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What are funded account giveaways and do they really work?

What are funded account giveaways and do they really work?

Written by

Craig Ogley

Written on

Jul, 2024

Updated on

Jul, 2024

Table of content

Funded account giveaways are becoming a popular phenomenon in the prop trading industry. These giveaways offer all participants a chance to win a funded account and trade risk-free. Proprietary firms use these events to attract and retain users, strengthening the sense of community and excitement. Let’s explore funded account giveaways and evaluate their effectiveness for both prop firms and influencers.

Understanding Funded Account Giveaways

Funded account giveaways are promotional contests where prop firms create a contest where winners are rewarded with a funded account with capital. Unlike funded trading, where traders have to actually purchase the funded challenge, giveaways enable traders to get funded for free. This allows traders to trade on a funded account without their financial participation and is like winning a lottery with a funded account as a prize.

Types of funded accounts

There are different types of funded accounts, allowing traders to trade various financial instruments using the firm’s capital. There are challenge accounts with 1-step evaluation, 2-step evaluation, and instant funding accounts. 1-step evaluation accounts require traders to pass a demo or virtual trading phase and achieve certain profitability to prove their skills. After this 1 phase, they can access real funded accounts. Similar is the case for 2 steps, where traders need to pass 2 virtual trading phases instead of 1. Instant funded accounts allow traders to instantly access funded accounts and typically cost more than standard evaluation accounts.

Prop firms and their motivation with giveaways

Prop firms offer these giveaways mainly for marketing and brand promotion purposes, and also community building. The main appeal for prop firms for giveaways lies in their ability to increase their brand awareness. Brand awareness and marketing allow prop firms to attract new clients to their funded accounts.

The Appeal of Funded Account Giveaways

Traders are drawn to these giveaways primarily because of the chance to win a funded account and trade without paying challenge account fees. This opportunity is especially appealing to beginners who usually lack the resources to invest in trading.

Marketing Tactics

Prop firms use psychological and marketing strategies including limited offers and success stories to attract participants. They also advertise these events on social media platforms including X (former Twitter), Facebook, Instagram, and others. The most popular method is to promote funded account giveaways on social media posts that are sponsored by the firm. The most popular social media where these types of giveaways are most often sponsored is X or formerly Twitter. This way, prop firms can access the wide client base of the platform and promote their accounts and services, which includes the opportunity to get a funded account and generate profits risk-free.

Examples of funded account giveaways

There are a multitude of prop firms active now on the X platform, offering various giveaways of funded accounts. These giveaways sometimes even include large trading accounts with 50k funding. However, often the number of accounts given away with these promotions is typically limited to 5 or less, depending on the funded amount. Here are some examples of funded account giveaways:

  • Levi Funded offers 5 X $10,000 account giveaways which require participants to like, repost, and tag 2 friends.
  • The Forex Funder has a 5X $50,000 ongoing giveaway, requiring traders to like and repost the post and tag 3 friends.
  • VictorREX is another prop firm offering 5X$5,000 account giveaways requiring participants to like, repost, and tag 3 friends.

As we can see, the funded account giveaway is a popular tool for prop firm marketing departments to promote their products, increase awareness, and attract more traders to their accounts.

Do They Really Work? Analyzing Effectiveness

The success of funded account giveaways can be measured through various metrics, such as the financial gains of participants, the growth in user engagement for the companies, and the overall satisfaction of participants. These giveaways can be beneficial but they are not guaranteed a path to success. The main benefit is the increased awareness of the prop firm brand, which is the inevitable result of these giveaways. Each sponsored post or ad on the X app reaches a predetermined client base and, depending on the firm’s budget, can reach thousands of potential clients specifically targeted by the firm.

Conclusion

Funded account giveaways have become widely popular marketing tools in the prop trading industry. These giveaways are unique events that allow traders to access trading capital without financial risks. Giveaways can attract new users and increase brand awareness. While these giveaways offer unique opportunities to access the firm’s capital for free to trade on financial markets, traders still need to develop proper trading strategies to become profitable on these accounts. Overall, funded accounts are effective ways to increase the traffic and popularity of the firm. Most often, these events are promoted on social media like X (ex Twitter), and allow firms to target specific audiences and increase their effectiveness. Many firms are now offering giveaways and traders can participate by liking, reposting, and tagging friends in the reposts.

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