Prop Firm

What is a Challenge Account and a Funded Account?

🔹 Challenge Account:

A Challenge Account is an evaluation account. Its purpose is to assess your trading skills under real market conditions, but without using actual capital yet.

What does it include?

A simulated balance (e.g., $5,000, $10,000, etc.)

Specific rules such as:

Profit target: for example, 8%–10%

Daily loss limit: for example, 5% max

Total loss limit: for example, 10%

Minimum trading days: usually 3 business days

What’s the goal?

To prove that you can trade profitably, responsibly, and with discipline. If you meet all the objectives without violating the risk limits, you move to the next phase (either Phase 2 or directly to a funded account, depending on the program).

🔹 Funded Account (Live Account):

Once you successfully pass the Challenge — or if you purchase an instant funded account like the Power Live — you gain access to a real account funded by the firm, meaning you’re trading with real capital.

What do you get with a funded account?

✅ Real trading capital

✅ Ability to withdraw real profits, often starting from day one (for instant accounts)

✅ Withdraw up to 80%–90% of your profits

✅ There are still risk rules, but they are designed to offer more flexible trading conditions while maintaining responsible capital management