A funded account is a term used in several meanings depending on the context, but it generally refers to one of the following:
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1. In traditional banks:
A funded account simply means an account that has a certain amount of money deposited in it, meaning it is not an empty or inactive account.
Example:
When opening a checking account, the bank requires it to be funded (initial deposit) with a certain amount, such as 100 dollars or 500 riyals.
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2. In trading and investment companies:
A funded account means:
A trading account provided to you by a third party (such as a "prop firm") to trade its money, not your own.
The trader receives a percentage of the profits (for example, 70%) and the company bears the losses under certain conditions.
Example:
Companies like FTMO, MyForexFunds, The5ers assess your performance, and if you succeed, they grant you