What Are Funded Accounts Everything You Need to Know in 2025

In the fast-evolving world of trading and investing, a new opportunity has taken center stage: what are funded accounts. Whether you’re a day trader, forex enthusiast, or aspiring futures trader, funded accounts offer a way to leverage your trading skills—without risking your own capital. But what exactly are funded accounts, and how do they work?

This blog post provides a comprehensive guide to funded accounts: their definition, how they work, pros and cons, best providers in 2025, and whether they’re worth it. Let’s dive in.

What Are Funded Accounts?

A funded trading account is a trading account financed by a third-party proprietary trading firm (commonly known as a prop firm). Instead of depositing your own money to trade, you receive capital from the firm after passing a trading evaluation or challenge.

Once funded, you can trade using the firm’s capital, and profits are typically split between you and the firm—often with profit shares ranging from 70% to 90% in favor of the trader.

Example:

A prop firm offers you a $100,000 funded account.
You trade and earn $5,000 in profit.
If the profit split is 80/20, you keep $4,000, and the firm keeps $1,000.

Why Do Funded Accounts Exist?

Funded accounts exist because trading firms have a unique business model:

Access to Talent: Prop firms want to find skilled traders who can manage large capital without risking firm solvency.
Risk Management: By using a strict evaluation process and daily drawdown rules, firms limit losses.
Profit-Sharing: Firms profit from traders’ success and, in some cases, also from the upfront evaluation fees.

How Do Funded Accounts Work?

Here’s how the process generally works:

1. Sign Up for a Challenge or Evaluation

You choose an account size (e.g., $10k, $50k, $100k).
You pay an upfront evaluation fee, usually ranging from $100 to $600.

2. Meet Trading Objectives

Each firm has specific rules to qualify:

Profit target (e.g., 8%-10% in 30 days)
Maximum drawdown (e.g., 5%-10%)
Daily loss limits
Minimum trading days (e.g., 5-10)
No overnight or weekend trading in some cases

3. Get Funded

If you meet all the criteria, you move to a funded account. Now you’re trading real capital and earning a percentage of the profits.

4. Withdrawal Rules

Profits can often be withdrawn on a biweekly or monthly basis.
Some firms offer instant funding or simulated funded accounts for lower risk.

Who Are Funded Accounts For?

Funded accounts are ideal for:

New traders who want access to capital.
Experienced traders who lack personal funds.
Low-risk learners who want to trade with structure and rules.
Forex and futures traders (most funded programs support these instruments).

However, they are not for:

Traders who struggle with discipline.
People looking for a quick way to get rich.
Those who don’t understand risk management.

Types of Funded Accounts

Not all funded accounts are the same. Let’s break down the main types.What Are Funded Accounts

1. Evaluation-Based Funded Accounts

Most common type. You must pass a challenge that tests your profitability and risk control.

Pros:

Prove your skills before managing real money.
Higher funding amounts possible.

Cons:

Evaluation pressure can affect psychology.

2. Instant Funded Accounts

No challenge required. Pay a higher fee and start trading immediately .What Are Funded Accounts

Pros:

Great for experienced traders.
No delay in getting started.

Cons:

Higher upfront cost.
May have tighter risk limits.

3. Scaling Plans

Some prop firms allow you to scale your account as you stay profitable.

Example: Start with $25,000 and scale up to $500,000 over time.

Best Funded Account Providers in 2025

Here are some top proprietary trading firms offering funded accounts:What Are Funded Accounts

1. FTMO

Evaluation model.
Forex, indices, commodities.
80/20 profit split (up to 90% with consistency).
Professional tools and dashboards.

2. MyFundedFX

Multiple account options (evaluation & instant).
High profit split (up to 90%).
Forex and CFD trading.

3. TopStep (for futures traders)

Excellent for futures market traders.
Regulated in the U.S.
Tiered funding and scaling options.

4. The5ers

Instant and evaluation accounts.
Great support and education.
Long-term growth model.

5. Earn2Trade

Best for educational support.
Works with professional futures firms.
Offers evaluation via Gauntlet Mini™.

Note: Always read the firm’s fine print, especially about payout conditions, lot size restrictions, and consistency rules.

Pros of Funded Accounts

Access to Large Capital

You can trade accounts ranging from $10k to over $1 million without risking personal funds.

Low Financial Risk

Your only upfront cost is the evaluation fee. Losses are absorbed by the firm, not you.

Skill-Based Opportunity

If you’re a skilled trader, you can finally monetize your talent—even without capital.

Structure and Rules

Prop firms enforce rules that encourage discipline, risk management, and consistency.

Performance-Based Growth

Most firms offer account scaling as you remain profitable, meaning bigger profits over time.

Cons of Funded Accounts

High Pressure During Evaluation

The challenge phase can be psychologically tough, especially with tight deadlines.

No Real Ownership of Funds

Even in a funded account, the capital isn’t yours—it belongs to the firm.

Strict Rules

One mistake (e.g., breaching drawdown or trading prohibited news events) can lead to account termination.

Evaluation Fees Add Up

If you fail the challenge multiple times, costs can add up.

Some Firms Are Questionable

Always check for credibility, reviews, and real user feedback. Not all prop firms are created equal.

Are Funded Accounts Legit?

Yes—if you choose reputable firms.

Firms like FTMO, TopStep, and Earn2Trade are regulated or have long-standing reputations. However, some newer or less-transparent firms may use evaluation fees as their main income source rather than from actual trading performance. Always do your research.

Here’s how to spot a legit firm:

Transparent rules and fees.
Clear withdrawal process.
Good trader reviews.
Active community and social media presence.
Realistic profit targets and loss limits.

How to Choose the Right Funded Account

Ask yourself:

What asset class do I want to trade? (Forex, futures, stocks, crypto)
Am I okay with evaluations, or do I want instant access?
What is my risk tolerance and trading style?
How much capital do I realistically need?
Do I need scaling options?
What’s my budget for evaluation fees?

Funded Account Myths Debunked

❌ “You get real money to trade right away”

Reality: Most funded accounts are simulated in evaluation, and some even in funded stage (especially for risk protection).

❌ “You can withdraw anytime”

Reality: Most firms have payout schedules and minimum profit thresholds.

❌ “Anyone can pass the challenge”

Reality: Passing requires skill, discipline, and risk management. The average pass rate is often below 10%.

This is What Are Funded Accounts

Tips to Pass a Funded Account Evaluation

Stick to one strategy
Control risk—don’t over-leverage
Be patient and consistent
Track your trades with a journal
Follow all rules exactly
Don’t chase the profit target—let it come

Final Thoughts: Are Funded Accounts Worth It?

Funded accounts are one of the best ways for talented traders to access capital and scale their careers. For many, it’s the only viable route to manage six-figure accounts without needing large personal investments like this What Are Funded Accounts.

However, they require preparation, patience, and discipline. If you’re serious about trading and are willing to learn the rules, a funded account could be your gateway to professional trading success this was all our blog on What Are Funded Accounts.

FAQs About Funded Accounts

Q: Can beginners try funded accounts?

Yes, but they should practice on demo accounts first before risking evaluation fees.

Q: What happens if I lose money in a funded account?

You usually don’t owe anything, but your account may be suspended or reset.

Q: Are there hidden fees?

Most firms are transparent, but always read the fine print on resets, data fees, and scaling.

Q: Do I need a license or qualification?

No, funded accounts don’t require formal licenses. However, strong trading skills are essential.