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The proprietary trading industry is rapidly expanding, with numerous new firms emerging regularly. While the bigger names are well-known, it’s essential to consider the newer entrants in the market. Today, we examine one such recent launch: Daikoku Trade. Owned and operated by Daikoku Service FZE, Daikoku Trade is registered in the United Arab Emirates, with its office located at Al Shmookh Business Center, One UAQ, UAQ Free Trade Zone, Umm Al Quwain. The UAE is becoming a popular base for many prop firms, likely due to favorable tax conditions.
Given the crowded nature of the prop trading space, the question arises: How does Daikoku Trade distinguish itself from the competition? We’ll explore this in detail, highlighting what makes Daikoku Trade a noteworthy contender in the proprietary trading industry.
Let’s take a look at Daikoku Trade and see what sets them apart from the rest.
Key Features of Daikoku Trade
- Funding Opportunities: Trade with accounts up to $500,000.
- Profit Share: Keep 95% of the profits you earn.
- Low Trading Costs: Enjoy raw spreads and low commissions on pairs and commodities, with no charges on indices.
- Balance-Based Drawdown: The maximum daily drawdown is based on your balance.
- Balance Reset: Resume trading after a rule violation with a reduced balance reset cost.
- Monthly Contests: Win cash rewards and free accounts by participating in monthly contests.
Account Overview
Daikoku Trade caters to diverse trading needs with a range of account options. Their three main account types, Junior, Middle, and Senior, each offer specific features tailored to different experience levels. They leverage the ThinkMarkets broker and execute trades through the DXTrade platform. It’s important to note that only the Senior account, categorized as a 1-step account, allows add-ons for higher leverage (1:20 and 1:40). Here’s a detailed look at each account type:
Junior Account Overview
Designed for accessibility, the Junior account integrates seamlessly into Daikoku Trade’s 2-step challenge. This account caters to traders of varying experience levels by accommodating a range of funding options. Here’s a closer look at the features of the Junior account:
Funding Options:
- $5,000
- $10,000
- $25,000
- $50,000
- $100,000
- $200,000
- $300,000
- $400,000
- $500,000
Account Features:
- Price: Starts at $49 for a $5K account and goes up to $2,499 for a $500K account.
- Leverage: 50:1
- Days to Trade: 5
- Max Daily Loss: 4%
- Max Total Loss: 8%
- Profit Target:
- Phase 1: 8%
- Phase 2: 5%
- Profit Split: 75%
Middle Account Overview
Building on the foundation of the Junior account, the Middle account caters to traders seeking a more advanced 2-step challenge experience. It offers distinct rules and funding options compared to the Junior account. Here’s a detailed look at the Middle account features:
Funding Options:
- $10,000
- $50,000
- $100,000
- $200,000
- $300,000
- $400,000
- $500,000
Account Features:
- Price: Starts at $99 for a $10K account and goes up to $2,499 for a $500K account.
- Leverage: 50:1
- Days to Trade: 7
- Max Daily Loss: 5%
- Max Total Loss: 10%
- Profit Target:
- Phase 1: 10%
- Phase 2: 5%
- Profit Split: 75%
Senior Account Overview
Geared towards experienced traders, the Senior account presents a rigorous 1-step challenge. This streamlined path to becoming a funded trader comes with stricter rules, upholding Daikoku Trade’s commitment to program integrity. Here’s what you need to know about the Senior account:
Funding Options:
- $10,000
- $25,000
- $50,000
- $100,000
- $200,000
Account Features:
- Price: Starts at $159 for a $10K account with 20x leverage and goes up to $1,499 for a $200K account with 20x leverage.
- Leverage: Optional add-on for 1:20 or 1:40 leverage.
- Days to Trade: No time limit.
- Max Daily Loss: 3%
- Max Total Loss: 6%
- Profit Target: 15%
- Profit Split: 95%
Differences Between Junior, Middle, and Senior Accounts
The Junior account is a suitable starting point for traders new to prop trading or those wanting to test strategies with limited capital. The lower entry cost and shorter trading period allow for practical skill development and confidence building. While the initial 75% profit split may be less attractive to experienced traders, it provides a valuable opportunity for beginners to learn the ropes without substantial capital risk.
The Middle account caters to intermediate and advanced traders seeking a more demanding experience compared to the Junior level. It offers a higher initial profit target and a longer 7-day trading period, allowing for more strategic development and execution. Additionally, this account provides slightly higher drawdown limits, enabling greater risk management flexibility. However, the pricing structure similar to the Junior account raises questions about the additional value offered for the increased cost.
The Senior account caters to experienced traders comfortable with high stakes and stricter rules. It offers the flexibility of no time limit, allowing experienced traders to operate at their preferred pace, which can benefit long-term strategies. While the 15% profit target is challenging, successful traders are rewarded with a 95% profit split. However, the tighter drawdown limits and higher leverage options necessitate careful risk management, making this account only suitable for disciplined and seasoned traders.
Rules Overview
Daikoku Trade’s homepage may not display all their important rules upfront. However, the FAQ section provides detailed explanations. Here’s a simplified breakdown of these key rules:
Holding Positions Overnight/Weekend
The Junior, Middle, and Senior Non-Consistency challenges allow traders to hold positions overnight and over weekends without limitations. However, the Senior Consistency challenge has a different rule. In this challenge, traders must close all positions at least 15 minutes before the weekend market close. The system automatically closes any remaining open positions at that time. This ensures accurate calculation of the Consistency number, which compares a trader’s activity to the previous week’s.
News Trading Rule in Senior Challenge
The Senior Challenge, for both the Challenge Phase and Daikoku Account, restricts trading activity 5 minutes before and after major news events. This applies to all trade types, including Market Execution and Pending Orders. However, traders can hold existing positions during news events. Only high-impact news directly affecting the instruments being traded is considered. Breaking this rule may result in account reset or termination, depending on account type and profitability.
Lot Size Restriction
Daikoku allows flexible lot sizes. Traders can choose any size that fits their trading plan, risk management approach, and goals. However, caution is advised to avoid excessive risk. Following proper risk management practices remains crucial.
Mandatory Use of Stop-Loss (SL)
Daikoku offers flexibility regarding stop-loss (SL) orders. Their use is not mandatory for every trade. Traders can choose to incorporate them based on their individual strategy and risk tolerance.
Breaching the Daily Loss Limit While in Profit
Daikoku accounts in profit may receive a partial profit disbursement (50%) if they violate the daily loss limit but meet two conditions:
- All trades must have stop-loss (SL) orders in place.
- No individual trade exceeds a 1% loss relative to total account size.
Traders have seven days to request this disbursement after a violation occurs.
Use of EAs/Indicators
Daikoku permits the use of Expert Advisors (EAs) and indicators. However, traders are responsible for ensuring their chosen parameters align with their individual trading style and risk tolerance. It’s important to note that certain exploitative trading activities are still prohibited.
Maximum Number of Accounts
Daikoku offers flexibility for total account holdings across various challenges (Junior, Middle, and Senior). The combined maximum balance for all accounts is $1,500,000. This allows traders to diversify their strategies but requires them to stay within the overall limit.
Spread of the Trading Account
Daikoku aims to provide the lowest possible spreads. Traders can check the live spread on the trading platform using the provided login credentials.
Swap Free Accounts
Daikoku provides swap-free account options for all challenges. These accounts cater to traders who prefer to avoid fees associated with holding positions overnight. However, these swap-free accounts come with a 10% pricing increase compared to regular accounts to reflect the additional costs Daikoku incurs.
Available Payment Methods
Daikoku offers a variety of payment options for account funding, including card payments, bank transfers, and several cryptocurrencies. Accepted cryptocurrencies include BTC, ETH, LTC, DOGE, SOL, USDC, Perfect Money, BUSD, and USDT. Account credentials are provided after successful payment. Card and cryptocurrency payments are processed instantly, while verification for other methods may require additional processing time.
Understanding Daikoku’s Trading Rules
These rules outline the key conditions and requirements for trading on the Daikoku platform. Familiarizing yourself with them ensures you understand your limitations and obligations as a trader. While some sections of the FAQ appear incomplete, hopefully they’ll be addressed soon. In the meantime, for a more comprehensive explanation of these rules, please visit their FAQ [here].
Daikoku Trade Trustpilot Reviews
Daikoku Trade has established a respectable reputation among traders, evident from its Trustpilot score of 4.4 out of 5, based on 12 reviews. Here are some insights into what traders appreciate about Daikoku Trade:
Key Themes in Reviews
Customer Support: Many reviewers highlight the responsive customer service at Daikoku Trade. The 24/7 support system is frequently praised for its availability and helpfulness.
Accessibility and Pricing: Traders often commend the affordability of the Junior challenge, particularly for beginners. The low entry cost and promotional discounts make it accessible to a wide range of traders.
User-Friendly Platform: The intuitive trading dashboard is a common highlight, making it easy for both new and experienced traders to navigate.
Challenge Structure: The structure and fairness of the challenges are praised, with traders finding them tough but achievable.
Community and Resources: The availability of valuable information through Daikoku Trade’s Telegram channel and other resources is frequently mentioned.
Areas for Improvement
Daikoku Trade generally receives positive reviews, but some users have expressed a desire for more features and customization options within the trading dashboard. It’s important to note that these concerns are less frequent and often based on personal preferences.
Reading reviews offers valuable insights into other traders’ experiences. However, to make an informed decision, conducting your own research is crucial. We cannot be held responsible for your choice to use or not use Daikoku Trade.
Conclusion
Daikoku Trade caters to various experience levels with its diverse account options and features. Funding opportunities, flexible trading rules, and supportive customer service aim to create a welcoming environment for traders. However, remember, every platform has its strengths and weaknesses. It’s vital to assess if Daikoku Trade aligns with your trading goals and risk tolerance. Conduct thorough research and prioritize an informed decision based on your individual needs. Ultimately, the choice to use Daikoku Trade is yours.
It’s important to remember that prop firms, especially less established ones, can carry inherent risks. Regardless of a firm’s size, there’s always a chance the platform might not be the right fit, or worse, encounter financial difficulties. Conducting thorough research is crucial before joining any prop firm, especially a lesser-known one. Look for user reviews, and assess the company’s track record. Remember, minimizing risk is paramount in prop trading.