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Prop trading

Funded Account

By Jarosław Wasiński • Published: • Updated:
An account made available under a trading programme after selection or evaluation. Despite the name, it may be simulated or live; the displayed balance is not necessarily cash entrusted to the trader. The agreement defines permitted trading, loss limits, reward eligibility and termination conditions.
Example.

A programme displays USD 100,000 and a USD 5,000 loss limit, but the account is simulated. The participant cannot withdraw the USD 100,000 balance. A contractual reward may depend on eligible results and verification of separate conditions.

What funding means

Distinguish a live firm account, simulation and copying selected trades. The funded label does not settle who owns money or whether orders reach a market.

Notional capital and risk allowance

Displayed balance, maximum drawdown and permitted volume are different quantities. Limits may use equity, balance, a day or a trailing high. Positive results do not rule out an intraday breach.

Participant rights

Check the agreement, permitted strategies, payout verification, charges and termination. A technology provider or licensed broker serving the firm does not automatically give every simulation participant regulated investor protection.

Primary source checked 11 October 2026: www.fsma.be.

FAQ

Is the funded balance my capital?

Not automatically. It can be a notional simulation parameter; payment rights come from the agreement.

Does passing a challenge guarantee a payout?

No. Further conditions and provider non-payment risk can remain.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

  • Creator and editor-in-chief of MyBank.pl, providing reliable financial education since 2004.
  • Author of hundreds of in-depth market commentaries, structural analyses, and educational materials for traders and investors.
  • Advocate for market transparency, promoting education grounded in hard data and institutional reports (BIS, ESMA, CFTC).

All content is educational and informational only – it does not constitute investment advice or a recommendation. Remember: leveraged trading (Forex/CFD) carries a high risk of rapid capital loss.