Glossary · Prop Firms
Reset Fee
A reset fee is the amount a trader pays to restart a breached or failed evaluation or funded account at the same account size, instead of buying a brand new challenge. It typically reinstates the original balance, profit targets, and loss limits, and is usually set lower than the original challenge fee.
Why it matters
Resetting is generally cheaper than purchasing a fresh evaluation, which changes how traders budget for repeated attempts after a failed evaluation. Some firms also tie any refundable or registration fee to the most recent reset payment rather than the original purchase amount, which affects how much a trader eventually gets back when they clear the funded account's conditions.
Live data
Example
A trader on a funded account breaches a drawdown rule. Rather than buying a new evaluation at full price, they request an account reset from their dashboard. The firm reissues the same account size instantly once the reset fee is paid, often at a percentage discount off the standard challenge or funded fee rather than the full original price.
Common misconception
Traders often assume a reset fee always equals the original challenge fee, or that a refundable or registration fee stays locked to the first purchase. Several firms instead recalculate the refundable amount based on the most recent reset fee paid, not the original one. Reset policies also are not standardized across the industry: how many resets are permitted, whether discounts repeat on every reset or only apply once, and how quickly trading can resume after a breach all differ by firm. Of the firms where we have this recorded, some allow unlimited resets up to a maximum allocation while others cap them, so checking a specific firm's rules before relying on a reset is worth the time.
Related terms
See also
Use the Prop Firm Payout Rules Calculator to see how fees and payout rules interact before deciding whether to reset a breached account or restart with a new evaluation.
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
See how firms actually apply this.
Compare current account sizes, rules, discounts and funding terms side by side.