Glossary · Prop Firms
Pay After You Pass
Pay After You Pass is a prop firm pricing model where a trader enters an evaluation for little or no upfront fee, then only pays an activation fee once they pass, converting the completed evaluation into a funded or performance account. The full challenge fee is deferred rather than eliminated.
Why it matters
This structure lowers the barrier to attempting a challenge since the trader risks less capital before proving they can hit the profit target. It's usually offered as a checkout add-on or upgrade rather than a firm's only pricing path, so its rules, deadlines, and fees can differ meaningfully from the standard "pay upfront" challenge route at the same firm.
Live data
Example
A trader signs up for a discounted or near-free evaluation and reaches the required profit target within the allowed trading days. Once the pass is confirmed, the firm opens a fixed activation window, sometimes just days long, during which the trader must pay the activation fee to have the funded (performance) account created. Missing that window forfeits the opportunity entirely.
Common misconception
Traders often assume "pay after you pass" means the entire program is free until they're funded. In practice it's a paid upgrade with its own fee, and that fee usually comes with a strict activation deadline that firms will not extend, even by a few hours. It's also not a permanent pass: if the resulting funded or performance account is later disqualified or liquidated, most firms require starting over with a brand new evaluation and a new activation fee, whether the original evaluation was one-step or two-step. There is no free retry built into the model.
Related terms
Activation Fee, Challenge Fee, Funded Account, one-step challenge, two-step challenge
See also
The Futures Prop Firms category page covers this model in more depth, since pay-after-you-pass and activation fee structures are most common among futures-focused firms.
Sources
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.
Next step
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