What is a funded account?
A funded account is the trading account a prop firm gives you once you pass its evaluation. You trade it under the firm's rules, the firm carries the capital (or, at most online firms, a simulated account it pays out on), and you keep most of the profit, commonly 75% to 90%.
A funded account is a prop firm account you earn by passing a challenge. There is no profit target any more, but the same daily loss limit and max drawdown still apply: break one and the account is closed. Profits are split with the firm and paid out on a schedule, often every two to four weeks.
How a funded account works
You reach a funded account by passing a prop firm challenge, usually in two phases. From then on the account has three features that matter:
- No target, same limits. The daily loss limit and max drawdown carry over. One breach closes the account, whatever profit sits in it.
- A profit split. The firm keeps a share of what you make; the profit split is commonly 75% to 90% for the trader.
- Payouts on a schedule. You request a payout after a minimum period, often after a set number of trading days and any consistency checks.
Example: a $100,000 funded account
Say the account has a 5% daily loss limit, a 10% static max loss and an 80% split. In the first month you make $4,000. You request a payout and receive $3,200; the firm keeps $800. Your floor is still $90,000 and your daily limit still $5,000, so the next month starts with the same rules, not with a bigger cushion. A trader who doubles size after a good month is the classic way funded accounts are lost.
| Challenge | Funded account | |
|---|---|---|
| Profit target | Yes, per phase | No |
| Daily loss and max loss | Yes | Yes, the same |
| What you risk | The fee | The account and future payouts |
| What you earn | Access to funding | A share of profits |
Is a funded account real money?
At most online prop firms the funded account itself is simulated or demo infrastructure: the firm pays you a share of the simulated profits from its own revenue rather than trading your positions in the live market. That is why the rules, not the market, are what end most funded accounts. Read the firm's terms on how payouts are funded and verified. A simulated funded account is the related term.
Common mistakes on funded accounts
- Raising size after a payout and breaching the daily limit on an ordinary losing day.
- Forgetting fine-print rules (news, weekend holding, consistency) that can void a payout.
- Treating the max loss as a target to use, instead of a floor to stay far from.
FAQ
What is a funded account in trading?
A trading account provided by a prop firm after you pass its evaluation. You trade under its loss limits and keep a share of the profits, commonly 75% to 90%.
How do I get a funded account?
Pass a prop firm challenge: reach the profit target in each phase without breaking the daily loss limit or the max drawdown, over at least the minimum number of trading days. Our guide on how to crack a funded account walks through it.
Can you lose a funded account?
Yes. Breaking the daily loss limit or the max drawdown closes it at once, even with profit in the account, and some fine-print breaches can void payouts.
How much does a funded account pay?
You keep the trader share of profits, commonly 75% to 90%, paid on the firm's schedule. There is no salary; months without profit pay nothing.