Sim vs Live Funded Model
Most FX funded accounts are simulated with contractual payouts — not segregated broker equity.
Applies to 3 firms • Commercial & Legal • FUNDED
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Why this rule exists
Passing does not move your orders to a prime broker. Most FX firms keep funded traders on demo servers with simulated fills and pay splits as contractual performance rewards from company revenue. That is why strategy vetoes, caps, and buffers exist — the firm wears the risk. Futures XFA and live call-up paths place a minority of consistent traders on live market rails. Neither model is inherently bad, but only one carries SIPC-style segregation. Size funded risk as an unsecured income stream, not a bank balance.
How traders get caught
This rule is often buried in FAQ or enforced only at payout review — not on the pricing page. Check the exact firm wording before assuming the headline covers your case.
How to stay safe
Verify the firm terms excerpt, keep evidence logs of your setup, and test edge cases in the simulator before sizing up.
The Formula
How it is calculated
Real Dollar Example
On a $100K funded account up $10,000 at 80% split, the $8,000 payout is a company reward obligation, not a withdrawal from a $110,000 brokerage account. If terms allow strategy veto, $6,000 of grid-attributed profit can be removed leaving $1,600 payable — impossible under a true segregated-broker model.
Common Traps & Mistakes
Assuming funded balance is withdrawable principal — only profit share is payable.
Ignoring counterparty risk and keeping life-changing sums uncleared.
Demanding exchange fills on a simulated server.
Firms using this rule
Rule FAQ
Frequently Asked Questions: Sim vs Live Funded Model
What is the Sim vs Live Funded Model?
Most FX funded accounts are simulated with contractual payouts — not segregated broker equity.
How is Sim vs Live Funded Model calculated across prop firms?
Payout Source = Simulated Performance Reward (contractual) unless Live Call-Up stated
What are the most common mistakes traders make with Sim vs Live Funded Model?
Assuming funded balance is withdrawable principal — only profit share is payable. Ignoring counterparty risk and keeping life-changing sums uncleared. Demanding exchange fills on a simulated server.
Related guides
Keep learning this cluster
Payout Gates & Profit Split
The 6 checks that hide your payout button: profit, days, consistency, buffer, KYC, and caps.
Retroactive Strategy Veto
Profits can be removed after the fact if the strategy is later ruled prohibited — winning first does not protect you.
Restricted Countries & KYC
Residency, ID match, and payout-name match decide eligibility before any profit matters.
All 41 guides
Try it live
Simulate this rule interactively with your starting capital and drawdown constraints using our real mathematical risk engine.
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