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Account Types

Funded Account

A simulated trading account provided by a prop firm after passing their evaluation, where you trade with the firm's capital.

A funded account is what you receive after successfully passing a prop firm's evaluation (challenge). You trade on this account and share profits with the firm according to the agreed profit split.

Key Characteristics

  • Simulated Capital: Most firms provide simulated (demo) accounts that mirror live market conditions. Your profits are real; the capital risk is the firm's.
  • Rules Still Apply: Funded accounts typically have the same (or slightly relaxed) drawdown and daily loss rules as the evaluation.
  • Profit Withdrawals: Once you meet minimum payout thresholds and trading day requirements, you can withdraw your share of profits.

Path to a Funded Account

  1. Purchase a challenge/evaluation
  2. Meet the profit target while staying within drawdown rules
  3. Some firms have a verification phase (Phase 2)
  4. Receive your funded account
  5. Trade and withdraw profits

Account Sizes

Common funded account sizes: $25K, $50K, $100K, $150K, $200K, $300K. Some firms offer accounts up to $600K or allow "merging" multiple accounts.

Related Terms

Challenge Phase
The evaluation period where a trader must meet specific profit targets and follow risk rules to qualify for a funded account.
Drawdown
The maximum allowed decline from peak equity in a trading account.
Profit Split
The percentage of trading profits that the trader keeps versus what the prop firm retains.
Scaling Plan
A program that allows successful funded traders to increase their account size and improve their profit split over time.

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