Activation Fee

An activation fee is a one-time charge some prop firms apply after a trader passes an evaluation, due before the firm grants access to the funded (live) account. It is separate from the evaluation or challenge fee, which only pays for entry into the assessment itself.

Why it matters

The activation fee changes the true total cost of getting funded, since passing an evaluation does not always mean a trader can start trading live immediately or for free. Because structures vary so widely between firms, and even between account types at the same firm, a trader can be caught off guard by a bill they did not budget for at the exact moment they expect to go live.

Live data

Example

A trader completes a two-phase evaluation and is notified that an activation fee must be paid within a set window, otherwise the offer to access the qualified or funded account lapses. In a pass-only model, no activation fee is charged at all during the evaluation; it is only invoiced once both phases are cleared, and the entry fee paid at the start remains the only cost if the trader fails.

Common misconception

Traders often assume the activation fee is just another name for the challenge fee, or that it's automatically non-refundable. In practice, of the firms where we have this recorded, some charge it upfront bundled with the evaluation fee, some charge it only on a pass, some fold it into the first payout, and others have dropped activation fees entirely for certain account types. Assuming one firm's timing and refund policy applies everywhere is a common way traders get an unwelcome surprise right after clearing an evaluation.

Related terms

• Two-step challenge
• One-step challenge
• Payout cycle
• Profit split
• Instant funding

See also

The FTMO firm profile, which covers its funded account fee and refund structure in more detail.

Sources

• Alpha Futures: Activation Fee
• FunderPro: Zero Activation Fee Challenge

The general mechanic, charging (or waiving) a fee between passing an evaluation and receiving funded account access, is described in similar terms across most prop firms.

Risk disclaimer: Trading carries a substantial risk of loss and is not suitable for everyone. Prop-firm evaluations charge fees and most traders do not pass. Nothing here is financial advice; figures can change, so verify current terms with the firm before purchasing.