Apex Trader Funding - Payout Rules Explained (Ultimate Guide)

Apex Trader Funding has payout rules and a payout structure that may seem a bit complicated at first glance but it’s a lot simpler than you think.

I break down all the details in this article so it’s the only resource you’ll need to understand everything regarding Apex Trader Funding’s payout rules and structure and why it’s designed to be more advantageous than the other prop firms.

payout ratio

Apex Trader Funding is one of few prop firms that offers a 90:10 profit/split ratio. The trader keeps 90% and Apex keeps 10%.

Apex Trader Funding also lets you keep 100% of the first $25,000 (an industry high) and that’s PER ACCOUNT. So hypothetically, if a trader had 20 PA accounts with Apex, that’s half a million in profits they get to keep.

PAYOUT REQUEST TIMEFRAME

Apex Trader Funding allows a trader to receive a payout twice a month by submitting a request within the request window. The following is the date range of every month for the request window:

First Request Window: 1st - 5th

Second Request Window: 15th - 20th

The request for the first window is approved any time between the 1st - 14th, depending on the exact date you made the request. If approved, payments are sent out on the 15th of the month and can take anywhere from 3 - 7 business days to reach your bank account.

The request for the second window is approved any time between the 15th - 29th, again, depending on the exact date you made the request. If approved, payments are sent out on the 30th of the month and can take anywhere from 3 - 7 business days to reach your bank account.

You are still allowed to keep trading after a request is made. But just be mindful of how much payout you requested and trade as if that amount was already deducted from your balance so you do not hit your trailing threshold.

PENDING VS. APPROVED

When you request a payout in any one of the two windows, the status will be shown as PENDING until your request is APPROVED. It is extremely important to be aware of your status while trading your account.

If you continue to trade and your status remains PENDING after you submit your payout request and suddenly blow your account, you will no longer get that payout.

BUT… if you continue to trade and your status was APPROVED after you submit your payout request and suddenly blow your account, you will still get that payout.

Once a payout is approved, you will get that payment, regardless if the account is blown or not.

MiniMUM TRADING DAYS

Apex Trader Funding requires you to trade a minimum of 10 days before being eligible for a payout.

A trading day counts as taking a trade anywhere from 6:00 pm EST to 5:00 pm EST the next day.

So for instance, if you take a trade on Sunday night at 7:00 pm EST and another trade on Monday afternoon at 4:00 pm EST, then that still counts as one trading day.

MINIMUM ACCOUNT BALANCE & MAXIMUM WITHDRAWAL FOR PAYOUT

Account Size	Min Balance Required	Max Withdrawal
$25k	$26,600	$1,500
$50k	$52,600	$2,000
$75k	$77,850	$2,250
$100k	$103,100	$2,500
$150k	$155,100	$2,750
$250k	$256,600	$3,000
$300k	$307,600	$3,500
$100k Static	$102,600	$1,000

In order to get approved for a payout, you need to reach the minimum account balance as indicated in the table above for each respective account size plan.

But unlike most other prop firms, Apex Trader Funding doesn’t require you to maintain the minimum account balance once you’ve reached it. You can make a payout request as soon as you reach it and build back up again to the minimum balance required to request another payout.

But do keep in mind, if you decide to withdraw money as soon as you reach the minimum balance required, it will eat into your trailing threshold. For instance, if you have a $50k account size plan and build the account to the minimum balance required ($52,600), you are eligible to request a $2,000 payout. But if you did that, your balance would go to $50,600, leaving you only with a $500 trailing threshold. So it’s best to build a cushion on top of the minimum balance required to leave yourself with enough of a trailing threshold.

Another detail to keep in mind is that when you request a payout and the status is still PENDING, don’t go below the minimum balance. If you do, you will not get that payout because Apex is still reviewing whether you’ve qualified or not by meeting the minimum trading days and reaching the minimum balance required. But once the status is APPROVED, then it’s okay to go below the minimum required balance.

Once you’ve reached the minimum balance, you can only withdraw a certain amount as indicated in the table above under max withdrawal for each respective account size plan. But this restriction only applies for the FIRST 3 MONTHS. Once you’ve requested at least one payout a month for the first 3 months, you are now eligible to withdraw as much profits as you’d like with no restrictions.

The 30% CONSISTENCy rule

In order to be approved a payout, you need to show Apex that you are trading consistently. Therefore, your biggest trading day cannot exceed 30% of your total PnL on the day of your withdrawal request.

The easiest way to keep track of this is by looking at the total balance you’re trying to get to whether it’s the minimum required balance or some other balance you feel comfortable with when you’re ready to request a payout.

For instance, say you want to withdraw money when your balance gets to $55,000 on a $50k account. You take the $5,000 which is the total profits you’ve made and multiply that by .3. So $5,000 x .3 = $1,500. Therefore, your biggest trading day should not exceed $1,500.

If you do exceed it, just keep trading until you meet the 30% consistency rule. The easiest way to keep track of that is by taking your biggest trading day and dividing it by .3. So let’s say you exceed that $1,500 from the previous example and your biggest trading day ended up being $1,800 instead. So you take $1,800 / .3 = $6,000. Therefore, you need to get your balance to $56,000 ($50k starting balance + $6,000 required).

But the 30% isn’t such a black and white rule. If your best trading day goes above 30% by a bit and you show Apex you’ve been a consistent trader, you should still be approved for a payout. The 30% rule is primarily there to get rid of gamblers and people who YOLO trade on their accounts.

OTHER RULES

Other rules include you have to withdraw a minimum of $500 each time you make a payout request.

You are taxed as a contractor and will receive a 1099 at the end of the tax year.

Each account is considered a separate, stand-alone account. So all these rules apply PER account.

RECAP

So just to recap, the following are all rules and details regarding the payout system for Apex Trader Funding…

• Traders keep 100% of the first $25k in profits PER ACCOUNT and then it goes to a 90/10 split

• Traders need to trade a minimum of 10 days for a payout

• Traders need to meet the required minimum balance for a payout

• Traders cannot exceed the maximum withdrawal amount (this restriction drops after 3 months of payouts)

• Traders are only allowed two payouts per month

• Payouts are forfeited if the trailing threshold gets triggered and the status was PENDING but are given out if the status was APPROVED

• Traders need to make sure their best trading day does not exceed 30% of total PnL on day of withdrawal request (rule flexible if Apex sees you’re a consistent trader)

• Traders need to withdraw a minimum of $500 when requesting a payout

• Traders taxed as a 1099 contractor

That is everything when it comes to the rules and regulations on payouts for Apex Trader Funding. As stated earlier, Apex has these rules in place to make it advantageous for the trader while still making sure they’re providing resources to someone who is actually consistent.

Every prop firm has their pros and cons when it comes to payouts. But I truly feel Apex is the best as far as the pros significantly outweighing the cons. These rules and structures are set in making sure the trader fairly gets compensated while not blowing their account.

ENTER PROMO CODE:
BOB
DURING CHECKOUT FOR THE BEST AVAILABLE DEAL IN ANY ONE OF APEX’S EVALUATIONS

Topstep vs. Apex Trader Funding: A Comparative Assessment of Two Leading Firms in the Prop Trading Business

	Topstep	Apex Trader Funding
Evaluation Process	One-step Trading Combine	One-step evaluation challenge
Trailing Drawdown	End of day (except live account)	Unrealized
Daily Loss Limit	$1,000	None
Consistency Rule	Best trading day should be less than 50% of total profits	Best trading day should be less than 30% of total profits
Funded Activation Fee	$149	Varies ($130 - $340) lifetime or $85 per month
Profit Share	90% after initial $10,000	90% after initial $25,000
Minimum Days Required For Payout	5 winning days of $200 or more	10
Educational Resources	Extensive educational materials and coaching	Limited educational resources
Community	Strong community support and networking	Less emphasis on community engagement
Trading Platforms	Supports various platforms	Primarily uses NinjaTrader and Tradovate
Current Promotion	CLICK HERE	CLICK HERE (Use code: POUITLMY)

Topstep and Apex Trader Funding are two major players in the competitive prop trading space and are essential resources for anybody starting off in day trading. Selecting between TopStep and Apex Trader Funding is more than just picking a prop business; it's an important strategic choice that might have a big influence on your trading goals.

I want to provide an insight into both companies, based on my vast expertise in the trading industry. I will begin with an introduction and then go into more detail to analyze their differences and similarities, pros & cons, and overall impressions.

With a focus on the futures market, Topstep and Apex Trader Funding are both experts in providing funded trading programs. Traders can get a funded account and the money they need to make trades in the financial markets by seizing the opportunity provided by these popular prop firms.

Apex offers a more flexible strategy with greater earning potential, while Topstep offers a structured program known as the Trading Combine. This review looks at how each platform helps traders achieve their objectives and strikes a balance between discipline and the urge for fast profits.

What is A Funded Trading Program?

A funded trading program is an arrangement between a proprietary trading business and a trader. The proprietary trading organization will initially test the trader. The exam assesses if the trader has the necessary skills and ability to trade consistently and profitably. The exam is conducted on a virtual account, so the trader will not be trading with actual money. Once a trader passes the exam, they are given a real account that is funded by the proprietary trading business. The earnings earned by the trader on the funded account will be split between the trader and the proprietary trading organization.

If, on the other hand, the trader breaks the firm’s restrictions or incurs enormous losses, the agreement will be nullified. This will result in the trader losing the financed account. The trader must go through the testing procedure once more if they desire a funded account. One important aspect of funded programs is that they typically focus on the FOREX or futures market. But with Topstep and Apex, they are exclusively a futures firm.

The Match-Up:
Apex Trader Funding vs. Topstep

Proprietary trading platforms provide traders with particular outlets for efficiently harnessing institutional capital. Topstep and Apex Trader Funding are at the forefront of this market, with each providing specialized approaches for analyzing and supporting trader growth.

Apex Trader Funding

Apex Trader Funding is a proprietary business that runs a financed trading program. Established by Darrell Martin in 2008, the firm has expanded over the years, giving traders access to capital exceeding $100 million. A trader receives a funded account upon passing the assessment stage, sometimes referred to as the Apex challenge.

The best chance for traders to receive a funded account is through The Apex firm. For this reason, the assessment is simplified so that traders may hit their profit objective without having to worry about a plethora of pointless regulations. This gives traders a greater probability of successfully funding their accounts and trading financially. The program is ideal for individuals who lack funds or do not want to risk their investments on trading.

The first $25,000 in earnings goes entirely to traders when they are granted a Apex-funded account. The traders and the company split the remaining earnings in a 90:10 ratio after that. 90% of the profit goes to the trader and the remaining 10% is retained by the business. This is one of the most lucrative profit-sharing arrangements in the business.

Like a lot of prop firms, Apex Trader Funding uses an unrealized trailing threshold (or drawdown). A drawdown is the amount a trader can not go below or they will lose their funded account or fail the evaluation.

Apex’s unrealized drawdown continues to trail a trader’s profits, regardless if they sell it or not. This can be tricky because if the trader is making a lot of profits but the futures contract that they’re trading has not yet hit their price target, they can lose all that money if the trade falls just short of that price target and reverses. So the trailing drawdown increased by trailing all that profit that was never actually sold, leaving the trader with very little drawdown left.

That’s probably the biggest different between Apex and Topstep… because Topstep uses an end-of-day drawdown that only trails your profits that you have actually sold which is undoubtedly more favorable.

Topstep

Topstep is another private business that offers a paid trading program. It is recognized as one of the fastest-developing businesses in the US and was started by Michael Patak in 2012. This is due to the fact that many traders appear to be seeking Topstep's services when it comes to prop firm trading.

However, in an effort to shorten the evaluation process, TopStep has changed the Trading Combine to a one-stage assessment. This simplicity is consistent with the Apex challenge, which requires only one stage to qualify for a funded account.

Traders keep the first $10,000 in profits after being granted a funded account. The traders and the company split the ensuing gains in a 90:10 ratio. Ten percent goes to the firm and ninety percent goes to the trader.

WHICH FUNDING OPTION IS BETTER FOR YOUR TRADING OBJECTIVES: TOPSTEP OR APEX TRADER?

Topstep is Better for:

1. Traders looking for more stability: The Trading Combine's end of day drawdown eases the pressure for traders to take profits quickly in fear of it eating into their drawdown.

2. Traders seeking a community: Topstep boasts a thriving trading community that provides a sense of friendship and mutual learning opportunities.

3. Traders seeking a safety net: The company's emphasis on risk management includes daily loss caps to assist traders in averting large losses.

4. Traders looking for a test: Clear objectives set by the Trading Combine's performance criteria might motivate traders to achieve success.

5. Traders who want a more gradual approach: The streamlined procedure for obtaining a funded account is intended to efficiently build a trader’s confidence.

6. Traders seeking recurring assessment: Topstep's latest assessment guarantees that traders adhere to their trading plan and maintain their strategic path.

7. Traders looking for a clear set of rules: The firm's clear guidelines can assist traders in being more disciplined and methodical in their approach to the markets.

8. Traders in need of performance evaluation: Frequent evaluations offer insightful information about a trader's areas of strength and growth.

9. Traders who appreciate a helping environment: Topstep offers coaching and educational materials to help traders get through tough challenges.

10. Traders who strive for incremental growth: The business strategy of the company promotes long-term, reliable trading success.

Apex Trader Funding is Better for:

1. Autonomous traders: The fewest possible trading regulations provide traders more freedom to do as they like.

2. Traders looking for quick opportunities: Skillful traders can quickly become funded account holders with the help of the one-step evaluation process.

3. Traders seeking to hold onto their first gains: The trader receives all of the first $25,000 in earnings, which serves as an early incentive for profitable trading.

4. Traders seeking a more level playing field: The capacity to take on greater positions is made possible by the higher starting balance and the number of contracts a trader can buy.

5. Traders who detest daily loss caps: Since there is no daily loss cap, traders are free to concentrate on just their overall drawdown instead of worrying about if they’re close to hitting their daily loss limit.

6. Trading enthusiasts who favor a clear-cut strategy: Profit-sharing is a straightforward and easily comprehensible approach.

7. Traders who know what they're doing: The platform's adaptability is perfect for traders who have a tried-and-true method that might not work in a strict framework.

8. Traders who want to trade various accounts: The ability to trade up to 20 funded accounts (unmatched by any prop firm), using a trade copier, will allow traders to build on overall profits significantly.

9. Profit retentionists: After the initial $25,000, traders may keep the majority of their gains because of the advantageous profit split.

10. Traders pursuing large profits: Ambitious traders may be drawn to the bigger starting balance via a higher account size option because of the possibility of greater gains.

A CLASH BETWEEN TRADING CHANNELS: TOPSTEP VS. APEX

Explore the essential features that TopStep and Apex Trader Funding provide while outlining their strengths and challenges. You'll have the knowledge to select the platform that best fits your trading path after reading this comprehensive comparison.

Pros of Apex Trader Funding:

1. Unmatched Discount on Evaluations: 80 to 90% discounts on all evaluation plans are offered consistently throughout the year for traders to take advantage of.

2. Variety of Account Sizes: Provides a selection of account sizes, ranging from $25k to $300k, to accommodate traders at varying skill levels.

3. One-Step evaluation: A one-step challenge to gain access to a funded account simplifies the evaluation process.

4. Profit Retention: A major incentive for traders is that they keep the first $25,000 in earnings.

5. Trade up to 20 Funded Accounts: This attractive flexibility gives traders 20x their profit potential when using a trade copier.

6. No Daily Drawdown: There are no limitations on daily losses, allowing traders to handle their trades with greater autonomy.

7. Included Real-Time Data: Offers real-time data feeds, which are necessary for making knowledgeable trading selections.

8. Absence of Scaling Plans: Traders can function without the burden of scaling plans, which may restrict their ability to trade.

9. Greater Risk Flexibility With Numerous Accounts : In order to distribute risk and maybe boost returns, traders are allowed to open numerous accounts and trade them on different days from each other.

10. Free NinjaTrader License: This package comes with a NinjaTrader license, saving traders money.

Cons of Apex Trader Funding:

1. Trailing Drawdown is Unrealized: A trader’s profit will be trailed, regardless if the gains are realized or unrealized.

2. Only Two Payout Periods Per Month: For the first 3 months, traders are capped out to a limited amount they can withdraw (depending on account size) per payout period and only two are allowed per month.

3. Lack of Customer Support: A customer support number or live chat is not provided and only a ticket can be submitted via message board for any questions or concerns.

4. High Activation Fees: Although the evaluation discounts are among the industry best, the activation fees (lifetime or monthly) rank pretty high compared to other prop firms.

5. No Free Trials: Before committing to the platform, prospective traders are unable to test it out.

6. Unfavorable Profit Goal to Trailing Threshold Ratio For Some Accounts: Some accounts have a very high profit goal compared to its trailing threshold like the $250k account at a $15k profit goal but only a $6500 trailing threshold.

7. No News Trading: They do not accept strategies that make use of trading during news events.

8. Limitations on Cost-Average: Only allows to buy just once if PnL is in the negative, perhaps limiting a trader’s strategy on averaging down.

9. Less Community Engagement: There could be less sense of a community here than at some other companies.

10. Absence of instructional materials: There are no instructional materials available to aid in the skill-building of novice traders.

Pros of Topstep:

1. End of Day Drawdown: Not having to worry about how much their unsold gains are eating into their drawdown, a trader is granted higher flexibility in attaining their profit goals.

2. Favorable Payout Structure After 30 Winning Days: Traders can withdraw 100% of their profits at any time after accruing 30 winning days of $200 or more.

3. Cheap Combine Costs: Some accounts (like the popular $50k combine) offer a cheap plan compared to other prop firms.

4. Performance coaching: Offers guidance and criticism, both of which are very helpful in enhancing trading abilities.

5. Community Support: Availability of a trading community for networking and strategy exchange.

6. Favorable Profit Ratio: After the withdrawal of the first $10,000 in earnings which the trader gets to keep 100% of, a industry-high 90% to 10% profit sharing follows.

7. Multiple Trading Platforms: Allows traders to select their favorite interface by supporting a range of trading platforms.

8. Educational Resources: Provides learning resources to aid in the development of traders.

9. Customer Service: Offers prompt, helpful customer support via automated chat that is accessible to answer questions from traders.

10. Free Trial: Before committing, new users can begin with a free trial to experience the site.

Cons of Topstep:

1. Profit Withdrawal Cap: Before accruing 30 winning trading days of $200 or more, traders are capped at 50% of the amount of profits they can withdraw from their account.

2. Profit Withdrawal Length: Before accruing 30 winning trading days of $200 or more, traders have to accrue 5 winning trading days of $200 or more to be eligible for a withdrawal.

3. Daily Loss Limit: Although some would argue this prevents traders from overtrading and mounting more losses, others would argue it’s an inconvenience and burdens them with more restrictions to their overall trading strategy.

4. Limited Account Size Options: Only 3 account sizes are provided ($50k to $150k) which is low compared to some other prop firms that offer various.

5. Scaling Plan Restrictions: Once funded, trader has to abide by the scaling rules which designates a certain amount of contracts they can trade depending on their account balance.

6. Restricted Trading Hours: Compared to other platforms, trades have to be closed at 4:10 PM ET which is almost an hour less.

7. Unfavorable Criteria For Live Funded Account: Once trader is transitioned to a live funded account from the combine and express account, they are responsible for $135/month CME data fees and the trailing drawdown will no longer be end of day.

8. Max Contract Size Limited: Compared to other platforms, the number of contracts a trader can take on is smaller.

9. Consistency Rule: Traders cannot have their best trading day be greater than 50% of their total profits.

10. Limitations on Number of Accounts: Traders can only have up to 3 express funded accounts compared to Apex which offers 20.

Choosing between apex trader funding and topstep: handling the consistency criteria

Success in the world of proprietary trading is mostly dependent on consistency. Two prominent companies on the market, Apex Trader Funding and Topstep, take various tacks on this idea, each with a unique set of rules aimed at fostering a disciplined trading style.

Apex Trader Funding: Promoting Organic Consistency

Apex Trader Funding chooses to maintain consistency through organic means. The company encourages traders to use trading plans and techniques that suit their unique styles rather than enforcing a strict consistency requirement.

This way of thinking stems from the idea that traders need to be allowed to establish a reliable trading schedule of their own. It's crucial to remember that even while Apex may be more flexible in their consistency guidelines, traders are still required to show a consistent, methodical approach to making money. Disqualification from the challenge may occur for any violation of the main rules.

Topstep: The Systematic Way to Consistency

TopStep, on the other hand, has implemented a particular measure called the Consistency Target in their Trading Combine software. This policy demonstrates the company's dedication to risk control and the development of a consistent profit-making capability. A trader's best day must not surpass 50% (compared to Apex’s 30%) of their overall profit objective in order to fulfill the Consistency objective. If a trader's greatest day ever happens to be more than this, they have to keep trading until the profit distribution satisfies the firm's requirements.

With the help of this systematic strategy, traders may be confident that their success is based on steady, risk-aware trading rather than on unexpected profits. It is a system that incentivizes perseverance and calculated planning, guaranteeing that traders develop the abilities necessary for sustained market stability.

Both TopStep and Apex trading Funding provide distinctive settings tailored to certain trading types. These businesses offer the foundations to support your trading objectives, whether you desire the flexibility to create your own consistency or the direction of a planned aim.

FINAL THOUGHTS ON
TOPSTEP VS. APEX TRADING FUNDING

As we come to the end of our review for Topstep and Apex Trader Funding, we have seen that both platforms have distinctive advantages and difficulties for day traders wishing to enter the realm of proprietary trading.

Choosing between TopStep and Apex Trader Funding is more than just picking a proprietary trading firm; it's about collaborating with a company that shares your goals and trading philosophy. Topstep offers a wide range of educational resources, including the Trading Combine challenge, which has been redesigned to better serve traders who are dedicated to improving their trading skills and want a structured approach to risk management.

Conversely, experienced traders seeking greater operational autonomy and a larger cut of the profits may find Apex Trader funding to be a more straightforward funding option due to its condensed set of regulations.

I think the biggest trade-offs between the two are the trailing drawdowns and evaluation costs. While Topstep offers the much more favorable end-of-day drawdown compared to Apex’s unrealized trailing drawdown, Apex offers significantly cheaper evaluation costs primarily because of the discounts they provide. For example, a 90% discount, which Apex is offering constantly, would only cost a $50k account plan $16.70 (or $18.70 for Tradovate plans) compared to Topstep at $49 for the same account size.

But Topstep may be particularly appealing to traders looking for a simple strategy that provides a clear path to making big gains as a funded trader because of its easy approach. Another thing that sets Topstep apart is its amazing community structure, which allows traders to grow and learn from one another.

TopstepX, a cutting-edge trading platform designed specifically for futures traders, was also just introduced by Topstep. Enormous features have been added that are exclusive to this product.

In the end, it comes down to personal taste: are you more inclined to choose Apex's uncomplicated strategy and substantial profit-sharing conditions, or TopStep's emphasis on education and a cooperative trading environment? Whichever platform you choose, it all provides a solid foundation for your trading operations, supported by sufficient funds to increase your visibility in the market.

Whatever prop firm you ultimately do end of choosing, just remember that this review ought to be the start of your decision-making process. It's crucial to thoroughly research both prop businesses and consider all pertinent variables before selecting the one that best suits your specific objectives and risk tolerance.

Apex Trader Funding: Full Review 2024

In a world of competitive prop firms that have attracted the attention of many interested traders, Apex Trader Funding stands out prolifically based on its popularity and brand. When you think of the term, prop firm, Apex Trader Funding undoubtedly comes to mind first.

But why is that? What makes it significantly more popular than the rest? We will answer that question by providing a deep dive on everything Apex from the straightforward rules to the easily affordable evaluation plans.

For a limited time, SAVE 80% and only a ONE day pass with promo code BOB

WHAT IS APEX TRADER FUNDING?

Apex Trader Funding (ATF) is one of the leading proprietary trading firms in the futures market. A proprietary trading firm, or simply prop firm, is when a company provides capital to a trader so that they don't have to risk their own.

Most prop firms require traders to pass an assessment in order to prove they have the necessary skills to manage their capital. In return, the trader isn’t risking anything other than the fees associated with the assessment process and the prop firm potentially has a skilled trader trading on their behalf.

Apex Trader Funding simplifies the entire assessment process by making it a one-step evaluation. Once you pass this one-step evaluation, traders are given a funded account to day trade futures contracts and earn money based on their risk tolerance. That risk tolerance will be dependent on the type of account size they choose during the evaluation stage and we’ll talk about that further.

Rithmic Plans

TRADOVATE Plans

As seen above, Apex can be broken down into two sets of plans: a Rithmic plan or a Tradovate plan. Each plan offers multiple evaluations, ranging from $25k - $300k accounts. There is also a $100k static account which we’ll get to later.

Both Rithmic and Tradovate are trading platform providers. But the biggest difference between the two is Tradovate is slightly more expensive than Rithmic. Although this can lean more traders towards a Rithmic plan, Tradovate is the only platform compatible with Mac that Apex offers. In addition to Rithmic and Tradovate, Apex Trader Funding also offers the ability to trade on Ninjatrader (part of the Rithmic plan) - which again, like Rithmic, is only exclusive to Windows.

Each evaluation account, regardless if it’s from Rithmic or Tradovate, has the same objective and set of rules: meet your profit goal and do not hit the trailing threshold.

As you can see from the images above, depending on the account size you choose, each evaluation has different profit goals and a different trailing threshold amount. However, once you meet the profit goal in any of the accounts while not hitting its trailing threshold, traders will pass Apex’s evaluation and are ready to be funded.

As far as the $100k static account, there is no trailing threshold like the others. You only need to be aware of the total drawdown, which in this case, is $625. So what that means is the account balance can not go below $99,375 ($100k - $625). However, unlike the trailing threshold, the static account will not continue to trail your profits. The drawdown threshold will remain at $99,375 no matter how much you make (realized or unrealized) whereas with the other accounts, your profits will be trailed.

For example, the trailing threshold for the $50k full account is $2,500 which puts the threshold at $47,500 - meaning your balance cannot go below that amount. But let’s say you make $1,000 profit and your starting balance increases to $51,000. Then your drawdown balance also goes up $1,000 from $47,500 to $48,500. With the static account, you don’t have to worry about this.

WHAT IS A TRAILING THRESHOLD
- A DEEPER DIVE

If you’re going to learn anything about the Apex prop firm rules, learn this. That’s because the trailing threshold will be the definitive factor on whether you fail or keep an account.

As stated previously, the trailing threshold will continue to trail the profits you make both in the evaluation and funded accounts. So using the example I mentioned before, say you have a $50k account. You make $1,000 and increase the starting balance to $51,000. Again, the trailing threshold balance also goes up by $1,000 from $47,500 to $48,500.

HOWEVER, let’s change things up a bit. Say you’re making $1,000 profit. But instead, you decide not to sell because you think it’s going to go higher. This intuition backfires and the trade goes against you. So instead of making more, you lose your $1,000 and decide to sell breakeven, bringing your total balance back to $50,000. Even though you didn’t lock in any profits, your trailing threshold still went up by $1,000, bringing the balance from $47,500 to $48,500. So now you’re left with only a $1,500 trailing threshold instead of the initial $2,500.

This is because the trailing threshold continues to trial your profits, REGARDLESS if you sell your position or not. The trailing threshold takes into account both realized and UNREALIZED gains. This is a very key detail that gets overlooked and why many traders fail their accounts.

But the good news is once the trailing threshold reaches the initial starting balance ($50k in this case), it will no longer follow your profits. It will stay at $50k. So if you increased your account balance from $50k to $60k, that’ll now give you a $10k cushion of your trailing threshold. But if you somehow manage to lose all those gains and your account balance touches or goes below $50k, you will lose your funded account.

Image Credit: OneUp Trader (Another prop firm with an unrealized trailing threshold)
$100k account example of how the trailing threshold (or drawdown as OneUp calls it) trails your profits until it reaches your starting balance.

THE RULES

Like every prop firm, you have to follow the rules and regulations they provide in order to continue trading with them. The following table breaks down the differences and similarities between the evaluation rules and the funded account rules.

EVALUATION RULES	FUNDED ACCOUNT RULES
Meet profit goal	Meet profit threshold
Don't hit trailing threshold	Don't hit trailing threshold
Trade a minimum of 7 days (unless there's a promotion)	Trade a minimum of 10 days (in order to be payout-eligible)
Trading news allowed	Don't trade the news
No consistency rule	Meet consistency rule

As indicated in the table above, the evaluation rules state you have to meet the profit goal which will be dependent on the account size you choose.

Do not hit the trailing threshold we talked about earlier or you’ll fail the evaluation.

You have to trade a minimum of 7 days unless there’s a 1-day pass promotion going on and there usually is. But if not, you’re allowed to meet your profit goal early and then spend the rest of the trading days quickly scalping a micro contract in order to fulfill the requirement.

Unlike a funded account, trading the news is allowed.

And there are no consistency rules you need to follow.

For the funded account, you have to meet the profit threshold which is the minimum balance needed for your account in order to be eligible for a payout. But just because you can withdraw at the minimum doesn’t mean you should. Remember, once you withdraw past the minimum, it’ll eat into your initial trailing threshold. So it’s best to build on a cushion above the minimum before any withdrawal is considered.

Like the evaluation, do not hit the trailing threshold.

Again, regarding the payout rules which we’ll get into shortly, you have to trade a minimum of 10 days.

You cannot trade the news. Apex doesn’t want traders to trade off luck where the futures market is the most volatile during news events that could make or break an account.

And you have to meet the consistency rule which states a single trading day cannot be greater than 30% of your total profits. In addition, you cannot dollar cost-average a negative PnL while trading except one time only.

PAYOUT RULES
Two payout periods per month
Can only withdraw a certain amount depending on account size (for first 3 months only)
Minimum withdrawal is $500
Traders keep 100% of first $25k per account
Profit split 90/10

You’re only allowed two payout periods per month. For each payout period, you’re not allowed to withdraw above a certain amount. These restrictions only apply the first 3 months. After that, you can withdraw as much profits as you’d like. The following is the max allowed amount for each account size for a payout period before those 3 months:

$25k Account- $1,500

$50k Account- $2,000

$75k Account- $2,250

$100k Account- $2,500

$150k Account- $2,750

$250k Account- $3,000

$300k Account- $3,500

$100k Static Account- $1,000

The minimum withdrawal amount is $500 - meaning you’re not allowed to withdraw any less than that.

The profit split between the trader and Apex is 90/10. Traders get to keep 90% and Apex keeps 10%. But traders get to keep 100% of the first $25k and that’s PER account.

So hypothetically, if you pass five $50k evaluations and use a trade copier to copy your trades for each of these accounts, the first $125,000 totaling all accounts would be yours. This is one of the magnificent benefits of Apex Trader Funding. But let’s talk more about the company’s overall pros and cons.

PROS & CONS

PROS

• Simplified one-step evaluation that requires you to hit the profit goal and avoid the trailing threshold - nothing more

• Allows you to select up to an industry high of 8 different account size plans ranging from $25k to $300k

• Offers the highest discounts for evaluations among all prop firms

• Profit split is among the industry’s highest (90/10) as well as allowing traders to keep 100% of the first $25k per account

• No daily drawdowns unlike other prop firms

• Could trade up to 20 funded accounts at the same time using a trade copier - easily the highest among other prop firms

CONS

• Trailing threshold is unrealized whereas some other prop firms offer a more favorable drawdown like end of day which doesn’t calculate any of your gains until the trading day is complete and you’ve sold your position

• Restricted to day trades only whereas a few other prop firms allow you to swing trade

• No telephone number or live chat for customer support (submission ticket only through message board)

• Activation fees for funded account per account

WHY CHOOSE APEX?

As detailed above, the pros far outweigh the cons for Apex Trader Funding. But every prop firm has their pros. What makes Apex that much more popular? I think most traders would agree it’s their prices.

The average price to usually sign up for an evaluation for most prop firms is 3-figures. Apex Trader Funding falls within this range too as indicated by the monthly prices in the Rithmic and Tradovate plans. But Apex has promotions going on ALL the time from half-off evaluations to 90% off!

In fact, they’re promoting 80 - 90% off almost constantly throughout the year. So with 90% off, you’d pay no more than $16.70 or $18.70 for a $50k Rithmic or Tradovate plan, respectively. As someone who has vast experience in the prop trading community, you’re almost never going to find a bargain like that.

Although these promotions sound enticing, Apex does have an activation fee you have to consider. Once you pass their evaluation, you have to pay an activation fee to activate your funded account. And this is PER account.

They provide a monthly option of $85 or a lifetime option in which you only have to pay one time. The following are the lifetime activation amounts for each account:

Rithmic Plans:

25k PA Activation Account Lifetime Fee          $130        

50k PA Activation Account Lifetime Fee          $140

75k PA Activation Account Lifetime Fee          $180

100k PA Activation Account Lifetime Fee

(full and static account)                                   $220

150k PA Activation Account Lifetime Fee        $260

250k PA Activation Account Lifetime Fee        $300

300k PA Activation Account Lifetime Fee        $340

Tradovate Plans:

25k PA Tradovate Activation Account Lifetime Fee $150

50k PA Tradovate Activation Account Lifetime Fee $160

75k PA Tradovate Activation Account Lifetime Fee $200

100k PA Tradovate Activation Account Lifetime Fee $240

150k PA Tradovate Activation Account Lifetime Fee $280

250k PA Tradovate Activation Account Lifetime Fee $320

300k PA Tradovate Activation Account Lifetime Fee $360

Most traders opt to pay for the lifetime fee instead of the monthly fee since they would save a signifcant amount in the long run. However, there are traders that choose to pay the $85 per month because it can be difficult to hold a funded account for a long period. A lot of traders ultimately end up failing it because they went below their trailing threshold and are already looking for the next promotion to repurchase another evaluation. And for them, a monthly option may save them more than the lifetime option.

You’re probably thinking even though I’m saving a lot of money using the promotions Apex offers on their evaluations, I ultimately end up paying the same as the industry average if you take into account the activation fees you have to pay afterwards. So how does this justify Apex’s popularity?

The key difference is while most prop firms require 3-figure payments up front when purchasing an evaluation, Apex only requires it afterwards. If you’re going to invest around three figures, wouldn’t you want to make sure you pass the evaluation first?

So the unique thing about Apex is, with their promotion, you’re essentially paying significantly less to take the evaluation to see if you pass or not before you end up paying majority of the overall fees. If you fail their evaluation, you only lose a modest amount of your money because of their discounted prices compared to failing the evaluations for most other prop firms.

IS APEX TRADER FUNDING LEGIT AND TRUSTWORTHY?

Yes. As someone who has gotten payouts from them, himself, Apex Trader Funding is as professional as they come. Here are the average ratings of the firm as provided by Trustpilot:

These reviews are from over 7,000 verified users that have used Apex’s services and majority of them provided a 5-star rating. Additionally, Apex’s website has various questions answered in thorough detail that one may have before signing up for a service in their FAQ section.

FINAL THOUGHTS

Apex Trader Funding continues to be in the forefront of the prop trading business with their simplistic one-step evaluation and unmatched promotional evaluation plans. With their clear rules and objective, Apex Trader Funding makes it easier for the trader to earn a funded account.

Rather than risking their own capital which would be a lot based on the initial margin required by most brokers to trade futures, Apex allows the opportunity and flexibility for traders to trade futures risk-free.

For more helpful resources on Apex Trader Funding, please check out the video below on everything Apex from how to pass to all the rules and regulations that need to be followed in a very visual-friendly manner.

Why Trading and Investing are so Fundamentally Different

There is a popular misconception that trading and investing could be used interchangeably with one another. But as professional traders and investors can attest to, they are both radically different. It’s easy to mix the terms when both activities share the same objective: make money in the stock market.

But their opposite approaches to achieve that objective is what makes them so distinct. To put it in its simplest form, traders trade tickers and investors invest in companies. Let’s break this phrase down in more detail by focusing on three main concepts associated with each activity.

1. Primary Philosophy
Although investors could sometimes bleed into what a trader does and traders could bleed into what an investor does, the main philosophy to take away is one is purely based off fundamentals and the other is based on technicals.

Investors primarily look at the stock market from a fundamental standpoint. When choosing a stock, investors are entirely invested in what a company does and will continue to do. They care more about the bottom line. They look at a company’s financial reports which consist of balance sheets, income statements, cash flow statements, and various other required documents that the company has to disclose to their shareholders.

These reports give shareholders a look at a company’s debt relative to their overall cash flow, their market share compared to their competitors, their growth and projections, and most importantly, how much profit they’re bringing in. These are all things investors care about. They’re thoroughly listening to a company’s conference call during earnings season, the amount of dividend they’ll pay out for the quarter, and any other relevant information an investor would need at hand to decide if they’re willing to buy the company’s stock.

Traders primarily look at the stock market from a technical standpoint. They use various tools that most likely an investor would not. One of those tools is a stock scanner. This is a vital tool that helps traders find their stocks at any given moment by filtering specific settings to their liking. It’ll allow them to choose any stock whether it’s gapping up or down, is a small or large cap, has high or low volume,  or has a high or low float. This is all technical jargon you probably wouldn’t find an investor searching for. The point is that traders are looking for these big swings in price fluctuations to make a potential profit and these filters within the stock scanner can help them find that.

While investors are viewing a company’s financial reports, traders are vigorously viewing a company’s stock chart. And within that chart, traders have many study indicators they use at their disposal to figure out entries and exits. These study indicators could be tools like moving averages to assess whether a stock’s trend is bullish or bearish or a relative strength index (RSI) to determine whether that stock is oversold or overbought.

But before traders even trade a stock, they are watching for certain patterns within that chart. Every trader has a strategy and they’re looking to see if they can find a pattern that falls within their strategy. Traders then look for validated levels of support and resistance. They evaluate a myriad of other factors like the spread between the bid and the ask on the level 2, the kind of transaction going through on the time & sales, and the type of candlestick they’re about to buy into. All of these tools are specifically important for a day trader. More on that later.

2. Duration
As any sound investor can tell you, never try to time the market. Investors are not interested in paying attention to daily price movements or even weekly price movements for that matter like traders are. They’re not paying attention to market volatility as much as a trader. They’re outlook is substantially longer-term than a trader’s. And that outlook could be at least 5 years and certainly greater than a year. Timing the market is a fool’s errand for an investor.

For a trader, however, timing the market is everything. They’re looking to buy low and sell high (or buy high and sell low if they’re shorting) multiple times by taking advantage of these price fluctuations where as an investor would typically not care and just sit back. In other words, a trader will buy a stock short to mid-term where as an investor will buy a stock for the long-term.

It’s also important to distinguish the kind of trader a person is. A day trader will buy and sell a stock on that same day within hours, minutes, or even seconds. And a swing trader will hold a stock for at least a day.

3. Skill Level
Spending more time in the market naturally will expose you to more level of risk. A trader’s time in the market can be significantly longer than an investor’s in terms of buying and selling and therefore require a bit more skill level to be successful in making money.

A trader has to cut losses more quickly where as an investor can wait for the company to bounce back if they hit a roadblock as long as their status remains intact.

Each of these activities require a different kind of mindset as well. Investors need to have some level of belief or intuition in a company that they’re buying. A trader’s approach is a little less emotional. In fact, their decisions should all be based on logic when analyzing the technical setup of a stock.

Final Thoughts
Regardless of how you approach the stock market, extensive research is undoubtedly required. A trader must check off a multitude of technical conditions to see if a stock is worth trading. And an investor has to study the ins and outs of a company to see if their financial philosophy and overall product or service is sustainable for long-term growth.