The world of investments in trading is becoming increasingly challenging; however, there are a variety of options, especially for those who are just starting in the business and do not have strong financial stability or capital to invest.

One such option is funded accounts, a form of financing provided by a company to traders to operate in financial markets. These accounts work through ‘borrowed money’ in exchange for a benefits package with the company. Usually, the trader receives 80 percent of the profits earned, while the company retains 20 percent. Essentially, it’s as if the funding company lends you money to trade in exchange for a percentage of what you earn.

“Today, we have the option to leverage funded companies. These funded companies allow us to use much larger capital. Normally, when we start in trading, we don’t have a large capital, and we do it to generate income, so this is an excellent option to start investing,” explained Nery León, a professional trader.

Nery also adds that to access this type of account, you must meet certain requirements, which will allow the funding company to know if you are a profitable and consistent trader. “This test is a simulation of how you will operate when you get your real account. If you pass the test, the company will provide you with the capital to operate in the real market. Once the test is passed, the funding company leverages you with capital, meaning I buy an evaluation that costs, for example, 450 or 500 dollars. If I pass that evaluation, I have to follow certain rules, and this funding company gives me that capital, which is usually virtual practice capital. Based on the percentage I earn on that account, they will pay me 80, 85, or even 90 percent,” he noted.

Other Investment Options

In the stock market, retail traders or those who are just starting can invest in stocks, operating in the short, medium, or long term. They can also invest in Crypto and Forex, the latter being a currency market that offers those who invest significant economic and sustainable advantages. “Through these, we can invest in the long term, for example, by purchasing stocks and collecting annual dividends, or opting for ‘Intraday Trading,’ which is essentially buying and selling, knowing where to buy and where to close the position we opened in a purchase or, if we have a selling opportunity, knowing where to sell and where exactly to close that sale we made,” the expert stated.

For traders, there is also the option of trading with brokers like Smart Capital Broker with their own capital, having full control over the money. “In these brokers, it is important to know that if we are not prepared to manage our own capital, we must be very careful because we can lose it from one day to the next since it is high-risk trading,” he said.

In conclusion, each investment option in trading has its peculiarities, advantages, and disadvantages, so the professional suggests “optimal mental preparation and a clear strategy for trading.”