A trading account provided by a prop firm after a trader successfully passes the evaluation process or purchases an instant account. Funded accounts give traders access to the firm’s capital and allow them to earn real payouts based on the profits they generate while following the firm’s risk and trading rules.
Why It Matters
- 1The funded account is the ultimate goal of the prop trading evaluation process.
- 2Once funded, your focus shifts from passing rules to generating consistent profits for payouts.
- 3Funded accounts may have different rules than evaluation accounts — some firms loosen restrictions while others add new ones like consistency rules or payout minimums.
- 4Understanding the funded account terms before purchasing an evaluation ensures you know exactly what you're working toward.
Example
- 1After passing a two-step evaluation on a $100,000 account, you receive your funded account with an 80/20 profit split.
- 2Your first month, you earn $6,000 in profit and receive a payout of $4,800 (80%). The funded account has the same 5% daily loss limit and 10% max drawdown as the evaluation, plus a new requirement of 5 minimum trading days per payout cycle.
Common Mistakes
- ✖Trading differently once funded — the same discipline that passed the evaluation must continue
- ✖Not reading the funded account agreement which may differ from evaluation rules
- ✖Assuming the funded account uses real money — most prop firms use simulated accounts with real payouts