How Do You Get Approved for Funded Account Trading?
How do you get approved for funded account trading is one of the biggest questions new traders ask when exploring proprietary trading firms. Getting approved means you’ll gain access to significant trading capital, reduce your personal financial risk, and share in the profits you generate. But the process isn’t easy—it requires discipline, strategy, and a solid understanding of what prop firms are looking for in successful traders.
What Is Funded Account Trading?
Funded account trading is when a proprietary trading firm (prop firm) provides traders with access to their capital. Instead of risking your own money, you use the firm’s funds under strict guidelines. In exchange, the firm keeps a portion of your profits while you keep the majority—often 70% to 90%.
The catch? You need to prove you can trade responsibly. Most firms require an evaluation or “challenge” where you must meet profit targets, avoid breaking drawdown limits, and demonstrate consistency. Only then do you get approved for a funded account.
Step-by-Step: How Do You Get Approved for Funded Account Trading
1. Choose a Reputable Firm
Not all prop firms are created equal. Some have fair and transparent rules, while others are designed to profit primarily from failed traders’ fees. Always research reviews on FundedScore before committing.
2. Understand the Evaluation Process
Most firms require you to pass a challenge, which usually involves:
- A profit target (usually 6%–10% of the account)
- Daily drawdown limits (3%–5%)
- Overall drawdown limits (8%–12%)
- Minimum trading days
3. Pass the Evaluation
This is where discipline matters most. You’ll need to trade consistently, manage risk, and avoid violations. Many traders fail not because of skill but because of poor psychology—overtrading, revenge trading, or chasing losses.
4. Transition to Funded
Once you pass the evaluation, you’ll move to a live funded account. This is where real profit splits begin. Most firms allow traders to scale their accounts over time if they remain consistent.
Comparison of Evaluation Models
| Evaluation Type | Steps | Profit Target | Risk Rules | Best For |
|---|---|---|---|---|
| Two-Step Challenge | Phase 1 + Phase 2 | 8%–10% | Strict | Experienced traders |
| One-Step Challenge | Single evaluation | 6%–8% | Moderate | Intermediate traders |
| Instant Funding | No evaluation | None | Stricter live rules | Traders willing to pay higher fees |
✅ See Best Prop Firms for Approval
Common Mistakes That Lead to Disqualification
- Overleveraging: Using too much margin and blowing past drawdown limits.
- Revenge trading: Trying to recover losses too quickly with poor trades.
- Ignoring rules: Even if profitable, a rule violation means instant failure.
- Lack of patience: Rushing to hit profit targets often leads to careless decisions.
Psychological Challenges of Funded Evaluations
Trading an evaluation account feels very different from a demo account. The pressure of knowing that every violation could end your chance at funding creates stress. Common psychological challenges include:
- Performance anxiety: Fear of failure leads to hesitation or missed trades.
- Overconfidence: Early wins may cause traders to break rules.
- Emotional decision-making: Chasing trades instead of following strategy.
Building mental discipline is just as important as technical skill when aiming to get approved.
Scaling Plans and Long-Term Growth
Many firms offer scaling programs where your account grows as you prove consistency. This is where the real opportunity lies—moving from a $25K account to managing $500K or more.
| Firm | Starting Account | Scaling Increments | Max Allocation |
|---|---|---|---|
| ATFunded | $50,000 | 2x every 3 months with 10% gain | $600,000 |
| FTMO | $100,000 | 25% every 4 months with consistency | $400,000 |
| The5ers | $24,000 | Progressive scaling | $4,000,000 |
Pros and Cons of Funded Account Trading
Pros
- Trade with significant capital without risking your own money.
- Keep up to 90% of profits.
- Opportunity to scale accounts over time.
- Improves trader discipline under structured rules.
Cons
- Strict rules can result in disqualification despite profitability.
- Evaluation fees are non-refundable if you fail.
- Psychological pressure can negatively affect performance.
Strategies to Improve Approval Chances
- Risk management: Never risk more than 1–2% per trade.
- Stick to one strategy: Consistency beats chasing new setups.
- Backtest and journal: Keep track of trades to identify strengths and weaknesses.
- Trade at your pace: Avoid rushing to hit profit targets early.
Beginner-Friendly Funded Programs
If you’re just starting out, look for firms with one-step evaluations, lower profit targets, and no hidden restrictions. These are generally more beginner-friendly compared to strict two-step challenges.
| Firm | Profit Target | Evaluation Steps | Why Beginner-Friendly |
|---|---|---|---|
| FTMO | 6% | 1 Step | Low target, no time pressure |
| The5ers | 6–8% | 1 Step | Flexible rules, growth focus |
FAQ: How Do You Get Approved for Funded Account Trading?
How do you get approved for funded account trading?
By passing a firm’s evaluation, meeting profit targets, and following strict risk rules without violations.
What are the main requirements?
Profit target achievement, drawdown compliance, minimum trading days, and consistent strategy.
Do all firms require multi-step evaluations?
No. Some offer one-step evaluations or instant funding at higher costs.
How long does it take to get approved?
Typically 2–8 weeks, but some traders may take longer depending on style and consistency.
Can beginners qualify?
Yes, if they start with beginner-friendly firms and maintain disciplined trading habits.
What mistakes should be avoided?
Overtrading, breaking rules, risking too much, and trading emotionally.
Conclusion: Secure Your Funded Account Today
Now that you know how do you get approved for funded account trading, it’s time to take action. The process requires discipline, patience, and careful risk management. Avoid common mistakes, choose the right firm, and trade with consistency. With the right approach, you can qualify for a funded account and start trading with significant capital.