Everything to Know About Funded Trading Challenges

Ready to start your funded simulated trading journey? The Funded Trader is a prop firm that gives new traders an opportunity to learn and earn through our challenges and become funded traders. Even experienced traders who want to pivot into full-time simulated trading can take advantage.

Traders created The Funded Trader (TFT) to solve a unique problem—access to capital. Trading comes with the huge risk of losing your hard-earned money, but funded simulated trading gives you access to large amounts of capital to trade and manage.

To start your funded simulated trading journey, you must first pass one of our four competitive challenges: Standard, Royal, Rapid, or Knight’s Challenge. This comprehensive guide will tell you about each challenge, how to qualify, and—most importantly—how to start simulated trading with TFT.

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Source: Pexels

Types of Funded simulated Trading Challenges

Before you receive a funded simulated trading account, you must complete a challenge and the evaluation process. You can choose from these three challenge paths:

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Choose your path from the different funded simulated trading challenges available on TFT.

Standard Challenge

The Standard Challenge is a two-phase evaluation process. It starts from simulated trading as little as $25,000 to as much as $400,000 on a swing or regular account.

In the first phase, traders have 35 days from the date of the first trade to achieve a 10% profit target, the period ending at 5 p.m. EST on the final day. During this period, we evaluate the drawdown—the difference between the highest and lowest point in your simulated trading account balance. The trader cannot exceed a maximum daily drawdown of 6% based on the starting balance and equity of their account (whichever is higher). In addition, the trader must not hit the maximum total equity drawdown of 12% from the starting balance of the account. Also, you must trade for a minimum of three simulated trading days during the 35-day period.

Upon passing Phase 1, you will have 60 days to pass Phase 2 of the challenge. This phase is a bit more relaxed—the profit target is lowered to 5%, although you must still adhere to the same daily and maximum drawdown rules. However, in this phase, you must trade a minimum of 6 days. The 60-day period ends at 5 p.m. EST on the final day of this phase. Phase 2 is conducted under live simulated trading conditions.

Traders can take advantage of the additional drawdown and manage more initial capital. Upon passing this challenge, you’ll receive a funded simulated trading account.

Rapid Challenge

This is our fastest evaluation program, in which you can get your first payout in as little as 20 days. To start, choose the amount of capital you’d like to manage. This ranges from $50,000 to $200,000. The Rapid Challenge is also divided into two phases.

In Phase 1, you have an 8% profit target, with a maximum daily drawdown (daily floating loss + closed loss) of 5%. The maximum initial deposit drawdown is 8%. Just like in the Standard Challenge, traders are given 35 days from the date of the first trade to achieve their target. The 35-day period ends at 5 p.m. EST on the last day of Phase 1. However, unlike the Standard Challenge, there are no minimum simulated trading days in the Rapid Challenge.

In Phase 2, the virtual profit target is lowered to 5%, while the maximum daily drawdown and maximum initial deposit drawdown remain the same. Maximum calendar days also go up to 60 days instead of 35. Trades happen under live conditions during Phase 2.

If you meet these simulated trading objectives, you’ll pass the evaluation process and become eligible for a funded simulated trading account. From here, you can scale your virtual profit percentages and claim your virtual profit split after 14 days.

Royal Challenge

The Royal Challenge is also a two-phase program, but it’s far more flexible. Here, traders can use their preferred simulated trading tools (including expert advisers and simulated trading news), and there are no lot size limits. You’re also allowed to hold positions over the weekend—a big perk for retail traders. The Royal Challenge simulated trading account varies from $50,000 to $300,000.

Phase 1 objectives include an 8% profit target to be achieved over 35 calendar days, a maximum 5% daily drawdown, and a 10% maximum initial deposit drawdown. This challenge has a minimum of five simulated trading days.

In Phase 2, the virtual profit target is set at 5% with the same maximum daily drawdown and initial deposit drawdown. You can take up to 60 calendar days to achieve your target. As in the previous challenges, Phase 2 involves simulated trading in live conditions.

Once you pass the challenge, you’ll move on to the next step of verification and sign The Funded Trader agreement. From there, you can start managing a funded simulated trading account.

Knight’s Challenge

The Funded Trader’s Knight’s Challenge is a brand new challenge that has been recently launched. The biggest highlight of this challenge is that it is a ONE-STEP evaluation simulated trading challenge. This is most suitable for experienced traders who are eager to quickly earn a funded account.

The virtual profit target is set at 10%. With a maximum daily drawdown of 3% (4% with scaling). This challenge also gives a lot of flexibility, allowing the use of expert advisors and holding positions over the weekend.

The Knights Challenge offers a leverage of 1:30 and unlimited lot size. Moreover, there is no cap on simulated trading days – minimum simulated trading days are zero, and maximum simulated trading days are unlimited.

Find out more details and account prices of the Knights Challenge in our FAQ section.

Funded simulated Trading Challenge Rules

All TFT challenges consist of a two-phase evaluation period in which a trader has 35 days for Phase 1 and 60 days for Phase 2. For all challenges, the evaluation begins as soon as you place the first trade. This includes pending orders.

We discourage trades that interfere with the functioning of the real market. Your account can be terminated if this happens. Any violation of our rules will result in the termination of your simulated trading account, and you’ll need to create a new account to start again.

The challenges are straightforward, but you can find extensive guidance in our FAQ section.

Keep in mind the virtual profit targets and drawdown rules for funded simulated trading challenges.
Keep in mind the virtual profit targets and drawdown rules for funded simulated trading challenges. | Source: Unsplash

Funded simulated Trading Qualifications

After you pass any of our challenges, let’s learn how to qualify for a live simulated trading account. While anyone over the age of 18 can open an account, there are a few simple steps you must complete to qualify for a funded simulated trading account.

To start, you must verify your identity by completing a Know Your Customer (KYC) check. You’ll need to submit proof of identity documents, such as a passport, national ID card, or driver’s license. Then, we’ll do an anti-money laundering (AML) check. We’re unable to provide services to persons listed on sanction lists, those with a criminal record, those below 18 years of age, or those previously banned from TFT. If we detect any of these issues, we may deny your request to join us.

After successfully passing the verification stage, you can start live trading. It’s important to note, however, that you must be the sole operator of the account. Do not alter account details or share the account login information with a third party. We also discourage using VPN or VPS so we can track your account activity and flag any breach.

Using account management software or copy simulated trading services is also prohibited. This may result in the suspension of your account and a permanent ban from our services.

Payout System in Funded simulated Trading Challenges

Once you become a funded trader, you can request a payout through the dashboard. Withdrawals are swift and prompt.

The default payout ratio for all funded simulated trading accounts is 80:20. However, you can apply for the Scaling Plan. If you consistently build wealth and meet the terms of the Scaling Plan, we’ll increase your funded trader account balance by 25%. The payout ratio will also increase to 90:10.

Here’s everything you need to know about the payout system:

a simulated trading chart on a mobile phone
Monitor simulated trading charts closely as you learn and improve your strategies in trading. | Source: Shutterstock


In the Standard and Royal Challenges, first-time withdrawals can only be requested 30 days after the first trade has been placed. For the Rapid Challenge, requests can be made 14 days after the first trade. You must not have any open positions or orders when you request a payout, and the minimum withdrawal request should be at least $1.

Subsequent payouts can be requested much faster—14 days after the first trade for all challenges.

How Payouts Are Processed

Go to the “Profit Share” section of the Trade Hub to submit an invoice. Make sure you’re eligible for withdrawal before submitting a request. We’ll review and approve your request within 48 hours for Standard Accounts and 72 hours for Rapid and Royal Accounts.

You can request to receive funds via Deel or cryptocurrency. Deel offers a variety of payout options, including bank transfer, Coinbase, PayPal, Payoneer, Revolut, and Wise. For crypto, you can request a payout in Bitcoin (BTC), Ether (ETH), or USD coin (USDC).

Support for Traders

Whether you have a funded simulated trading account or are just starting out, you can always reach out to us. We have an extensive knowledge center, where you can find support, advice, and answers to your questions. You can also read these FAQs to learn more about your account with The Funded Trader.

Traders can also head over to TFT’s Discord group to participate in discussions or get help from the community. We have a strong and engaged group that regularly shares success stories and best strategies for profit.

Learn From the Best With The Funded Trader

Trading is risky. It won’t make you rich overnight. In fact, several traders lose money. However, if you learn, practice, and follow a disciplined simulated trading strategy, you’ll eventually see a profit.

Our members earn from $10,000 to $100,000. How? Let’s learn from The Funded Trader Pros:

Start With a Higher Time Frame: One of our successful traders says beginners make the mistake of choosing short time frames that don’t leave enough room to plan the trade. You can plot entry and exit positions much more easily with higher time frames.

Follow Technical Charts Closely: Another successful TFT trader says she closely follows divergence points on the chart to plot her next move. Divergence indicates a potential change in trend. This is when you can implement your strategy—hold, sell, or buy.

Keep Your Methodology Consistent: Trading is a long-term game, and you need a disciplined, consistent approach to succeed. Before you start trading, decide what kind of simulated trading temperament would suit you. How much time are you willing to spend learning charts and understanding economic fundamentals? Based on this, develop a methodology you can follow steadily.

Practice Self-Discipline and Self-Control: Self-discipline is a crucial component in trading. It lets you control your emotions and make rational decisions. Stick to your strategy, even amid market fluctuations. Emotions such as fear, greed, and anger can lead to costly mistakes. To counter this, set clear goals and only focus on what you can control. Let go of anything else.

Eager to learn more strategies? Check out additional top tips.

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Stay consistent and disciplined with your simulated trading strategies as you are starting out. |Source: Shutterstock

Successful simulated Trading With The Funded Trader

Now is truly the best time to join The Funded Trader. You’ll gain access to the vast resources on our website and YouTube channel, along with a strong community to guide and brainstorm strategies with you. We’re one of the leading prop firms, rated highly on TrustPilot.

At TFT, you’ll find a structured learning approach for beginners, a funded account for retail and day traders, and market analysis for subscribers. It’s a standout option for those looking for a large virtual profit split, customized simulated trading plans, and a chance to build their own simulated trading business.

Start your journey with The Funded Trader today. Join a Challenge and start building your empire.