Summary
Many traders dream of scaling up their funded accounts at a prop firm, but the reality behind that journey is often messier than the neat milestones you see in marketing brochures. In this guide, I’ll break down what it really takes to increase your account size at top proprietary trading firms, including the actual steps, the common pitfalls (yes, I’ve stumbled through several myself), and how different countries and firms handle “verified trading” standards. I’ll also dive into a real-life scenario where a trader ran into trouble while scaling, plus share some insights from industry insiders. To top it off, you’ll find a side-by-side comparison of national verified trade standards, so if you’ve ever wondered about the legal maze behind funding and scaling, you’re in the right place.
How Scaling Actually Works (Not Just What They Tell You)
Let’s skip the sales pitch and get into the weeds. Prop firms love to market “easy scaling” — just hit X% profit, keep your drawdown in check, and boom, your account doubles. But in my experience (and backed by forum chatter on Trade2Win), the process is rarely that smooth.
When I first tried scaling at FTMO, I thought I’d breeze through by hitting profit targets. I did, but then hit a wall: risk parameters got tighter, my daily loss limits didn’t grow at the same pace, and suddenly my strategy needed tweaking. Turns out, most firms have a ladder system — you start with a $50k or $100k account, and only after consistent performance (usually 10-20% profit, no big drawdowns for at least two to three months) do you become eligible for an account increase.
Step-by-Step: What You Actually Need to Do
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Pass the Initial Evaluation. This is usually a simulated or low-stakes live account. You must hit the profit target without violating drawdown or daily loss rules. Screenshot from my FTMO dashboard after my second attempt (first one was a bust):
- Maintain Consistency for a Set Period. Even after passing, most firms (MyForexFunds, The5ers, etc.) require at least 2-3 months of steady trading. One slip-up, and you’re back to square one. I once had a 15% month, followed by a -7% month, and scaling was denied.
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Request Scaling (Don’t Assume It’s Automatic). At Topstep, for example, you have to formally apply or opt-in for scaling. There’s usually an internal review; sometimes they ask for trade logs or even an interview. Here’s what the scaling request form looks like at The5ers:
- Adjust to New Risk Limits. This is where most people get tripped up. Your max position size, daily loss, and sometimes even the instruments you can trade will change. It took me two tries to not overtrade on the larger account, simply because the numbers felt “bigger.”
- Repeat the Cycle. Most top firms cap scaling at $500k to $2M, but the increments slow down as you go. At Audacity Capital, for example, the first jump is $15k to $30k, but by the time you’re at $240k, you need perfect consistency for six months to move up.
Scaling Milestones and What Actually Changes
Prop firms set clear milestones: 10% profit without breaking rules, a consistent win rate, and a minimum number of trading days. But in practice, the “rules” can be moving targets. For instance, FTMO’s Scale-Up Plan technically allows a 25% account increase every four months, but only if you’re profitable and haven’t hit the max loss. Some traders report (see ForexFactory) that even small rule violations can delay scaling eligibility.
Real-World Case: When Scaling Goes Sideways
Let me share a story from a trader I coached. “Alex” passed the evaluation at MyForexFunds and quickly hit the 10% target in his funded account. He assumed scaling would kick in — but after two weeks of aggressive trading, he triggered a daily loss violation. His account wasn’t only not scaled up; it was suspended. He had to start from scratch. The lesson: scaling is as much about discipline as it is about performance.
Legal and Regulatory Differences in “Verified Trading”
Here’s where it gets even trickier: what counts as “verified” or “compliant” trading isn’t standardized globally. In the US, proprietary trading firms must comply with FINRA regulations, with strict rules on reporting, client funds segregation, and anti-fraud measures. In the EU, the European Securities and Markets Authority (ESMA) oversees similar standards, but enforcement varies by country.
For “verified trade” in the context of prop firms, it usually means all trades are logged via a third-party platform (like MetaTrader’s trade history or a platform like MyFXBook). But the legal requirements for what constitutes “real” trading — especially when scaling up — differ widely.
| Country | Verified Trade Standard Name | Legal Basis | Enforcement Agency |
|---|---|---|---|
| USA | FINRA Rule 5320 | Securities Exchange Act, CFTC | FINRA, SEC, CFTC |
| UK | FCA Conduct of Business Sourcebook (COBS) | Financial Services and Markets Act 2000 | FCA |
| EU | MiFID II | Markets in Financial Instruments Directive II | ESMA, local regulators |
| Australia | ASIC RG 227 | Corporations Act 2001 | ASIC |
For example, in the US, if your prop firm is registered with the SEC or CFTC, every “scaling” event must be tracked and auditable. In contrast, some EU firms operate in a gray zone, especially with CFDs, meaning traders might hit scaling milestones only to find their new account frozen for additional KYC/AML checks.
Expert Opinions: What Industry Insiders Say
I reached out to a prop firm risk manager (who asked to remain anonymous) for their take: “Scaling is a double-edged sword. We want traders to grow, but we’ve seen too many hit bigger size and implode. Our review process isn’t just about P&L. It’s about how you handle risk, how you react to a losing streak, and whether you follow our rules under pressure.” That lines up with my own experience — the technical process is simple, but the human element is what makes or breaks it.
Personal Take: Where I Messed Up (And What I’d Do Differently)
Honestly, I got cocky after my first scaling approval. I assumed my strategy would work the same on a bigger account, but the mental pressure was different. Slippage was bigger, the urge to overtrade was real, and after two weeks, I nearly blew the account. Only after going back to a strict daily routine — and tracking my trades in detail — did I manage to hit the next milestone.
Conclusion & Next Steps
Scaling up a funded account at a prop firm is a real possibility, but it’s not just about ticking boxes or hitting profit targets. Every step up exposes new risks, tighter scrutiny, and sometimes unexpected regulatory hurdles (especially if you’re dealing with cross-border firms). My advice: treat each scaling stage as a new challenge, not a reward, and always check the firm’s fine print — ideally with a screenshot or two for your own records.
If you’re aiming to scale at a top prop firm, focus not just on profit, but on consistent risk management and documentation. And if you run into trouble, don’t be afraid to reach out to other traders or seek legal guidance, especially if you suspect regulatory issues. For more on international standards, check out the OECD’s trade compliance resources.
Next, I’d recommend keeping a detailed trading journal (with screenshots) and periodically reviewing your prop firm’s latest rulebook — they really do change things up, especially when regulators start poking around. And if you ever get stuck, remember: every trader who’s scaled up has at least one scaling horror story. You’re not alone.