An evaluation fee that is returned to the trader after successfully passing the evaluation and meeting specific conditions, typically included with the first payout from the funded account.
Why It Matters
- 1Refundable fees effectively make the evaluation free if you pass and reach your first payout.
- 2This lowers the true cost of getting funded to zero for successful traders.
- 3However, the refund conditions vary — some firms refund the fee with your first payout, others require a minimum profit threshold, and some refund it over multiple payouts.
- 4Understanding the exact refund terms prevents surprises and helps you accurately compare total costs across firms.
Example
- 1You pay a $349 refundable evaluation fee for a $100,000 account.
- 2After passing and receiving your funded account, your first payout includes the $349 refund plus your 80% profit share.
- 3If you earned $5,000, your first payout would be $4,000 (profit share) + $349 (refund) = $4,349. Your effective cost to get funded was $0.
Common Mistakes
- ✖Assuming the fee is automatically refunded — you usually need to request it with your first payout
- ✖Not meeting the minimum payout threshold required to trigger the refund
- ✖Choosing a more expensive firm just because the fee is refundable without calculating the break-even