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Apex Trader Funding, a proprietary trading firm, has implemented critical rules and regulations to ensure a secure and organized trading environment. According to our analysis at Trading Funder, these rules are designed to safeguard both the trading platform and its users, fostering a balanced relationship that minimizes risks and promotes consistent, disciplined trading.
Apex Trader Funding sets specific trading rules for each account type, including the challenge account (evaluation), the Paid Performance Account (PA account), and the free trial account. As part of our consulting insights, we emphasize that traders must meet Apex Trader Funding’s trading objectives to maintain compliance.
Key trading rules at Apex Trader Funding include adhering to the Trailing Threshold Max Drawdown, trading for a minimum of 7 days, avoiding trades outside permitted hours, refraining from trading disallowed instruments, and ensuring account security by preventing unauthorized access.
In addition, Apex Trader Funding has established clear guidelines for payouts and withdrawals. These include profit-sharing structures, initial withdrawal limits, timing, frequency of withdrawal requests, and minimum balance requirements.
In this article, based on Trading Funder’s detailed review, we will delve into the essential rules governing trading, payouts, and withdrawals at Apex Trader Funding.
What are the Apex Trader Funding Challenge rules?
Apex Trader Funding Challenge Rules typically refer to a set of specific guidelines and criteria that traders must follow and meet when participating in a trading challenge or evaluation program offered by Apex Trader Funding.
There are five main rules that day traders should respect during the Apex Trader Funding challenge. These include respecting the Trailing Threshold Max Drawdown, trading for at least 7 days, avoiding trading outside permitted hours, not trading disallowed instruments, and preventing others from accessing your account.
1- Respect the Trailing Threshold Max Drawdown
At Apex Trader Funding, the trailing threshold max drawdown (also known as max drawdown or trailing drawdown) is a risk management rule that sets the maximum allowable loss from the highest point of an account’s balance. This threshold dynamically adjusts, or “trails,” to stay a fixed distance below the peak balance as the account value increases.
The Trailing Threshold in Apex Trader Funding challenge works by setting a limit on how much a trader can lose. It starts at a certain amount below the trader’s initial balance. For example, in a 50K plan, the trader starts with $50,000, and the loss limit is set at $47,500. As the trader earns more, this loss limit moves up. If the trader’s balance reaches $50,500, the new loss limit becomes $48,000. This loss limit always stays a fixed amount below the highest balance reached during trading. However, the drawdown will stop trailing once the trailing stop hits the profit target. In STATIC accounts, this limit doesn’t change; it remains the same.
The table below shows the trailing drawdown value for each account size:
| Account size | Trailing Threshold |
|---|---|
| 100K STATIC | $625 STATIC |
| $25K | $1,500 |
| $50K | $2,500 |
| $75K | $2,750 |
| $100K | $3,000 |
| $150K | $5,000 |
| $250K | $6,500 |
| $300K | $7,500 |
2- Trade for at least 7 Trading days
In Apex Trader Funding, traders must trade on at least 7 different days. These days do not need to be one after the other. They can take as long as they need to complete these 7 days, even months. A trading day goes from 6 PM one day to 5 PM the next.
3- Avoid Trading Outside Permitted Hours
Apex Trader Funding requires all trades to be closed by 4:59 PM ET. If a trader has an open trade after this time, Apex will automatically close it without the trader losing their account or being eliminated. Agricultural markets need to close earlier, around 2:05 PM or 2:20 PM ET. Trading can start again at 6:00 PM ET. Trading on holidays is allowed if markets are open, but not on half-day holidays. A trading day lasts from 6 PM one day to 4:59 PM the next day. These rule help traders follow correct trading hours.
4- trade only allowed instruments
Apex Trader Funding allows traders to trade specific instruments. If traders try to trade instruments that are not allowed, the trade is just rejected, with no penalty. Traders can see allowed instruments in RTrader under ‘View Risk Parameters.’ The allowed list includes Equity Futures like E-mini S&P 500, Currency Futures like the Australian Dollar, and Micro Futures like Micro E-Mini S&P 500. It also includes Agricultural, Energy, Metal Futures, and Cryptocurrencies like Micro Bitcoin. This list helps traders know what they can trade.
5- Prevent others from accessing your account
In Apex Trader Funding, only the person whose name is on the evaluation account, PA account, or Live Account can trade on that account. No one else is allowed to trade on someone else’s account. Also, traders cannot transfer their accounts or login details to anyone else. If a trader wants to stop using their account, they can cancel it through the member’s portal. If someone else wants to trade, they need to sign up for their own account and login with their information. This rule ensures that each trader is responsible for their own account.
What are the Apex Trader Funding Challenge Objectives?
During the challenge, Traders should also meet Apex Trader Funding challenge objective, which is meeting the profit goal.
The main objective of the Apex Trader Funding challenge (evaluation) is to achieve a specific profit goal. This goal tests a trader’s ability to make profits while managing risks effectively. It’s important for participants to balance earning profits with careful risk control to succeed in the challenge. Achieving the profit goal is crucial for traders to demonstrate their trading skills and qualify for a Paid Account with Apex Trader Funding.
The table below shows the profit goal for each account size:
| Account size | Profit Goal |
|---|---|
| $25K | $1,500 |
| $50K | $3,000 |
| $75K | $4,250 |
| $100K | $6,000 |
| $150K | $9,000 |
| $250K | $15,000 |
| $300K | $20,000 |
| $100K STATIC | $2,000 |
what are Apex Trader funding PA account rules?
The Paid Performance account (also known as the PA account) is the trading account that traders earn when they successfully pass the evaluation.
There are six main rules that day traders should respect during the Apex Trader Funding PA account. These include:
- Respect trailing threshold Limits: Stay within the trailing threshold drawdown.
- Trade Within Permitted Hours: Only trade during allowed times.
- Avoid Disallowed Instruments: Don’t trade prohibited instruments.
- Refrain from News Trading: Avoid trading strategies based on news.
- Secure Account Access: Prevent others from accessing your account.
- Maintain Trading Consistency: Follow a disciplined trading plan, ensuring no more than 30% of profits come from a single trading day and limiting ‘flipping’ trades to less than 20% of trading days.
How Does the Trailing Threshold Work at Apex Trader Funding’s PA Account?
The Trailing Threshold works differently on the Apex Trader Funding PA account, The Trailing Threshold in an Apex Trader Funding PA account is a mechanism that limits potential losses. It starts a set amount below the initial balance. For example, on a 50K plan with a $50,000 starting balance, the loss limit begins at $47,500. As the trader’s balance increases, this loss limit (or drawdown threshold) also moves up, maintaining a fixed distance from the highest balance achieved during trading. The trailing stops when the account balance surpasses the initial balance plus the drawdown amount plus $100. On a 50K plan with a $2,500 drawdown, this means trailing stops when the balance reaches $52,600, setting the threshold at $50,100.
How to Maintain Trading Consistency during Apex Trader Funding PA account?
To ensure consistency in trading with an Apex Trader Funding PA account, focus on two main rules. First, follow the 30% Profit Rule, which means no single day’s trading should account for more than 30% of your total profits. This helps avoid overly risky trades. Second, adhere to the 20% Flipping Rule, limiting your minor or ‘flipping’ trades to under 20% of all trading days, to ensure your trading activity is substantial and not just to mark presence in the market. This consistency rule from Apex Trader Funding is designed to promote disciplined and balanced trading.
What are Apex Trader Funding PA account objectives?
The objectives for traders using the Apex Trader Funding PA account are straightforward and focused on two main points, essential for making the first withdrawal:
- Trade for 10 Days: Traders need to actively trade on a minimum of 10 different days. This is a requirement not just for the first withdrawal but for all subsequent ones too, to ensure regular trading activity.
- Maintaining Minimum Account Balance: Traders must ensure their account balances meet or exceed specific thresholds to be eligible for withdrawal. These thresholds vary depending on the account size, ranging from $26,600 for a $25k account to $307,600 for a $300k account.
Does Apex Trader funding have a consistency rule?
Yes, Apex Trader Funding has consistency rules for its PA (Paid Performance) and Live Accounts. However, for the Evaluation Account (Challenge), there are no specific consistency rules enforced.
Apex Trader Funding’s PA and Live Accounts enforce a consistency rule, which comprises two parts: a 30% Profit Rule, limiting a single day’s profit to no more than 30% of total account profits, and a 20% Flipping Rule, restricting small or repetitive trades to under 20% of trading activities. This rule aims to ensure disciplined and risk-managed trading.
what are Apex Trader funding withdrawal rules?
The withdrawal rules for Apex Trader Funding are detailed and specific to ensure a smooth process for traders. Here are the 7 key aspects:
- Minimum Balance Requirement: Traders must maintain a minimum account balance specific to their account type to request a withdrawal. For example, a $50k account requires at least a $52,600 balance.
- Trading Day Requirement: A minimum of ten trading days is needed between each withdrawal request.
- Request Dates: Withdrawal requests are accepted only during specific periods: from the 1st to the 5th and the 15th to the 20th of each month.
- Payout Processing: Withdrawals requested in the first period (1st-5th) are processed on the 15th, and those in the second period (15th-20th) on the last day of the month.
- Account Status: If an account’s status is ‘Pending’ after a payout request and the account is ‘blown’, the payout is not processed. However, if the payout is approved and then the account is ‘blown’, the payout is still processed.
- Irrevocability of Requests: Once submitted, payout requests cannot be altered or cancelled.
- Taxation: Traders are paid as independent contractors. U.S. citizens and entities are provided with a 1099-NEC form.
what are Apex Trader funding’s payout rules?
The payout rules of Apex Trader Funding are designed to provide traders with a structured and fair profit-sharing system. The following are the Apex Trader funding payout rules:
- Profit Share: Traders retain 100% of the first $25,000 in payouts, and 90% of the profits thereafter.
- Maximum Withdrawal Limits: For the first three months, there are maximum withdrawal limits based on the account size. After three months, there is no maximum, as long as the account maintains the minimum required balance.
- Approval Timeframes: Payout approval may occur anytime between the 1st and 14th, or the 15th and the last day of the month, depending on the request period.
- Payment Disbursement: Approval of a payout request does not mean immediate payment. Payments are sent out on the 15th or the last day of the month and may take 3-7 business days to reach the trader’s bank account.
- Continued Trading Post-Request: Traders can continue trading immediately after requesting a payout, but must do so as if the funds were already deducted, keeping in mind the minimum balance requirements.
- First-Time Payout Requirements: For the first payout, there must be a total of 10 separate trading days with actual trades placed before a payout can be requested. This requirement applies to each subsequent payout request.
- Payout Method Completion: Traders must complete the Payout Method section before accessing the Withdrawal Request page.
These rules ensure a clear and fair process for both withdrawing funds and receiving payouts from Apex Trader Funding accounts. Compliance with these guidelines is crucial for traders to successfully manage their accounts and finances.
Is Apex Trader Funding a Regulated Company?
Apex Trader Funding, based in Austin, Texas, is a registered entity but is not regulated by any major financial authority. This is in line with its business model which focuses on education rather than real financial transactions. It offers funded trading programs that use virtual accounts, allowing traders to earn based on their simulated performance. This approach centered more on educational services than actual financial services and does not require the kind of regulation typically associated with financial institutions dealing in real money.
Is Apex Trader Funding a Legitimate Company?
Apex Trader Funding, established in 2021 by Darrell Martin in Austin, Texas, is a legitimate proprietary trading firm. It is well-reviewed with a 4.8-star rating on Trustpilot from over 6,700 traders, and noted for reliable payouts and strong customer support. The firm offers various account sizes and has transparent trading rules and evaluations, making it a trustworthy option in the trading industry. For more insights, read our detailed review of Apex Trader Funding’s legitimacy.
Conclusion on Apex Trader funding rules
Apex Trader Funding provides a structured and flexible evaluation process, requiring traders to adhere to core rules such as the Trailing Threshold Max Drawdown, trading for at least 7 days, and maintaining consistency in profits. With a clear profit-sharing structure, offering 100% of the first $25,000 in earnings and 90% thereafter, Apex Trader Funding ensures fair payouts for successful traders. The Trading Funder team highlights Apex’s transparent rules and strong payout system as a solid choice for traders seeking both flexibility and support in their trading journey.
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