Funded Futures FAQs

To simplify some things about the different futures funding companies, I’ve organized some information here. If you have any other basic questions about futures funding companies that aren’t easy to find answers to, let me know and I will add them here.

What is a funded futures trading program?

A funded futures trading program is an avenue for traders to earn access to a funded trading account by proving their abilities during an evaluation . These programs are designed to identify skilled traders, allowing them to trade with the firm’s capital rather than their own. These programs typically charge for the evaluation process and take a percentage of profits as a fee, while covering all of the trader’s losses if things don’t work out.

How does the evaluation process work?

Most firms require traders to pass a series of tests or an evaluation period where they must demonstrate profitability and follow specific risk management rules. This usually involves achieving a profit target without breaching drawdown limits, often within a set timeframe.

What are typical requirements for passing an evaluation?

Requirements vary, but generally, they include a profit target, meaning a specific amount of profit to be achieved; drawdown limits, or limits on daily and maximum losses; consistent performance, which may involve trading over a certain number of days; and a time period for completing the evaluation.

What happens if I fail the evaluation?

If a trader fails the evaluation by breaching the drawdown limits or not meeting other rules, they usually have to start the evaluation over. Some firms may offer discounted re-entry fees for failed evaluations. Outside of aggressively abusing the system, there is no consequence of failing and starting over.

Are there fees involved in funded trading programs?

Yes, most programs charge a fee for each evaluation attempt, which may be a one-time or recurring monthly fee. Some also have additional fees for data, platform usage, account activation, or monthly account fees once in the funded stage.

Learn all about evaluation and account costs at various futures firms here.

What kind of profit split can I expect?

Profit splits vary by firm, but most offer splits ranging from 50/50 to 90/10, with the higher percentage going to the trader. The average offer in 2024 is 90/10, but this split may depend on the trader’s account level or the specific firm’s terms.

Are there limits on the types of futures contracts I can trade?

Some programs restrict the futures contracts available for trading, focusing on high-liquidity markets like the E-mini S&P 500 (ES) or other popular contracts. Others may allow a wide range of futures but impose limits on the number of contracts or specific asset classes.

What are the rules regarding daily and maximum drawdowns?

Drawdown limits are critical to funded programs. They typically set both daily and maximum allowable drawdowns, which are non-negotiable. If these limits are breached, the account is often terminated or requires a reset.

Depending on the firm, you may see a trailing drawdown, an EOD trailing drawdown, or a static drawdown, each of which will automatically fail your account if breached.

Do I need to trade every day?

Not necessarily. While some programs encourage consistent trading, most don’t require daily trading. However, prolonged inactivity could sometimes lead to account suspension, depending on the program’s rules. To get around this, placing a few trades per week is recommended.

Can I trade overnight or hold positions over the weekend?

Typically, no. The risk is too high for the firms. However, a few allow it for certain account levels or traders with a proven track record of managing risk.

What happens if I lose money in a funded account?

Losses are typically covered by the firm’s capital, but if you breach any drawdown or risk limits, your account could be terminated or reset. As long as you avoid the drawdown and follow the rules, you should be fine to continue trading.

What is a reset fee, and when would I need to pay it?

A reset fee allows a trader to reset their funded account or evaluation account if they breach the drawdown limits or violate risk rules. This fee typically gives traders another chance to continue from a clean slate rather than reapplying from scratch.

Do I get taxed on profits from a funded trading account?

Yes, traders are usually responsible for their own taxes on profits earned, just as they would be if trading independently. Some firms issue a 1099 form (in the U.S.) for tax purposes, while others may provide a summary statement for your records.

What platforms and tools do funded trading programs provide?

Many firms offer access to popular trading platforms like NinjaTrader, TradeStation, or Rithmic, which provide professional tools for analyzing and executing trades. However, some may charge additional fees for using these platforms, or restrict certain advanced features.

Typically, a NinjaTrader license is provided with a funded account, so you can use it for free. Data is not always free, however, so double check with the funding company’s documentation.

How is my performance tracked and reviewed by the funding firm?

Funded programs often track daily performance, with reviews on profitability, adherence to rules, and risk management. Some firms offer periodic evaluations to assess traders’ skills, and successful reviews can sometimes lead to higher account sizes or better profit splits.

What are the pros and cons of funded trading programs?

Funded programs have several pros, such as access to capital, risk-sharing with the firm, structured evaluation, and the opportunity to build a track record. The biggest pro is the ability to reduce the risk to your personal capital, effectively to $0 once funded. Traders can also acquire multiple accounts by repeating the evaluation process, often at the same firm, and access more leverage this way.

Cons include fees for evaluations and resets, fees for data/funded accounts at some firms, strict rules on risk management, possible limitations on markets, and profit splits that reduce take-home profits.

Are funded futures programs a good way to start trading?

For traders without significant capital, funded programs offer a way to gain experience and access to capital with reduced personal financial risk. However, they require discipline and adherence to rules, making them best suited for those who have some trading experience or have practiced thoroughly in demo environments.

What should I consider before choosing a funded trading program?

Look at profit split terms, evaluation criteria, fees, platforms, customer support, and any restrictions on trading style or instrument choice. Reviewing the firm’s reputation, testimonials, and refund policies can also be beneficial.

What time do I have to close my positions by?

Prop Firm	Time to Close Positions
Apex Trader Funding	4:59 PM EST/1:59 PM PST
BluSky Trading	Auto-liquidates trades at 3:45 EST/12:45 PST
Bulenox	4:59 PM EST/1:59 PM PST
Earn2Trade	3:50 PM EST/12:30 PM PST
EliteTrader Funding	3:59 PM EST/12:59 PM PST
LeeLoo Trading	3:45 PM EST/12:45 PM PST
My Funded Futures	Auto-liquidates trades at 4:10 PM EST/1:10 PM PST
OneUp Trader	4:15 PM EST/1:15 PM PST
TakeProfit Trader	5:00 PM EST/2:00 PM PST
TickTick Trader	3:59 PM EST/12:59 PM PST
TopStep	3:59 PM EST/12:59 PM PST
TradeDay	3:59 PM EST/12:59 PM PST
UProfit Trader	4:10 PM EST/1:10 PM PST

More to come.