For many aspiring traders, the biggest obstacle is not skill or strategy, it is capital. Even the best trading plan can feel limited if you only have a small account. This is where prop firms step in. They provide access to larger simulated accounts, so traders can prove themselves and earn a share of the profits. But how does the process actually work?
At TradingFunds, we have seen thousands of traders go through this journey. Some succeed quickly, others take time to refine their approach, but the path is the same: you prove your ability, follow the rules, and unlock access to funded accounts. In this article, we will walk through the key steps of how traders get funded, the different routes available, and how you can choose the right path for your goals.
Step 1: Understanding What “Funded” Really Means
Getting funded by a prop firm does not mean someone wires money into your bank account to trade. Instead, you are given access to a simulated trading account. This account mirrors real market conditions—live prices, spreads, and executions but without risking your own savings.
When you perform well, you earn a share of the profits generated in that account. That is the real reward: the ability to scale your earnings without risking your personal capital.
At TradingFunds, we make this distinction clear: the capital is simulated, but the profits you earn are real.
Step 2: Passing the Evaluation
Most prop firms require traders to pass what is commonly called an evaluation challenge. This is designed to prove that you can trade consistently, manage risk, and respect rules.
Evaluations usually involve targets such as:
Reaching a set profit percentage (for example, 8–10%)
Staying within maximum drawdown limits
Following daily loss rules
Meeting a minimum number of trading days
Some firms use two-step challenges: one for initial performance and a second to confirm consistency. Others offer one-step models, where traders prove themselves in a single phase.
At TradingFunds, we keep our evaluations clear and transparent. Whether you choose our two-step, one-step, or Flex challenge, you always know the profit targets and drawdown limits upfront.
Step 3: Instant Funding Options
Not all traders want to go through an evaluation. For those who prefer immediate access, many firms including TradingFunds offer instant funding accounts.
With instant funding, there is no challenge. Traders purchase access to an account and start trading right away. The rules still apply, but there is no waiting period.
This option is popular for experienced traders who already know their strategies and want to skip the evaluation process. At TradingFunds, our instant accounts start from as little as $5,000 and scale all the way to $100,000.
Step 4: Scaling Your Account
Getting funded is only the beginning. The next question is: how do you grow?
Prop firms reward consistent performance with scaling opportunities. As traders prove themselves, they can access larger accounts, higher profit splits, and greater freedom.
At TradingFunds, accounts can scale up to $600,000. That means a trader who starts with $10,000 can grow into managing hundreds of thousands in simulated capital—without ever risking their own money.
Scaling is not just about bigger numbers. It is about building trust between the firm and the trader. Every step you take proves that you can manage risk at a higher level.
Step 5: Earning Payouts
The most exciting part of getting funded is receiving your share of the profits. Once you pass the evaluation or begin trading an instant account, you can request a payout once you hit the minimum profit threshold.
Different firms have different timelines. Some require traders to wait weeks. At TradingFunds, we focus on speed and flexibility. Our traders can request payouts as soon as they reach $100 in profit, with average payout times of just 8 hours.
We believe payouts should be fast, transparent, and fair. That is why there are no payout caps on our funded accounts—you can withdraw as much as you earn.
Step 6: Managing Risk and Consistency
Funding is not just about hitting profit targets—it is about sustainability. Prop firms want traders who can grow accounts without taking reckless risks.
This is why rules like drawdowns exist. A drawdown is the maximum loss a trader can take before the account is closed. At TradingFunds, we offer both trailing drawdown models and static drawdown models, depending on the challenge you choose.
For example:
Our two-step evaluation uses a static drawdown, giving traders a clear, fixed limit.
Our Flex and instant funding models use a trailing drawdown with a lock, meaning the limit eventually stops trailing and locks at the starting balance—a feature many firms do not offer.
These rules may feel restrictive at first, but they are designed to protect traders from blowing up their accounts and to create a fair playing field.
Step 7: Choosing the Right Path for You
Not every trader needs to take the same route to funding. Your choice depends on your goals, experience, and preferred style:
Newer traders might benefit from starting with a challenge, as it forces discipline and risk management.
Confident, experienced traders may prefer instant funding, trading right away with no evaluation.
Long-term planners often choose models with scaling potential, aiming to grow into large accounts over time.
At TradingFunds, we provide all these paths. Whether you want the discipline of a two-step challenge, the speed of instant funding, or the flexibility of our pay-after-you-pass model, there is a solution built around your trading journey.
Final Thoughts: Funding is the Gateway
So, how do traders get funded? They prove themselves. They demonstrate that they can trade with discipline, follow rules, and generate consistent results.
Prop firms like TradingFunds exist to open that gateway. We remove the barrier of limited personal capital and give traders the opportunity to show what they can do on a larger stage.
For some, funding means finally breaking free from the constraints of a small account. For others, it means the chance to pursue trading full-time. For everyone, it means a chance to grow without risking their own savings.
If you are ready to take the next step, explore our account options today. Whether through instant funding, challenges, or scaling, the path to becoming a funded trader starts here.