What does funding talent means in trading?

<p>Funding Talent is a specific type of funding program for retail currency traders (forex traders). They actively scout trading talent by allowing traders to show them first hand what returns they are capable of achieving. Their overarching goal is to give traders the opportunity to trade with substantial capital, while also seeking out profitable traders to join their community and help grow their company. It’s set up to be a win-win for everyone involved.</p>

<p id="isPasted">In trading, funding talent refers to a business model where proprietary trading firms (prop firms) provide capital to skilled traders who lack the personal funds to trade at a professional scale.&nbsp;</p><p><strong>How it Works</strong></p><ul><li>The Challenge: Traders usually pay a small upfront fee to enter an evaluation or "challenge" phase.</li><li>Verification: You must hit specific profit targets (e.g., 8–10%) while adhering to strict risk rules, such as daily loss limits (often 5%) and maximum drawdowns (often 10%).</li><li>Capital Allocation: Once you prove your "talent" by passing the evaluation, the firm provides access to a funded account ranging from $10,000 to over $100,000.</li><li>Profit Sharing: You keep a significant portion of the profits you generate—typically 70% to 90%—while the firm retains the rest as their fee for providing the capital. </li></ul><p><strong>"Funding Talent" (Company Context)</strong></p><p>It is important to note that Funding Talent was also the name of a specific, high-profile prop firm founded by Jessica Ghaney.&nbsp;</p><ul><li>Status: The firm permanently closed in late 2021 following internal infrastructure failures and regulatory scrutiny.</li><li>Controversy: Before shutting down, it faced significant criticism and accusations of being a "scam" or "Forex casino" because its revenue model relied heavily on traders failing challenges rather than successful trading.</li><li>Successor: A new, unrelated entity named The Funded Talent launched in 2024, though it currently lacks a long-term track record. </li></ul><p><strong>Summary of Benefits &amp; Risks</strong></p><ul><li>Benefits: Traders can access high buying power without risking their own savings.</li><li>Risks: Most traders (60–70%) lose their accounts within three months due to strict rules. There is also a risk of firms refusing payouts or suddenly closing down. </li></ul>