Formed Funding Review: Bogus Prop Firm Formed to Rip You Off

Prop trading is an invaluable service for many retailers who lack the necessary budget to make their endeavor profitable. Unfortunately, various hyenas and vultures are devising new ways to rip clients off, making the prospect of Forex proprietary trading bleak.

Our Formed Funding review will debunk one of the many online scams, and propose a reliable alternative service.

An Illegal Unregistered Company

To get any clues about the Formed Funding prop firm registration of whereabouts, you’d have to look into the Terms and Conditions document. There, it is said that the prop firm is owned and operated by an entity named FundedEngineer FZCO from Dubai, UAE.

Immediately, two main issues pop up, with the first being an incomplete office address. The second is much more alarming, as it turns out that no company under such name is registered either with the UAE Ministry of Economy, or the regional authority called Dubai Economy and Tourism.

This means that the prop firm shown on the formedfunding.com website is completely fake, and that we’re dealing with an online investment scam. The nature of this business, if you can call it that, is quite similar to how WeGetFunded fraud operates.

Insignificant Online Footprint

The lack of wide and diverse social media presence is sure to raise suspicion, especially since the site was established as early as 2023. It’s like the company is not even trying to attract traders, with only Instagram, X and Discord social profiles. The prop firm is not yet listed on PropFirmMatch either.

The fraudsters don’t really want to be in the spotlight lest they attract the attention of the authorities. As is the case with many other con schemes, this one functions primarily as a scam call center and contacts victims directly by phone.

Fake Customer Testimonials

One of the repeating motifs with scam businesses is the heavy involvement of review seller networks. Legit proprietary trading companies like MPFunds have no need for such underhanded methods.

With Formed Funding reviews, TrustPilot rating may look 100% positive, but all of the entries were posted during the same day – February 12, 2024. If you’re still not convinced that these are fakes, reading a few of them will reveal that some comments don’t even talk about the same company.

Phases of the Challenge

Getting funded and gaining trading capital may sound easy, but every trader has to pass a certain testing. Formed Funding funded program phases are numerous, yet the terms and participation rules do not differ much. What is important to mention, however, is that applying for any account type demands a certain deposit to be made.

1Phase

During this phase, the main goal is to reach the 10% profit target while not breaching the limit of 6% of maximum drawdown. One positive aspect of the deal is that there is no time limit during which the goal should be achieved.

2Phase

This test phase features a profit target of 5%, with the maximum drawdown of 10%. Judging by these conditions, some might argue that the conditions are more relaxed and less demanding. Besides no time limit, both of these include holding positions over the weekend.

2PhasePro

The site doesn’t clarify if this is an optional phase, another obligatory part of the evaluation or a substitution for the first two ones. It apparently constitutes two separate phases. These include 8% profit target and 4% target, with maximum overall drawdown being 8%.

3Phase

It remains unclear if this phase is anyhow related to the aforementioned ones or is a separate one. This test also has its own conditions which may or may not differ from the previous mentioned ones. 

The only notable aspect to mention is the fact that here too clients are only given virtual funds to trade. Nothing is mentioned about funded trading and real capital.

Choosing an Account

Formed Funding funded account include virtual capital that the company assigns you as soon as you deposit real cash. Available capital for testing phases includes a certain fee which we do not know if is refunded, as other prop firms offer:

• $5,000 – $39
• $10,000 – $69
• $25,000 – $129
• $50,000 – $219
• $100,000 – $349
• $200,000 – $649

Partner Broker Denies Connections

The web presentation only gives the name of the alleged partner broker which is Purple Trading. No direct links are given, so we can’t be certain if they mean the CySEC regulated broker under this name or some other firm.

When we tried to verify this connection, chat agents at purple-trading.com denied any affiliation to proprietary trading firms altogether. That casts doubt on the prop firm website we’re reviewing. 

Trading Terminal and Costs

As the current offer says, the site allows clients to download MT4 and MT5 terminals. Download links do not lead to reliable resources like online app stores. Clicking the buttons activates download of suspicious files which we recommend you accept. 

As for the trading costs, the website promotes high leverage of 1:100.. Trading commission isn’t revealed and features $5 per round when “trading in Purple”. Crypto and indices allegedly have a $0 commission fee.

Split Profit: Lucrative or Futile?

All deposits and payouts are accepted via ERC 20 blockchain. As if crypto investments weren’t risky enough, cyber criminals also force them in order to keep their anonymity. At that, it isn’t clarified how the Formed Funding profit split works, and what percentage traders can count on. 

Withdrawals are unlocked after 14 days after the funded phase begins, with $50 being the minimum payout amount.

Interested in Prop Trading? See Our Offer!

The alleged service from this faux prop firm is rather shabby, especially considering the large Formed Funding price. If you’re interested in getting your portfolio funded, take a look at our offer instead.

We are constantly on the lookout for talented individuals who have what it takes to excel on the markets, and offer up to $180,000 in funding. You may book a free Zoom meeting with our representatives using the live chat.

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