How Funded Accounts Work
The funded account model provides traders with company capital after passing evaluation challenges. Traders keep 70-90% of profits while the company retains the rest as compensation for capital risk. This model eliminates the need for traders to risk personal funds while giving prop firms access to diverse trading strategies that generate returns on their capital.
Scaling Programs
Successful traders want to manage more capital. Implement progressive scaling plans that increase account size by 25% after consistent performance milestones (e.g., 10% profit over 3 months). Top performers can scale from initial $50K accounts to $500K or more. Scaling programs dramatically improve trader retention and create a pipeline of high-performing portfolio managers.
Payout and Risk Management
Establish clear payout schedules: bi-weekly or monthly withdrawals with minimum thresholds. Implement real-time risk monitoring with automated position liquidation when drawdown limits are breached. Balance trader freedom with portfolio-level risk controls that prevent correlated positions across multiple funded accounts from creating outsized exposure.
