex Trader Funding emphasizes in their program.
Stay tuned as I discuss each of these elements in detail and provide my insights on their significance.
Understanding Minimum Trading Days
Now, let's focus on the minimum trading days aspect. Many trading programs have a specific number of days that traders must actively engage in trading to meet the program's criteria.
What Does This Mean?
Imagine a trading program that sets a profit target, say $5,000. If you make $5,000 in a single day, that's great. However, if there's a requirement for a minimum number of trading days, such as seven, it means you must sustain that $5,000 balance over seven days of trading.
For instance, if you earn the entire $5,000 on the first day but lose $200 on the second day, you'll need to recover that $200. Alternatively, if you make $6,000 on the other days, you can meet the requirement by frequently opening and closing trades until you reach the minimum days threshold.
Key Point:
The minimum trading days requirement isn't a significant obstacle for most traders. It primarily affects those who barely meet the program's criteria. Moreover, if you're not a skilled trader, failing to maintain that balance might result in a loss of your profits.
Ultimately, this requirement encourages consistency and the ability to take calculated risks in the market over an extended period.
Understanding the Trailing Threshold
Among the components of evaluation programs, the Trailing Threshold is often the most perplexing for traders. It's also a frequent topic of criticism in reviews, with some regarding it as gimmicky. In my view, the Trailing Threshold is the core of what you're investing in when you join these programs.
What is the Trailing Threshold?
According to the information on their website, Apex Trader Funding offers a live Trailing Threshold, designed to alleviate concerns about daily drawdown. They provide RTrader software to help you monitor your current Trailing Threshold. Let's dive into what this means with an example:
Imagine you start with a balance of $50,000, and your initial threshold is set at $47,500. This is $2,500 below your starting balance. Your Trailing Threshold is $2,500. Now, if you make a profit of $500 and close the trade, your new balance becomes $50,500, and your threshold adjusts to $48,000. This adjustment is based on trailing by $2,500 (50,500 minus 2,500 equals 48,000).
Here's the catch: If your trade peaked at $52,000 but closed at $51,000, your threshold will still be adjusted based on the peak, setting it at $49,500. The Trailing Threshold is determined by the highest live value during a trade, not just the closing value. It serves as a real-time safety net that moves in sync with your highest unrealized profit.
So, to reiterate, when you buy these accounts, whether it's a 50K or 100K, you're not actually receiving $50,000 or $100,000. What you're acquiring is a smaller account. For instance, if you buy a 50K account, you essentially have a $2,500 account. This $2,500 acts as your margin, but it comes with specific limitations.
Key Points:
- You must transform the $2,500 of margin into $3,000 of profit without risking your account or leaving too much capital unused.
- Achieving this can be done through a single significant trade or a series of smaller consecutive trades.
- It's important to realize that you're essentially investing in the Trailing Threshold, not a specific dollar amount (e.g., $50,000 or $300,000).
- The balance figures set by the program are often more psychological than practical, as the margin requirements for trading contracts may not match the account balance.
Understanding the concept of the Trailing Threshold is vital for traders considering these programs.
Guidelines for News Trading and One-Step Evaluation
Apex Trader Funding has specific guidelines for news trading, and they provide valuable insights in their FAQ section. While we won't cover the entire FAQ, I'll share some general points on this topic.
Key Points on News Trading:
- Apex is vigilant about trade practices during news events.
- If you engage in risky "gamble" trades, they may take action.
- Exceptional trading days with substantial gains won't be penalized; you'll be paid accordingly.
- However, entering highly leveraged positions or engaging in impulsive gambling behavior is where they draw the line.
- It's important to understand that these rules are in place to maintain fairness and discourage system manipulation.
Ultimately, if you're a consistently skilled trader, these guidelines should not pose a problem. The complaints mainly arise from individuals attempting to exploit the system. Apex has implemented these rules to prevent such exploitation.
Consider Trading with Your Own Capital
If you're inclined to take high-risk, high-reward trades, you can always trade options with your own capital. It's possible to turn a modest sum into a substantial one, but patience is key. Such opportunities may not arise frequently, but they are achievable with your own funds.
Maximizing Funded Accounts
The best approach for handling funded accounts is to consistently aim for moderate gains, gradually building up your balance and creating a buffer in your profit and loss. Once you've achieved this, it's wise to secure profits from your accounts. With multiple accounts, you can earn anywhere from $10,000 to $40,000 in a month, depending on your trading pace.
One-Step Process with Apex
Apex Trader Funding offers a straightforward one-step process. Once you meet your profit target within the specified minimum number of trading days, you pass the account evaluation. There's no additional step two evaluation or changes in the number of contracts.
Unlike some other funding companies like TopStep, which adjust your contract access based on your profit and loss, Apex keeps it simple. When you pass, you can trade all the contracts allocated to your account, the number of which depends on the account size.
After passing, you'll receive an agreement, and upon signing it, your account becomes active the next day. Although they may advise waiting, the process typically takes place around 6 p.m. You'll receive an email, log in to sign the agreement, and gain access to your PA (Profit Allocation) account for trading.
Managing Your PA Account and Stopping the Trailing
Now, let's discuss how your PA (Profit Allocation) account works. Once you have your PA account, there's a Trailing Threshold to consider. Let's break it down:
Understanding the Trailing Threshold:
When you receive a $50,000 funded account, your Trailing Threshold allows you to build your balance beyond the initial $50,000. For instance, once you reach $52,500, the trailing stops at $50,100. In essence, you need to surpass your initial balance by around $100 to halt the trailing process.
Once you've achieved this, you can operate without the trailing component, giving you the freedom to trade with more substantial positions if you wish.
Key Advice:
My recommendation is to trade normally and concentrate on receiving your payment. Very few traders reach the point of halting the trailing mechanism. Most individuals attempt to beat the system or rush to achieve this milestone, often leading to account losses. In fact, approximately 99% of the time, impatience and recklessness result in failure.
Final Verdict: Is Apex Trader Funding Worth It?
So, what are my overall impressions of Apex Trader Funding? Should you consider using their services? Given the recent instability of companies like My Forex Funds and various issues faced by others, it's essential to focus on reliability and integrity in this industry. Apex Trader Funding stands out in this regard.
Here's why I find them commendable:
1. Stability and Customer Support:
Apex Trader Funding maintains a stable platform, especially when compared to some of the challenges encountered by other firms. They provide reliable customer support and offer a straightforward and no-nonsense approach.
2. Trustworthiness:
They consistently deliver on their promises, which is my primary criterion for evaluating them. Frequent sales and discounts on their products enable traders to acquire funded accounts at attractive prices. During a 90% off sale, you can obtain a $50,000 account for just $16. This effectively means you're gaining access to $2,500 in capital, as there is no trailing component initially.
3. Earning Potential:
If you manage your account diligently and trade intelligently, it's possible to turn your $16 investment into a significant payout, with the minimum for a payout set at $500.
Overall Rating:
Considering all these factors, I would give Apex Trader Funding a solid 9 out of 10. The only downside is their website, which desperately needs a modern overhaul. The website design appears outdated, resembling something from 1997, which can be off-putting to potential users. However, it's a minor concern in light of their excellent service and reliability.
Enhancement Suggestions:
Improvements in website design, including features for bulk actions like payouts and signups, would enhance the user experience. But this aspect remains a low priority for the company.
Great Handling of Errors:
Apex Trader Funding deserves praise for its swift response to errors and issues, particularly regarding their broker, Rithmic. Their responsiveness on social media, such as Twitter, is a notable highlight.
Gold Standard for Funded Trader Companies:
If you treat trading as a job and decide to engage with them, I believe that Apex Trader Funding currently represents the gold standard among funded trader companies in the market.