How Hard Is It To Get Funded Trading?
Getting funded as a trader is a dream shared by thousands, but how hard is it really? The truth might surprise you. While prop firm evaluations are designed to be challenging, understanding what you're up against can dramatically improve your chances of success.
The Reality of Prop Firm Funding
The statistics: On average, only 10-15% of traders pass their first prop firm evaluation. However, this doesn't tell the whole story. Traders who prepare properly and understand the rules can increase their pass rate to 40-60%.
What Is Prop Firm Funding?
Proprietary trading firms, or "prop firms," provide capital to skilled traders. Instead of risking your own money, you trade with the firm's capital and share the profits. But there's a catch—you need to prove your skills first through an evaluation period.
During this evaluation (also called a "challenge"), you must hit profit targets while staying within risk parameters. Pass the evaluation, and you get access to substantial trading capital. Fail, and you'll need to pay for another attempt.
Success Rates: Breaking Down the Numbers
Industry Pass Rates
- First-time traders: 5-10% pass rate
- Experienced traders (no preparation): 10-20% pass rate
- Well-prepared traders: 40-60% pass rate
- Professional traders: 70-85% pass rate
The wide range shows that preparation is everything. The difference between a 10% and a 60% pass rate often comes down to understanding the rules, having a solid strategy, and managing emotions under pressure.
The 5 Biggest Challenges Traders Face
1. Strict Risk Management Rules
Most prop firms have strict daily drawdown limits (typically 5%) and maximum drawdown limits (10%). One emotional trade or revenge trading session can end your evaluation instantly. This is the #1 reason traders fail.
2. Profit Targets Under Time Pressure
You need to hit 8-10% profit targets within 30-60 days. This creates psychological pressure that leads many traders to take unnecessary risks, over-leverage, or deviate from their tested strategies.
3. Trading Psychology
Trading with evaluation rules is different from demo trading. The fear of losing your challenge fee and the pressure to perform can trigger emotional decisions that you'd never make in a pressure-free environment.
4. Consistency Requirements
Some firms require a minimum number of trading days or have consistency rules (e.g., your best day can't exceed 40% of total profits). These rules prevent "lottery trading" and require genuine skill.
5. Lack of Preparation
Many traders jump into evaluations without fully understanding the rules or testing their strategy under similar constraints. This is like taking a driving test without practicing the specific maneuvers required.
7 Proven Strategies to Pass Prop Firm Evaluations
1. Master the Rules First
Read every word of the prop firm's rules. Know your daily drawdown, max drawdown, profit targets, minimum trading days, and any consistency rules. Create a checklist and review it daily.
2. Use a Proven Strategy
Don't experiment during evaluations. Use a strategy you've already tested for at least 3-6 months with consistent results. Your edge should be proven before you risk challenge fees.
3. Start Small and Scale Up
Begin with smaller account sizes ($10k-$25k) to learn the evaluation process. Once you've passed once, you can tackle larger challenges with more confidence.
4. Practice With Simulators
Many platforms offer demo accounts where you can practice trading with evaluation rules. Simulate the daily drawdown and profit targets to build muscle memory.
5. Focus on Risk, Not Profits
Counterintuitively, obsessing over hitting profit targets often leads to failure. Focus on perfect risk management, and profits will follow naturally.
6. Track Everything
Keep a detailed trading journal. Note your emotions, market conditions, and what worked or didn't. Review losing trades to identify patterns you need to eliminate.
7. Choose the Right Prop Firm
Not all prop firms are equal. Some have more trader-friendly rules, better support, or more realistic targets. Research and compare firms to find the best fit for your trading style.
How Long Does It Take to Get Funded?
Realistic Timeline
Fast Track (Best Case):
- Challenge Phase 1: 7-30 days
- Challenge Phase 2 (if required): 7-30 days
- Total: 14-60 days minimum
Realistic Timeline (Most Traders):
- Learning phase (strategy development): 3-6 months
- First evaluation attempt: 30-60 days (often fails)
- Second/third attempts: 30-60 days each
- Total: 5-12 months to get funded
The key insight? Most successful funded traders didn't pass on their first try. They learned from failures, refined their approach, and came back stronger. The journey to becoming a funded trader is a marathon, not a sprint.
5 Critical Mistakes to Avoid
❌ Revenge Trading
After a losing trade, don't immediately jump back in to "make it back." This is the fastest way to hit your daily drawdown limit.
❌ Over-Leveraging
Using maximum lot sizes might hit profit targets faster, but one bad trade will end your evaluation. Conservative position sizing wins long-term.
❌ Ignoring News Events
Major news releases cause volatility that can trigger stop losses. Many traders fail during NFP or FOMC announcements. Know the economic calendar.
❌ Not Reading the Fine Print
Some firms have hidden rules like "no trading during news" or "no hedging." Violating these can void your account even if you hit profit targets.
❌ Giving Up Too Soon
Many traders quit after one or two failed attempts. Remember: the average successful funded trader failed 2-3 times before passing.
Frequently Asked Questions
Is it worth it to try getting funded?
Yes, if you're a skilled trader. Getting funded eliminates the need for large personal capital and limits your risk to the evaluation fee. Once funded, you can earn substantial income without risking your savings.
What's the easiest prop firm to pass?
Firms with no time limits, higher drawdown allowances, or one-step evaluations tend to be easier. However, "easier" firms often offer lower profit splits. Compare different firms to find the right balance for your skill level.
Can beginners get funded?
While possible, it's extremely rare for complete beginners. Most experts recommend 6-12 months of consistent demo trading profits before attempting an evaluation. Build your skills first, then pursue funding.
How much does it cost to get funded?
Evaluation fees typically range from $100-$1,000+ depending on the account size. Budget for 2-3 attempts ($300-$3,000 total) as most traders don't pass on their first try.
What happens after I get funded?
You'll receive a funded account to trade with real capital. You keep 70-90% of profits (depending on the firm) and can request payouts regularly. Some firms also scale your account size as you prove consistency.
Final Thoughts: Is Getting Funded Hard?
The honest answer: Getting funded trading is challenging, but it's far from impossible. The difficulty level depends entirely on your preparation, discipline, and mindset.
The Bottom Line
If you're a disciplined trader with a proven strategy, getting funded is achievable within 3-6 months. If you're still learning, focus on building skills first. Either way, understanding what you're up against is half the battle. Choose the right prop firm, prepare thoroughly, and treat each evaluation as a learning experience—not a lottery ticket.
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