Hello, trader! Today we’re diving deeper into the world of prop trading, or rather — its dark side. On the agenda is the project Funded By Traders with the domain fundedbytraders.com, which promises mountains of gold: “Prove that you can trade, and we’ll give you control of a large capital.” Sounds tempting, doesn’t it? Like a ticket to the upper league of trading without risking your own savings. But as practice shows, if something sounds too good to be true — it’s probably a scam.
Let’s be honest: the idea of getting $50,000 or $100,000 in your account by paying just a few hundred dollars for a “challenge” makes beginners’ heads spin. That’s exactly what their entire business model is built on. They create the illusion of a unique opportunity, repackaging an age-old forex scam into a trendy “prop trading” wrapper.
The Essence of the Scam: A “Challenge” That Cannot Be Passed
The scheme of Funded By Traders is painfully simple and brilliant in its fraudulent essence. You are offered to pay for an “evaluation phase” or “challenge.” The goal is to achieve a certain percentage of profit within a limited time without violating strict drawdown rules. And here’s where things get interesting.
“The first and most important red flag is the illusion of ‘free’ money. You’re paying for a ‘challenge’ that is deliberately designed so that most people fail. Your fees are their main source of income, not the mythical profits from trading.”
The rules of these “challenges” are often crafted to trip up even experienced traders. Minimal daily drawdowns, total drawdown based on the initial balance instead of the current one, time constraints — all of this sets a trap. Even if you’re trading profitably, one careless move caused by market noise, and — ‘Sorry, you’ve violated the rules, try again… of course, after paying the fee again.’
Legal Void and Technical Tricks
When we try to find information about the company behind Funded By Traders, we hit a brick wall. Where is the company registered? Who are its owners? Which regulator licenses it? Answers to these questions are nowhere to be found. This is a classic anonymous fly-by-night project that could vanish at any moment along with clients’ money.
The lack of a license isn’t just a formality. It means no one is overseeing their activities. They might use a fake trading platform where quotes differ from real market prices.
“When a ‘broker’ has no license and uses its own trading platform, it can do whatever it wants with your trades: paint spikes to knock out stops, increase slippage, or simply not execute profitable orders. You’re not trading in the real market but in a simulator whose outcome is predetermined.”
What if you’re the lucky one who passed the challenge? Don’t celebrate just yet. This is where the second stage of the scam begins. They might grant you a “funded account,” but as soon as you start making real profits and want to withdraw them, problems arise: endless verifications, accusations of “non-market trading methods,” or simply blocking your account without explanation.
“Remember, any profit on the Funded By Traders platform is just numbers on a screen until they reach your bank account. And the scammers’ main goal is to ensure that moment never happens.”
Conclusion: Funded By Traders is not a prop trading company or a broker. It’s a well-disguised fraudulent scheme aimed at collecting money from trusting traders through paid “challenges.” The lack of a license, anonymity of the owners, and numerous complaints online are sufficient reasons to stay as far away from this project as possible. Don’t let pretty promises cloud your common sense.