Funded Accounts, Traders, Growth, & Programs Terms & Conditions Agreement
Effective Date: June 2020
PROGRAM MISSION AND DEFINITION
- Market Traders Institute is an educational company and that runs and manages an online Prop Trader Program.
- Market Traders Institute Limited is a privately-owned company that operates under the brand name “Market Traders Institute”. It is registered in Florida.
- To the best of Market Traders Institute knowledge it operates in compliance with the CFTC guidelines and its regulations.
- Market Traders Institute is not a financial institution of any kind. It’s not a broker, and it does not market for any brokerage services.
- Market Traders Institute does not invest clients’ money or trade it on the financial markets. All the funding in the Proprietary trader program (Prop Trader Program) is provided by the company’s 3rd party vendor’s own capital.
- Market Traders Institute provides a practical educational evaluation with fully funded forex trading accounts to traders from any nationality that is not listed on The Office of Foreign Asset Control (OFAC) with monthly payments with an opportunity for compounding profits in its funded account growth scheme.
- Market Traders Institute is continuously looking for the best traders, who are looking to develop and build a trading career, by trading the capital of Market Traders Institute’s 3rd party vendor’s capital and joining its online trading community.
PARTICIPANTS IN THIS AGREEMENT
Market Traders Institute’s 3rd party vendor is the company providing the funding accounts to its student and traders.
- The Evaluation Trader is the trader who is pursuing the evaluation on a live funded account to qualify for the Portfolio Manager (PM) once the trader meets the full requirements.
- The Portfolio Manager (PM) Trader is the trader who has achieved the initial evaluation requirements and is trading a fully forex funded account.
THE TRADING CAPITAL
Market Traders Institute’s 3rd party vendor supplies its traders with its trading capital to trade during the Prop trader program. The trader will not be liable for any trading losses that may incur during the evaluation or the portfolio manager phase of the funded account program.
The Protection of The Trading Capital
- The trader is required to act responsibly while trading the Prop Trading Program and throughout the whole duration of the Prop trader program to avoid any severe losses on the account.
- The trader must apply the required measures to enforce the risk management policies specified by Market Traders Institute.
- The trader must not give access to the funded account to any 3rd parties. Doing so will terminate the activity of the trader.
- If the trader believes the account credentials have been lost or stolen, the trader must report to Market Traders Institute by email immediately – firstname.lastname@example.org
THE EVALUATION FEE STRUCTURE
- Market Traders Institute charges only a one-time fee to cover the trading costs or losses the trader may incur during the evaluation phase of the Prop trader program.
- Market Traders Institute does not charge any monthly or recurring fees throughout the whole Prop trader program.
- The sign-up fee is not a deposit into a trading account of any kind.
The Funded Trader Program Refund Policy
- Market Traders Institute does not refund any sign-up fee once the trading account has been issued to the trader.
- Once the trader started trading the evaluation funded account, the trader cannot upgrade to a larger funded account, not downgrade to a smaller funded account.
WHO CAN TRADE THE FUNDED ACCOUNTS?
- Anyone who is above 18 years and is not listed on the OFAC list.
- Traders from any nationality from Europe, North America, South America, Africa, Asia, & Australia.
- The funded accounts are available for individual traders only to trade the company’s 3rd party vendor’s capital during both the Evaluation and Portfolio Manager Phase.
- ID as proof of identity. This is to prove that the trader is the only one trading the funded account.
- The Prop Trader Program is not designed for organisations, a group of individuals, or copy traders.
Experience in the Forex Market
- The trader must have at least some knowledge with forex trading terms, such Market Open and Closing Hours, Economic Calendar and Releases, Flexible and Fixed Spreads, Commissions, Overnight Swaps, Pip, Point Value, Lot Size, Stop Loss, Take Profit, Market Order, Stop Order, Limit Order, Ask, Bid, Drawdown $, Drawdown %, and type.
- The trader must also demonstrate adequate trading skills during and after passing the evaluation.
- The trader must understand the risk management policies and the minimum requirements. Also, the trader must adjust his strategy risk exposure to match the requirements of the program before starting to trade with Market Traders Institute’s 3rd party vendor’s capital.
THE TRADING PLATFORM
- Market Traders Institute’s 3rd party vendor’s provides the trading platform MT4 to its traders while trading for the company.
- The trader will have full control of the trading platform. Also, Market Traders Institute will not interfere with any trades unless the trader is not complying with the risk management policies.
- Market Traders Institute’s 3rd party contract’s provides MT4 platform on Windows OS only. Any trader with a Mac IOS can install the MT4 using an assistant software, such as Parallel, or Play on Mac. The trader can also use FXpro MT4 for Mac platform as a medium to trade with Market Traders Institute’s Prop Trading Program.
THE FUNDED PROGRAM PHASES
The Evaluation Phase
The evaluation phase is the first stage of the Prop Trader Program, where it is provided for the practical part of their educational journey to become a professional trader. In this stage, the trader must show a consistently profitable trading performance for the period of the evaluation specified by the company while meeting all the risk management policies.
The Portfolio Manager (PM) Phase
The Portfolio Manager Phase (PM) is the phase where the trader has met all the trading requirements and passed the evaluation phase. During this phase, the trader will be fully qualified, and Market Traders Institute will contract the trader to trade the company’s 3rd party vendor’s own capital.
The Risk Management Policies
- Market Traders Institute requires each trader to manage their positions according to the risk management policies and trading guidelines specified on the website.
- Market Traders Institute will observe the trading activity of its traders and warn them for any violations of the risk management policies.
- If the trader doesn’t comply with the risk policies, Market Traders Institute has the right to terminate the traders’ account and exclude them from the Prop trader program.
- However, the trader can always apply again for the Prop trader program if they wish to comply with the risk policies.
THE EVALUATION RULES EXPLAINED
Market Traders Institute expects the trader to reinforce the risk management guidelines and policies over strategy. Below are the definitions and examples of components of the Prop trader program rules:
The profit Target $
- At each stage of the program, the target is defined in terms of net USD amount and not in %.
- All the trading costs, spreads, commissions, overnight swaps will be deducted when calculating the profits target.
- Any profits made by a violation of the risk policies will also be deducted from the final profit target upon passing the evaluation. In this case, the profit target will be extended by the amount of the profit made by risk policies violation.
Flat Profit Targets $
- If the trader has reached all the requirements, the trader must close all the trader once reaching the profit target.
- Market Traders Institute will not pay profits higher than the profit target $ specified for each evaluation.
The Max Relative Drawdown $
- The Relative Drawdown is the maximum difference from the highest Account Realized Balance $ to the lowest Equity $ (unrealized value).
- The losses can never exceed the value of the Maximum Relative Drawdown $ specified at the start of each Evaluation and Portfolio Manager Phase.
- For example, If the account balance was at $13,000 on the 3rd January, and on 29th February the account, the account balance was $12,500, then the Relative Drawdown $ would be $12,500 – $13,000 = -$500.
Hard Stop Loss Value of 1.5%
- The trader must take into consideration that any market order, pending order, or stop order has a stop loss of a max of 1.5% risk of the account balance $. This means that if the trader’s account is $12,500, the trader can open a trade with a maximum risk of than $187.5 (1.5% of $12,500).
- If the trader opens multiple positions on the same currency pair at an overlapping time, the multiple positions’ combined risk can be up to 1.5% of the account balance are considered 1 trade.
- For example, on a $12,500 funded trader account, if the trader has an open 1st position on EURUSD risking 1% ($125), then the trader can open the 2nd position on EURUSD with 0.5% ($62.5) risk only.
The Maximum Lot Size (Maximum Exposure)
- The Maximum Exposure is the maximum lot size the trader can open at the same time during while trading.
- For example, if the max lot size a trader can open is 0.80 lots, then the trader can open 1st position on EURUSD 0.40 + 2nd position on NZDJPY 0.20 + 3rd position on GBPCAD 0.10 + 4th position on USDCHF
- 0.10. So, the total lot size open at the same time would be 0.40 +0.20 + av0.10 +0.10 = 0.80.
- The trader can always open more than the max exposure specified for each funded account program after moving the stop loss to break even and covering the risk.
- For example, if the trader moves the stop loss of the previous trade [EURUSD 0.40 lots] to break even and covers the risk, then the trader will have another 0.40 lots new allowance.
- If the trader has 2 or more positions open in the opposite direction on the same currency pair (hedging), it does not reduce the max exposure.
The Max Time Evaluation Time Limit
- The trader is allowed to go through the evaluation for up to 1 year to accommodate various trading strategies, especially the long-term ones.
- The evaluation start date will be from the day of issuing the evaluation funded account.
- If the 1 year has passed, and the trader has not reached the target yet, Market Traders Institute will terminate the funded account, and the trader will be disqualified.
- During the Portfolio Manager Phase, the trader must have at least 4 active trades per month to keep the account active. Failing to meet this condition will cause the termination of the funded account, regardless of which stage in the Funded Trader Program the trader is at.
- There is no Max Time Limit for the Portfolio Manager Phase.
The Minimum Active Trading Days
- The minimum active trading days are not calendar days.
- A trading day is a day where a trader opens a trade at any time.
- The trader must complete a minimum of 30 active trading days to complete the evaluation.
- The PM traders are required to have at least 4 active trading days per month.
The Minimum Trades
- The trader must complete at least 45 trades to demonstrate consistency and profitability over the Evaluation period.
- A trade is a full-cycle counted from open to close.
- Multiple positions open at the same time on the same currency pair, and/or partial close of the same currency pair are considered 1 trade.
LIST OF SECURITIES PERMITTED TO TRADE
The trader can trade any of the 28 currency pairs specified below:
- Major Currency Pairs: EURUSD, GBPUSD, NZDUSD, AUDUSD, USDCHF, USDCAD, USDJPY.
- Cross Currency Pairs: EURGBP, EURNZD, EURAUD, EURCHF, EURCAD, EURJPY, GBPNZD, GBPAUD, GBPCHF, GBPCAD, GBPJPY, NZDAUD, NZDCHF, NZDCAD, NZDJPY, AUDCHF, AUDCAD, AUDJPY, CADCHF, CADJPY, CHFJPY.
The trader is allowed to trade the currencies pairs specified above. If the trader trades other assets not determined by Market Traders Institute, it will cause a termination of the Prop Trader Program and disqualification of the program.
THE FUNDED TRADER PROGRAM RESTRAINTS
Market Traders Institute prohibits the following:
- Market Traders Institute prohibits anyone applying for the trading program for any reason other than trading.
- Market Traders Institute prohibits trading the funded program in coordination with other active traders at Market Traders Institute.
- Market Traders Institute prohibits using the name of another trader on 1 or more accounts.
- Market Traders Institute prohibits duplicating trades and orders by using a copy trading service offered by MTI or any other provider.
- If a trader has more than one account with MTI, the trader cannot hedge among accounts. Each account will be treated individually.
- Market Traders Institute allows the trader to open as many evaluations as possible; however, it prohibits the trader having more than 1 Portfolio Manager Account.
- Any violation of risk management policies and/or the above restrictions will cause immediate termination of the forex funded account. However, the trader can always apply again after reviewing the risk management policies.
THE EVALUATION PROFIT PAYMENT
- Market Traders Institute pays the net profits to the trader, once he achieves the milestone profit target, in one lump sum payment at the end of the evaluation.
- If the trader fails the evaluation with a profit, Market Traders Institute still pays the net profit due to the trader.
The Portfolio Manager (PM) Profit Payment
- Market Traders Institute pays for net profits to the portfolio manager (PM) traders automatically at the end of each month at long as the trader has made a profit in the current month.
The Profit Share Calculations
- Formula: The 50% profit share = (Current month’s account balance – Previous month’s account balance) / 2 The Account Balance will be calculated based on the last day of each calendar month.
- Any open trades are unrealised profit or loss. They are not taken into consideration unless they have been closed before the last day of the month.
- If the trader makes no profit in a given month, no profit will be paid until the trader recovers the losses from the previous month and reaches a new high watermark profit.
The Payment Process
- At the end of each month, MTI sends an invoice with a detailed breakdown of the profit share due to the trader by email.
- The payment due date is during the 1st week of the new calendar month.
- The trader can choose where to receive the profit share. Market Traders Institute offers the following options: Bank Transfer, PayPal, MTI Credits towards future purchases.
THE TERMINATION OF THE FUNDED TRADER PROGRAM
The termination of the Prop trader program can occur due to the trader inability to adhere to the risk policies for both the Evaluation and the Portfolio Manager phase.
The termination of the Prop trader program may occur for any of the below reasons:
- Reaching the maximum relative drawdown $ value.
- The violation of any of the Risk Management Policy Guidelines.
- The expiration of the Evaluation of the funded account.
- The misuse or abuse of the program.
- The use of the Prop trader program for any other purpose than the authenticity of the individual trading.
The Termination Notice
At the event of a termination, the following measures will take effect:
- Market Traders Institute will send an official notice of termination will to the trader.
- Market Traders Institute will disable the trading permission in funded trading accounts.
- Market Traders Institute will freeze access for the trading account and platforms provided to the trader.
- Market Traders Institute will send a full detailed trading report to the trader by email.
- If the trader is in net profit, Market Traders Institute will calculate the total net profits made in the account and pay the trader the specified portion during the same calendar month.
Applying Again After Termination
The trader can sign up again for the Market Traders Institute’s Prop Trader Program regardless of the number of past terminations, as long as the trader complies with the policies upon the most recent application. Nevertheless, Market Traders Institute has the right to refuse to re-sign up at its discretion.
- Email is the official medium of communication between the trader and Market Traders Institute.
- Market Traders Institute will communicate with the trader in real-time and to the best of its abilities to provide fast and reliable service to its traders.
- The traders must provide a valid email while the trader is enrolled in the funded trader program to allow real- time communications with Market Traders Institute.
- Market Traders Institute has the right to either freeze or terminates the account had the trader failed to respond to the company’s emails.
- Market Traders Institute provides backup media of communication represented in the following: Skype, Facebook, Instagram, LinkedIn, on-site contact forms, and phone calls.
- The trader must notify the Market Traders Institute of any changes in the trader’s email address.
Misunderstanding and Errors
Subject to the terms of this agreement, neither party hereto, shall be prejudiced in any way by inadvertent errors or omissions made by such party, providing such errors and omissions are corrected promptly following discovery thereof.
Upon the discovery of an inadvertent error or omission by either party hereto, appropriate adjustments shall be made as soon as possibly practicable to restore both parties to the fullest extent possible and to the position they would have been in, had no such inadvertent error or omission occurred.
Market Traders Institute reserves the rights for future changes of these Terms and Conditions, upon notifications via an official email address given from the trader. The trader will be committed to the changes, or will officially be asked to resign from the program.
TRADING DURING UNEXPECTED EVENTS
By signing up to the evaluation for the funded trader program of Market Traders Institute, I hereby confirm and fully understand that my trading performance may also be affected by various conditions, as such:
- Different market conditions and liquidity can cause spreads to vary accordingly. At high volatility events, such as during high impact economic releases, the spreads can widen.
- However, the spreads at the broker are competitive, and it is usually 0.3 pips for EURUSD on average.
Stop/Limit Pending Orders
- Market Traders Institute does not guarantee the execution of the limit and stop orders at the best price during abnormal, unexpected high impact events, or very volatile periods. However, the limit and stop orders will be executed at the next best available prices in the order books.
- Ordering at specifically requested price is not guaranteed for limit or stop orders during abnormal and volatile periods – the price will be filled at the next best price according to the exchange order book.
Sometimes, during very illiquid periods, the markets can gap significantly. Any orders placed at prices with no quotes will be filled at the next available price. This may result in opening the trade at a less favorable price.
Overnight Rollover Spreads Conditions
At the end of each day, between 10 PM & midnight London’s time, the banks move vast amounts of orders from the current day to the following day. This may cause spreads to be significantly increased. Therefore, it is advisable to widen stop losses during these times to avoid unwanted execution of nearby orders due to technicalities.
The Trading Commission
- Market Traders Institute’s 3rd party vendor’s charges a fixed commission at trade entry which is $9 per lot traded; or 1.0 lots – $9; 0.1 lots – $0.90 cents; and 0.01 lots – 0.09 cents.
Limitation of Liability and Indemnification
In no event shall Market Traders Institute’s aggregate liability under this Agreement exceed the amounts actually paid by the Trader to Market Traders Institute for the Prop Trader Program in the 12 month period immediately preceding the event giving rise to the claim. The Trader (the “Indemnifying Party”) agrees to defend and hold harmless Market Traders Institute, its affiliates and each of their respective officers, directors, employees, contractors and agents (each an “Indemnified Party”) from and against any action, claim, suit, investigation or other proceeding brought by a third party (a “Claim”) to the extent such Claim results from the Indemnifying Party’s breach of this Agreement or the negligence, willful misconduct or fraud or violation of law on the part of the Indemnifying Party, its officers, directors, employees, agents or other representatives in connection with this Agreement. The Indemnifying Party will indemnify and hold harmless the Indemnified Party from any liabilities, losses, damages, judgments, awards, fines, penalties, costs and expenses incurred by or levied against such Indemnified Party as a result of such Claim. Notwithstanding the foregoing, the Indemnified Party may participate at its own expense in the defense and any settlement discussions, and will have the right to approve any settlement agreement that involves an admission of fault by the Indemnified Party or imposes non-monetary obligations on the Indemnified Party; provided, however, that such approval will not be unreasonably withheld.