What is an instant funding prop firm?
Quick answer
An instant funding prop firm sells a funded account directly, with no evaluation phase. The trader can request payouts from the start, subject to loss limits and payout rules. Prices are usually higher than challenges because the firm takes on payout risk immediately.
Detailed answer
Instant funding removes the profit target. The trader pays more and goes straight to the funded stage, where:
- Loss limits still apply, often tighter than in a challenge.
- Payouts may need minimum trading days, a consistency rule or a minimum profit before the first withdrawal.
- The profit split may start lower and rise over time.
For a firm, instant funding is riskier to price because there is no filtering phase. It works best with conservative loss limits and payout conditions. To set it up on PropExecutor, create an account type whose rule set has no profit target: the rule engine then never marks the account as passed, while loss limits and other rules still apply.
Pricing caution
Because every instant funding buyer can request payouts from the start, price these accounts on a cautious estimate of payouts per account, not on challenge pass rates.
Rules that suit instant funding
- A tighter daily loss limit.
- Trailing drawdown with a lock.
- Minimum trading days and a consistency rule before payouts.
PropExecutor team · Updated