This would usually be either through friends, family, acquaintances or even through investing and trading forums. This method can be really successful for finding investors. But these days it is definitely the longest winded and requires the most work from you. Once you have a track record to produce with in-depth statistics of your trading performance. You will then usually setup a PAMM account with a regulated Forex broker.

Typically, the investors will then deposit with your chosen broker. After they have conducted due diligence on the broker in question. Then you will be able to manage their funds here without actually getting a license to trade other people funds. In return for managing the investors funds, you will either be paid a quarterly management fee or receive a percentage of the profits obtained from your trading efforts.

However, there are few issues with looking to get capital in this way. Simply this is same as your hedge fund, you no need to think about payments, taxes, money collecting, technology and communication. PAMM account will do everything for you, and you can get over one million potential investors worldwide. The next opportunity is to find a platform where investors are looking for traders to manage their funds. High level investors with a lot of capital will not really even look at you.

Unless you have years of track records and incredible trading results. Prop firms bridge the gap between retail traders and institutional levels of investment. It was relatively difficult to get funded and it will take years of consistency to get noticed.

If you are unfamiliar with how these companies work, instead of having a track record to prove you can trad. They make you take challenge or test to prove your skills. These usually last days and during the process. Forex trading attracts a lot of traders and investors with lower levels of capital due to the large leverage offered, paired with the low minimum deposits that most brokers offer.

For this reason, when traders finally reach that consistently profitable milestone, most forex traders look to take on additional capital so they are able to make a living from their craft. The best way to get investors for forex trading is either through finding private investors personally, or using prop firm funding to scale your capital fast.

Private investors could work out better in the long term but finding prop firm funding is much easier and faster. There is a lot we need to look at before taking on investors for something as risky as forex trading. A lot of traders have results that look a little something like this….

Many traders, including me 5 years ago, have a very small winning streak and start thinking that the thing holding them back is a lack of capital. Until more recently, the most common way to get investors for forex trading was to go and find private investors yourself.

This would usually be either through friends, family, acquaintances or even through investing and trading forums. This method can be really successful for finding investors but these days it is definitely the most long winded and requires the most work from you.

Firstly, you will need a minimum track record on MyFxbook or FxBlue of 12 months. Once you have a track record to produce with in-depth statistics of your trading performance, you would then usually setup a PAMM account with a regulated forex broker.

In return for managing the investors funds, you will either be paid a quarterly management fee or receive a percentage of the profits obtained from your trading efforts. Step 2: When you have a live trading account and excellent performance, you need to set live trading account tracking software.

This is an excellent way to promote your trading. Using Myfxbook or FXStat , you can promote your system to all forex traders and potential investors for free. Step 3: Create a Website where you will promote your portfolio and system to investors when you have live trading results, past performance results, PAMM account — now it is time to open the door to potential direct investors.

Directly investors can contact you personally, and you can agree with them on how and where you will manage their accounts. Finding the right investor takes persistence. There will be many investors that come along; however, they may not be right for you. Traders used to publish their specs and business on a separate online forum where investors could view their stats and reach out to them.

These types of online forums slowly died out as they were becoming more and more fraudulent with spam. As a result, traders had to think of other ways to connect with investors and vice versa. The solution to this was social media. Social media plays a large role that allows investors and traders to connect for business opportunities.

Platforms such as Youtube and trade blogs connect traders with the investors they need to succeed. This type of business opportunity greatly benefits both parties involved and allows them to reach a higher level of success together. Some traders would disagree with the notion that a forex investor is necessary. Some traders are under the impression an investor will find them down the line and spark a deal.

The idea of evolving financially, attracting investments, and producing income for those investors is a natural cycle. Beginner traders tend to look for funds from friends and family first.

This can be a risky endeavor, as the consequences are more significant when you have a personal relationship with the lender. Some traders can generate their own income by raising their own capital. Sometimes this is not enough, and bigger investments are needed to sustain them. So you can use Youtube or Facebook to create a page and promote your website and your social trading accounts and PAMM accounts. There are two main types of investors for Forex traders.

The first type of investor is someone who is looking to raise capital by investing funds. These individuals have funds already saved and ready for investments. This method will generate more profit than bank despots. The next type of investor used to be a trader and has since switched their role in the market.

Forex trading has a very low barrier of entry, meaning more and more traders are coming into the industry with lower trading capital. This is where account funding comes into play…. Online prop firm funding is a much simpler route and you could be funded within a few weeks with no legal headaches. Getting funding for your forex trading is really the stepping stone from a beginner trader to a professional trader.

Luckily, this is no longer the case and the majority of consistently profitable traders are seeking funding! There are two main ways to get funding for your forex trading business. They are by either obtaining investment through a direct PAMM account or taking the online prop firm route.

The most common way to increase your assets under management, until recently, was by connecting with private investors that wanted to fund your trading accounts. Firstly, you will have to know some very wealth individuals that are looking to fund forex traders. Fourthly, when looking for an investor to fund your trading, there is going to be a huge amount of legal work required. You can either keep the capital in their name and trade their funds for them, or they give you the capital to trade with.

Either way, the legal side is a complete headache. The best way to get funding for your forex trading journey is through online prop firms. These are essentially online firms that will provide you with the capital to trade their accounts. They allow you to essentially become a share trader, if that helps.

So all of the legal work and headache has been taken away from obtaining funding. There are a range of different funding models used by the industries top forex prop firms. With FTMO, you pay for a challenge account. The challenge value will dictate what size funding you are looking to obtain. For more information about FTMO, have a read of my full review and experience here. You will have to abide by their trading criteria during this time.

Now we have looked at the best ways to obtain funding for your forex trading ventures, we need to look at staying safe. This is absolutely key when trading other peoples capital and is often something that many traders overlook.

Therefore, I highly recommend using a trade copier to replicate your trades across multiple MT4 accounts at once. I would also stray away from compounding other peoples capital.

In conclusion, there are two great ways to get funded as a forex trader. The first is to take on an investor, which can be a real headache.

The second way is through online prop firms who own the funds and will provide you with what you need. Kyle Townsend is the founder of Forex Broker Report, an experienced forex trader and an advocate for funding options for retail forex traders. As the forex prop firm industry has grown, so has the amount of prop firms offering funding for traders. With forex brokers reducing leverage and the industry getting more regulated, trading your Skip to content Forex trading has a very low barrier of entry, meaning more and more traders are coming into the industry with lower trading capital.

Article Contents The 2 Ways To Get Funding For Forex Trading Obtaining Forex Trading Funding Via Investors Obtaining Forex Trading Funding Via Online Prop Firms Staying Safe Whilst Trading Funded Forex Accounts In Summary — How Can You Get Funded As A Forex Trader? Continue Reading.

If you have done the above steps of creating PAMM accounts and have a trading CV, you can offer services to companies. Home » Education » Finance education » How to Get Investors for Forex Trading? Getting funding for your forex trading is really the stepping stone from a beginner trader to a professional trader. Creating a good reputation begins by making sure you generate profits for your investor. Therefore, I highly recommend using a trade copier to replicate your trades across multiple MT4 accounts at once.

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