Indigo Trader Funding Review: Fees, Rules, Challenges, Pros and Cons

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Forex Prop

14 min read6 hours ago

Is Indigo Trader Funding a trustworthy prop firm? Should you try out their challenges?

This review will help you find the answer:

UPDATE: Indigo Trader Funding has Ceased Operations

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Indigo Trader Funding Pros and Cons

Pros

Access to Capital Without Risking Personal Funds
Scalable Trading Opportunities
High-Profit Splits
Risk Management Training
Variety of Markets
Advanced Trading Platforms

Cons

Strict Evaluation Process
Profit Splits
Psychological Pressure
Limited Control Over Capital

What is Indigo Trader Funding?

Indigo Trader Funding operates as a prop firm, meaning it provides traders with the financial backing to trade in various markets, including forex, commodities, indices, and cryptocurrencies. Instead of risking their capital, traders use the firm’s money to open and manage positions. In return, the firm takes a percentage of the profits, while traders retain the rest.

Prop firms like Indigo Trader Funding are popular for providing traders with two key things they typically need: capital and leverage. However, to access the firm’s capital, traders must prove their skills and discipline by passing an evaluation process. This process usually involves demonstrating profitable trading over a specified period while adhering to strict risk management guidelines.

Also read: Crypto Fund Trader Review

How Indigo Trader Funding Works

The model used by Indigo Trader Funding is relatively straightforward, but it comes with certain steps and conditions:

Trader Evaluation: Before traders can access Indigo’s capital, they must first undergo an evaluation phase. The firm has a series of tests to gauge a trader’s ability to profit in the market consistently. This phase may include trading a demo account over a set number of days or months while following predetermined rules such as maximum drawdowns, risk limits, and profit targets.
Funding Stage: Upon successfully passing the evaluation, traders are granted access to a live account with real capital. The amount of funding provided varies depending on the trader’s performance during the evaluation. In most cases, the funding starts at a certain amount (e.g., $25,000 or $50,000) and can increase over time based on the trader’s ongoing success.
Profit Sharing: Indigo Trader Funding operates on a profit-sharing model. Traders retain a percentage of the profits they generate, typically between 70% and 90%, depending on the trader’s performance and the firm’s specific terms. The firm keeps the remaining percentage, which compensates for the risks involved in backing the trader.
Risk Management: To protect its capital, Indigo Trader Funding enforces strict risk management rules. Traders must adhere to certain parameters, including maximum drawdowns (the maximum amount the account is allowed to lose), daily loss limits, and position sizing rules. If a trader violates these rules, their account may be suspended or terminated.
Scaling Plan: Many prop firms, including Indigo, offer scaling plans where traders who consistently generate profits are granted access to larger amounts of capital. This allows traders to increase their position sizes and potentially earn higher profits as they continue to demonstrate skill and discipline.

Markets and Assets Offered

Indigo Trader Funding provides traders with access to a wide variety of markets and financial instruments, allowing them to trade based on their preferences and expertise. The major categories of assets offered by Indigo include:

Forex: Major, minor, and exotic currency pairs, providing 24-hour access to the global forex market.
Indices: Traders can speculate on major global indices such as the S&P 500, NASDAQ, FTSE 100, and DAX.
Commodities: A range of commodities including gold, silver, crude oil, and agricultural products.
Cryptocurrencies: As crypto markets continue to grow, Indigo allows traders to capitalize on volatility by trading popular digital assets like Bitcoin and Ethereum.

Technology and Platforms

One of the advantages of Indigo Trader Funding is the advanced trading platforms it offers. Indigo supports multiple industry-leading trading platforms to ensure that traders can execute their strategies efficiently and with minimal friction.

MetaTrader 4 (MT4) and MetaTrader 5 (MT5): These are two of the most popular trading platforms in the industry, known for their reliability, advanced charting tools, automated trading capabilities, and user-friendly interfaces. Traders can use these platforms to analyze markets, manage trades, and execute orders with precision.
TradingView: Indigo also integrates with TradingView, a popular web-based platform known for its advanced charting features and community-driven insights. TradingView’s social trading features make it ideal for traders who want to share ideas and strategies or learn from others.

By offering access to multiple trading platforms, Indigo Trader Funding ensures that traders can choose the environment that best suits their trading style and technical needs.

Why Choose Indigo Trader Funding?

For aspiring traders or those with a solid trading track record but limited access to capital, Indigo Trader Funding presents an appealing solution. Here are several reasons why traders opt for prop firms like Indigo:

1. Access to Capital Without Personal Risk

Perhaps the biggest advantage of trading with Indigo is that it provides traders with access to significant capital without requiring them to put their own money at risk. This structure is particularly beneficial for talented traders who have a proven strategy but are constrained by a lack of capital.

By removing the financial risk for traders, Indigo allows them to focus purely on market analysis, strategy development, and execution, without the emotional burden of risking their personal savings.

2. Scalable Trading Opportunities

Indigo Trader Funding offers traders the opportunity to scale their trading operations as they prove their consistency and profitability. Many traders start with a relatively small funded account, but as they demonstrate solid risk management and profitability, Indigo increases their capital, allowing them to take larger positions and potentially earn greater returns.

This scalability is a key benefit of trading with prop firms, as it allows traders to grow their trading careers without needing to secure external investments or significantly increase their exposure to risk.

3. Focus on Discipline and Risk Management

Indigo Trader Funding places a strong emphasis on discipline and risk management, which are essential skills for long-term success in trading. By setting strict drawdown limits, daily loss limits, and risk parameters, the firm ensures that traders develop a mindset focused on capital preservation and controlled risk.

These risk management rules not only protect the firm’s capital but also help traders to stay disciplined, avoid emotional trading, and maintain a long-term approach to profitability.

4. Potential for High-Profit Splits

Traders with Indigo can retain a significant portion of the profits they generate, often between 70% and 90%. This profit-sharing model is highly competitive compared to traditional financial institutions or hedge funds, where traders might only receive a small percentage of their generated profits.

The potential for high-profit splits makes prop trading a lucrative opportunity for skilled traders who can consistently generate returns. Since Indigo bears the financial risk, traders are able to keep the majority of their earnings without needing to invest large sums of their own money.

5. Community and Learning Resources

Many prop trading firms, including Indigo, foster a sense of community among their traders. Indigo offers access to learning resources, mentoring programs, and discussion forums where traders can share insights, learn from each other, and stay updated on the latest market developments.

This collaborative environment is particularly valuable for newer traders looking to develop their skills, as well as for experienced traders who want to refine their strategies and stay competitive.

Best Alternatives:

E8 Markets (Best Overall)

E8 Markets is a standout proprietary trading firm praised for its comprehensive and flexible trading programs. Here are some highlights:

1. User-Friendly Technology: The E8X Dashboard is highly intuitive, offering in-depth analytics for evaluating trading strategies. It displays real-time and historical data clearly, helping traders make informed decisions.

2. Flexible Evaluation Process: E8 Markets provides a range of account types, including the E8 Account, E8 Track, and ELEV8 Account. These accounts cater to different trading styles and experience levels, with realistic profit targets and no minimum or maximum trading day requirements. This flexibility allows traders to progress at their own pace.

3. Generous Profit Sharing: Successful traders can enjoy up to an 80% profit split, with opportunities to scale account balances significantly. The firm’s scaling plan further enhances traders’ potential to grow their capital.

The Trading Pit (Best Resources)

The Trading Pit stands out in the prop trading industry for its comprehensive offerings and robust support for traders. Here’s why traders praise this firm:

1. Diverse Account Options: The Trading Pit offers multiple account types tailored to different trading styles and risk appetites. Whether you’re into forex, futures, or a combination of both, there’s an account that fits your needs. Their VIP accounts, in particular, provide substantial initial balances and the potential to earn significant profits.

2. Profit Sharing: Traders can start with a 50% profit split, which can increase up to 80% for forex and 70% for futures. This incentivizes traders to perform well and maximize their earnings as they progress through their trading journey.

3. Top-Notch Trading Platforms: The Trading Pit supports industry-leading platforms like MetaTrader 4 and 5, ensuring traders have access to reliable, feature-rich environments for executing their strategies. These platforms support various trading styles, from scalping to automated trading.

4. Comprehensive Challenges and Scaling Plans: Their well-structured trading challenges help traders improve their skills while working towards real funding. The scaling plans are particularly impressive, allowing traders to scale up their accounts significantly as they meet performance targets.

5. Strong Partner Network: The Trading Pit collaborates with top brokerage firms and partners globally. This network ensures traders benefit from excellent trading conditions, including tight spreads, low commissions, and deep liquidity pools.

6. Educational and Certification Opportunities: For those looking to grow their trading careers, The Trading Pit offers opportunities to partner with the firm, provide financial advice, and even produce trading signals. They also support traders in obtaining official certifications, enhancing their professional credentials.

Certainly, they are the best available prop firm in the market right now.

Get Funded Today with The Trading Pit

My Flash Funding (Best for New Traders)

My Flash Funding is an innovative proprietary trading firm that offers a supportive and flexible trading environment, making it a great choice for traders. Here are some key highlights:

1. Flexible Trading Rules: My Flash Funding allows traders to hold trades overnight and over weekends, engage in news trading, and use various trading strategies without restrictions on lot sizes or trading styles. This flexibility is designed to empower traders to follow their unique strategies without unnecessary constraints.

2. Evaluation Programs: The firm offers both a one-step and a two-step evaluation challenge. The two-step evaluation has realistic profit targets of 6% for each phase, with a 4% maximum daily drawdown and 8% maximum loss. The one-step evaluation requires a 10% profit target with a 4% maximum daily drawdown and 6% maximum trailing drawdown. Both programs have no minimum trading day requirements and allow unlimited time to complete the evaluations.

3. Generous Profit Sharing: Traders can earn an attractive 80% profit split, with opportunities to scale their accounts significantly. Payouts are bi-weekly, ensuring regular access to profits for successful traders.

Get Funded Today with My Flash Funding

Challenges and Risks of Trading with Indigo Trader Funding

While Indigo Trader Funding provides numerous benefits, it’s important to acknowledge that prop trading isn’t without its challenges. Here are some of the potential risks and difficulties traders might face when working with Indigo:

1. Strict Evaluation and Rules

The evaluation phase of prop trading can be challenging, especially for traders who are not used to trading under strict rules. Indigo requires traders to adhere to specific risk management guidelines, including maximum drawdowns and loss limits. Traders who fail to meet these criteria during the evaluation may not qualify for funding.

Similarly, once traders are funded, they must continue to adhere to these rules. A single violation of the drawdown or loss limits could result in suspension or termination of their account, meaning that traders must maintain a high level of discipline at all times.

2. Psychological Pressure

While Indigo removes the financial risk for traders by providing capital, the pressure to perform and adhere to strict rules can create psychological stress. Traders must manage their emotions carefully, particularly when dealing with losses or during periods of market volatility.

The prospect of losing access to a funded account due to a mistake can cause traders to become overly cautious or make impulsive decisions. Success in prop trading requires not only technical proficiency but also a strong emotional mindset.

3. Limited Control Over Trading Capital

Traders who work with Indigo Trader Funding must operate within the firm’s risk management framework, which means they have limited control over the amount of leverage, position sizing, and maximum allowable losses. While these rules are designed to protect the firm’s capital, they can sometimes restrict a trader’s ability to fully execute their strategy.

Traders who are used to having complete autonomy over their accounts may find these restrictions frustrating, especially if they believe they could generate higher returns by taking on more risk.

4. Fees and Profit Splits

While Indigo Trader Funding provides capital and bears most of the risk, traders must be aware of potential costs, including evaluation fees. These fees are usually non-refundable and are meant to cover the costs associated with the evaluation process. In some cases, traders may need to pay monthly fees to maintain their access to trading platforms or to continue trading after a reset if they violate the rules.

Additionally, although the profit splits can be as high as 70% to 90%, traders must remember that they are still giving up a portion of their profits to the firm. For some traders, this arrangement may feel limiting, especially if they are consistently profitable. It’s important to weigh the benefits of using the firm’s capital against the profit share requirement.

5. Market Volatility and Risk of Drawdowns

Trading financial markets comes with inherent risks, and even the best traders can experience drawdowns, particularly during periods of extreme market volatility. Although Indigo’s risk management rules are designed to limit these risks, market conditions can sometimes lead to unexpected losses.

For example, traders specializing in volatile assets such as cryptocurrencies or commodities may experience sharp price swings that can lead to rapid drawdowns if their risk isn’t properly managed. While Indigo provides traders with the tools to manage risk, the responsibility for executing trades within these parameters falls on the trader. A drawdown that exceeds the firm’s limits could result in the trader losing their funded account.

Evaluation Process of Indigo Trader Funding

The evaluation process is a critical component of gaining access to Indigo Trader Funding’s capital. This evaluation is designed to ensure that traders can consistently manage risk and generate profits under real market conditions. While the specifics of the evaluation may vary depending on the firm’s rules at any given time, it generally includes the following components:

1. Trading Profit Targets

To successfully pass the evaluation, traders must meet specific profit targets within a set timeframe. For example, a trader might be required to generate a 10% return on a $50,000 demo account over the course of 30 days. The profit target is designed to measure the trader’s ability to generate consistent returns without taking excessive risks.

Traders must remain disciplined throughout this phase, focusing on steady profits rather than aiming for large, risky trades that could result in failure. Many traders who fail the evaluation do so because they prioritize hitting the profit target quickly, which leads to violating risk management rules.

2. Maximum Daily and Overall Drawdown Limits

During the evaluation process, traders must operate within strict risk management parameters. These include daily drawdown limits (the maximum amount of loss a trader can incur in a single day) and overall drawdown limits (the maximum loss allowed on the account during the entire evaluation period).

(Also read: Smart Prop Trader Review)

For instance, if a trader is given a $50,000 evaluation account, they may have a daily drawdown limit of $2,000 and an overall drawdown limit of $5,000. If the trader exceeds either of these limits, they fail the evaluation. This ensures that traders are practicing good risk management and not risking large portions of capital in single trades or during high-volatility periods.

3. Trading Days Requirement

Indigo Trader Funding often requires that traders participate in the markets for a minimum number of trading days during the evaluation period. This is to ensure that traders are active and not achieving their profit targets through one or two large trades. The goal is to assess the trader’s ability to generate profits consistently over time.

This trading days requirement prevents traders from using high-risk strategies that could result in large, short-term gains but might not be sustainable over the long run. It also encourages traders to adhere to a systematic approach that can be repeated in live markets.

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4. Risk-Adjusted Performance

The evaluation is not solely about profit generation; it also considers the risk-adjusted performance of the trader. This means that the firm evaluates how well the trader manages risk relative to the profits they generate. A trader who consistently generates smaller profits while adhering to strict risk management rules is more likely to pass than a trader who swings for large profits but frequently comes close to violating drawdown limits.

Scaling and Growth Opportunities

For traders who successfully pass the evaluation and demonstrate consistent profitability in a live account, Indigo Trader Funding offers opportunities to scale. Scaling is a critical aspect of prop trading, as it allows traders to increase their access to capital, enabling larger position sizes and potentially higher profits.

1. Account Size Increases

Once a trader proves their consistency over a set period (e.g., three or six months), Indigo may increase the size of the funded account. For example, a trader who starts with a $50,000 account might see their funding increase to $100,000 or more, based on their performance.

This incremental increase in capital allows traders to take advantage of their successful strategies on a larger scale without assuming additional risk. However, traders must continue adhering to the firm’s risk management rules, even as their account size grows.

2. Additional Profit Split Increases

In some cases, Indigo Trader Funding may offer improved profit split terms as traders advance and demonstrate consistent profitability. A trader who initially receives 70% of their profits may see their profit split increase to 80% or even 90% as they prove their ability to generate sustainable returns.

This additional profit incentive encourages traders to remain with the firm and continue refining their strategies while benefiting from a higher percentage of the profits they generate.

3. Long-Term Career Opportunities

Successful traders who excel in Indigo’s funded program may also have the opportunity to join the firm on a more long-term basis. Some prop firms offer exceptional traders permanent positions where they can manage larger portfolios or work as mentors for newer traders. Indigo Trader Funding’s commitment to nurturing and supporting talented traders makes it an attractive option for those seeking to build a long-term trading career.

Conclusion

Indigo Trader Funding provides a unique and valuable opportunity for traders who have the skills and discipline to succeed but lack the capital to scale their operations. By offering access to significant amounts of capital without the need for personal financial risk, Indigo allows traders to focus on refining their strategies and generating consistent profits. The firm’s strict evaluation process ensures that only the most disciplined and capable traders gain access to its funds, while the risk management rules help traders develop essential skills for long-term success.

The potential for high profit splits, combined with opportunities for account scaling and long-term growth, makes Indigo an attractive option for both new and experienced traders. However, the evaluation fees, strict rules, and psychological pressure to perform should be carefully considered before committing to a prop firm like Indigo.

Overall, for traders who are willing to adhere to the firm’s guidelines and demonstrate consistent profitability, Indigo Trader Funding offers a pathway to success in the competitive world of trading.