The Cheapest Way to Get Funded: Fee vs Rules vs Refund
The sticker fee is only one of four costs. Rules decide how many times you pay, and a refund decides whether you get the fee back. Here is how to add it up.
OctoFunded Trading DeskUpdated ยท 8 min read
The cheapest way to get funded is to buy the challenge you are most likely to pass on the first or second attempt, from a firm that refunds the fee with your first payout and does not impose a time limit. Your real cost is the fee multiplied by the number of attempts, minus any refund. A low fee paid four times costs more than a higher fee paid once.
This article shows how to add up that real cost without quoting any prices. Fees change, so we write the fee as F and let you plug in the number from the pricing page.
Key takeaways
- Real cost = fee x attempts, minus refund: the number of attempts matters as much as the fee.
- Rules drive attempts: a tighter daily loss limit or a trailing drawdown can end an attempt sooner, even for a profitable trader.
- A refund can bring the net fee to zero: on the OctoFunded 2-Step and 1-Step, the fee comes back with the first payout.
- Deadlines add hidden attempts: an attempt that expires is one more fee. OctoFunded has no time limit.
What does a prop firm challenge really cost?
A prop firm challenge really costs every fee you pay until you reach a payout, minus whatever fee comes back. If you are new to the model, start with what a prop firm challenge is.
Write it as a simple formula:
Net cost = F x number of attempts, minus the refund
Each part of that formula is driven by something different:
| Cost driver | What it changes | Where to look |
|---|---|---|
| Fee (F) | The cost of one attempt | Pricing page, by program and size |
| Rules (targets, loss limits, drawdown type) | How many attempts you are likely to need | Rules page |
| Fee refund | Whether one fee comes back, and when | Program terms |
| Time limit | Whether an attempt can expire without a breach | Program terms |
| Fee model (one-time or recurring) | Whether you pay again while you trade | Pricing page |
A firm with a one-time fee charges F once per attempt. A recurring monthly fee adds a cost for every month you are still trading the evaluation, which turns time into money. OctoFunded uses a one-time fee.
Why can a low fee cost more in the end?
A low fee can cost more because the rules attached to it may end your attempts sooner, so you pay it more often. Fee and rules are linked: a firm can set a lower entry price and tighter limits on the same account size.
Three rules have the biggest effect on how many times you pay:
- Daily loss limit. A smaller limit leaves less room for one bad session. Our article on the daily loss limit explains how it is measured.
- Drawdown type. A static floor stays where it starts. A trailing floor follows your peak, so a run of profit followed by a pullback can breach it. See static vs trailing drawdown.
- Consistency caps. A best day cap limits how much of your total profit one day can carry. It does not end the account, but it can delay a payout. See the best day rule.
The most common way attempts end is not a missed target. It is a breached loss limit during a losing streak. Our guide on why traders fail prop firm challenges walks through how that happens.
How does a fee refund change the math?
A fee refund changes the math by subtracting one F from your total, but only once you reach a first payout. It does not come back when you pass the evaluation, and it does not come back on attempts that failed.
That timing matters. If you buy three attempts and the third one leads to a payout, a refund returns one F, not three. Your net cost is 2F. Without a refund, it is 3F. The refund rewards fewer attempts more than it rewards a low fee. The full mechanics are in how the challenge fee refund works.
At OctoFunded:
| Program | Fee refund | Daily loss limit | Max loss | Drawdown type | Profit target |
|---|---|---|---|---|---|
| 2-Step | With the first payout | 5% | 10% | Static | 10% phase 1, 5% phase 2 |
| 1-Step | With the first payout | 4% | 8% | Trailing | 10% |
| Instant Funded | None | 3% | 6% | Trailing | None (no evaluation) |
The 1-Step also has a best day cap of 50% of total profit, and Instant Funded a cap of 20%. Payouts are at an 80% split every 14 days, subject to the program rules.
Is Instant Funded the cheapest way to get funded?
Instant Funded is the fastest way to a funded account, but not automatically the cheapest. You skip the evaluation, so there is no target to hit before trading toward a payout. In exchange, the fee is not refunded and the limits are the tightest of the three programs: a 3% daily loss limit and a 6% trailing drawdown.
If one attempt is enough, Instant costs F, with nothing coming back. If the tighter limits mean you need two, it costs 2F. Compare that with a 2-Step you pass on the first try: you pay F and get F back with the first payout. Each case depends on your trading, not on the program name. For a full side by side, read 1-Step vs 2-Step vs Instant.
How does the math work on a $100K account?
Here is a worked example on a $100K simulated account. The fee is written as F because this blog does not quote prices. The number of attempts in each scenario is illustrative, picked to show the arithmetic. It is not a pass rate or a forecast.
First, the limits in dollars on $100K:
- 2-Step: 5% daily loss = $5,000. 10% static max loss = $10,000. Targets 10% = $10,000, then 5% = $5,000.
- 1-Step: 4% daily loss = $4,000. 8% trailing max loss = $8,000. Target 10% = $10,000.
- Instant Funded: 3% daily loss = $3,000. 6% trailing max loss = $6,000.
Now three illustrative trader paths, each ending in a first payout:
| Scenario (illustrative) | Program | Attempts bought | Fees paid | Refund with first payout | Net fee cost |
|---|---|---|---|---|---|
| A | 2-Step | 1 | F | F | 0 |
| B | 1-Step | 2 | 2F | F | F |
| C | Instant Funded | 2 | 2F | 0 | 2F |
The arithmetic: in A, F minus F = 0. In B, 2F minus F = F. In C, 2F minus 0 = 2F.
Now suppose the first payout comes from $5,000 of simulated profit in a 14-day cycle (illustrative). At an 80% split, that is $4,000 in every scenario. In A and B the fee refund is added on top of the $4,000. In C, the $4,000 is the payout and the fees stay a cost.
The point is not that one program is cheaper. A trader who would pass Instant on the first try pays F once and starts trading toward a payout sooner. A trader whose worst day is close to $3,000 may find the $5,000 daily room on the 2-Step cheaper in the end, even with two phases to pass.
How do you find the cheapest challenge for you?
You find it by matching the rules to your own numbers before you compare fees.
- Write down your worst day. From your journal or a demo, find your largest losing day as a percentage of the account. If it is near 3%, Instant leaves almost no margin. If it is near 4%, the 1-Step is tight.
- Check how you handle open profit. If you often give back part of a run, a trailing drawdown will cost you attempts. A static floor may suit you better.
- Check your consistency. If one big day usually makes most of your month, a best day cap can delay your payout.
- Count the deadline risk. If a firm has a time limit, estimate whether you would hit the target in time without forcing trades. OctoFunded has no time limit.
- Only then compare F. Multiply each fee by the attempts you honestly expect, subtract the refund, and pick the lowest net number.
Size matters too. A smaller account has a lower fee and the same percentage rules, so it is a reasonable way to learn the rules. It does not make you more likely to pass, because the percentages are identical.
It also helps to understand how prop firms make money, since fee design and rules are part of the same business model.
FAQ
What is the cheapest prop firm challenge?
The one you pay for the fewest times, net of any refund. A low fee with rules that do not fit your trading can cost more in total than a higher fee you only pay once, so compare fee, rules and refund together.
Is Instant Funded cheaper than a challenge?
It skips the evaluation, but at OctoFunded it has no fee refund and tighter limits: a 3% daily loss limit, a 6% trailing drawdown and a 20% best day cap. Whether it costs less depends on how many times you would need to buy it.
Does OctoFunded refund the challenge fee?
On the 2-Step and the 1-Step, the fee is refunded with the first payout, subject to the program rules. Instant Funded has no fee refund.
Should I start with a smaller account to save money?
A smaller account usually has a lower fee, and the percentage rules stay the same. It suits learning the rules, but the dollar limits shrink with the size, so size your risk per trade to the account you buy.
Does a time limit make a challenge more expensive?
It can. A deadline can push you to force trades late in the period, and an expired attempt means paying again. OctoFunded programs have no time limit.
Count attempts, not just the fee
OctoFunded offers 1-Step, 2-Step and Instant Funded accounts on simulated capital, from $10K to $100K, for a one-time fee with no time limit. The 2-Step and 1-Step fees are refunded with the first payout, and payouts come in USDT or USDC every 14 days at an 80% split, subject to the program rules. Read the full OctoFunded program rules before you choose.
