A Funded Account is a trading account provided by a proprietary trading firm (prop firm) where traders are given access to the firm’s capital to trade financial markets such as Forex, Indices, Crypto, Commodities, or Stocks. Instead of using their own money, traders trade using the firm’s funds, and in return, they receive a profit split, which can range from 70% to 95%, depending on the prop firm.
Prop firms like PAX MARKET FUNDS give talented traders the opportunity to scale without risking personal savings. Traders first prove their skills through an evaluation or challenge, and once they pass it, they receive a funded account.
How Do Traders Get a Funded Account?
To receive a funded account, traders usually go through the following steps:
1. Sign Up for an Evaluation Program
Most prop firms require passing a challenge phase. The trader must reach a profit target while respecting risk rules such as:
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Maximum daily loss
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Maximum overall loss
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Lot size or leverage limitations
2. Verification Phase (in some firms)
Some prop firms have a two-step process where traders must prove consistency in a second verification stage.
3. Receive the Funded Account
Once the trader successfully passes all phases, they get access to real capital provided by the firm.
4. Start Earning Profit Splits
Profits generated are shared between the trader and the firm.
For example:
If the trader earns $10,000 in a month and the profit split is 80/20:
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Trader earns $8,000
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Prop firm earns $2,000
Why Prop Firms Offer Funded Accounts
Prop firms like PAX MARKET FUNDS are built on a performance-based model. By identifying skilled traders, they can grow profits while reducing risk exposure. Instead of risking millions on automated systems, they partner with real human traders who trade responsibly.
Benefits of Using a Funded Account
| Benefits | Description |
|---|---|
| No personal capital risk | You trade with firm capital, not your own money |
| High earning potential | Profit splits up to 95% |
| Access to large capital | Accounts can scale from $10,000 up to $2M+ |
| Professional structure | Encourages discipline and risk management |
| Beginner friendly | Allows talented traders to grow without huge savings |
Who Should Use Funded Accounts?
A funded account is ideal for:
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Traders with skill but limited funds
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Traders wanting to trade professionally
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Traders looking for scalable growth
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Traders who want discipline and structure
If someone trades well but cannot afford large accounts, a funded account offers a real opportunity.
What Happens If You Break Rules?
Funded accounts come with strict rules. Violations can lead to:
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Loss of account
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Removal from the funded program
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Restarting the evaluation
Risk management is the key to success in prop trading.
Do Funded Traders Get Paid Real Money?
Yes. Most prop firms provide payouts through:
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Bank transfers
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Crypto payments
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E-wallets (Skrill, Wise, etc.)
Some firms pay weekly or bi-weekly. For example, many traders with PAX MARKET FUNDS receive fast and reliable payouts.
Example Workflow of a Trader Using a Funded Account
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Trader joins evaluation
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Trader reaches target with discipline
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Receives funded account
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Earns profits and withdraws weekly/monthly
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Scales account to larger capital after consistency
Final Thoughts
A Funded Account is one of the most powerful opportunities for modern traders. It allows anyone to trade large capital without risking personal savings. Prop firms like PAX MARKET FUNDS have changed the industry by giving traders freedom, scalability, and financial opportunities that were once only available to institutional traders.
If you are confident in your trading skills, joining a prop firm and trading a funded account may be the smartest path to success.