Passing a prop firm challenge is the start of the funded-level onboarding process. The firm reviews your results, and two common next steps are identity checks and account activation. This page was checked on ****.
Passing the challenge does not usually mean the firm deposits the advertised account size into your bank account. Many prop firms provide a simulated funded account and pay you a share of simulated trading profits when you follow the account rules. FTMO and Topstep both describe their funded-level accounts as simulated trading environments, although their payout and progression systems differ.
What Happens Immediately After You Pass?
The usual process is:
- The firm reviews your trading results.
- The challenge account is closed or locked.
- You complete any remaining verification stage, if required.
- You complete identity and compliance checks.
- You sign the funded account agreement.
- The firm issues or activates your funded-level account.
- You trade under the new account rules and work toward payout eligibility.
The process depends on the firm and account model. FTMO's two-step programme includes a Challenge followed by Verification. Its one-step programme does not include a separate Verification phase. Topstep traders move from the Trading Combine to an Express Funded Account after passing.
Do You Automatically Receive a Live Funded Account?
No. Passing a challenge usually gives you access to a funded-level account, not an automatic live account with real market capital.
For example:
- FTMO: Traders generally continue in a simulated account and may receive real-money rewards based on simulated profits. FTMO says a live funded account is a separate possibility and is not guaranteed after passing an evaluation.
- Topstep: Traders first enter an Express Funded Account, which Topstep describes as a simulated funded-level account. Continued performance can later lead to consideration for a Live Funded Account.
The phrase "funded account" does not always mean that you are trading the firm's money in a live brokerage account. Check the account agreement to see whether the account is simulated, live, or eligible for a possible transition to live trading.
Is There Another Verification Phase After the Challenge?
Sometimes. It depends on whether the prop firm uses a one-step or two-step evaluation.
| Prop firm structure | What happens after the challenge? |
|---|---|
| One-step evaluation | Results are reviewed, followed by KYC and contract onboarding |
| Two-step evaluation | You complete a Verification phase before final approval |
| Futures evaluation model | You may move directly into a simulated funded account after meeting the evaluation objectives |
FTMO's two-step model requires traders to pass both the Challenge and Verification. Its one-step model sends successful results for review without a separate Verification stage. Topstep's Trading Combine leads to an Express Funded Account after the account is marked as passed.
Do You Need to Complete KYC Checks?
Yes, most established prop firms require identity verification before activating the funded relationship or processing payouts.
KYC may require:
- A passport or government-issued identity document
- Proof of address
- Tax information
- A signed trader or account agreement
- Additional documents for business or corporate applicants, where permitted
FTMO requires traders to complete FTMO Identity verification and sign an FTMO Account Agreement before receiving an FTMO Account. FTMO's U.S. futures documentation also refers to tax forms and proof of ownership for the bank account used for payouts.
An incomplete or failed identity check can delay onboarding or prevent a payout, even if you met the trading objectives.
Do the Profits From the Challenge Carry Over?
Usually, no. Challenge profits normally show that you met the evaluation target, but they do not become withdrawable profits in the funded account.
Topstep explicitly states that money made in the Trading Combine does not carry over to the Express Funded Account. The funded account starts under its own balance and payout rules.
Treat the challenge profit target as a qualification requirement, not as money you can withdraw after passing.
When Can You Request Your First Payout?
You normally cannot withdraw immediately after passing. You must first meet the funded account's payout conditions.
Common requirements include:
- A minimum number of profitable trading days
- A minimum profit amount
- A waiting period
- A positive balance after the last payout
- A consistency requirement
- Compliance with all trading rules
- Completed KYC and contract documentation
The rules vary by firm:
- FTMO states that CFD traders may request a reward from the 14th day after placing the first trade on a specific FTMO Account, provided the account is profitable and the trading conditions are satisfied.
- Topstep's Express Funded Account rules include payout conditions such as five winning days of at least $150 for its Standard path. Its Consistency path has a different requirement.
Passing the challenge lets you continue to the next stage. Meeting the funded account's payout rules lets you request money.
What Rules Apply After You Pass?
The funded account may use different rules from the challenge, so check the new terms before placing another trade.
Rules may cover:
- Maximum daily loss
- Maximum overall drawdown
- Maximum position size
- News trading
- Overnight and weekend holding
- Expert advisors and automated trading
- Copy trading
- Trading during market closures
- Consistency or risk limits
- Minimum trading activity
- Prohibited strategies
Some firms apply tighter restrictions after the evaluation. FTMO, for example, states that certain news and overnight trading restrictions apply to particular account types after the evaluation stage.
Do not assume that a strategy allowed during the challenge remains allowed after you pass.
Is the Challenge Fee Refunded?
The challenge fee refund depends on the firm and the programme.
FTMO states that its two-step challenge fee is refunded with the first reward withdrawal after the trader passes and receives a reward. Its one-step challenge fee is not refunded.
Some futures firms may charge a separate activation fee after passing. Topstep's current documentation distinguishes between a Standard Path with an activation fee and a No Activation Fee Path with a higher initial subscription price.
Check these costs before joining:
| Cost or condition | What to verify |
|---|---|
| Challenge fee | One-time or recurring |
| Activation fee | Charged after passing or included |
| Platform fee | Required on the funded account |
| Data fee | Especially relevant for futures trading |
| Reward split | Percentage kept by the trader |
| Payout fee | Payment processing or withdrawal charges |
| Refund policy | Whether the initial fee is returned |
Can You Lose the Funded Account After Passing?
Yes. Passing the challenge does not protect the funded account from being closed.
You can usually lose access by:
- Breaching the daily loss limit
- Breaching the maximum drawdown
- Using a prohibited trading strategy
- Violating the account agreement
- Failing compliance or identity checks
- Missing inactivity requirements
- Breaking position or exposure limits
The funded account is a new performance stage, not a permanent award. Topstep states that an Express Funded Account can be closed if the trader breaches its Maximum Loss Limit.
Reducing position size after passing can help you avoid treating the new account like another challenge. The rules and payout consequences are different.
Does Passing Lead to Scaling or a Live Account?
It can, but continued performance usually matters more than passing once.
Prop firms may consider:
- Profit milestones
- Number of successful payouts
- Consistent risk management
- Account longevity
- Maximum account limits
- Internal risk assessments
FTMO describes scaling plans and further opportunities after becoming an FTMO Trader. Topstep describes the Express Funded Account as a stage for taking payouts and building a track record before a possible move to its Live Funded Account.
Passing proves that you met the evaluation conditions. It does not guarantee unlimited capital or a permanent live trading role.
What Should You Do After Passing?
Use this checklist before trading the new account:
- Confirm the account status in your dashboard.
- Read the funded account rules from the beginning.
- Complete KYC and tax documentation.
- Review the reward split and payout schedule.
- Check whether an activation fee applies.
- Confirm whether the account is simulated or live.
- Record the new daily loss and drawdown limits.
- Reduce position size during your first trading sessions.
- Do not trade if the platform or rules are unclear.
- Save a copy of the account agreement and payout policy.
The Bottom Line
Passing a prop firm challenge usually starts the funded-level process. Before trading, confirm the account type, complete KYC, read the new loss limits, check the payout conditions and identify any activation fees.
The advertised account size is not necessarily cash or a live brokerage balance. Challenge profits normally do not transfer, and passing once does not protect the next account from rule violations.