FundedNext Removes 70% Margin Rule, Ends Profit Deductions for Margin Violations
Proprietary trading firm FundedNext has announced a major update to its risk management policies by officially removing its controversial 70% Margin Rule across all existing and new funded accounts.
The change took effect immediately and is expected to give traders greater flexibility in managing their positions without worrying about margin-related profit deductions.
70% Margin Rule Officially Removed
According to FundedNext, the 70% Margin Rule has been completely eliminated from its trading framework. As part of the update, the Margin Usage Card has also been removed from traders’ dashboards.
This means traders will no longer face penalties or profit deductions for exceeding the previous 70% margin usage limit.
Existing Margin Violations Cleared
FundedNext also confirmed that traders who previously received warnings or violations under the 70% Margin Rule have had those records cleared for the current trading cycle.
The company stated that:
- All current-cycle 70% margin violations and warnings have been removed.
- Traders will keep 100% of their earned profits, with no deductions related to the removed rule.
Relief for 30% Margin Rule Traders
The update also affects traders using the 1% Risk and 30% Margin model.
FundedNext said that any 30% margin penalties issued during the current cycle have been reversed, and traders will no longer lose profits due to those violations.
However, the firm emphasized that traders must continue to comply with the 1% Risk Rule, which remains unchanged.
3% Risk Framework Still Applies
While removing the 70% Margin Rule, FundedNext clarified that its 3% Risk Limit remains a key part of its overall risk management system.
The company also announced that traders will no longer face margin reductions after a second violation under the 3% risk framework, although the risk limit itself continues to apply.
Positive Reaction from Traders
The announcement has been widely welcomed by the trading community, with many traders describing it as one of the firm’s best updates this year.
Some traders who had previously stopped purchasing FundedNext accounts because of the margin rule said they now plan to return, with others calling for accounts previously deactivated under the old policy to be reinstated.
What This Means for Traders
The removal of the 70% Margin Rule simplifies FundedNext’s trading conditions and removes one of the most debated restrictions among its users.
For traders, the update means:
- No more 70% margin rule.
- No profit deductions related to 70% or current-cycle 30% margin violations.
- Cleared margin warnings for eligible accounts.
- More flexibility in capital management.
- Continued enforcement of the existing 1% and 3% risk limits.
FundedNext’s decision to remove the 70% Margin Rule marks a significant shift in its risk management approach and addresses one of the most common concerns raised by traders.
While the update provides greater flexibility and eliminates margin-related profit deductions, traders should remember that the firm’s core risk rules—including the 1% and 3% risk limits—remain in effect. Proper risk management and disciplined trading are still essential for maintaining a funded account.
