Prop Trading Basics

16 Sep 2026

15 min read

What Is a Funded Trading Account?

A funded trading account is a trading account provided through a prop firm program that allows a trader to trade under predefined rules and potentially receive a share of eligible trading profits or rewards. In the modern prop-firm model, traders typically complete an evaluation or challenge first, then move to the firm's funded or post-evaluation stage if they meet the required conditions.

Funded trading accounts are popular with traders who want to demonstrate their trading skills without depositing their own trading capital into a personal brokerage account. However, "funded" does not always mean that a trader is using a firm's live capital. Some prop firms, including BEM Funding, operate their programs in a simulated trading environment and provide rewards based on trading performance.

Understanding how a funded account works—and what the firm's rules actually allow—is essential before choosing a program.

How Does a Funded Trading Account Work?

A funded trading account usually involves an evaluation process followed by a post-evaluation trading stage. The exact structure varies between prop firms.

Here is how the process typically works:

1. Choose a prop firm challenge

The first step is selecting a challenge or evaluation program.

Prop firms may offer different account sizes, one-step or two-step evaluations, and different risk management rules. Traders should compare the complete conditions rather than choosing based only on the advertised account size.

Common factors include:

Profit target
Maximum daily loss
Maximum drawdown
Minimum trading days
Consistency requirements
News-trading rules
Overnight and weekend restrictions
Reward or payout conditions
Trading platform

2. Complete the evaluation

Once you select a challenge, you trade according to the firm's rules.

An evaluation usually has one or more performance objectives. These can include reaching a specific profit target while remaining within defined drawdown limits.

Passing an evaluation is therefore not simply about making money. A trader must also demonstrate that they can manage risk within the program's requirements.

3. Meet the firm's trading requirements

Every prop firm can establish its own requirements.

For example, one program might have a single evaluation phase, while another might require traders to complete two separate phases. Some programs may require a minimum number of trading days, while others may not.

The important point is that there is no universal set of funded trading rules. The terms of the specific challenge determine what a trader must do to qualify.

4. Qualify for the funded account

If the trader successfully completes the evaluation without violating the applicable rules, they can move to the next stage of the program.

Depending on the prop firm's business model, this may be described as a funded account, trader account, or rewards account.

Traders should check the firm's terms to understand exactly what this stage represents.

For example, BEM Funding describes its accounts as simulated trading accounts used to evaluate trading proficiency and risk management. Eligible traders can receive real rewards based on their performance in the simulated environment.

5. Trade under the firm's rules

Passing an evaluation does not mean that all trading restrictions disappear. A funded trader generally continues to operate under the rules of the program, which are covered in more detail in the "What Happens After You Get a Funded Account?" section below.

6. Receive eligible profits or rewards

If the trader meets the relevant conditions, the prop firm may allow them to request a share of eligible profits or rewards.

The exact reward structure differs between companies.

For example, BEM One and BEM One Only use a Reward on Demand model. Once a trader meets the applicable eligibility requirements, rewards can be requested without a fixed reward cycle. BEM's two step programs use different reward-cycle conditions.

This is why traders should review reward conditions before choosing a funded trading program.

What Is the Difference Between a Funded Account and a Personal Trading Account?

A funded account and a personal trading account can both be used to trade financial markets, but they operate under very different structures.

A personal trading account is typically opened with a broker using the trader's own deposited capital. A funded trading account is generally part of a prop-firm program where the trader must follow the firm's rules and may become eligible for a share of profits or rewards.

Feature	Personal Trading Account	Funded Trading Account
Capital	Trader's own deposited funds	Depends on the prop firm's model
Evaluation	Usually none	Often required
Trading rules	Mainly broker and market rules	Broker/platform rules plus prop-firm rules
Drawdown limits	Determined by trader and broker conditions	Usually predefined by the program
Risk to personal capital	Trader risks their deposited capital	Depends on the program; in simulated programs no personal trading capital is deposited, and the challenge fee is the amount at risk
Profit structure	Trader generally keeps trading profits after costs	Eligible profits/rewards may be shared according to program terms
Trading flexibility	Often determined by the trader	Limited by the firm's rules

One important point is that the term funded account does not have one universal meaning across the industry.

Before joining a program, check whether the account involves live trading capital or simulated trading and how the firm defines rewards.

How Do Traders Get a Funded Trading Account?

Most online prop firms require traders to complete an evaluation before accessing their post-evaluation account.

The typical path looks like this:

Choose a challenge → Complete the evaluation → Follow the rules → Qualify → Trade under the funded stage conditions → Request eligible rewards

However, the exact process varies.

A challenge might use one evaluation phase or multiple phases. Profit targets, drawdown limits, minimum trading days, and consistency rules can also differ.

For this reason, traders should not assume that passing one firm's challenge means they have satisfied another firm's requirements.

One-step vs. two-step evaluations

A one-step evaluation generally requires traders to meet the firm's objectives in a single phase.

A two-step evaluation requires the trader to complete two stages, usually with separate performance or risk-management conditions.

BEM Funding currently offers both structures. BEM One and BEM One Only use a single-phase evaluation, while BEM Classic and BEM Classic Swing use two-step structures.

What Are the Rules of a Funded Trading Account?

The rules of a funded trading account depend on the prop firm and the specific program. Some of the most common requirements include:

Drawdown

Drawdown measures how far an account can decline from a defined balance or equity reference point. A program may use a fixed drawdown, a trailing drawdown, or another calculation method. Always check how drawdown is calculated rather than comparing percentages alone.

Daily loss limits

A daily loss limit restricts how much an account can lose during a specific trading day.

Breaking the daily limit can result in a rule violation even if the account remains profitable overall.

Profit targets

During an evaluation, traders may need to reach a specific profit target.

For example, BEM One currently requires a 9% profit target during its evaluation, while BEM One Only uses a 6% target. These are BEM-specific requirements, not universal industry standards.

Minimum trading days

Some programs require traders to trade on a certain number of days before completing an evaluation or becoming eligible for the next stage.

Other programs have no minimum trading-day requirement.

For example, BEM's current one-step programs state that there is no minimum trading-day requirement.

Consistency rules

A consistency rule can limit how much of a trader's total profit can come from a single trading day or require a more consistent distribution of trading performance.

These requirements are not universal. They can also apply differently during an evaluation and after passing.

News and overnight trading restrictions

Some prop firms restrict trading around major economic announcements or prohibit holding positions overnight or over weekends.

These restrictions can materially affect traders who use news-based or swing-trading strategies.

BEM's programs have different conditions depending on the challenge. For example, BEM One currently allows news trading during the evaluation, while BEM Classic Swing is specifically designed for longer term trading and allows weekend holding under its program rules.

What Happens After You Get a Funded Account?

After passing an evaluation, the trader enters the next stage of the specific prop-firm program.

At this point, the focus typically shifts from meeting an initial profit target to maintaining disciplined trading while following the account's rules.

A trader may need to:

Stay within drawdown limits
Follow prohibited-trading rules
Maintain appropriate risk management
Meet any consistency requirements
Follow the firm's reward eligibility conditions

If the trader generates eligible profits or rewards, the firm may allow them to request a reward according to its terms.

The timing can vary considerably between programs.

For example, BEM One and BEM One Only use Reward on Demand once the trader is eligible. BEM Classic and BEM Classic Swing use reward cycles, with the standard cycle currently set at 14 days and an optional 7-Day Reward Add-On available for applicable programs.

At BEM, reward requests are subject to a review and approval process. The current FAQ states that this review can take up to three business days, with approved rewards typically processed within a few hours during business days.

None of these structures guarantee a particular income level. Trading performance depends on the individual trader and their ability to follow the program's rules.

How to Choose a Funded Trading Account

The right funded trading account depends on your trading strategy, risk tolerance, and preferred trading conditions.

Instead of choosing a program based only on its advertised account size, compare the following factors.

Account size

Look at the available account sizes and consider how the account's drawdown limits relate to the nominal balance.

A larger account does not automatically mean a better program if the risk limits do not suit your strategy.

Challenge structure

Determine whether the program has one evaluation phase or multiple phases.

If you prefer a shorter evaluation process, a one-step program may be more suitable. If you prefer a staged evaluation, a two-step structure may be a better fit.

Profit target

Compare the target against the account's drawdown limits.

A lower profit target is not necessarily easier if the corresponding drawdown rules are restrictive.

Drawdown

Check:

Maximum daily drawdown
Maximum overall drawdown
Whether drawdown is fixed or trailing
How the calculation works
When the drawdown level changes

This can be one of the most important factors when selecting a program.

Trading days

If your strategy produces relatively few trades, check whether the program has a minimum trading-day requirement.

A program without a minimum-day rule may offer greater flexibility for selective traders.

Consistency rules

Check whether consistency requirements apply during the evaluation, after passing, or both. If your strategy relies on occasional high-profit days, this rule deserves particular attention.

Payout or reward terms

Review the full reward structure before purchasing a challenge.

Look at:

Reward percentage
Minimum reward amount
Reward frequency
Eligibility conditions
Processing fees
Available payment methods

For example, BEM's current FAQ states that rewards have a minimum amount of $150 after the applicable profit split, and a 2% processing fee applies to rewards.

Trading platforms

Your trading platform can affect charting, execution, order management, and overall workflow.

Check which platforms are available for the specific program you are considering. BEM Funding currently operates cTrader and MT5, with platform availability subject to its stated eligibility and jurisdictional restrictions.

Funded Trading Accounts at BEM Funding

BEM Funding provides simulated trading evaluation programs for traders who want to demonstrate their trading skills and risk-management abilities.

Its current challenge lineup includes BEM One, BEM One Only, BEM Classic, and BEM Classic Swing. The programs differ in their evaluation structure and trading conditions.

BEM One and BEM One Only are one-step evaluations. BEM One currently has a 9% profit target, while BEM One Only has a 6% target. Both use a single evaluation phase and offer Reward on Demand after successful completion, subject to the applicable eligibility requirements.

For traders comparing options, the most useful starting points are BEM's All Challenges, One-Step Challenges, and Two-Step Challenges pages, where the available programs and their respective rules can be compared.

BEM also has a dedicated Rewards section explaining how reward requests work, including eligibility, timing, and payment methods.

Because program rules and availability can change, traders should review the current challenge terms before starting an evaluation.