Funded accounts, withdrawals and TMDs

Funded accounts, withdrawals and TMDs

The below will apply to any new user subscriptions taken out after February 19th 2025  (User subscriptions before this date will be subject to the previous payout rules)You are free to make withdrawals from the Funded Sim and Funded Live accounts as you make profits once the TMD has frozen at the starting account balance. See FAQ here.

When funds are transferred from Funded Sim to Funded Live, there is no TMD as such; the drawdown will just be the funds transferred to Funded Live from Funded Sim.

The $5000 level at which you are assessed by the Head of Trading for moving over to the Funded Live account is calculated on the total profits you have made (gross profits). These are the total profits in your trading account, including any profits that have been withdrawn. Only the net profits ( gross profits minus your withdrawals) will be transferred over to the Funded Live account. (Note: risk limits may be adjusted to reflect trader withdrawals and losses). 

The minimum amount that can be transferred to a Funded live account from a Funded Sim account is $1000.

For example:

• A trader has earned $5000 (after commission) in the Funded Sim. This is gross profit.

• During this trading, the trader has taken a payout/ withdrawal of $1500.

• So the gross profit is $5000 (after commission), and the net profit is $3500.

• Only the net profit of $3500 will be transferred to the Funded Live account.

• The TMD will be set at $0.

A Funded Live account behaves in the same way, but the opening account balance is $0 and the TMD is set as a negative.

Funded Live example:

• A $50,000 account ($50K) in Funded Live has a TMD of $2000, but with Funded Live accounts, the opening balance is set at $0 and so the TMD will be at -$2000.
  Step 1

• A trader earns $2000 of profit (after commission) in the Funded Live. This is gross profit.

• The account balance is now $2000.

• The TMD trails higher with the $2000 of profit in the Funded Live from -$2000 to $0, and freezes  at the account starting balance.
  
  

A note on withdrawals that significantly impact the TMD

TradeDay created a flexible withdrawal policy to give traders maximum flexibility and empower them to manage their trading accounts. 

However, please note that when a trader loses their funded account, we review the trading before allowing the trader to sign back up for an evaluation.

Traders who make frequent or large withdrawals that leave the account vulnerable to hitting the TMD may be viewed as mismanaging the account and may not be invited to rejoin the TradeDay team to retake another evaluation.

We want traders who are looking for a long-term partnership so we can help them grow and develop as traders.