Funded Trader

A funded trader is an individual who has successfully completed a prop firm's evaluation phase and earned access to a funded account with simulated capital. Unlike a traditional retail trader who risks their own money, a funded trader uses the firm's capital and keeps a percentage of any profits generated — typically between 70% and 90% — under a profit split arrangement.

The path to becoming a funded trader typically starts with a prop firm challenge — a paid evaluation period during which the trader must hit a profit target while staying within strict risk parameters including a drawdown limit and daily loss limit. Programmes vary in complexity: some offer a two-phase evaluation where the trader must pass two consecutive objectives before receiving funding, while others offer instant funding with no evaluation requirement.

From an affiliate and partner programme perspective, funded traders are the conversion event. Prop firm affiliates earn a CPA when a referred individual purchases a challenge. Whether that person ultimately passes and becomes a funded trader does not typically change the affiliate's commission — the CPA is tied to the challenge purchase, not the funding outcome. However, some firms track challenge pass rates as a quality signal for affiliate traffic.

The economics of prop firm affiliate programmes are directly tied to the funded trader model. A firm that funds a high proportion of challenge purchasers has a lower lifetime value per challenge purchase (because more people get funded and can withdraw profits), while firms with lower pass rates retain more challenge fee revenue. Affiliates who understand this dynamic can better evaluate the sustainability and payment reliability of the programmes they promote.