Simulated funded account — A funded account that runs on a simulated feed while still paying real, performance-based payouts under the firm's payout policy.
How simulated funded account works in prop trading
Many retail prop firms — particularly in futures — keep the funded stage in a simulated environment. Your fills come from a live market data feed, your P&L is tracked as if the orders were real, and the firm pays you a share of that simulated profit out of its own revenue. The payout is real money; the order flow generally is not reaching an exchange.
This matters for two practical reasons. It changes what your fills tell you: simulated execution can be more forgiving than live at the touch, so a strategy that depends on getting filled at the bid may look better than it is. And it changes who bears your risk — the firm is paying your profits from company funds, which is why the risk rules are strict and why consistency rules exist at all.
Key points
- The payout obligation is real even when the order flow is simulated.
- Firms are expected to disclose the model in their terms; it is rarely on the marketing pages.
- Simulated fills can flatter strategies that rely on passive limit-order execution.
- Some firms copy a subset of profitable traders to live capital without changing the trader's experience.
Also known as
- demo funded
- simulated trading
- sim funded
Frequently asked questions
Is a simulated funded account a scam?
Not inherently — it is a disclosed business model, and the payouts are real. What matters is whether the firm discloses it plainly, pays on its stated cycle, and does not use vague rules to deny withdrawals. Judge a firm on its payout record and the clarity of its terms rather than on whether the account is simulated.
How do I know if my funded account is simulated?
Check the terms of service and the risk disclosure rather than the sales page. Firms operating a simulated funded stage generally say so explicitly, often describing the account as a demo or evaluation environment with performance-based compensation.
Put this into practice
Simulated funded account is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.