Activation fees are one time charges applied by some firms after a trader passes the evaluation stage. They are required to activate a funded account and are often separate from the initial evaluation cost. These fees are common, especially in futures trading, and usually cover account setup and administrative processes. Many firms now offer options with no activation fees to attract traders
Why It Matters
- 1Activation fees can significantly increase the total cost of getting funded, especially if they weren't clearly disclosed upfront.
- 2A firm advertising a $299 evaluation might charge an additional $150 activation fee, making the true cost $449. Not all firms charge activation fees, and those that do sometimes waive them during promotions.
- 3Always factor the activation fee into your total cost calculation when comparing firms.
Example
- 1You pass a $100,000 evaluation that cost $349. The firm then requires a $149 activation fee to set up your funded account.
- 2Your total cost to get funded is $498. If you earn $5,000 in your first month at an 80/20 split, your net return after all fees is $4,000 - $498 = $3,502 — still profitable, but lower than expected.
Common Mistakes
- ✖Not checking for activation fees before purchasing an evaluation
- ✖Assuming the evaluation fee is the total cost to get funded
- ✖Not comparing the combined evaluation + activation fee across different firms