The 5%ers is a proprietary trading firm that offers traders the opportunity to manage company capital through its funded trader program . Founded in 2018, the company has gained popularity among retail traders due to its unique evaluation process and generous profit-sharing model.
Unlike traditional brokerages or hedge funds, The 5%ers allows individuals to apply for funded accounts by passing a two-stage challenge: Phase 1 (Challenge) and Phase 2 (Verification) . If successful, traders can manage up to $4 million in company capital , earn profits, and keep up to 90% of those profits —all without risking their own money.
This article presents a comprehensive analysis of the pros and cons of The 5%ers , evaluating its business model, profitability potential, educational value, transparency, and overall reputation within the trading community.
Pros of The 5%ers
1. No Initial Capital Investment Required
One of the biggest attractions of The 5%ers is that qualified traders can access real market capital without using their own funds.
- Traders only pay a one-time fee to enter the Challenge.
- Offers an accessible path to professional-level trading for undercapitalized individuals.
2. High Profit-Sharing Percentage
Traders who pass both stages of the evaluation can earn up to 90% of the profits generated while managing The 5%ers’ capital.
- No monthly profit cap, allowing top performers to earn substantial returns.
- Profits are paid out weekly or monthly , depending on the trader’s preference.
3. Unique Evaluation System Based on Risk Control
The 5%ers uses a percentage-based drawdown system , which many traders consider more flexible than fixed dollar limits.
- Traders must maintain a maximum 6% drawdown from the highest equity point .
- Encourages risk management and protects capital over time.
4. Real Trading Conditions
All evaluations are conducted using real accounts on MetaTrader 4/5 platforms connected to genuine liquidity providers.
- Traders experience actual market conditions, including spreads, slippage, and volatility.
- Ideal environment for developing professional trading skills.
5. Fast Scaling Opportunities
Traders who demonstrate consistent performance can increase their account size rapidly.
- Account upgrades available after meeting specific profit thresholds.
- Allows skilled traders to grow from $10,000 to $4,000,000+ in a short time.
6. Supports a Wide Range of Trading Strategies
The 5%ers allows various trading styles, including scalping, swing trading, and algorithmic trading.
- No explicit restrictions on hedging or pending orders.
- Suitable for both manual and automated trading systems.
7. Global Accessibility
The 5%ers accepts traders from nearly all countries , making it accessible to a global audience.
- Supports multiple languages and currencies.
- Popular among international traders looking for funded opportunities.
8. User-Friendly Platform and Dashboard
The 5%ers offers a custom dashboard where traders can track performance, profits, and account status in real time.
- Easy-to-use interface for monitoring trades and metrics.
- Simplifies the process of tracking progress through the evaluation stages.
9. Active Community and Educational Resources
The company maintains a strong presence on YouTube, social media, and forums, offering free content to help traders improve.
- Regular webinars, strategy discussions, and Q&A sessions.
- Encourages knowledge-sharing and mentorship among traders.
10. Flexible Account Options
The 5%ers offers a variety of account sizes and types, allowing traders to choose what best fits their strategy and risk tolerance.
- Account sizes range from $10,000 to $4,000,000 .
- Available for forex, indices, commodities, and cryptocurrencies.
Cons of The 5%ers
1. Strict Evaluation Rules Can Be Challenging
While the rules are transparent, they are also demanding, especially for new or inconsistent traders.
- Maximum allowable drawdown typically 6% from peak equity .
- Risk-reward requirements may limit certain strategies or increase stress during crucial moments.
2. No Refunds on Challenge Fees
If a trader fails the Challenge or Verification stage, the fee paid to enter is non-refundable .
- Entry fees vary based on the account size and type.
- Repeated failures can become costly for inexperienced traders.
3. Performance Pressure
There is significant psychological pressure to perform under strict rules, which can affect decision-making.
- Traders must maintain consistency over time to avoid breaching drawdown limits.
- Stressful environment for beginners or emotionally-driven traders.
4. Customer Support Limitations
Some users report delays in customer support responses or lack of real-time communication options.
- Support is primarily email-based.
- Live chat or phone support is limited or unavailable.
5. Withdrawal Processing Time
Although profitable traders can withdraw their earnings, some have reported delays or issues when processing withdrawals.
- Withdrawals typically take 3–5 business days .
- Occasional verification or compliance checks may slow down the process.
6. Limited Long-Term Career Benefits
Unlike traditional employment, there is no equity, benefits, or job security.
- The relationship is purely profit-sharing based.
- No guaranteed income or long-term contracts.
7. Risk of Overtrading or Strategy Compromise
To meet profit targets quickly, some traders may push themselves to take unnecessary risks or abandon sound trading principles.
- Can lead to burnout or poor decision-making.
- Not ideal for those who prefer slower, methodical trading approaches.
Case Studies and Community Feedback
Success Story:
A full-time trader from Canada joined The 5%ers with no prior funded trading experience. After passing the two-step evaluation, he started with a $50,000 account and consistently generated returns. Within 6 months, he scaled up to a $1,000,000 account and was earning over $20,000 per month in profit share.
Challenges Reported:
Several traders have shared stories of failing due to sudden slippage or unexpected volatility affecting their trades during crucial moments. Others mentioned frustration with customer support when disputing failed evaluations or withdrawal delays.
Conclusion
The 5%ers offers a legitimate and well-structured opportunity for traders to access capital and earn profits without risking their own funds. Its unique percentage-based drawdown system, generous profit splits, and scalability make it attractive to aspiring professional traders.
However, the strict rules, lack of refunds, and psychological demands mean it’s not suitable for everyone. It works best for disciplined traders with a proven strategy , strong risk management, and the ability to handle pressure.
For those seeking to build a career in trading, The 5%ers can serve as a valuable stepping stone—if approached with realistic expectations and proper preparation.
References and Further Reading
- Official Website: The 5%ers
- Trader reviews on forums like Reddit, Forex Peace Army, and Elite Trader
- YouTube channels covering funded trader programs and The 5%ers challenges
- Articles comparing proprietary trading firms and funded account models
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