My Forex Funds has 37,000 live evaluation accounts and paid out more than $14,000,000 in February 2023.
Their most popular program was the evaluation, then accelerated, then the rapid program. The most popular evaluation accounts are $10k and the $200k are the least popular.
These are just a few of the statistics recently released by My Forex Funds, one of the biggest prop firms in the industry right now. In this article we’ll discuss how the firm works and the key lessons we can learn from the valuable data they’ve shared.
How My Forex Funds Works
My Forex Funds’ popular evaluation program consists of 2 phases, first an 8% profit target in 30 days then a 5% profit target in 60 days.
These accounts have 12% maximum drawdown, and 5% daily drawdown limits. Once you pass the evaluation, you receive a funded account where you are eligible for 75 to 90% of the profits that you make. But how many people actually pass this process?’
My Forex Funds Pass Rates
The pass rate for phase 1 is 19%, which is lower than the 31% phase 1 pass rate last year
For those who pass phase 1, the pass rate for phase 2 is 42%, compared to 45% last year
Therefore, the pass rate for the whole evaluation, meaning the percentage of people who buy an evaluation that get funded is 8%. This means for every 12.5 evaluations, only 1 person reaches a funded account.
How Many Traders Get Paid Out?
Getting funded is only the first step. My Forex Funds didn’t release the percentage of funded account that gets payouts this year, but last year it was a shocking average of just 3.5%. This means for every 28.5 people that get funded, only 1 earns a profit split, the rest blow the account before doing so.
This means overall, just 0.28% of the people who start an evaluation end up earning a profit split and getting their evaluation fee back. This is just one in 362, 2.8 in 1,000 and 28 in 10,000. With this profit split rate for $100k evaluations, just 1 profit split is achieved for every $180,638 spent.
So while My Forex Funds payout out huge amounts, it is extremely hard to reach a payout, despite their evaluation offering some of the best drawdown to profit target ratios in the industry.
Why Do Traders Fail Prop Firm Challenges?
My Forex Funds highlights a key reason why high-risk traders fail so many evaluations: news trading.
They explain that no long-term profitable trader trades news announcements and most people who make money on one news announcement lose their account on the second one.
My Forex Funds also reported that most profitable traders use stop losses, as only 20% of traders that earned more than $20k in payouts didn’t use a stop loss.
The pair that traders choose can also have a large impact on their profitability. The most profitable pair was EUR/USD, while the least profitable was US30. In fact, of those that passed and reached a live account but failed their account before the first payout, the majority had at least 1 trade in US30.
The second and 3rd least profitable were NAS100 and GER30.
The majority of large payouts being from FOREX and metals traders which shows there are less profitable indices traders with My Forex Funds. Also, the more exotic the forex pair, the more likely a trader is to lose.
Conclusion – Lessons to Learn
As these stats have shown, earning prop firm profit splits is extremely hard, but the traders who do make a huge amount. Practising conservative risk management and avoiding news announcements can help improve your performance, and you’re more likely to succeed by trading major forex pairs like EUR/USD.
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