Funded Account
A trading account whose capital is provided by a prop firm, earned after passing its evaluation.
On a funded account, you trade the firm's capital and share the gains (profit split), without risking your own money beyond the evaluation fee. In return, you must follow strict rules (drawdown, targets, allowed products).
In depth
A funded account is a trading account whose capital is provided by the prop firm, which you run after passing its evaluation. You don't risk your own money in the market: you risk the evaluation fees, and you must follow the rules (drawdown, targets, consistency) in exchange for a share of the gains.
You need to understand the exact nature of this 'funding'. At most futures firms, the funded account is first a simulated account (gains come from the firm, not from real market executions), at least up to a certain tier. This changes nothing about the reality of payouts, but it's useful to know to understand the model and not misjudge what you're buying.
In practice, treat a funded account exactly like real capital: it's the same risk rules that keep a trader alive. The difference isn't in discipline (identical), but in the source of the capital and the profit share. Our courses cover managing a funded account.
After passing the eval, you get a $50,000 funded account to trade under the rules.
Changing your behavior once funded, thinking 'it's not my money'. That's the mistake that burns the most accounts: the drawdown is real, the closure is real, and discipline stays the only variable that keeps you funded. Trade it like your own money.
Frequently asked
Is a funded account real or simulated?
At many futures firms, it's a simulated environment, at least at first: the gains paid out come from the firm. The payouts are real; the underlying model is simulated. Check firm by firm.
Do you risk your own money on a funded account?
Not in the market: the capital is the firm's. What you risk is the evaluation and subscription fees, and closure of the account if you break the rules.
What's needed to get a funded account?
Passing the firm's evaluation: reaching the profit target without hitting the drawdown or breaking the rules. Once validated, the funded account is unlocked.
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