Prop Firm Hub

Received from Finotive:

How Finotive Operates
Dear xxxxx

In light of the recent CFTC involvement in the Retail Prop Firm industry, we have compiled the following FAQs to be fully transparent with our community about how Finotive Funding has and will continue to operate.

Hopefully these clarifications will not only show how we have and always will be fully transparent, but will also help you understand what goes on behind the scenes at a reputable prop firm.


1. Is Finotive Funding regulated?
-No, because there is no regulation required to run a retail prop firm.

2. Is Finotive Markets regulated?
-No, because the brokerage is based in SVG, which is a geographical location that does not require regulation to offer CFD products.

3. Are you ever trading the live companies money?
-No, due to regulations especially in Germany, we are unable to offer traders the ability to execute themselves directly to market. When trading with Finotive you are on a LIVE SERVER however this live server is non execute, thus meaning the trades are warehoused and they are NOT directly executed to the market.

4. Is there real liquidity?
-We use a data feed from Finotive Markets with no liquidity in itself, but rather a simulated price feed from what Finotive Markets receives from its pool of Liquidity Providers.

5. Do you A-Book all funded traders (Copy to Live accounts)?
-Not necessarily. Our risk team will perform a psychometric risk assessment on all accounts to determine the risk that Finotive wants to take on your trades. It is at our discretion how much we cover traders to our A Book account based on all previously mentioned factors.

6. How much do you cover traders to A-Book and how is this decided?
-Our risk team factors in the traders history, current positions across the book plus many other factors. This is all taken into account to decide the weight we want to cover your trades, and then we may choose to execute on your behalf directly from our live A-Book master account with Finotive Markets.

For a new instant funding trader who has not had any previous accounts with us and therefore we have no history to analyse, we may choose to cover them with a very low weight initially and readjust this as we accrue more data on them.

7. How do we profit and pay our traders?
-When traders purchase an account, the upfront fee goes into a pot. If a ‘funded’ trader were to be covered 100% on our A-Book account meaning that their trade is copied 100% and they generate profit, then their profit split would be paid fully from the trades profits, with finotive keeping our split of your profits.

Instead, if a trader is covered <100%, then any profits generated by them will be paid from profits from our A-Book covering, with any difference made up from the pot of challenge fees.

For example, a trader with a profit split of 75% makes $1,000, with their trades being covered at a 50% rate to our A-Book account. The trader then requests a payout of the $1,000 which equals a $750 split for the trader. In this case, $500 of their profits would have been generated from our A-Book account, and so Finotive would then pay the remaining $250 from the challenge fee pot.

Therefore, we benefit from successful traders if covered 100%, however we also benefit from the accumulation of challenge fees as this both covers the coverage difference, and contributes to our business profits.

8. Does Finotive Funding use 3rd party software to decrease the profitability of traders such as marking up spreads, add delays or worsen market conditions?

-By receiving our price feed from Finotive Markets, Finotive Funding has no control over the quotes, the spread fluctuations, the fill prices (slippage), or delays, but instead provides the trader with an exact simulation of Finotive Markets’ trading conditions as if they were trading their own funds with the brokerage.

We hope these answers are useful to you. Please, if you have any questions that hasn't been answered yet, make sure to join our Telegram or Discord community and ask our Team directly!
Ben Hardman
Chief Operating Officer
Finotive Funding

What about UK based prop firms?

Hey guys we have no control over quotes and spreads.

Instead, that is under the control of the broker owned by us, which does whatever the fuck we tell it to do.

Still doing the research and getting down to the nitty-gritty of the rules.

I was just about to write something similar, just more politely
But this is spot on

I like Bespoke (BFP), it is UK based and they want to add a layer to offshore jurisdisction to be sure.
Anything bad about this firm we know ? Because for me they are very fine with good rules and conditions and very good prices with huge discounts.

Yes. I avoid it because the CEO is a kid on steroids with a poor attitude. Same whining vibe from the CEO of Blue Guardian.

One thing that makes me avoid this kind of people is impulsive behavior and recklessness.

One for your list:
https://www.fundedtradingplus.com
This firm has a UK office:
https://the5ers.com

their response

They accused me of martingale, then they change it for grid, then they eventually admitted I didn't breach anything after I went public and refunded me.
But as LB said their CEO seems to be a stupid kid

When you went public, was it on their Discord/Facebook etc? Need to know for the future in case it happens to me. Thanks.

Could you say more ? Martingale means you added while being in a loss position. You can have two positions regardless of it. If you build up your positon and do not scale in you have a problem with them. But otherwise not. You cannot fail if you have one or two entries and exits only.

Was that on your payout day they said that ?

Last, you must have done consistently otherwise it is only soft breach.

That you got your refund tells me that they care on their reputation.

And why is CEO stupid ? Cannot say this.

- CEO is a kid behaving like a kid, not accepting critics and mistreating people in telegram group.

- They have grid and martingale rules. For grid you get caught at your third position if that's on loss. Martingale is not necessary to be the usual definition of doubling. If you buy 1 lot at 10 and 1.01 lot at 9.99 this is martingale (soft martingale as they call). You won't have this defined in their site and if you ask to support you will get unclear responses. Apparently they say this is not violating the account but they deduct the profits of those positions. Not sure if that's true or not.

- They were caught being part of some pool of company that track traders and traders across several props (we suspect it is the 8crap ones) and deny payments based in reverse trading. However, sometimes the evidence showed is not clear (different hours, sometimes it's funded vs challenges, etc.).

All this said, I use to have some spare accounts in less trustable props and I have a funded with them. But I was not able to make a profit yet to ask a payout and a refund to see how it goes.

Worth to mention that first one is trailing stop,

Many thanks, it's subjective, of course, but think is a decent response if we coe that with the history of absence of very bad cases against them in social media.
I'll keep it just in case.

First, I am not on telegram, only look at Discord. The CEO has much to do, there is work for him. So cannot say anything about critics, but for me he seems knowledgable. And they have a huge suggestions thread on Discord where you can tell them your constructive critics and they listen.

Second, it is clear said in Discord. I do not know why you say they make a mistery. They say it clear and loud in Discord. You can have 2 positions regardless then only on winning positions held. DCA not allowed too, meaning that from your third entry on you cannot average down into your position. That's all.

Third, that they want to protect against reverse trading on different accounts across different props, is not a bad thing per se. They just want to protect themselves. What is the bad here ?

If you play and trade fair there should not be any issues. If that is all what you can say on negative side I am very fine with Bespoke here.

Martingale and Grid strategies are loosing strategies, so forbidding to do so, is fine from the prop firm side. I cannot say anything bad about that. But in addition you cannot do a lot of scalping with them. The reason is, they cannot copy to A-book them on your funded accounts (they say). That is all. So short term daytraders are not so welcomed on BFP, but that is then all here. Second reason was, that they recently had only 8cap as broker and they said, we all know that, that 8cap datafeed easily can be exploited for tick scalping EAs and strategies to make huge profits for sure. Now they switched to Thinkmarkets for MT5 accounts. Anything else ?

MyFundedFX CEO discusses slippage (audio):

https://twitter.com/i/status/1654539947292934146

When I clicked on T&C I got this.
https://the5ers.com/high-stakes-terms-conditions/




Ill have to send them a message to clarify.

I don't trade indexes in props but on my 5ers funded account I see indexes there and I tested to simulate a trade and it's seems fine (I just not summited).