What is a funded account?
Quick answer
A funded account is the account a trader receives after passing a prop firm's evaluation, on which they can earn payouts from profits under the firm's terms. In most challenge-based firms it is a simulated account: profits are calculated from live prices, and payouts are paid by the firm from its revenue.
Detailed answer
The funded account is what traders are working towards.
How it differs from an evaluation account
- No profit target, usually: the trader trades to earn, not to qualify.
- Loss limits still apply, often the same as the evaluation's.
- Payouts: the trader can request a share of profits on a schedule.
- Scaling: some firms increase the size after consistent results.
What "funded" means
The word suggests capital, but in most firms the account is simulated, and the term means the trader is eligible for payouts. Good firms define the term clearly in their terms and website.
Example
A trader passes a $50,000 evaluation and receives a $50,000 funded account. After a month, the account shows $3,000 profit. With an 80% split, the trader requests and receives $2,400.
On PropExecutor
A funded account is created from its own account type, typically using a rule set with no profit target, and assigned to the same trader record as the evaluation. It is a new account with a new password.
PropExecutor team · Updated
Related questions
- Business model and economicsDoes a prop firm's revenue come from challenge fees or from trading profits?
- What is a verification phase?
- Business model and economicsHow do prop firms make money?
- Starting a prop firmHow does a modern online prop firm work?
- Starting a prop firmWhat is the difference between a traditional prop firm and a challenge-based prop firm?
All 18 questions in Prop firm terms explained · Every category