Prop trading, short for proprietary trading, has become one of the most exciting opportunities in the financial world. Instead of risking your own capital, you can trade using a firm’s money and keep a share of the profits. Companies like Pax Market Funds make this possible by providing funded trading accounts to qualified traders. But here’s the key question: what are the conditions to get a funded account, and what do you need to qualify?
In this detailed blog, we’ll break down everything you need to know—from eligibility requirements and evaluation challenges to profit targets and risk management rules—so you’ll have a complete roadmap for getting funded.
A funded account is a trading account provided by a proprietary trading firm where you trade with the firm’s money instead of your own. For example, instead of depositing $10,000 of personal capital, a firm like Pax Market Funds can allocate you a funded account of $50,000, $100,000, or even more—provided you pass their evaluation.
The benefit?
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You keep a profit split (often between 70–90%)
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The firm takes on the financial risk
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You gain access to professional-level trading resources
1. Evaluation or Challenge Phase
The first condition is usually an evaluation process. Firms want to know that you can trade responsibly before they trust you with their capital.
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You’ll receive a demo account with virtual funds.
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Your job is to hit a profit target (e.g., 8–10% of the account balance).
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You must do this without breaching rules such as drawdown limits.
Some firms also offer a one-step challenge (simpler) or a two-step challenge (longer but cheaper).
2. Profit Target
To qualify, you need to prove that you can generate consistent profits. For example:
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On a $100,000 demo account, the target might be $8,000 profit.
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You cannot achieve this by gambling—you must trade with discipline.