Guide

Which account type is right for you?

Most prop firms sell several account types. Pick the wrong one and you can trade well and still fail — not because you are bad, but because that plan's rules do not match how you trade. This page explains the terms you will meet at every firm, so you can read the rules yourself and choose correctly.

01Three ways to get funded

1-Step / One-Phase

A single evaluation. Hit the profit target and you are funded. Faster, usually a higher fee than 2-step. Good if you are confident and want it done quickly.

2-Step / Two-Phase

Two rounds: a higher target in phase 1, a lower one in phase 2. Slower, but usually cheaper and each target is easier. Good for beginners who prefer a steady path.

Instant / Direct Funding

Pay and you get a live account immediately, no evaluation. In exchange the fee is much higher, the initial profit split is often lower, and payout rules still apply. Good if you already trade consistently and do not want to sit an evaluation.

02Maximum drawdown — the part that matters most

This is what fails most traders. The same dollar loss can mean completely different things depending on how it is measured.

Intraday Trailing Drawdown

Your loss limit follows your highest account peak, including UNREALISED profit. Go up $500 and give it all back and the gap has already shrunk. The strictest type — scalpers get caught by this.

EOD Trailing Drawdown

Follows your balance at the daily close only; unrealised intraday profit does not count. Far more forgiving if you take many trades per day.

Trailing then Locks

Trails your peak up to a set point, then stops for good — usually locking at your starting balance. Clearing that point is a big relief.

Static / Fixed Drawdown

Measured from your starting balance and never moves, no matter how much you profit. Easiest to understand and to live with, but usually comes with a higher fee or a harder target.

03Daily loss limit

Daily Loss Limit

Lose more than the allowance in one day and the account is gone, even if your total balance is fine. It forces you to stop on bad days.

No Daily Loss Limit

Only the overall drawdown counts. More freedom, but dangerous if you tend to revenge trade.

04Rules people miss

Consistency Rule

No single winning day may make up more than a set share of your total profit. You cannot land one huge trade and cash out — profit has to build across days.

Minimum Trading Days

You must trade a required number of days before you can pass a phase or request a payout.

Overnight / Weekend Holding

Many firms forbid or restrict it. If you swing trade, check this section before you buy anything.

News Trading

Some firms block entries around major news releases. Breaking it can void your profit or close the account.

05Getting paid

Payout Cycle

How often you may withdraw — weekly, every 14 days, or on profit milestones. This decides how fast you actually see money.

Minimum Payout Threshold

A profit level you must reach before withdrawing. On a small account with a high threshold, money takes a long time to arrive.

Profit Split

The share of profit you keep. Many firms raise it as you complete more successful payouts.

06Quick picker

If you are…	Prefer	Why
New, small budget	2-step, smallest size	Lower fee, easier target per phase, less lost if it fails
A scalper, many trades a day	EOD trailing drawdown	Unrealised intraday profit is not counted against your peak
Holding overnight or over weekends	A firm that allows holding	Many forbid it — breaking the rule ends the account instantly
Wanting money soon	Short payout cycle, low threshold	Getting paid early makes it easier to keep trading calmly
Risk-averse, wanting clarity	Static drawdown	No peak calculation — you always know exactly what is left
Already consistent	Instant funding	Skip the evaluation and go straight to a live account
Prone to one big win then stopping	A firm with NO consistency rule	A consistency rule blocks exactly this style

Before you pay

Read the rules for the EXACT plan you intend to buy. Within one firm, every plan differs.
Check how the maximum drawdown is measured — this is what fails most traders.
If you hold overnight, check that section first.
Firm-specific numbers are on each review page, and always verify against the firm's official page before buying — rules change.