Funded accounts are changing the way traders grow their capital — but there’s a lot of hype and half-truths out there. Many traders jump in, pay challenge fees, and fail because they don’t understand how prop firms really work. In this article, we’ll break down the hidden truths about funded accounts and how you can use them to scale your trading career the right way.
What Is a Funded Account?
A funded account is money provided by a proprietary trading firm (prop firm), like FTMO, that lets you trade large capital after you prove your skill. Instead of risking your own $50,000 or $100,000, you pass a trading evaluation and get access to the firm’s capital. Profits are shared — you keep a big percentage (often 80–90%), and the firm takes the rest.
The Truth No One Talks About
Passing the Challenge Is Harder Than It Looks
Prop firms aren’t free money machines. They put rules in place to protect their capital:
- Daily loss limits
- Overall drawdown limits
- Time limits
Many traders fail because they rush to hit profit targets or ignore rules. You need a clear trading plan and solid risk control.
Most Traders Don’t Prepare Mentally
Funded accounts aren’t just about strategy — trading psychology is huge. Many traders feel intense pressure knowing they have rules and deadlines. Fear and greed show up fast when the clock is ticking.
Tip: Train your mindset by trading a demo under similar rules before going live.
Risk Management Is the Real Game-Changer
The #1 reason traders blow funded accounts is over-leveraging. Trying to pass fast leads to big drawdowns. Smart traders:
- Risk 0.5–1% per trade
- Use stop-loss consistently
- Avoid revenge trading after a loss
You Still Need to Be Profitable Long-Term
Getting funded is one step; staying funded is the real goal. Some traders pass the challenge but lose discipline once they start trading live. Remember — you’re still running a business.
Prop Firms Aren’t Scams (But Choose Wisely)
Not every prop firm is trustworthy. Some have hidden rules or slow payouts. Always pick firms with strong reputations, transparent terms, and real trader reviews.
FTMO is one of the most reputable — they pay on time, have clear rules, and have been around for years.
How to Succeed With Funded Accounts
- Start small — get used to rules with an FTMO trial or low-cost challenge.
- Have a tested strategy — know your entries, stops, and risk before paying fees.
- Journal every trade — track mistakes and adjust.
- Master psychology — stay calm under pressure.
- Focus on consistency — don’t force profits to hit targets faster.
The Bottom Line
Funded accounts aren’t magic money — they’re a serious business opportunity. If you treat them with discipline, patience, and a solid trading plan, you can trade larger capital without risking your own funds. Don’t rush, don’t gamble, and don’t ignore the rules.
FAQ — Funded Accounts & FTMO
Q1: How much do I keep from a funded account?
Most prop firms let you keep 70–90% of profits. FTMO offers up to 90%.
Q2: How much does an FTMO challenge cost?
It depends on the account size — fees start around €155 for a $10k account and go up for bigger capital.
Q3: Can beginners get funded?
Yes, but beginners should first practice with demos and small accounts to avoid wasting money.
Q4: Is there a free way to test?
Yes — FTMO offers a Free Trial so you can test the challenge environment before paying.
Q5: Can I scale my funded account?
With FTMO, you can scale up your capital if you trade consistently and profitably.