The Truth About Funded FX Accounts

Walter Dillard is an experienced trust fund manager, but when his prop firm acted improperly, he refused to keep quiet about it, shining more light to and dirty edge prop firms operate with proving that fraud runs deep in the investment world.

My Forex Funds was a clear fraudster.

They rose to be the #2 forex prop firm in the industry, yet they cheated people out of over $300,000,000. ($300 million.)

It’s likely MFF will be justly liquidated for their fraud. 

However, what about other prop firms?

More than 90% of prop firms do exactly what MFF has done, and should face the same punishment as MFF is now facing.

Let’s be honest about funding in the trading industry; no one receives large funding off an evaluation that takes less than 6 months. 

Hedge funds (big money) require 6 month track records just to even be considered to get funding. 

Anyone who is funding you for less than a 6 month track record isn’t really funding you in most cases. (Not all, but indeed most.)

Most prop firms use demo accounts, not real accounts. (B-book.)

In this way most prop firms are like casinos. They only make money when you fail to pass prop firm challenges. This is similar to how a casino operates, as a casino only earns when gamblers lose. 

If you’re a professional card counter, who goes to a casino, you may make some money in your career, but in doing so, soon enough you get banned from every casino in the business. 

They don’t even have to prove you were counting cards to ban you. They just ban you if you win too much. 

The same goes for prop firms.

If you win too consistently they have ways to kick you out and take away your funded accounts, just as a casino can take away your chips and throw you out the door. 

Why do most prop firms want to steal your funded accounts?

Well that’s because no trades are executed on the live market. As such, they lose when you win. If you win too much they lose too much, so they kick you out so they stop losing so much to you.

I recommend not going to casinos and I recommend not going to prop firms for funding unless you can prove they only win when you win.

After all, I am a strong believer in win-win or no deal. 

Simply put, I only do business deals where I win, and all my partners win. 

If anyone I do business with is losing when I’m winning, I know that business relationship can’t last. A good business relationship must always be win-win to last a long long time. 

So, I recommend thoroughly making sure any prop firm you work with is only winning if you’re winning. Otherwise, go to better funding sources that do indeed only win when you win.

Life is too short for scammers and fraudsters. 

Win-win or no deal!

Article written by Walter Dillard.