Understanding Nordic Funder profit share and payouts
Let’s be honest; everyone joining the Nordic Funder program has the same goal – to make money trading in financial markets. But the reason for choosing Nordic Funder over the many other funded trader programs can vary significantly. One of Nordic Funder’s main attractions is the trader-friendly that we’ve created.
Unlike the dozens of prop firms that emerged in the past two years offering various complicated programs and plans, Nordic Funder has created simple, logical and consistent rules to give you a clear path to success rather than catching you out on technicalities.
It might sound sinister, but many funded trader programs see your assessment fee as a risk-free income source. Therefore, many prop firms have chosen to reap the rewards of their multi-stage evaluations and endless rules.
On the other hand, Nordic Funder has applied years of data and a decade of experience in the brokerage and asset management industry to create a program that perfectly balances being fair to our remote traders and making sense from a risk management perspective.
This post describes the procedure for calculating and settling your profit share, what happens when you request a payout when your assessment fee is refunded, and what happens when you scale.
Get a funded account
The first step to becoming a profitable funded trader is passing an assessment. Once you pass the assessment, you’ll be provided with a funded account hosted on the live trading server. You are entitled to a share of the profits you make in the funded accounts you trade.
Profit share calculation
All accounts will have a default profit share of 75/25 with no extra cost.
75/25 (default): you receive 75%, and we receive 25% of the profit.
Example: Suppose you chose the 75/25 profit share option when building your assessment and requested to withdraw $5,000 from the funded account. In this case, $5,000 shall be withdrawn from the account, but you will receive a payout of $3,750. The difference is our profit.
Requesting a payout
You can request a payout after your funded account has been active for 24 hours. The minimum that can be withdrawn from a funded account is 2% of the starting balance.
Example: If your starting balance was $25,000, the minimum you can request to withdraw from the account is $500. If your chosen profit share is 75/25, you’ll receive $375 and the remaining $125 will be kept by Nordic Funder.
You can request your first payout at any time, and each following request can be processed after at least 14 days have passed.
How to request a payout
We have implemented a new payment structure through a company called Rise to streamline how we pay our traders. Here’s how the payout process works:
- Request a Withdrawal/Hit the Profit Target: Once you request a withdrawal or reach your profit target, you will receive an email with a link to sign up with Rise.
- Sign-Up Process: Click on the link and follow the sign-up instructions to create your account with Rise.
- Verification Process: To complete the setup, you will need to go through a verification process. This involves submitting typical identification documents, such as a government-issued ID and proof of address.
- Payout Confirmation: After your documents are verified, you will be eligible to receive your payout through the Rise platform.
If you already have an account with Rise, there will be no need for re-verification.
This new system is designed to make the payout process smoother and more efficient for everyone.
Assessment fee refund
We refund your assessment fee when you reach 10% profit in your funded account. However, we do not refund add-ons.
Example: If you purchased a $100k assessment for $800 and removed the obligation to use a stop loss for $75, your total payment shall be $875, but your refund will only be $800.
What happens after a withdrawal
We want to give traders as much autonomy as possible, which is why you have the flexibility to request a profit share payout at any time. However, if you feel like it’s a good time to get paid, please consider how withdrawing funds from the trading account affects your risk management under our rules.
Daily loss limit
Suppose you have a $100,000 funded account and make $8,000; your balance is $108,000. In that case, you can request a full or partial payout of your profits from the Nordic Funder Portal. However, it’s important to note that withdrawing funds from the account can trigger risk management rules.
Example: If your previous end-of-day balance was $108,000, the daily loss rule will be triggered when your equity falls below $102,600. Therefore, a withdrawal of over $5,400 in this example would result in a breach.
Max trailing loss limit
Another important rule to understand when requesting a payout is that the max trailing loss will be locked to the starting balance. While taking profit shares from the funded account won’t cause a breach, it will reduce your available risk. The purpose of this rule is if you wish to take profits from the account, we want to eliminate our risk.
Example: If your high watermark is $108,000, your max trailing loss limit would be $98,000. However, when requesting a payout, the max loss will be fixed to $100,000, the starting balance.
