Why Are Funded Accounts Beneficial For Traders?
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Usually, you have to pay for funded accounts (from $50-$100 to $1000 or more), because in this way the prop trading firm reduces risks, diversifies income and discourages traders from applying for deposits without serious intentions to trade.
Trading with funded accounts is a smart way to make more money for experienced traders with proven strategies.
However, a slight disappointment may be that prop trading firms usually require a fee to provide a funded account. Are there exceptions to this, how much will you have to pay and why?
Find out in this article on fees for funded accounts.
Should I pay a fee to get a funded account?
Paying a fee to access a funded trading account is a common practice among proprietary trading firms. These fees often serve as a filter to ensure traders are serious about their commitments and to cover the cost of evaluating traders through challenges or tests. In return, traders gain access to substantial capital, bypassing the need to use their own funds for trading. This can be advantageous if you are confident in your skills but lack sufficient capital to trade independently. However, it’s essential to understand the terms of the fee, such as whether it’s refundable upon passing the evaluation or tied to a specific trading period.
Before paying a fee, evaluate whether the funded account program aligns with your trading goals and strategy. Research the firm's reputation, challenge requirements, and payout conditions. Some firms offer competitive fee structures with clear rules, while others may have restrictive or unclear policies that could hinder your success. Consider the potential return on investment against the upfront cost to decide if the opportunity is worth pursuing.
Top funded accounts trading plan price compared
We compared the following parameters for leading funded trading accounts:
Trading Plans – The types of trading plans offered by the firms.
Price (USD or EUR) – The cost of accessing these trading plans.
Profit Target ($) – The profit goals traders must achieve.
Daily Loss (%) – The maximum allowable daily loss.
Maximum Loss (%) – The total maximum loss permitted.
Managed Amount (USD) – The amount of capital allocated to traders.
This analysis focuses on evaluating key metrics to determine the suitability of different proprietary trading plans.
Top funded trading accounts
| Trading Plans | Price, USD or EUR | Profit target, $ | Daily loss, % | Max. loss, % | Managed amount, USD | |
|---|---|---|---|---|---|---|
|
Stellar Challenge 1 Step |
65 |
600 |
3 |
6 |
6 000 |
|
|
1 Step |
114 |
1500 |
4 |
6 |
15 000 |
|
|
Essential |
119 |
2000 |
5 |
6 |
20 000 |
|
|
Experienced |
119 |
1200 |
4 |
6 |
12 000 |
|
|
1 Step Lightning |
29 |
No |
3 |
6 |
20 000 |
Which funded accounts do I need to pay for?
The other good news is that there are different types of funded accounts that avoid access fees.
| Account Type | Typically Has Fees? |
|---|---|
| Evaluation Accounts | Typically No |
| Challenge Accounts | Typically Yes |
| Fully Funded Accounts | Typically Yes |
There are 3 main types of accounts opened by proprietary trading firms:
Evaluation Accounts. It allows new clients to learn how the business is organized, familiarize themselves with the interface, trading conditions, trading platform. It is an analog of a demo account. They are typically small in size and have a limited trading period. Evaluation accounts used by prop trading firms to assess a trader's skills and profitability before offering them a larger account.
Challenge Accounts. Challenge accounts are larger than evaluation accounts and have a longer trading period. If a trader is successful in meeting the broker's performance criteria, they may be offered a fully funded account. In this case, if a trader passes the challenge, the money he/she pays for access to the challenge account may be returned.
Fully Funded Accounts. They are typically offered to traders who have a proven track record of profitability. Fully funded accounts typically have a performance-based fee, which is a percentage of the profits generated on the account. To gain access to this type of account, you may need to interview with a prop trading company representative.
Why proprietary trading firms charge for funded accounts?
There are several reasons why prop trading companies may charge a deposit fee. Among them are the following:
Covering the costs associated with account provisioning.
Funded accounts tend to require more resources than standard accounts opened with a forex broker. This is due to giving traders access to larger amounts of capital and providing additional support.
To weed out traders who are not serious about trading.
This step helps to discourage traders who are likely to lose money from applying for a funded account.
To generate revenue.
For brokers who charge a fee to open a funded account, the fee can be a source of diversified income.
With that lens, the table below compares top prop firms – not just on price, but on what you get back: minimum trading days, profit split, max management account, etc.
| TU overall score | Profit split up to, % | Funding Up To, $ | Min Trade Days | Demo | Instant Funding | Open an account | |
|---|---|---|---|---|---|---|---|
| 9.4 | 95 | 4 000 000 | 2 | Yes | No | Go to broker Your capital is at risk. |
|
| 9.2 | 95 | 2 000 000 | 3 | No | Yes | Go to broker Your capital is at risk.
|
|
| 9.1 | 90 | 200 000 | No time limits | Yes | No | Go to broker Your capital is at risk.
|
|
| 8.7 | 90 | 400 000 | No time limits | Yes | Yes | Go to broker Your capital is at risk. |
|
| 8.5 | 95 | 500 000 | No | No | Yes | Go to broker Your capital is at risk. |
Types of fees that prop trading firms charge
Here's a more detailed explanation of the fees associated with funded accounts:
Upfront fees: As a rule, prop trading companies charge an upfront fee for fully funded accounts. This fee is typically a percentage of the account size. For example, a firm might charge a 2% fee for a $10,000 account, which would result in a $200 fee.
Performance-based fees: Most prop trading firms charge a performance-based fee on funded accounts. This fee is typically a percentage of the profits generated by trader on the account. For example, a firm might charge a 20% performance-based fee. This means that for every $1,000 of profit you generate, you would pay the broker $200 in fees.
Withdrawal fees: Some firms charge a fee for withdrawing profits from a funded account. This fee is typically a flat fee, such as $50 per withdrawal.
Inactivity fees: Some prop trading companies charge an inactivity fee if you do not trade on your funded account for a certain period of time. This fee is typically a flat fee, such as $50 per month.
Account management fees: Some brokers charge an account management fee for funded accounts. This fee is typically a monthly fee, such as $50 per month.
Tips for getting a funded account
Before you go and get a funded account to trade on, keep these points in mind:
Calculate if the fees you’ll incur are reasonable when compared to the assets you will be allocated in your funded account.
Ask questions and try to understand the profit sharing method of the company and calculate how much profits you will be left with after paying off the fees to the prop firm
Also check if the company has set any minimum profit threshold that you need to reach to become eligible for profit sharing
Also stay on the lookout for any additional costs that might be associated with the account, that you might not be aware of.
The fees you’re paying to obtain a funded account are justified, considering the significant risks that the prop firm is taking and the rewards you’ll generate in the long run. You can carry them without disappointment if you have enough experience, strategy, and discipline.
If you believe that the amount you will pay to access a funded account will bring you more benefits than risks, you should then probably read this article: Top 8 Funded Forex Accounts.
Conclusion
In conclusion, while paying for access to funded forex accounts through proprietary trading firms is standard industry practice, it's vital to critically assess what you're getting for your money. The fees charged typically cover evaluation, access to trading capital, and risk management infrastructure—services that can provide a real advantage if the firm is reputable. However, not all prop firms are created equal: some may promise too much and deliver little, making due diligence on costs and firm credibility essential. Ultimately, think of the fee not just as a cost, but as an investment in your trading career—wise traders recognize that judicious spending upfront can open doors to greater opportunities down the line.
FAQs
Are fees for funded forex accounts refundable if evaluation criteria are met?
What types of ongoing fees might traders encounter with funded forex accounts?
How should traders evaluate whether a funded forex account fee is justified?
What differences exist between evaluation, challenge, and fully funded forex accounts regarding fees?
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Team that worked on the article
Upendra Goswami is a full-time digital content creator, marketer, and active investor. As a creator, he loves writing about online trading, blockchain, cryptocurrency, and stock trading.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets.
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Proprietary trading (prop trading) is a financial trading strategy where a financial firm or institution uses its own capital to trade in various financial markets, such as stocks, bonds, commodities, or derivatives, with the aim of generating profits for the company itself. Prop traders typically do not trade on behalf of clients but instead trade with the firm's money, taking on the associated risks and rewards.
Xetra is a German Stock Exchange trading system that the Frankfurt Stock Exchange operates. Deutsche Börse is the parent company of the Frankfurt Stock Exchange.
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Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
