How does a the Profit-Share work?
Our basic account offers a 50/50 profit split, which means that you receive 50% of the profit made by you in the live account. However, at the stage when you are customizing and buying your assessment account, you have the option to increase your profit percentage. We offer the following profit-sharing levels:
- 50/50 – you receive 50% and we receive 50% of the profit.
- 70/30 – you receive 70% and we receive 30% of the profit.
- 90/10 – you receive 90% and we receive 10% of the profit.
Each level leads to an increase in your assessment account price because it results in a lesser benefit for Nordic Funder. If you are looking for a cheaper assessment package to start with, do not increase your profit percentage. If you are confident in your trading abilities and want a bigger piece of the pie, select a 70/30 or 90/10 profit split level.
How does Withdrawals Work?
You are free to make your first withdrawal at any time, but you may also choose not to withdraw any funds for your account to grow infinitely. Remember that you can make your first withdrawal on any day and that each following withdrawal after the first one is limited to one (1) time in 30 days.
For example: You have a $100,000 assessment account. You make $15,000 and now your balance is $115,000. You can immediately request a withdrawal of your profits in your Trader’s Portal.
Important: The balance is NOT redefined after the withdrawal. In our example, if you withdraw $15,000, you will breach the 5% Maximum Trailing Drawdown rule because upon your first withdrawal or upon reaching a 5% profit, your Maximum Trailing Drawdown is locked in at the initial balance of your account (in this case, at $100,000).
This means that if your balance is $115,000 and you withdraw $10,000, you will be paid and your live account will continue to be active for you to trade: $5,000 becomes your Maximum Trailing Drawdown, since the balance is locked in at the initial $100,000. This also means that if you grow your account from $100,000 to $300,000, you will be able to immediately request a withdrawal of $150,000 and still have a buffer of $50,000 for your Maximum Trailing Drawdown.
To learn more about Maximum Trailing Drawdown, click here.
Trading Rules to Qualify as a Funded Trader
The rules of the program are clear and are made to protect your capacity to trade with success, as well as maintain you in the market for a longer period of time. It’s fair that we protect ourselves from excessive risk, and it is also good business practice. As your partners, we want you to be successful and offer programs that ensure that you have the same chances for success as any other funded trader out there.
In order to participate in the program you need to follow two groups of rules:
- Hard breach rules:
These are the rules that, in case of their violation, will result in you losing your account. In case you fail, you can always try again but you’ll need to pay the assessment fee again.
- Soft breach rules:
The rules belonging to this group can be customized and, if they are breached, you don’t lose your account. Only the trades that breach the rule will be automatically closed.
Hard breach rules
In order to select the best traders to manage our capital, we need to define parameters that we can use to evaluate the risk and measure the success. Therefore, our hard breach rules are based on two different loss limits and one profit target. Let’s start with the profit.
In order to qualify to get funded, you need to achieve a 10% profit target in your account.
For example, if you have a $100,000 account, you need to reach a $10,000 profit in order to qualify. You can reach this target over an unlimited period of time, instrument, or position size (provided that you comply with the rules). You can also hedge, scalp, use EAs, or trade during news.
It’s important to note that the profit target is applicable only at the assessment stage. In other words, once you qualify to get funded and are trading our capital, you don’t have any profit target that you need to reach before you can withdraw your profits. To find more about our withdrawal rules, click here.
Now that you have understood where you need to go, let’s talk about where you cannot go. We have two rules relating to loss: Maximum Trailing Drawdown and Daily Loss. Our loss rules are the only two rules that, if breached, result in your disqualification and closing of your account. Let’s take a closer look:
Maximum Trailing Drawdown
Please pay attention to this, because it is the most complicated rule.
Maximum Trailing Drawdown is initially set to 5% of your initial balance and trails (using your CLOSED BALANCE – NOT EQUITY) your account until you reach 5% profit. In other words, it follows the maximum balance ever achieved in your account until you make 5% profit. This is also known as high-water mark.
Once you reach 5% profit, the Maximum Trailing Drawdown does not trail the balance in your account anymore and is locked in at your initial balance. This provides more flexibility for your trades because you have proved to be a profitable trader and now you can trade your account freely.
For example: If your initial balance is $100,000, you can get as low as $95,000 before you breach the Maximum Trailing Drawdown rule. Then, for example, let’s say you bring your account up to $102,000 as your CLOSED BALANCE. Now this value becomes your new high-water mark, which means that your new Maximum Trailing Drawdown level is $97,000.
Next, let’s say you bring your account up to $105,000 as your CLOSED BALANCE and this becomes your new high-water mark. At this point, your Maximum Trailing Drawdown locks in at your initial balance, i.e. is set to $100,000. Therefore, irrespectively of how high the balance in your account gets, you will only breach the Maximum Trailing Drawdown rule if the equity in your account falls below $100,000 (note that it’s still possible that you breach the Daily Loss rule). For example, if you bring your account up to $170,000, provided that you don’t lose more than 4% on any given day (see the Daily Loss rule below), you will breach the Maximum Trailing Drawdown rule only if the equity in your account falls down to $100,000.
Daily Loss determines the maximum amount that your account can lose on any given day.
Daily Loss is calculated against the balance at the end of the previous day, measured at 5 pm EST. You cannot lose more than 4% of this value.
For example: If the final previous day balance (at 5 pm EST) is $100,000, your account would have breached the Daily Loss rule if your equity reached $96,000 during the current day.
If your floating equity is +$5,000 in a $100,000 account, your Daily Loss on the following day would still be based on your previous day’s balance ($100,000). Because of this, your Daily Loss limit would still be $96,000.
So there you have it. These are the three principal rules that apply to the program and that you must comply with in order to qualify for funding.
Soft Breach Rules
Now let’s talk about our soft breach rules.
Soft breach rules are much more simple and don’t result in termination of your account in case they are breached, which means that you will never lose your account if you breach a secondary rule.
Mandatory Stop Loss
This is a customizable rule, i.e. you can activate and deactivate it depending on your preference.
In our default package, this rule is activated and you must observe it. We demand that a Stop Loss is set while you place a trade. Failure to set a Stop Loss or setting a Stop Loss after the trade is placed will result in the automatic closing of the trade. This will not result in terminating your account though.
If you want to pass the assessment without the need to comply with this rule, select “Optional” in the respective field when buying your assessment account. Keep in mind that if you deactivate this rule, the price for the assessment will increase by 10% because as a result of our capital being exposed to higher risk.
Maximum Lot Size
You will be able to see the maximum lot size in the Trader’s Portal. It corresponds to the leverage in your account and your buying power in general. If you open positions that exceed the allowed lot size, all the positions will be automatically closed. This will not result in terminating your account and you will be able to re-open your positions and continue trading.
Note: If you lock in a Stop Loss for your position at a profit/break-even price (making it a position with no risk), the maximum lot size available to you gets released. This allows traders who want to hold or hedge the position to do so on an account with smaller leverage.
Note: Your margin is NOT released. There are certain pairs and positions that, if the Stop Loss is set to a profit/break-even price, allow you to open more lots provided that margin requirements are satisfied; in the opposite case, you will NOT be able to open more positions. Hedge does NOT affect the margin because you are selling on one position that is already filled and, therefore, if your position is at profit/break-even price, your available lot size can be used to protect positions opened in the opposite direction.
For example: You have a $100,000 account. The maximum lot size (which you can see in the Trader’s Portal) for your account is 10 lots. Let’s say you open a 10-lot position and the position becomes profitable. Then you move your Stop Loss to the break-even point and now your trade is “risk-free”. Due to this, the maximum lot size is released for you to buy or sell another 10 lots, provided that your margin is not exceeded (remember: your margin is not affected if you hedge your position, but it is affected if you want to continue to open positions in the same direction). Now you have 20 open lots but only 10 lots are considered Running Risk (see the following paragraph), while the rest of the positions don’t carry any risk, which is allowed.
A position that carries risk cannot exceed the maximum lot size. Therefore, if a position is “risk-free” (since the Stop Loss level protects your position from reaching its initial price), its size no longer counts towards the rule and is NOT considered Running Risk.
No open trades on the weekend
This is a customizable rule, i.e. you can activate and deactivate it depending on your preference.
In our default package, this rule is activated and you must observe it. We demand that all trades are closed before 3:30 pm EST on Friday. Any trades that are left open will be automatically closed. This will not result in terminating your account and you will be able to continue trading after the market opens again.
If you want to pass the assessment without the need to comply with this rule, select “Yes” in the respective field when buying your assessment account. Keep in mind that if you deactivate this rule, the price for the assessment will increase by 10% because as a result our capital is exposed to higher risk.
Creating Your Funded Trader Account
We invested substantial time and money in creating our account customization feature. We see it as an essential tool for us to be able to adapt to different traders and trading styles.
Start by choosing your account size. This is the most critical step because the account size determines the amount of funding that you will receive in your assessment account and also in the live account after you complete your assessment. The account size also determines the price of the assessment account.
For example, if you select a $10,000 account, you will receive a $10,000 assessment account and a $10,000 live account. Important note: the account size is in U.S. dollars.
After you have chosen your initial capital, you can customize the rules that will apply to your account. Let’s do it step by step:
By default our accounts use the 10:1 leverage. If you are a trader who likes to open big trades, you can increase the leverage in your account to 20:1 by selecting the second checkbox. Keep in mind that increasing your leverage comes with greater risk for our capital, due to which the assessment account price is increased by 25%.
Higher leverage can increase the risk and result in you violating the rules. However, if used properly, higher leverage can give a boost to your profits and performance.
2) Profit sharing
At this step you can define your share in profit. Our basic accounts offer a 50/50 division of profits, but you can select a higher share for you, up to 90%, by selecting the second or the third checkbox.
You getting a higher profit share results in a lesser benefit for us, due to which the price of the assessment account increases by 10% for each profit sharing level.
If you are curious to learn more about profit, click here.
3) Additional customizations
At this stage you can customize certain secondary rules. It is important that you review your trading strategy first to make sure you select the parameters that will benefit your trading style. You can customize the following options:
- Stop Loss: By default our accounts require a mandatory Stop Loss on all trades, but you can turn off this requirement by selecting “Optional”.
- No Open Trades on the Weekend: Our basic account does not allow trades to remain open during the weekend. You can turn off this rule by selecting “Yes”.
Remember that adjustment of these parameters results in a higher risk for our capital. Due to this the price of the assessment account increases by 10% for every parameter that you change.
Do you want to know more about secondary rules? Click here.
Forex Lens Inc. has an affiliate partnership with Nordic Funder. Although we may receive compensation for our marketing efforts, we believe strongly they are a great service for the mission statement our brand stands for. Forex Lens Inc. take no responsibility for the third party’s content, inclusive of, without limitation, any updates and/or changes made to the third-party website.