If you've spent any time around trading communities, you've heard the term funded account. This guide explains what a simulated funded account actually is, how an evaluation program works from start to finish, which rules you'll be held to and, most importantly, whether it makes sense for you at this stage of your trading.
In short: a funded account is a simulated trading account you earn by showing, under clear risk rules, that you can trade with discipline. You pay once for the evaluation, trade in a simulated environment and, if you follow the rules, you can receive rewards based on your results. It isn't an investment or a shortcut: it's a framework for trading with structure.
What a funded account is (and isn't)
A funded account is a trading account with a set size, say $15,000 or $100,000, that you trade under a rulebook. At Funded Profit every account is simulated: trades run in a practice environment with live market prices, and what the trader receives are rewards calculated from their results on that account.
It helps to be clear about what a funded account is not:
- It isn't an investment. You're not depositing money to grow or buying an asset. You're paying a fee to take part in an evaluation program.
- It isn't a loan. There's no debt. If the account is closed for breaking a rule, you don't owe anyone anything.
- It doesn't promise any outcome. Trading involves risk, and plenty of people don't pass on their first attempt. What you learn along the way is the part that stays with you.
The idea underneath is simple. A firm wants to find traders who respect risk, and a trader wants to work with a larger account without putting personal savings on the line. The evaluation is the bridge between the two.
How an evaluation program works
Most programs follow the same four-step logic.
1. Pick an account size
The size sets the dollar amount of every rule, because limits are expressed as percentages of the starting balance. On the 1-Phase Challenge you can choose $15K, $30K, $60K, $100K or $200K, with a one-time fee.
2. Trade the evaluation
You get your login and trade on cTrader. To pass, you reach a profit target without hitting the loss limits. On the 1-Phase Challenge, the numbers look like this:
| Rule | 1-Phase Challenge |
|---|---|
| Profit target | 9% |
| Max daily loss | 4% |
| Max total loss | 6%, static |
| Minimum active trading days | 5 |
| Time limit | None |
| Leverage | 1:100 |
3. Verify your identity
Once you pass, you complete identity verification (KYC). After it's approved, your funded account is set up within 24 to 48 hours.
4. Trade the funded account
You keep trading under the same risk rules, now without a profit target. Once you've met the minimum active trading days and followed every rule, you can request rewards: an 80% split in your favor (100% with an add-on), requests every 14 days (weekly with another add-on) and a $50 minimum per request.
The rules you'll run into
Rules aren't there to trip you up. They're how a program measures whether your way of trading holds up over time. These are the ones that matter most.
- Max daily loss. A loss cap for each trading day, which runs from 8:00 p.m. to 8:00 p.m. (UTC-4). It includes floating losses on open positions. We break it down with examples in the daily loss limit explained.
- Max total loss. A floor your equity can never touch. At Funded Profit it's static: it's set from the starting balance and doesn't move up as your account grows. To see why that matters, read static vs. trailing drawdown.
- Consistency. No single day can make up more than 40% of your total profit on accounts under $30K, or more than 30% from $30K up. The point is that your results come from a repeatable process, not one lucky session.
- Risk per trade. A single trade can't lose more than 2.5% of the starting balance.
- Minimum duration. Every trade has to stay open for at least 3 minutes.
Trading the news and holding positions over the weekend are both allowed. Bots, EAs and copy trading are not. The full rulebook, with dollar examples, is on the rules page.
Evaluation or direct access: two paths
Not every program starts with an evaluation. Funded Profit offers two:
- 1-Phase Challenge. You pay for an evaluation, prove your method by reaching 9% without breaking a rule, then move on to the funded account. Limits are wider: 4% daily and 6% total.
- Direct Access. There's no target: you trade a simulated funded account from day one. In exchange, the limits are tighter (3% daily, 5% total) and you need 8 active trading days before each reward request.
Neither is better in the abstract. The Challenge gives you time and room to prove your method without pressure, since there's no deadline. Direct Access suits traders who already have a tested process and would rather skip the evaluation stage.
Who a funded account is for
A funded account makes sense once you've done some of the groundwork. It's a good fit if:
- You have a defined method. You know what you're looking for, when you get in, where you get out and how much you risk. If that isn't written down yet, start with a structured trading plan.
- You've traded a demo consistently. At least a few weeks of logging trades and reviewing your mistakes.
- You respect risk. You can take a loss without trying to win it back right away.
- You want structure. Some traders find that external rules help them hold the discipline they struggle to keep on their own.
On the other hand, it's probably not the right time if you're still learning what a lot size is, if you need that money for this month's bills, or if you're after quick results. In those cases, time spent learning is worth more than paying for an evaluation before you're ready.
Common beginner mistakes
These are the stumbles we see most often from traders on their first evaluation:
- Trying to hit the target in two days. There's no time limit. Raising your risk to speed things up is the fastest way to hit the daily loss limit.
- Forgetting about floating losses. Limits are measured on equity, not just closed trades. An open position moving against you counts from the first second.
- Not knowing when the day resets. The trading day rolls over at 8:00 p.m. UTC-4. Mixing that up with your local midnight leads to bad math.
- Packing all the profit into one day. One oversized day can push you past the consistency limit even if you reach the target.
- Trading without a journal. If you don't log why you got in and out, you won't know what to fix when something breaks.
How to get ready before you start
Before paying for any evaluation, run through this:
- Write down your rules. Markets, session, entry and exit conditions, and risk per trade.
- Turn the limits into dollars. On a $100,000 account, 4% daily is $4,000 and the static 6% floor sits at $94,000. Seeing the actual amounts changes how you make decisions.
- Keep risk small. A practical rule of thumb is 0.5% to 1% per trade. At 0.5% on $100,000 ($500), it would take 12 losses in a row to reach the 6% limit.
- Set a personal daily stop. For example, half the official limit. If you hit it, you close the platform.
- Review weekly. Check whether you followed your plan, not just whether the week ended green.
A funded account doesn't change how you trade. It just makes what you already do visible, good and bad. That's why preparation matters more than anything else.
FAQ
Does a funded account trade real money?
No. At Funded Profit every account is simulated: trades run in a practice environment with live market prices. What you receive, if you follow the rules, are rewards calculated from your results on that account.
What happens if I fail the evaluation?
If you hit the max daily loss or the max total loss, the account is closed. You don't owe anything: your only cost was the evaluation fee. You can review what went wrong and try again when you're ready.
Is there a time limit to pass the 1-Phase Challenge?
No. You need at least 5 active trading days, but there's no deadline. Just keep in mind that you have to open at least one trade every 30 calendar days or the account is closed for inactivity.
How much does a funded account cost?
On the 1-Phase Challenge it's a one-time fee, from $89 for a $15K account to $899 for a $200K account. Direct Access ranges from $69 for $5K to $629 for $100K.