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What is a funded trading account?
A funded trading account is an account a prop firm gives you to trade instead of your own savings, in exchange for a share of the profit. At OctoFunded, funded accounts run on simulated capital: you reach one by passing a 1-Step or 2-Step challenge, or start on one directly with Instant Funded, and receive 80% of the simulated profit, subject to the program rules.
What is a funded trading account?
A funded trading account, often shortened to "funded account", is an account sized and backed by a prop firm instead of by you. You trade it, the firm sets the risk rules, and when the account makes a profit you receive a share of it.
The word "funded" can be misleading, so it is worth being precise. At OctoFunded, as at most online prop firms, the account runs on simulated capital in live market conditions. Your payout is calculated from the simulated profit and paid to you, subject to the program rules. You do not move money into the account, and you do not take money out of it the way you would from a personal account.
If the prop firm model itself is new to you, start with what a prop firm is.
Funded account vs a personal trading account
The two can look the same on a chart. Behind the screen, they work very differently.
| Personal trading account | Funded trading account (OctoFunded) | |
|---|---|---|
| Who provides the balance | You, from your savings | The prop firm, as simulated capital |
| Your cost | The full balance is at risk | A one-time fee |
| What a loss costs you | Your own money | Simulated balance; at worst, the account ends |
| Risk rules | The ones you set yourself | Fixed daily loss and max loss limits |
| How you are paid | You keep all of the profit | 80% of the simulated profit, every 14 days |
| How you get access | Open and fund an account | Pass a challenge, or pick Instant Funded |
The main gain is access: you pay a fee instead of putting up a full balance. The main cost is discipline: the rules are not optional, and breaking one ends the account.
How do you get a funded trading account?
There are two routes, and which one fits depends on how you trade.
Pass a challenge. A prop firm challenge is a paid evaluation. You reach a profit target while staying inside the loss limits, in one phase (1-Step) or two (2-Step). Once you pass, you move to the funded account.
Start funded. With instant funding, the funded account is the first account you receive. There is no evaluation phase, and the limits are tighter to make up for it.
| Route at OctoFunded | Before you are funded | Daily loss | Max loss | Fee refund |
|---|---|---|---|---|
| 2-Step | 10% target, then 5% | 5% | 10% static | With the first payout |
| 1-Step | 10% target | 4% | 8% trailing | With the first payout |
| Instant Funded | No evaluation phase | 3% | 6% trailing | No |
The 1-Step also has a best day rule of 50% of total profit, and Instant Funded one of 20%. For a deeper side-by-side, read 1-Step vs 2-Step vs Instant.
Whichever route you take, you end up on the same kind of account: simulated capital, live market conditions and fixed loss limits. What changes is how quickly you get there and how much room the rules give you. A trader who wants the widest limits usually accepts the longer path of a 2-Step. A trader whose daily swings are already small may prefer to skip the evaluation and start on Instant Funded.
How OctoFunded funded accounts work
Get funded
Pass a 1-Step or 2-Step challenge, or start on Instant Funded with no evaluation phase. One-time fee, paid in crypto.
Trade inside the limits
Daily loss and max loss are tracked live on your dashboard, on the OctoFunded Web terminal with TradingView charts. No time limit. EAs allowed.
Request a payout
80% of the simulated profit, every 14 days, in USDT or USDC with a public transaction hash, subject to the program rules.
How do payouts work on a funded account?
On a funded account, you do not cash out a balance. You request a payout, and the firm pays you your share of the simulated profit under the program rules.
At OctoFunded the share is 80% from the first payout, on a 14-day cycle, paid in USDT or USDC. Each payout has a public transaction hash, so you can verify it on a block explorer yourself. On the 1-Step and 2-Step, your challenge fee also comes back with the first payout, as explained in prop firm challenge fee refund. Instant Funded has no fee refund.
Illustrative example. Say a funded account shows $4,000 of simulated profit at the end of a cycle and every rule has been respected. An 80% split means a payout of $3,200. On a 1-Step or 2-Step, the first payout would also include the fee refund. These numbers only show the arithmetic: they are not a forecast of what any account will make. More on the payout rails in USDT payouts at a prop firm.
What can make you lose a funded account?
A funded account still has loss limits, and breaking one ends it. The main ways that happens:
- Breaking the daily loss limit. One session that loses more than the limit ends the account. The daily loss limit guide shows how the room is measured.
- Touching the max loss. On a static max loss, the floor stays where it started. On a trailing one, it rises with your highest balance, so profit you give back counts against you. See static vs trailing drawdown and trailing drawdown explained.
- Ignoring the consistency rule. At many firms a best day cap does not end the account by itself, but it can hold up a payout until your profit is spread across more days. The consistency rule guide covers the common variants.
Every limit for every OctoFunded program is listed in the program rules.
How do you choose a funded account program?
Start from your own trading history, not from the program that looks quickest.
- Look at your worst week. If it would break a 3% daily limit, Instant Funded is probably not the fit. A 2-Step gives the most room.
- Check how your profit arrives. Many small days suit a strict best day cap. A few big days need a looser cap or none.
- Decide whether the fee refund matters to you. It comes with the first payout on the 1-Step and 2-Step, not on Instant Funded.
- Think about time. OctoFunded has no time limit on any program, so there is no deadline to work against.
- Plan for automation if you use it. EAs are allowed on every program; see a prop firm that allows EAs.
The fee is paid once, in crypto, as covered in paying for a prop firm challenge with crypto. You can compare the programs and account sizes on the pricing section.
FAQ
Is a funded trading account real money?
Not at OctoFunded. Funded accounts run on simulated capital in live market conditions. Payouts are calculated from the simulated profit and paid to you in USDT or USDC, subject to the program rules.
How do I get a funded trading account?
There are two routes. Pass a prop firm challenge, either a 1-Step or a 2-Step, or buy an Instant Funded account, which has no evaluation phase but uses tighter limits. Both start with a one-time fee.
How much of the profit do I keep on a funded account?
At OctoFunded you receive 80% of the simulated profit from the first payout, on a 14-day cycle, paid in USDT or USDC with a public transaction hash, subject to the program rules.
Can I lose a funded account?
Yes. A funded account still has a daily loss limit and a max loss. If you break either one, the account ends. Your cost is the fee you paid, because the trading balance is simulated.
Do I need my own money to trade a funded account?
You pay a one-time fee for the challenge or the Instant Funded account. You do not fund the trading balance yourself: it is simulated capital, so trading losses reduce the simulated balance, not your savings.
For agents
- Programs and pricingoctofunded.com/#pricing
- Checkoutcheckout.octofunded.com
- Journaloctofunded.com/blog
- Supportt.me/octofunded
