Navigating the reward process for different challenges at The Funded Trader can seem daunting, but understanding the specifics can help simplify this crucial aspect of your trading journey. Below, we outline how payouts are processed across various challenges and discuss the scaling plans that enhance your initial account balance.
Reward Process Overview
All traders with eligible Funded accounts need to submit a reward request via the Rewards section of the Trade Hub. Reviews of trader's accounts are conducted before processing payouts, which currently are available through Rise (Riseworks), USDC (via ERC-20 and Polygon Network), Etherum (via ERC-20) and Bitcoin.
For a detailed overview of our reward options, please refer to the following articles:
Reward Processing Times:
Standard, Rapid, Royal, Royal Pro, Relaunch, Knight, Knight Pro & Dragon Challenges: 3-5 business days from request.
Challenge-Specific Payouts Request Eligibility
Funded accounts become eligible to request payouts based on the time since the first trade is placed on the Funded account and subsequent payouts become eligible based on the amount of days after the date of your first trade following any previous withdrawal. Once a first trade is placed, your next reward request eligibility date will appear on the rewards section of the Trade Hub, as long as the accounts balance is above its starting balance.
Challenge Type | First Reward Eligibility | Subsequent Reward Eligibility |
Standard | 21 days after first trade date | 14 days from first trade date after previous withdrawal |
Rapid | 14 days after first trade date | 14 days from first trade date after previous withdrawal |
Rapid with 7 days withdrawal add-on | 7 days after first trade date | 7 days from first trade date after previous withdrawal |
Royal | 30 days after first trade date | 14 days from first trade date after previous withdrawal |
Royal with 14 days withdrawal add-on | 14 days after first trade date | 14 days from first trade date after previous withdrawal |
Royal Pro | 2 days after first trade date | 2 days from first trade date after previous withdrawal |
Knight | Anytime | Anytime |
Dragon | 7 days after first trade date | 7 days from first trade date after previous withdrawal |
Knight Pro | Anytime | Anytime |
Classic 1 Step | 7 days after first trade date | 14 days from first trade date after previous withdrawal |
Classic 2 Step | 14 days after first trade date | 7 days from first trade date after previous withdrawal |
🔁 Updated Payout Policy & Tier-Based Profit Splits (Effective May 2025)
To create a smoother, more transparent, and rewarding experience for traders, we’ve implemented a tier-based payout structure that applies to all Royal, Royal Pro, Rapid, Standard, Relaunch, Knight and Knight Pro Funded accounts — past, present, and future. This does not apply to Classic 1 Step or 2 Step funded accounts.
This new structure is designed to reward consistency, good risk management, and long-term profitability. Traders now earn an increasing share of profits as they progress through payout milestones.
📊 Payout Tier Structure
Tier | Required Approved Payouts | Required Accumulated Profit*** | Resulting Profit Split | Resulting Payout Request Cap |
Tier 0 | 0 payouts |
| 90% | 0.50% |
Tier 1 | 1 payout |
| 30% | 5% then 10%* |
Tier 2 | 3 payouts** | 2.25% | 70% | 10% |
Tier 3 | 6 payouts**** | 20% | 99% | 10% |
*On second payout request cap is 5% then third payout request cap is 10%
**This means you received 3 approved payouts which satisfies this condition
***This is the amount earned after your profit split. For example in order to reach Tier 2, you must have withdrawn after split 2.25% of initial balance. On a $100k account this would be $2,250 after profit split.
****This means you've received 6 approved payout requests which satisfies this condition
Your current tier and split will be visible in your dashboard. As you progress through the tiers, you’ll unlock access to exclusive benefits.
Reward Eligibility and Request Process
To request a reward, traders must first be verified, which includes submission of a government-issued ID, proof of address, and a signed Funded Trader Agreement. No open positions should be active at the time of the reward request and account balance must be above the starting balance in order to be eligible to submit a reward request.
Note: A reward means you are paid based on data which is measured by simulated profit.
Reward Check Process
At The Funded Trader (TFT), we perform additional risk checks for prohibited trading strategies before processing payouts to ensure compliance with our trading rules. Our goal is to fully automate risk management, but certain key checks remain in place to maintain fairness and integrity in the trading environment.
Ongoing Risk Checks During Payouts
When you reach the reward stage, we conduct thorough reviews to ensure no violations have occurred during the funded phase. If any violations are identified, the following actions may be taken:
• Deduction of Net Profits: Any profits earned from trades that violated our rules will be deducted from your reward. The remaining balance will still be available for withdrawal.
• Request for New Reward: Once adjustments are made for any violations, you can immediately request another reward if necessary.
These checks are in place to maintain a fair trading environment and ensure payouts are processed with integrity.
Important Notice Regarding KYC Process and Payouts
Before any payouts can be processed, traders must successfully complete the KYC (Know Your Customer) process. If you fail to complete the KYC process or are denied by our KYC partner:
• You will not be eligible for a refund of any orders.
• You will be prohibited from purchasing future products on our platform.
Our KYC partner follows strict Anti-Money Laundering (AML) and KYC guidelines. It is important to stay in good standing with them. If you fail to do so, it is beyond our control, and we must act accordingly.
Refund Policy:
Please note that no refunds will be issued if you fail to complete the KYC process. We encourage all clients to ensure they meet the KYC requirements before making any purchases on our platform.
Violation Warning System
We actively monitor trading activities to ensure compliance with our Terms of Use. If a trader violates these terms, a structured warning system is applied:
1. First and Second Warnings: When a violation is detected, a warning is issued. Profits from violating trades are deducted, while losses remain unchanged and count toward the warning system.
2. Third Warning: Upon the third violation, the account will be breached, and further actions may be taken, such as suspension or termination of the account.
Warnings carry forward, meaning violations accumulate over time and do not reset after each reward or phase.
For more detailed information on the specific checks and violations (such as news trading, order layering, and high-frequency trading) that are monitored during the reward process, please refer to the detailed violations article here.
Account Scaling and Profit Split Enhancement Plans
Introduction
At The Funded Trader, we understand the value of rewarding consistent performance. Our scaling plans across different challenges—Standard, Rapid, Royal, Royal Pro, Knight, Knight Pro, and Dragon—are designed to provide traders with the opportunity to increase their account's virtual starting balance and potential profit sharing percentage based on their trading success. This comprehensive guide outlines how you can grow your demo account and enhance your simulated experience.
Scaling Overview
Scaling is a process designed to incrementally increase a trader's demo account balance by a set percentage, based on consistent simulated trading performance over time.
Standard Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Standard Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Rapid Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Rapid Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Royal Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Royal Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Knight Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Knight Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Dragon Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Dragon Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Knight Pro Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Knight Pro Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Royal Pro Challenge Scaling
Eligibility: Traders must show profitability of at least 6% over a 3-month period.
Scaling Increase: 25% increase of initial demo account balance per scaling event.
Knight Pro Challenge Scaling Examples
Initial Virtual Starting Balance | Scaling Event | New Virtual Starting Balance |
100K | 25% of original starting balance added to virtual starting balance | 125K |
125K | 25% of original starting balance added to virtual starting balance | 150K |
150K | 25% of original starting balance added to virtual starting balance | 175K |
Scaling Mechanics
Account scaling happens automatically and will only be done and processed while awaiting a withdrawal since the account balance must equal the starting balance when an account is scaled.
Note: Since daily and maximum drawdown loss limits are always calculated as a percentage of virtual starting balance, scaling your account will also scale your daily and maximum drawdown limits.
Maximum Simulated Funded Account Balance Potential
The Funded Trader allows traders to scale their demo account virtual balances through account increases of up to 25%, with a maximum balance of $1.5M in simulated virtual starting balance across all active Standard, Rapid, Royal, Classic, Royal Pro, and Dragon funded accounts.
For example, if you have two 200K funded accounts, you can scale each of them to 750K in virtual starting balance, resulting in a total of $1.5M in virtual starting balance, which is the maximum allowed through the scaling plan.
Knight & Knight Pro Account Exception
The Knight and Knight Pro Challenges offer an even higher scaling potential, allowing traders to hold up to $2.5M in simulated virtual starting balance across up to 20 accounts. This is significantly higher than other challenge types and gives Knight and Knight Pro traders the ability to reach a maximum of $5M combined across both challenge and Funded accounts.
In summary:
• For Standard, Rapid, Royal, Royal Pro, Classic and Dragon challenges: Maximum of $600k in total simulated Funded balance.
• For Knight and Knight Pro challenges: Maximum of $2.5M in Funded accounts and an additional $2.5M during the challenge phase, totaling $5M in active accounts.
Concluding Notes
Understanding the reward process and scaling opportunities at The Funded Trader allows for a more strategic and informed trading approach. Each Funded account offers unique benefits and requires specific criteria for payouts and account growth, tailored to support your trading ambitions effectively. For more details or specific inquiries, contact our support at the chat on the website.