Sim-funded vs live

"Funded" sounds like the firm hands you real money. At many evaluation firms, it doesn't — at least not at first.

Sim-funded accounts

After passing, many traders receive a simulated funded account. Your trades aren't sent to the exchange; the firm pays out a share of the simulated profits from its own revenue, under its payout rules.

What that means in practice:

• Fills are simulated — usually at the touched price, which can be more generous than real fills.
• The firm carries the payout cost, so it controls payout rules tightly.
• Your results look like trading, but no order reached the market.

Live accounts

Some firms move consistently profitable traders to a live account, where orders go to the exchange with real capital. Common differences:

• Real fills — slippage and queue position now matter.
• Different rules — often a smaller starting size, a different drawdown, or a daily profit or loss structure.
• Different payouts — sometimes a different split or schedule.
• Fewer accounts — firms typically allow far fewer live accounts per trader than sim accounts.

Questions to ask any firm

1. Is the funded account simulated or live?
2. Is there a path to a live account — and what changes when you get there?
3. How are fills simulated?
4. What happens to payouts if the firm's terms change?

Quick recap

1. Many "funded" accounts are simulated.
2. Live accounts mean real fills and usually different rules.
3. Read the terms — and trade with realistic fill assumptions.