AquaFunded Singapore Review

Overview: Objective Prop Firm Evaluation

AquaFunded is a United Arab Emirates-based proprietary trading evaluation firm founded in 2023 that has gained notable traction among retail forex traders in Singapore. Operating under a simulated evaluation model, AquaFunded allows skilled retail traders to purchase evaluation accounts starting from $58 for a $5,000 challenge up to $400,000 in maximum initial funding. Traders who satisfy predefined profit targets without violating daily or maximum drawdown limits receive a virtual funded account with profit splits scaling from 80% up to 90%.

For Singapore traders exploring alternatives to conventional retail margin accounts, prop trading limits personal capital exposure to the upfront challenge fee. However, prop firms are not retail brokerages; they are non-regulated commercial evaluation companies. Below is a detailed audit of AquaFunded’s challenge parameters, drawdown mechanics, execution software, and Singapore tax implications.

Evaluation Challenge Stages & Profit Targets

AquaFunded operates primarily on a two-phase evaluation framework designed to test whether a trader possesses a reproducible edge with strict risk management:

• Phase 1 Assessment: Requires achieving an 8% profit target on initial virtual equity. There are no minimum or maximum trading day limits, removing artificial time pressure.
• Phase 2 Verification: Requires achieving a reduced 5% profit target to confirm consistency over a second trading cycle.
• Funded Trader Stage: Once verified, the trader manages a virtual funded account with no ongoing profit targets, receiving an 80% baseline profit share (scalable to 90% via consistency achievements). The initial challenge fee is refunded upon the first approved payout.

Balance-Based Drawdown vs Trailing Equity Traps

One of AquaFunded’s strongest structural advantages is its drawdown calculation methodology:

This contrasts sharply with aggressive “trailing equity” models used by certain competing prop firms, where a floating intraday profit permanently ratchets the stop-out level higher, suffocating swing positions. AquaFunded’s balance-based structure makes it significantly more viable for day traders and swing traders holding positions through normal intraday pullbacks.

Trading Platforms & Simulated Execution Feeds

AquaFunded supports MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Among Singapore day traders, cTrader is widely favored due to its native depth-of-market (DOM) display, advanced order ticketing, and fast execution.

Raw spread feeds on major currency pairs (EUR/USD, GBP/USD, USD/JPY) typically range from 0.0 to 0.2 pips during the liquid London/New York overlap, accompanied by standard institutional commission fees of $6 per round-turn lot. Latency from Singapore connections averages 120ms to 160ms to London/European hosting hubs, which is fully acceptable for manual day trading and intraday swing trading.

Trading Rules, News Events & EA Restrictions

AquaFunded maintains relatively flexible trading rules compared to traditional prop firms:

• News Trading: Holding and executing positions during high-impact macroeconomic releases (US Non-Farm Payrolls, FOMC interest rate announcements, CPI) is permitted on evaluation and standard funded accounts.
• Weekend Holding: Swing traders can hold active positions over the weekend, provided adequate margin coverage is maintained against market opening gap risk.
• Automated EAs: Algorithmic expert advisors (EAs) and trade copiers are allowed. However, predatory strategies—such as high-frequency latency arbitrage, tick scalping, reverse hedging across accounts, and account-sharing schemes—are strictly prohibited and will result in breach of contract.

Singapore Tax Compliance & IRAS Reporting Rules

The tax treatment of prop-firm payouts depends on the facts and circumstances of the trader's activity. If the activity constitutes a trade, business, profession or vocation, income may need to be reported as self-employment/business income. Singapore traders should assess their individual circumstances against current IRAS guidance:

• Tax Assessment on Trading Activity: Under Singapore tax law, whether prop firm disbursements are treated as taxable trade income or capital transactions depends on factors such as trading frequency, intention, and commercial organization under the Badges of Trade framework. When an individual is carrying on a trade, business, or vocation, earnings may be assessable as business income. Review official IRAS Self-Employed Individuals Guidance.
• CPF MediSave Considerations: As an offshore entity, AquaFunded makes no CPF deductions. Mandatory MediSave obligations may arise when an individual is treated as self-employed for tax purposes and statutory Net Trade Income thresholds (exceeding S$6,000 per annum) are met under official CPF Board MediSave Guidelines.
• Expense Deductibility & Records: Where trading is determined to be a taxable business activity, evaluation challenge fees may qualify as deductible expenses incurred in the generation of trade income, provided comprehensive receipts are retained. Maintain invoices and payout receipts from Rise or crypto wallets. Consult our dedicated guide on Singapore Trading Tax & IRAS Rules.

Frequently Asked Questions

Curated Alternatives & Recommendations

If you are evaluating prop trading firms from Singapore, compare AquaFunded against other leading international firms in our comprehensive directory on Prop Trading in Singapore. If you prefer firms offering profit sharing during evaluation phases, consider reviewing FundedNext Singapore Review, or explore firms with automated loss protection tools in our BlueGuardian Singapore Review.