Can a prop firm advertise "funding" when accounts are simulated?
Quick answer
Many firms use "funded account" as an industry term, but it can mislead if a customer believes real money is placed in the market. The safer approach is to define the term clearly: a simulated account on which the trader can earn payouts. Some regulators have focused on exactly this distinction.
Detailed answer
General information, not legal, tax or regulatory advice. Rules differ by country and change over time; confirm your position with a qualified professional before acting on it.
Ways to use the term responsibly:
- Define it on your website and in your terms: "a funded account is a simulated account on which you can request payouts."
- Avoid adding claims such as "trade our capital" or "we invest in your trades" unless they are literally true.
- Disclose prominently, not only in the terms.
- Train affiliates to use the same definition.
Clear wording protects you in disputes and in front of payment providers, who also review how you describe the product. This is general information, not legal advice.
Example wording
"Pass the evaluation to receive a funded account: a simulated account on which you can earn payouts of up to 80% of your profits." It uses the industry term and explains it in the same sentence.
Avoid
Phrases such as "manage our capital" or "trade with real money" when the account is simulated.
Check older content
Review existing pages and social posts as well as new ones, because early marketing often uses looser wording than the business uses later.
PropExecutor team · Updated
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