What is a Funded Account?

The short answer: a funded account is a trading account backed by a prop firm's capital. You trade it, generate profits, and keep a percentage of those profits. Getting approved means either passing a structured evaluation or purchasing instant funding access directly.

What is a funded account?

When a prop firm gives you access to capital to trade, that account is called a funded account. The money in it belongs to the firm — your job is to trade it profitably within their risk rules. The profits you generate are split between you and the firm according to your agreed percentage.

Funded accounts in the retail prop space operate in a simulated environment, meaning you're not directly moving money in live markets. The trading conditions mirror real markets — real prices, real spreads, real execution — and your payouts are real cash based on your performance.

How do you get approved for funded account trading?

There are two routes.

Through a challenge The standard path. You purchase an evaluation, trade through one or two phases hitting defined profit targets while staying within risk limits, and once you pass, your funded account is activated. The evaluation exists to show the firm you can manage risk and generate returns consistently before they back you with capital.

Through instant funding You pay for funded account access directly, skipping the evaluation. The firm extends capital upfront in exchange for tighter risk rules on the account. No phases, no waiting — you're trading from day one.

What are the rules on a funded account?

Funded accounts come with their own set of rules, separate from the evaluation phase. These typically include:

• Daily and overall loss limits
• Position sizing restrictions
• Inactivity policies — accounts can be closed if left dormant for too long
• Payout schedules and minimum profit thresholds before a withdrawal can be requested

Breaking any of these rules results in the account being closed. You can usually purchase a new challenge and start again, but the funded account itself is gone.

How do payouts work on a funded account?

Once you've accumulated enough profit to request a payout, you submit a withdrawal request. The firm pays you your agreed profit split — typically 80% to 90% as standard, with options to go higher. Most firms have a waiting period for the first payout after you begin trading the funded account, with subsequent payouts available on demand.