Funded trading means trading with someone else's capital — a prop firm's — and keeping most of the profit. You prove your skill once, get a funded account, and from then on you're risking the firm's money, not your own. Here's what that actually means, how it works, and whether it's for you.
The short version
A funded trader trades a prop firm's capital after passing an evaluation. You follow risk rules (max drawdown and daily loss), and you keep a share of the profit — usually 70–90%. Your only cost is the evaluation fee; the firm carries the trading risk.
Funded trading, defined
In funded trading, a proprietary trading firm backs you with its capital so you can trade larger size than you could afford personally — and you split the profits. It's the core idea behind every modern prop firm. If you want the full mechanics of the model, read how prop firms work; this guide focuses on the funded account itself.
How a funded account works
You earn it through an evaluation
Firms don't hand capital to strangers, so you first pass an evaluation: hit a profit target without breaching the risk limits. Pass, and you're given a funded account of the size you bought.
You trade within risk rules
A funded account still has guardrails — typically a maximum overall drawdown (often ~10%) and a maximum daily loss (often ~5%). Stay inside them and you can keep trading; breach one and the account closes. Unlike the evaluation, a funded account usually has no profit target — you simply trade and withdraw.
You get paid a profit split
When you make money, you withdraw your share — the profit split, commonly 70–90%. Payouts come on the firm's schedule or on demand, by bank, card or crypto.
Who funded trading is for
- Traders with an edge but limited capital — you have a tested strategy but not a large account to scale it.
- Traders who want to cap personal risk — you'd rather risk a modest evaluation fee than your savings.
- Disciplined traders — the rules reward consistency and risk control. They're not a shortcut for someone still searching for a strategy.
Is funded trading "real money"?
Honest answer: most evaluations run on simulated accounts, because a firm only needs to measure your skill and discipline. The profit splits paid out are real money. How the funded stage itself is executed varies between firms. Rather than get stuck on "demo vs live," judge a firm by the thing that matters: does it verifiably pay? That's why some firms (LEVAFX included) publish payouts on-chain so you can check them yourself.
Pros and cons
| Pros | Cons |
|---|---|
| Trade large size without large personal capital | You pay an upfront evaluation fee |
| Downside capped at the fee | Strict risk rules — a breach ends the account |
| Keep the majority of profits (70–90%) | You share profit with the firm |
| No need to risk your own savings | Requires genuine discipline to pass and keep |
Get a funded account with LEVAFX
Prove it once, then trade gold, Bitcoin and forex on our capital — up to 90% split, no time limit, payouts verified on-chain.
See the challengesReady for the practical path from evaluation to your first payout? Read how to get funded as a trader, or see what current traders say in our LEVAFX reviews.