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What is a Simulated Funded Account?

Understand the foundation of funded trading, profit sharing mechanics, and performance expectations.

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Written by TheFunding Futures
Updated this week

Overview

A Simulated Funded Account (Sim Funded Account) is a trading account that replicates real market conditions — but without using actual firm capital.

When traders first become funded, the transition from evaluation to live trading can be psychologically and strategically demanding.
The Simulated Funded Account provides a bridge between these two stages, allowing traders to gain real-time experience, build consistency, and develop confidence under live market conditions.


How It Works

In a Simulated Funded Account, all trades are executed in real-time market environments using simulated funds.
Your trades follow the same rules, spreads, and executions as in live markets — the only difference is that profits and losses are not drawn from real capital.

However, the profits you generate in your Simulated Funded Account can still qualify for real payouts, based on your account’s performance and payout eligibility criteria.
This structure allows traders to earn while refining their strategies and managing risk in a realistic trading environment.


Purpose of the Sim Funded Stage

The primary purpose of the Simulated Funded Account is to act as a transition phase between the evaluation and live funded stages.

It provides:

  • A low-risk environment to continue building confidence

  • The ability to prove consistent performance before trading real firm capital

  • A chance to adapt emotionally and strategically to the pressures of live trading

This stage helps traders establish the discipline and mindset necessary for long-term success.


Monitoring & Evaluation

Throughout your time in a Simulated Funded Account, The Funding Futures risk management team closely monitors your trading activity.

They review:

  • Adherence to all trading rules and limits

  • Risk management consistency

  • Profitability and stability over time

Once a trader consistently meets performance expectations and demonstrates disciplined risk control, they may become eligible for promotion to a live funded account, where trades are executed using actual firm capital.

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