Funding Your Training Account
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6.0
Your Own Capital
1) The most obvious answer is to use your own liquid capital, whether it's cash, credit card or crypto. Your broker of choice will have different methods of funding your trading account and will give you the options available. Other brokers may have a different range of options and shopping around to see which is best suited to you will be beneficial.
2) You can trade options in a self-directed RRSP in Canada, but with some important conditions.
According to the Canada Revenue Agency and platforms like TD Direct Investing and Interactive Brokers, options are considered qualified investments for RRSPs as long as they meet certain criteria. That means you can use strategies like:
- Buying call or put options on stocks listed on designated exchanges
- Covered call writing (if you already own the underlying stock in your RRSP)
- Protective puts to hedge long positions
However, more complex or high-risk strategies—like naked calls or selling uncovered puts—are typically not allowed in registered accounts due to the potential for unlimited losses, which conflicts with RRSP rules.
Also, your broker must support options trading within RRSPs, and you may need to apply for specific trading permissions.
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6.1
Upcoming TFE Trading Competition
Exciting News!!!
In late July, we will be giving you a Go-No Go or Postpone update on a trading competition we will be hosting for our students.
We are really excited about this opportunity to further grow the collaboration and experience of our trading community. This competition will afford you the chance to prove yourself as a top trader in our ranks and many prizes.
It will be a safe environment using our own historical data, but on days no one has had access to before to ensure a fair playing field. The duration of the competition and re-occurrence will be decided later.
Trading instruments will involve all currently available, including Stocks and Options*.
Prizes will be finalized later but the top prize will definitely be at least a cash value of a full years Trading Force Era live indicators subscription.
* We don't currently collect historical options quotes and so it will be based on estimated values based on historical quotes.
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6.2
Proprietary Trading Firms
What Is a Funded Trader Program?
It’s a setup where a proprietary trading firm (prop firm) gives you access to their capital to trade, or a simulated trading environment. You go through an evaluation phase to prove your strategy and risk management. There are various models by which the prop firm can afford to pay you as a trader. If you pass, some fund you with real money—and you keep a share of the profit, while others use the fees of other traders to pay you if you are successful at passing their challenges, payouts often up to 80–90%. The latter model works for some more established firms because a small percentage of traders can actually pass the evaluation phases.
Why It’s Worth Considering
- A small personal capital is at risk: Your risk is the cost of the evaluation fee. If successful, You trade with the firm’s money, or gain on a simulated acount with no real risk.
- Profit sharing: You earn a percentage of the profits you generate.
- Scalable capital: Many firms increase your funding as you prove consistency.
- Remote flexibility: You can trade from anywhere with an internet connection.
- Professional tools: Some firms offer access to premium platforms and data feeds.
What to Watch Out For
- Evaluation rules: You’ll need to meet profit targets and follow strict risk limits.
- Fees: Most programs charge a one-time or monthly fee to take the challenge.
- Consistency matters: It’s not just about big wins—they want to see smart, steady trading.
- Withdrawal rules: Some firms have minimum profit thresholds before you can cash out.
