
Clarity Traders Review: The Right Prop Firm for You?
Jan 28, 2025Disclaimer: Photon Trading is not affiliated with Clarity Traders in any way. The opinions expressed in this article are based on independent research and are intended for informational purposes only. This is not financial advice, and readers should conduct their own due diligence before engaging with any trading platform.
For many aspiring forex traders, the biggest challenge isn’t developing a profitable strategy; it’s having enough capital to trade at a meaningful scale. Proprietary trading firms (prop firms) solve this problem by providing traders access to large funded accounts, allowing them to trade with significant capital without risking their own money.
This makes prop firms attractive for those looking to maximize their potential earnings while managing risk effectively.
Among the many prop firms available, Clarity Traders has built a reputation as one of the industry's most popular and trusted firms.
Known for its funded account challenges, competitive profit splits, and trader-friendly conditions, Clarity Traders has attracted experienced professionals and skilled newcomers seeking a reliable prop firm to scale their trading.
In this review, we’ll take a detailed look at Clarity Traders’ account funding process, challenge rules, profit-sharing model, and key features to help you determine whether this is the right prop firm for you. Whether you are considering taking on a prop firm challenge or simply exploring your options, this guide will provide everything you need to know before deciding.
Keep reading to determine whether Clarity Traders is your prop firm. Let’s start with a basic overview.
Contents
How Does Clarity Traders Work?
Clarity Traders Funded Account Challenges
Trading Instruments Available with Clarity Traders
Costs, Commissions, and Fee Structure
Clarity Traders' Profit-Sharing Model
Clarity Traders' Customer Support
Comparing Clarity Traders to Other Prop Firms
Clarity Traders Review: Final Thoughts
Key Takeaways
- Clarity Traders offers funded accounts ranging from $5,000 to $300,000, catering to both new and experienced traders.
- The firm provides three evaluation challenges: Single-Phase, Two-Phase, and Accelerated, each with distinct requirements and benefits.
- Traders can earn up to 100% profit splits, one of the most competitive models in the prop trading industry.
- A wide range of trading instruments is available, including Forex, commodities, indices, and cryptocurrencies.
- Clarity Traders supports MetaTrader 5 (MT5) and TradeLocker, providing advanced tools for trade execution.
- While Clarity Traders is a newer prop firm, it has established credibility through successful payouts and transparent challenge structures.
About Clarity Traders
Clarity Traders, established in 2022 by Anthony Alvarenga (Mamba FX), is a Delaware-based proprietary trading firm offering funded accounts ranging from $5,000 to $300,000.
Traders can select from three evaluation programs: 1-Phase, Traditional, and Accelerated. Each has specific trading objectives and drawdown limits. The firm provides a profit split of up to 100% after traders demonstrate their trading prowess.
Clarity Traders supports trading across various instruments, including forex, cryptocurrencies, indices, and commodities, with leverage up to 1:200, depending on the asset class.
Traders can utilize platforms like MetaTrader 5 (MT5) and TradeLocker to execute trades.
The firm emphasizes risk management, implementing daily and overall drawdown limits to ensure disciplined trading.
Customer support is accessible via live chat, a ticketing system, and email, ensuring traders receive timely assistance.
With a focus on flexibility, competitive profit splits, and a range of account sizes, Clarity Traders aims to accommodate traders of varying experience levels and trading styles.
How Does Clarity Traders Work?
Clarity Traders provides an accessible pathway for aspiring traders to showcase their skills and manage a funded account. The process begins with selecting an account size and evaluation program tailored to your trading style and risk tolerance.
The next step is completing the challenge, which tests your ability to achieve specified profit targets while adhering to strict risk management rules.
These rules, such as maximum daily and overall drawdown limits, ensure that you maintain a disciplined and strategic approach to trading. Successfully meeting these requirements demonstrates your readiness for professional trading.
Once you pass the evaluation, Clarity Traders rewards you with a funded account corresponding to the size you initially selected. This account allows you to trade using the firm’s capital, providing the resources needed to execute your strategies on a larger scale.
As a funded trader, you benefit from a profit-sharing model where earnings from your trades are split between you and Clarity Traders.
To ensure a steady income flow, Clarity Traders processes profit payouts bi-weekly. Payments are handled through USDT, a popular cryptocurrency that provides reliability and flexibility for traders who prefer digital assets. This streamlined approach lets you focus on your trading journey while enjoying consistent and accessible rewards.
Clarity Traders features a wide variety of challenge types for funded trading accounts of varying amounts, which we will discuss below.
Clarity Traders Funded Account Challenges
Clarity Traders offers three funded account challenges designed to cater to traders with various experience levels, trading styles, and risk appetites.
These challenges allow traders to prove their skills and gain access to capital ranging from $5,000 to $300,000, enabling them to trade with significantly larger sums than they might otherwise have available.
Below is a comprehensive breakdown of each challenge, including key rules, requirements, and benefits.
1. Single-Phase (1-Phase) Challenge
The Single-Phase Challenge is designed for traders looking for a fast-track route to a funded account. Unlike traditional two-phase models, this challenge only requires traders to pass a single evaluation stage before accessing a funded account.
Here’s what you need to know about the Single-Phase Challenge.
Account Sizes Available
- $5,000, $25,000, $50,000, $100,000, $200,000, $300,000
Challenge Rules and Requirements
- Trading Period: Unlimited (no time constraints)
- Minimum Trading Days: 1
- Maximum Daily Loss: 4%
- Maximum Total Loss: 6%
- Profit Target: 10%
- Highest Profit Day Rule: 30%
Key Benefits of the Single-Phase Challenge
The Single-Phase Challenge features a variety of benefits when compared to the other challenge types, including the following:
- Fast-track to funding with just one evaluation stage
- No time limit allows traders to complete the challenge at their own pace
- Low minimum trading days (1 day) means experienced traders can qualify quickly
- Refundable fee upon passing the challenge
Who Should Choose This Challenge?
The Single-Phase Challenge is best suited for the following:
- Experienced traders confident in their ability to hit a 10% profit target quickly
- Traders looking for a simplified, fast funding process
- Those who prefer minimal constraints and no time pressure
2. Two-Phase Funded Challenge
The Two-Phase Challenge follows a more traditional prop firm evaluation model, requiring traders to pass two evaluation stages before receiving a funded account. This structure helps Clarity Traders ensure consistency and risk management before providing capital.
Here’s what you need to know about the Two-Phase Challenge
Account Sizes Available
- $25,000, $50,000, $100,000, $200,000, $300,000
Challenge Rules and Requirements
Requirement |
Stage One (Evaluation Phase) |
Stage Two (Verification Phase) |
Profit Target |
8% |
5% |
Minimum Trading Days |
5 |
5 |
Daily Drawdown Limit |
5% |
5% |
Overall Drawdown Limit |
8% |
8% |
Trading Duration |
Unlimited |
Unlimited |
Highest Profit Day Rule |
30% |
30% |
Key Benefits of the Two-Phase Challenge
As can be seen below, the two-phase challenge features a variety of benefits worth taking advantage of:
- Lower profit targets (8% in Phase 1, 5% in Phase 2) compared to the Single-Phase Challenge
- Unlimited trading period allows traders to take their time to pass the challenge
- More structured evaluation process ensures traders can handle drawdowns and risk effectively
- Consistent risk management approach, helping traders develop long-term sustainable strategies
Who Should Choose This Challenge?
The Two-Phase Challenge is best suited for the following:
- Traders who prefer a more structured, step-by-step funding process
- Those who want lower profit targets per phase rather than one large target
- Traders comfortable with a more rigorous evaluation before receiving funding
3. Accelerated 2-Phase Challenge
The Accelerated 2-Phase Challenge is designed for traders looking to quickly qualify for a funded account while maintaining a structured approach. It follows a two-phase model but with slightly different profit targets and requirements.
Account Sizes Available
- $25,000, $50,000, $100,000, $200,000, $300,000
Challenge Rules and Requirements
Requirement |
Phase One |
Phase Two |
Funding Phase |
Trading Period |
Unlimited |
Unlimited |
Unlimited |
Minimum Trading Days |
5 |
5 |
N/A |
Maximum Daily Loss |
5% |
5% |
5% |
Maximum Overall Loss |
8% |
8% |
10% |
Profit Target |
8% |
5% |
N/A |
Refundable Fee |
No |
Yes |
Yes |
Key Benefits of the Accelerated Challenge
As you can see here, the Accelerated Challenge has a few benefits worth considering:
Balanced approach between speed and evaluation structure
- Slightly easier profit targets (8% in Phase 1, 5% in Phase 2)
- Refundable fee for funded traders
- Higher total drawdown in funded phase (10%), giving traders more flexibility
Who Should Choose This Challenge?
The Accelerated Challenge is best suited for the following traders:
- Traders who want a fast-track funding route without sacrificing evaluation quality
- Those who prefer a structured two-phase process but with fewer restrictions
- Traders looking for higher drawdown limits in the funded phase
Trading Instruments Available with Clarity Traders
Clarity Traders offers a wide range of trading instruments, providing traders with access to various financial markets, including forex, commodities, indices, and cryptocurrencies.
This variety allows traders to diversify their portfolios, hedge risk, and take advantage of market movements across multiple asset classes.
In addition to offering a diverse set of trading instruments, Clarity Traders supports two popular trading platforms: MetaTrader 5 (MT5) and TradeLocker.
These platforms provide advanced charting tools, execution capabilities, and risk management features, ensuring traders have everything they need to execute their strategies effectively.
Here are all of the trading instruments available through Clarity Traders.
Forex Pairs
Forex trading is one of the main offerings at Clarity Traders, with access to major, minor, and exotic currency pairs. The firm provides a selection of pairs from across the globe, allowing traders to take advantage of movements in different economies.
The following forex pairs are available.
Major Forex Pairs
- EUR/USD
- GBP/USD
- USD/JPY
- USD/CHF
- AUD/USD
Minor & Exotic Forex Pairs
- EUR/GBP
- EUR/JPY
- EUR/AUD
- GBP/JPY
- USD/CAD
- AUD/JPY
- NZD/USD
- USD/ZAR
- USD/NOK
- USD/SEK
With high leverage and deep liquidity, Clarity Traders provides forex traders with optimal trading conditions, making it a great choice for both scalpers and swing traders.
Commodities
For traders interested in raw materials and energy markets, Clarity Traders provides access to key commodities. These markets can be highly volatile, offering excellent opportunities for traders who understand global economic trends.
Below are the commodities traders can work with.
Commodities Available
- Crude Oil (WTI, Brent): Popular choices for energy traders looking to take advantage of global supply and demand shifts.
- Gold (XAU/USD): A safe-haven asset often traded during times of economic uncertainty.
- Silver (XAG/USD): Another precious metal that moves similarly to gold but with different volatility characteristics.
Indices
Indices trading allows traders to speculate on the performance of stock markets across the world. Clarity Traders provides access to some of the most popular global indices, allowing traders to take positions on the overall market sentiment.
As you can see below, Clarity Traders features many indices to trade with.
Indices Available
- S&P 500 (SPX500)
- NASDAQ 100 (NAS100)
- Dow Jones (US30)
- UK100 (FTSE 100)
- DAX 40 (GER40)
- Nikkei 225 (JPN225)
These indices provide traders with a way to gain exposure to broad economic trends without having to analyze individual stocks.
Cryptocurrencies
For traders looking to capitalize on the volatility of digital assets, Clarity Traders also offers crypto trading, allowing users to speculate on price movements without directly owning the assets.
Here are the available crypto pairs with Clarity Traders.
Crypto Pairs Available
- Bitcoin (BTC/USD)
- Ethereum (ETH/USD)
- Litecoin (LTC/USD)
- Bitcoin Cash (BCH/USD)
Crypto trading at Clarity Traders allows traders to take long or short positions, making it possible to profit in both bull and bear markets.
Let’s move on and find out what the associated costs of trading with Clarity Traders are.
Costs, Commissions, and Fee Structure
Understanding the costs associated with trading is crucial for your profitability. Clarity Traders maintains a transparent fee structure, including the following:
- Forex Pairs: A commission of $7 per lot applies to forex trades.
- Other Instruments: No commissions are charged for trading metals, commodities, indices, or cryptocurrencies.
While the firm provides clear information on commissions, it's important to note that specific details on spreads and other potential fees are not readily available.
It is also important to note that the challenges are not free to take. They start at $59 for the lowest-level and smallest funded accounts, and prices increase based on account size and challenge type.
Speaking of costs, how much of the profit does Clarity Traders allow traders to keep?
Clarity Traders' Profit-Sharing Model
Clarity Traders stands out in the prop trading industry with its remarkably generous profit-sharing model, allowing funded traders to retain up to 100% of the profits they generate. This unique offering provides an unparalleled opportunity for traders to maximize their earning potential while maintaining full focus on their trading performance.
The profit-sharing system is designed to reward success and transparency. Funded traders can enjoy high profit retention, keeping up to 100% of the profits earned through their trading activities. This structure directly ties your earning potential to your trading success, making it a compelling incentive to refine your strategies and perform at your best.
Clarity Traders creates an environment where traders can thrive by combining a high profit split, transparent fee policies, and regular payouts. The opportunity to retain up to 100% of your profits not only sets Clarity Traders apart but also inspires traders to continuously enhance their skills and strategies, knowing their hard work is rewarded to the fullest.
Educational Resources
Compared to some other prop firms, Clarity Traders offers limited educational content, virtually none. It has an FAQ section to answer basic questions about its services, but it does not feature any trading educational materials.
If you want to learn how to trade forex so you can pass funded account challenges such as those from Clarity Traders, Photon Trading is by far the most comprehensive educational program.
Clarity Traders' Customer Support
Clarity Traders offers reliable and responsive customer support to ensure traders have a smooth experience. They provide live chat for immediate assistance, allowing users to connect with a support representative in real time for quick resolutions.
For more detailed inquiries, traders can contact email support, which is available 24/7 to handle account-related questions, technical issues, and guidance on evaluation processes.
Also, Clarity Traders' website has an extensive FAQ section covering common topics such as platform setup, challenge rules, and payment methods. This allows traders to find answers quickly before reaching out for direct support.
Comparing Clarity Traders to Other Prop Firms
Clarity Traders distinguishes itself in the proprietary trading space with its unique offerings and competitive features. When evaluating prop firms, traders should consider key factors such as profit splits, account sizes, and evaluation structures to make an informed decision.
Below, we compare how Clarity Traders stacks up against other industry leaders.
Higher Profit Splits
One of Clarity Traders' standout features is its profit-sharing model, which offers up to 100% profit splits, a rate that surpasses many competitors in the industry.
This generous payout structure allows traders to retain more of their trading profits, making it an attractive option for those who want to maximize their earnings potential.
Diverse Account Sizes
Clarity Traders provides funded accounts ranging from $5,000 to $300,000, catering to traders with varying experience levels and capital needs.
Whether you're a beginner looking to start with a smaller account or an experienced trader seeking access to larger capital, Clarity Traders offers flexible options to suit different trading goals and risk tolerances.
Unique Single-Phase Challenge
Unlike many proprietary firms that require traders to pass a two-step evaluation process, Clarity Traders offers a Single-Phase Challenge as an alternative.
This streamlined evaluation process allows traders to qualify for a funded account more quickly, making it an appealing choice for those who prefer a simpler and more direct path to funding.
A Newer Entrant in the Market
Compared to established firms like FTMO and TopStep, Clarity Traders is a relatively new player in the prop trading space. While it has gained significant traction due to its competitive features and favorable funding model, traders should consider the track record and longevity of a firm when making a decision.
Established firms often have a more extensive history of success, a larger pool of funded traders, and proven stability, which may provide added confidence.
Clarity Traders presents a strong alternative to more well-known prop firms, particularly for traders looking for high profit splits, flexible account sizes, and a streamlined evaluation process. However, as with any trading firm, weighing the benefits, risks, and track record before committing to a challenge is important.
Is Clarity Traders Legit?
Clarity Traders has established itself as a legitimate proprietary trading firm, backed by its founder, Anthony Alvarenga (Mamba FX), a well-known figure in the trading community. Alvarenga’s reputation and industry visibility add credibility to the firm, attracting traders who seek funded trading opportunities with transparent conditions.
A key indicator of Clarity Traders' legitimacy is the positive feedback from funded traders who have successfully passed the evaluation process and received their payouts. These testimonials reinforce the firm's commitment to honoring its profit-sharing agreements, providing traders with a reliable pathway to scaling their capital.
Another factor contributing to trust is the firm’s transparency in its evaluation process. Clarity Traders outlines profit targets, drawdown limits, and trading restrictions, ensuring participants fully understand the rules and expectations before committing to a challenge. This level of clarity and openness helps build confidence in the firm's fairness and integrity.
While Clarity Traders currently holds a Trustpilot rating of 3.0 out of 5, it’s essential to consider that online reviews can be subjective. The firm actively addresses concerns and implements user feedback, showing a commitment to continuous improvement.
With its structured evaluation process, successful payouts, and ongoing refinement of its services, Clarity Traders presents itself as a legitimate and competitive option for traders seeking a trusted prop firm.
Clarity Traders Review: Final Thoughts
Clarity Traders has quickly become a competitive force in the prop trading industry. It offers funded accounts, high profit splits, and flexible challenge structures that cater to a wide range of traders.
Whether you’re a beginner looking for structured evaluation or an experienced trader wanting a fast track to funding, Clarity Traders provides multiple challenge options to suit different risk tolerances and trading strategies.
One of the firm’s standout features is its profit-sharing model, which allows traders to keep up to 100% of their profits, which is significantly higher than many competitors.
Moreover, its varied account sizes, access to major financial markets, and support for MetaTrader 5 (MT5) and TradeLocker make it an appealing choice for traders looking to scale their strategies effectively.
However, as a relatively new entrant in the industry, Clarity Traders is still working to establish its reputation. While it has proven itself through payouts and positive trader feedback, some traders may prefer firms with longer track records.
That said, Clarity Traders' transparent challenge rules, fair evaluation criteria, and commitment to improvement make It a strong option for those looking for a reliable prop firm.
If you’re considering a prop firm challenge, Clarity Traders presents a compelling opportunity to trade with significant capital while retaining more of your profits. As with any firm, evaluating your own trading style and goals is important before deciding if Clarity Traders is the right fit for you.
Navigating prop trading platforms can be challenging, understandably, but Photon Trading offers resources and a free trading course that can equip you with the knowledge and strategies to succeed in this competitive space.
Get your free trading course + cheatsheets and start your journey towards becoming a more proficient and profitable trader today.
Frequently Asked Questions
How Does Clarity Traders’ Profit Split Work?
Clarity Traders offers a tiered profit split where traders can keep up to 100% of their profits. Initially, traders may start with a lower split, but as they continue to trade profitably and demonstrate consistency, they can qualify for a higher payout percentage.
What Happens If I Fail a Clarity Traders Challenge?
If you fail a challenge by exceeding the daily or overall drawdown limits, you will need to re-purchase the challenge and start again. However, traders can take advantage of discounted retry options or occasional promotions that offer reduced pricing on retry attempts.
Are There Any Hidden Fees in Clarity Traders’ Challenges?
Clarity Traders has a transparent pricing model, but traders should be aware of commission fees on Forex trades ($7 per lot). Other instruments, such as commodities, indices, and cryptocurrencies, are commission-free, but traders should consider spread costs and overnight fees when planning their trades.
Can I Withdraw My Profits in Fiat Currency Instead of USDT?
Currently, Clarity Traders processes all payouts in USDT (Tether), a stable cryptocurrency. However, traders can easily convert USDT into fiat currency through major crypto exchanges or third-party payment processors.
Does Clarity Traders Offer Any Educational Resources?
Unlike some competitors, Clarity Traders does not offer a dedicated education program. However, traders can access a detailed FAQ section for guidance on challenge rules, platform setup, and account management. Those looking for in-depth education may need to supplement their learning with third-party trading courses.
How Does Clarity Traders Compare to FTMO and Other Prop Firms?
Compared to FTMO and TopStep, Clarity Traders offers higher potential profit splits (up to 100%) and a Single-Phase Challenge, which some traders find more appealing. However, it lacks the long-term track record of more established firms, making it important for traders to weigh risk vs. reward when selecting a prop firm.
Can I Trade Using Automated Strategies or EAs?
Yes, Clarity Traders allows the use of Expert Advisors (EAs) and automated trading strategies, provided they comply with the firm’s risk management rules. However, traders should confirm specific EA policies before integrating high-frequency or arbitrage-based strategies.
FREE VIDEO TRAINING REVEALS...
Fast-Track To Getting Funded In 2024
(With ZERO hesitation or stress)
What you will learn:
- Mechanical Market Structure
- Institutional Supply & Demand
- Liquidity concepts
- Advanced Trading Plan
- Trading Psychology Masterclass
- Professional Trading Processes
- How to pass funding challenges
Join +82,000 fast-tracking to funding