Account tier
The size category of a funded account at a prop firm — different tiers have different starting balances, drawdown limits, and rule sets.
Prop firms offer multiple account tiers. Common sizes are $25K, $50K, $100K, $150K, and $250K — each with proportionally larger profit targets, daily loss limits, and trailing drawdowns. Higher tiers typically require larger evaluation fees but give more room to trade and larger profit splits.
Choosing a tier: bigger isn't always better. A $50K account with disciplined sizing on 1–2 contracts is easier to keep than a $250K account where the temptation to scale up to 5–10 contracts is constant. Most successful prop traders pick a tier that matches their proven sizing, not the largest they can afford.
Related terms
- Funded account
A live trading account financed by a prop firm where the trader keeps a profit share while the firm absorbs losses against a defined drawdown rule.
- Evaluation (Combine)
The simulated trading challenge a prop firm uses to qualify traders for a funded account.
- Daily loss limit
The maximum dollar amount you can lose in a single trading day before the account is breached.
- Position sizing
The process of determining how many contracts to trade on a given setup, typically based on a fixed-dollar risk and the stop distance.