In this comprehensive review, we delve into the intricacies of Fuze Traders, exploring how this prop trading firm stands out in offering substantial funding, advanced technology, and a strategic approach to professional trading.
In this comprehensive review, we delve into the intricacies of Fuze Traders, exploring how this prop trading firm stands out in offering substantial funding, advanced technology, and a strategic approach to professional trading.
- Access to Advanced Trading Technologies.
- Robust Evaluation and Funding Process.
- Integration with MetaTrader 5 Platform.
- Supports a Variety of Trading Strategies.
- Strict Adherence to Risk Management.
Fuze Traders stands as a pioneering prop trading firm, dedicated to empowering talented yet financially limited traders. This innovative platform extends its proprietary capital to traders who demonstrate exceptional skills, thereby facilitating their access to state-of-the-art trading technologies. By joining the esteemed ranks of Fuze Traders, individuals gain the opportunity to thrive within an elite trading community, all while benefiting from unparalleled support services.
Founded in 2023, Fuze Traders SÃ rl operates from its headquarters in Rolle, Switzerland. The firm’s operations and growth are robustly supported by Guru Capital SA, a renowned entity specializing in investment holding and M&A advisory services.
Fuze Traders Mission
The mission of this prop firm is centered on outperforming the traditional financial markets. Fuze Traders achieves this by leveraging its own capital, combining it with global trading talent, and utilizing advanced technology. This strategic approach allows them to excel in the financial arena, setting a high benchmark for success.
Core Values of Fuze Traders
Fuze Traders prides itself on being distinct and always putting the needs of its traders first. This is evident in their professional conduct and their commitment to achieving competitive trading conditions, backed by cutting-edge technology. The firm’s values are embodied through various principles:
- Accountability: Fuze Traders is committed to being responsible for its actions, continuously striving for excellence, and ensuring that doing the right thing is at the heart of all decisions and actions.
- Integrity and Fairness: The firm upholds the highest standards of conduct by acting with integrity, treating everyone fairly, and executing all actions with due skill, care, and diligence.
- Market Standards: Fuze Traders is dedicated to adhering to proper market practices, ensuring that their activities are conducted professionally and ethically.
Fuze Traders Trading Program
Fuze Traders is on the lookout for talented and driven individuals who are eager to embark on a professional trading career. The firm warmly welcomes experienced traders to join its team, offering an opportunity to grow and make a significant impact in the ever-evolving financial markets.
Our Evaluation Process
The evaluation process at Fuze Traders is streamlined and straightforward, thanks to the firm’s advanced technology that effectively monitors trading performance. This process is designed to assess your trading skills efficiently.
Step 1: Choose and Purchase an Evaluation Amount
Begin your journey by selecting and purchasing an evaluation package that suits your trading style and goals.
Step 2: Trading in a Simulated Environment
Trade at your own pace in a style that resonates with you. This is done on a simulated account with live market prices. The evaluation consists of two phases:
- Challenge Phase: In this initial phase, focus on adhering to drawdown limits and the minimum number of trading days. There’s no set timeframe to reach your profit target and advance to the next phase.
- Verification Phase: Here, profit targets and drawdown limits are more lenient, with reduced minimum trading days. As in the Challenge phase, there are no time constraints to complete this stage.
Step 3: Achievement Unlocked
Congratulations on reaching this significant milestone! Upon successful completion, you are now ready to apply your trading discipline and strategies using the firm’s capital.
Understanding Trading Rule Breaches at Fuze Traders
Recognizing the significance of adhering to trading rules, Fuze Traders classifies breaches into two types: hard breaches and soft breaches, each with distinct consequences.
Hard Breach
A hard breach is identified by either hitting the daily loss limit or exceeding the maximum trailing drawdown. In the event of a hard breach during the evaluation phase, the trader’s access to the account is immediately revoked. Similarly, if a funded trader commits a hard breach, resulting in a violation of the trading rules, not only is account access revoked, but any profits accumulated are also forfeited.
Soft Breach
On the other hand, a soft breach occurs when a trade is executed without setting a stop-loss. In such instances, the specific trade is closed, but the trader is permitted to continue trading. This approach allows traders to rectify their strategy without severe penalties. In both scenarios, whether it’s a hard or soft breach, traders are given the chance to start a new evaluation with Fuze Traders. However, it is imperative for all participants to thoroughly review the Terms & Conditions of Fuze Traders before commencing any evaluation process to ensure full awareness of the rules and their implications.
Post-Evaluation Process at Fuze Traders
Upon successfully passing the evaluation at Fuze Traders, you embark on the next exciting phase of your trading journey – receiving a funded account. Here’s what happens next:
Receiving Your Funded Account
After your successful evaluation, the first step is receiving an email that contains all the necessary credentials to access your new funded account. However, it’s important to note that the account remains disabled initially.
Activation Requirements
Activation of your funded account requires two crucial steps:
- AML/KYC Documentation: You must submit the required Anti-Money Laundering (AML) and Know Your Customer (KYC) documents. This step is essential for ensuring compliance and security.
- Contract Signing: Alongside the document submission, you’ll need to sign a contract with Fuze Traders. This contract outlines the terms and conditions of your engagement with the funded account.
Once both steps are completed, you will receive a confirmation email indicating that your account is now enabled and ready for use.
Preferred Brokers of Fuze Traders
Fuze Traders strategically selects brokers that are not only regulated but also capable of offering a wide range of markets and the most popular trading platforms.
Current Broker Partnerships
Currently, Fuze Traders utilizes the services of:
- Kubera Capital Markets Ltd. – A key broker partner known for its regulatory compliance and extensive market access.
This selection ensures that traders associated with Fuze Traders have access to top-notch trading conditions and a diverse range of trading opportunities.
Available Trading Platforms at Fuze Traders
Fuze Traders offers access to cutting-edge trading platforms, ensuring a seamless trading experience for its users.
Integration with MetaTrader 5 (MT5)
The firm’s risk management technology is currently integrated with MetaTrader 5 (MT5), widely recognized as the most popular CFD trading platform. MT5 stands out for its advanced features and user-friendly interface, making it a top choice for CFD traders globally. The platform, along with pricing and execution services, is provided through Fuze Traders’ broker partnership, ensuring reliable and efficient trading operations.
Trading Rules at Fuze Traders
Understanding the trading rules for both the Evaluation and Funded accounts at Fuze Traders is crucial for traders. Here’s a breakdown of these rules:
Evaluation Phase 1 Rules
- Hard Breach Rules:
- Daily Loss Limit: 5%*
- Maximum Trailing Drawdown: 10%*
Evaluation Phase 2 Rules
- Hard Breach Rules:
- Daily Loss Limit: 4%*
- Maximum Trailing Drawdown: 10%*
Funded Account Rules
- Hard Breach Rules:
- Daily Loss Limit: 4%*
- Maximum Trailing Drawdown: 10%*
- Soft Breach Rule: Not setting a stop-loss for each trade (unless exempted by the No Stop-loss add-on) is a soft breach. This results in position closure, but you may continue trading.
*IMPORTANT NOTE: All accounts are subject to the daily loss limits and maximum trailing drawdowns rules in place at the time of purchase. Any subsequent changes to these rules will not be applied retroactively to existing accounts.
Calculation of Daily Loss Limit at Fuze Traders
Understanding how the daily loss limit is calculated is key for traders at Fuze Traders. This limit is a crucial component of risk management.
Daily Loss Limit Calculation
The daily loss limit is determined based on the account balance at the end of the previous day. This limit resets every day at 5 PM EST.
Example:
In an Evaluation account with a 5% daily loss limit:
- If your previous day’s end-of-day balance was $100,000, a breach occurs if your equity falls to $95,000 within that day.
Dynamic Loss Limit
Importantly, the daily loss limit is a percentage, not a fixed dollar amount. This means that as the account balance increases, the actual dollar amount of your daily loss limit also increases. For example:
- On an account with a 5% daily loss limit starting at a $100,000 balance, if the balance grows to $110,000, the daily stop out level increases from $5,000 to $5,500.
Please Note: All accounts adhere to the daily loss limits and maximum trailing drawdowns rules established at the time of account purchase. Any changes to these rules post-purchase do not apply retroactively.
Understanding Maximum Trailing Drawdown at Fuze Traders
Grasping the concept of Maximum Trailing Drawdown is essential for traders at Fuze Traders, as it’s a key factor in managing risk.
Defining Maximum Trailing Drawdown
The Maximum Trailing Drawdown represents the maximum amount an account can drawdown before a breach occurs. It’s initially set at 10% and is based on the closed balance of the account, not equity. The drawdown trails the account’s performance and adjusts until a 10% return is achieved. Once this return is reached, the drawdown limit becomes fixed.
Example:
- Starting Balance: $100,000
- Initial Maximum Trailing Drawdown: Can drawdown to $90,000 (10% of starting balance).
- Account Growth to $102,000: New high-water mark, Maximum Trailing Drawdown adjusts to $91,800.
- Upon reaching $106,000: Maximum Trailing Drawdown locks in at starting balance ($100,000).
- Further Growth (e.g., to $170,000): Maximum Trailing Drawdown remains fixed at $100,000. Breach occurs only if the account draws back down to $100,000, subject to daily drawdown limits.
Please Note: All accounts adhere to the daily loss limits and maximum trailing drawdown rules established at the time of account purchase. Subsequent changes to these rules do not apply retroactively to existing accounts.
Inactivity Policy at Fuze Traders
At Fuze Traders, there’s a crucial policy regarding account inactivity that traders need to be aware of for maintaining their account status.
30-Day Inactivity Rule
If a trader does not execute at least one trade within every 30-day period, Fuze Traders considers the account as inactive. This inactivity leads to the account being breached, and subsequently, the evaluation fee associated with that account will be forfeited. This policy is in place to encourage active participation in the program and to manage the hosting costs associated with inactive accounts.
Restricted Trading Strategies at Fuze Traders
Fuze Traders maintains specific guidelines on trading strategies to ensure fair and sustainable trading practices. Certain strategies are not permitted, whether executed manually or via automated systems.
Prohibited Trading Strategies
- Martingale Strategies: Any form of martingale, smooth martingale, or similar strategies are not allowed to be used manually.
- Grid Trading: Manual grid trading is prohibited. This includes setting limits on either side of the price and increasing these limits in the opposite direction of the price movement.
- Arbitrage: Manual arbitrage of the account is not permitted.
- Tick Scalping: Manual tick scalping or high-frequency trading is not allowed.
These restrictions are in place to maintain the integrity of trading activities and to align with Fuze Traders’ risk management protocols.
Conclusion
In summary, Fuze Traders offers a comprehensive and rigorous trading program tailored for skilled traders. The firm’s meticulous evaluation process, coupled with its adherence to strict trading rules and inactivity policies, underscores its commitment to maintaining high standards and promoting sustainable trading practices. While certain trading strategies like Martingale and Grid are prohibited, this approach aligns with Fuze Traders’ focus on risk management and long-term trading success. The integration with MetaTrader 5 and partnerships with regulated brokers further enhance the trading experience, offering a robust platform for traders to excel. Overall, Fuze Traders stands out as a forward-thinking prop trading firm, providing traders with the tools and environment necessary to succeed in the dynamic world of trading.