Home › Market News › What Is a Funded Trader and How Do You Become One?
Ask most traders what holds them back, and the answer is almost always the same: capital. When your account is too small, every trade feels capped and every mistake feels costly.
What if you could prove your skills and have someone back you with their capital? That’s where becoming a funded trader changes everything. Prove that you can manage risk, stick to rules, and stay consistently profitable, and a prop firm will back you with their capital and split the profits.
Ask yourself this: can you make $3,000 before losing $2,000 in a trading account? If the answer is yes, that’s exactly what it takes to earn $50K in buying power here at Topstep.
Sounds good, right? Let’s break down how it works and how you can become a funded trader.
At its core, being a funded trader means this: a prop firm like Topstep puts up the capital, and you trade it. You split the profits. They absorb the risk. In other words, you’re trading the firm’s money, not your own savings.
The idea goes way back. Historically, “prop traders” (short for proprietary traders) worked on the floors of major exchanges, trading big firms’ money with the expectation of generating returns. But those seats were limited. You needed connections, desk fees, and proximity to Chicago or New York.
Fast forward to today: trading floors are mostly gone, replaced by screens and algorithms. But the core idea is still here, and the opportunity is bigger than ever. Trade other people’s money and share in the upside.
And here’s where things get interesting. For decades, retail traders (like you, sitting at home) didn’t have a way to step into that role. That’s where Topstep changed the game.
After getting beaten up by the markets trying to trade on his own, Michael Patak got a second chance. He was hired by a firm on the trading floor of the CME. But before he touched real capital, they made him prove himself in a simulated environment. That is where he learned how trading really works: managing risk, following rules, and building consistency before money was ever on the line.
Michael realized most traders never get that same opportunity. There was no safe, structured way to practice under real market conditions before risking personal savings.
So he built one.
Topstep was born from that experience. A place where traders can prove their skills in a simulated environment, show they can manage risk, and then earn access to firm-backed capital. The same foundation Michael used on the trading floor is now available to anyone with the drive to succeed.
Most traders run into one of these roadblocks at some point. Either they don’t have enough money to manage risk properly, or they blow through their account before they figure out consistency.
Becoming a funded trader solves that problem:
Becoming a funded trader is all about building a sustainable trading career without the financial risk that comes from trying to do it all on your own.
Here’s where “what if” turns into “I can.” Becoming a funded trader at Topstep isn’t about luck. It’s about proving your skills in a Trading Combine and climbing your way to the top.
Step 1: Pass the Trading Combine
The Trading Combine is a simulated market evaluation where you trade real market data, follow risk rules, and show that you can stay disciplined. It takes its name from sports, where athletes prove their skills to earn a spot on a team. In trading, you prove you can hit profit targets without blowing your account, and if you do, Topstep backs you with up to $150K in buying power (the amount of capital you’re allowed to trade with).
Step 2: Earn an Express Funded Account
The Express Funded Account (XFA) is the second step in the Topstep program. This stage is still a simulated environment, but here’s the difference: you can now take payouts from your trading.
Here’s how it works: after 5 winning trading days of $150 or more, you’re eligible to request a payout. That means you get to experience the pressure and reward of trading for money, while still protected by guardrails that keep your risk under control. And you’re one step closer toward going fully live with firm-backed capital.
Step 3: Trade a Live Funded Account
This is the call-up every trader’s chasing. After five payouts in your Express Funded Account, our risk team evaluates your performance and, if you’re ready, calls you up to a Live Funded Account (also known as the Big Leagues). Now you’re trading real money (not simulated funds), keeping your share of the profits, and operating like a pro.
Topstep puts up to $150,000 of its own capital behind you. That’s one of the biggest starting balances in the industry, giving you the firepower to trade live markets with confidence. On top of that, consistent traders can unlock additional cash through Topstep’s Live Performance Bonuses, where you can earn extra rewards for consistent profitability on top of regular payouts. This is where funded trading gets real.
There are other firms out there calling themselves “funding programs.” But here’s the difference:
Becoming a funded trader is part of Topstep’s commitment to helping traders live a better lifestyle. It’s all about giving you a clear path to trade smarter, stay funded, and actually get paid, all with the structure and support you need to succeed. That’s the freedom traders chase, and it’s exactly what Topstep was built to deliver.
And here’s the part that should have you fired up: you don’t need to move to Chicago, know the right people, or put up thousands of dollars to get started. You can do it right here. For just $49, you can get $50K in buying power and start earning your way to a Funded Account.
The path is clear:
If you’ve been asking yourself, “How can I get someone to fund me?” the answer is simple. Start with Topstep.
Start My Trading CombineA funded trader uses a prop firm’s capital to trade, instead of their own. At Topstep, you can access up to $150,000 in firm-backed buying power, keep a share of your profits, and focus on trading while the firm absorbs the risk.
A funded trading program lets you prove your skills before trading a firm’s capital. At Topstep, you start in the Trading Combine, a simulated market where you follow risk rules and hit profit targets. Show consistency, and you’ll move to an Express Funded Account (still a simulated environment) where you can earn real payouts while building experience. After five successful payouts, Topstep’s risk team reviews your performance. If you meet the criteria, you’ll advance to a Live Funded Account backed by Topstep’s capital, where you trade real money and officially become a funded trader.
You don’t need to be a professional trader to join Topstep. Whether you’re just starting out or an experienced trader, Topstep is built to help traders at every level develop structure, discipline, and consistency.
Topstep funds traders with up to $150,000 in buying power, one of the biggest starting balances in the industry.
Topstep pioneered the funded trading model more than 12 years ago. We’ve paid out millions to traders around the world and built a platform designed for trader success. We focus on what actually works: structure, risk management, and long-term consistency with clear rules and a supportive community. Learn more about how Topstep works.
The Trading Combine is Topstep’s rules-based trading evaluation. It’s your chance to prove you can manage risk and trade consistently. You’ll trade in a simulated environment using real market data, hit profit targets, and stay within loss limits. Pass, and you’re one step closer to unlocking access to firm-backed capital and a path to becoming a funded trader.
After you pass the Trading Combine, you’ll move into an Express Funded Account (XFA), where you can take real payouts (up to $5,000) while trading in a simulated but high-pressure environment. After five successful payouts, Topstep’s risk team reviews your performance. If you’re ready, you’re promoted to a Live Funded Account, where you trade Topstep’s real capital, keep your profits, and can even earn Live Performance Bonuses for consistent results.
