What Is a Funded Trading Account and How Do You Get One in 2026?
A complete beginner guide to funded trading accounts: how simulated evaluations work, what the rules mean, what payouts look like, and how to choose a program.
The short answer
A funded trading account is a simulated account provided by an evaluation firm. You prove your skill on a simulated evaluation first. Pass it, and the firm unlocks a larger simulated account where your performance can earn real incentive payouts, typically a percentage of the simulated profit you generate. You never deposit trading capital, you never trade real markets through the firm, and your only cost is the evaluation fee.
That last part is what makes the model attractive. A trader with a $500 personal account who risks 1% per trade is risking $5 a trade. The same trader on a $100,000 simulated funded account risking 1% is working with $1,000 per trade of simulated risk, and at a 90% split, the incentive math scales with it.
How the evaluation works
Every program differs in detail, but the skeleton is the same everywhere:
- Profit target. Grow the simulated account by a set percentage, usually 8% to 10%. At Funded With Forex the target is 10%.
- Daily loss limit. Lose more than a set percentage in one day and the evaluation ends. Ours is 3%.
- Maximum drawdown. A floor under the whole account. Ours is a static 6% from starting balance, which is friendlier than the trailing version most firms use.
- Consistency rule. No single day may contribute more than half of your total profit. This filters out one lucky trade masquerading as skill.
There is no time pressure worth fearing at most modern firms. The traders who fail almost always fail on the loss limits, not the clock.
What happens after you pass
The firm provisions your funded simulated account. From there, the relationship is simple: trade within the same risk rules, and request payouts on your simulated profits. At Funded With Forex you keep 90% of simulated gains, and payout eligibility opens after five simulated trading days with at least $250 in profit. Payouts are processed daily after that.
How to choose a program
Five questions to ask any firm, including us:
- Is the drawdown static or trailing? Static gives you room to recover. Trailing quietly tightens behind your best day.
- One step or two step? One step means a single evaluation phase. Two step costs less up front but doubles the proving time.
- What is the split? 80% is common. 90% is strong.
- Are the rules published in plain language? If you cannot find them, that is the answer.
- Is it clearly disclosed that accounts are simulated? Reputable modern firms are explicit about this. Be suspicious of any that pretend otherwise.
Getting started
If you have never run an evaluation before, start smaller than your ego suggests. A $10K or $25K tier teaches you the rule discipline for a fraction of the fee, and the skills transfer up tier for tier. When you are ready, the getting started guide walks through the whole flow from purchase to first simulated trade.