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How do funded trading accounts work?
A funded account lets you trade a firm's capital instead of your own after passing an evaluation, and you keep an agreed share of the profits. You pay once for the evaluation, hit a profit target without breaching a drawdown limit, and the firm then allocates real capital to you.
The evaluation
You pay a one-time fee for a challenge at a chosen account size, then trade it under two rules: reach a profit target, and never breach the maximum drawdown. The drawdown is the part that fails most people — it is not how much you are down overall, it is how far below your peak the account has fallen. A trader up 8% who gives back 6% has a bigger drawdown than one who never went up at all.
What to check before paying
Whether the challenge runs on the same spreads and the same execution as a real account — a challenge on artificially tight conditions is a different test from the one you will actually face. Whether there is a time limit, and whether there are consistency rules that void a pass because too much of the profit came from one day. Vexoda runs the challenge on the same spreads and the same engine as a funded live account, with no time-pressure tricks.
After you pass
You trade allocated capital and keep an agreed share of what you make — up to 80% on Vexoda, with allocation up to $200,000 and payouts processed within 24 hours. Allocation typically scales as you keep performing. The firm keeps the remainder and absorbs losses within the drawdown limit, which is what it is being paid for.
Is it worth it
It is worth it if your edge is real and your constraint is capital. It is an expensive way to discover that your edge is not real, because you pay for the discovery. The honest test is whether you can pass with your ordinary strategy — if passing requires trading differently from how you would trade your own money, the funded account will not survive contact with your actual method.
| Stage | What happens | On Vexoda |
|---|---|---|
| Challenge | Pay once, hit target, respect drawdown | Same spreads and engine as live |
| Funded | Trade allocated capital | Up to $200,000 |
| Split | You keep a share of profits | Up to 80% |
| Payout | Profits withdrawn on a cycle | Processed in 24h |