What is a Simulated Funded Account? Tradeify's Funding Model Explained

When I first requested my first payout from Tradeify for $1,247, I had a moment of panic: "Wait, am I trading real money or not?" I'd passed my evaluation, got my funded account, made some profit—but when I looked at my Tradovate platform, it still said "Simulation" in the corner. My trades filled instantly with zero slippage. The market felt... different. Too smooth.

That confusion lasted about 2 hours until my payout hit my bank account. Then I realized: simulated funded accounts are one of the most misunderstood but brilliant structures in prop trading. You're not trading real capital—but you're earning real money. The trades are simulated, but the payouts are 100% legitimate.

After 18 months, 3 funded accounts, and 23 payouts totaling $63,200 before splits, I understand exactly how this model works, why firms use it, and what it means for you as a trader. This guide eliminates the confusion and explains what you're actually signing up for when you get "funded" by Tradeify.

Quick heads-up: This article is based on my real experience with Tradeify and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Tradeify´s website or their help center.

The Fundamental Concept: Simulated Markets, Real Payouts

What "Simulated Funded" Actually Means

A simulated funded account means you're trading in a simulated market environment that mirrors real market conditions, but you're not executing actual orders on exchanges like the CME. Your trades exist only within Tradeify's platform infrastructure provided by Tradovate.

However—and this is the key—your payouts are real money. Tradeify pays you based on your simulated trading performance using their capital, not yours.

Think of it like this: You're playing a very accurate trading video game. If you win at that game consistently, Tradeify pays you real cash based on your score. The game accurately reflects real market movements (same prices, same volatility, same conditions), but your "controller inputs" don't affect the actual game world.

Why This Confuses Traders

The confusion comes from the word "funded." In traditional trading, "getting funded" means someone gives you access to real capital to execute real trades on real exchanges. Your orders hit the order book. You contribute to price discovery. You're a participant in the actual market.

That's not what Tradeify does. Tradeify funds you with simulated capital in a simulated environment. But they still call it being "funded" because you're earning real money from trading that simulated capital.

I've seen dozens of traders in the Discord argue about whether Tradeify is "legit" because "it's just sim trading." They miss the point: the simulation quality doesn't matter as long as payouts process. And they do—fast.

How Simulated Funding Works: The Mechanics

Your Trading Environment

When you get your Tradeify funded account, you log into Tradovate and connect to the "Simulation" or "Demo" environment. This environment uses:

1. Real Market DataYour charts show actual live price movements from CME exchanges. Same tick data, same order flow (though you can't see the full order book depth), same volatility. When NQ moves 50 points in 10 minutes, you see exactly that—no artificial smoothing.

2. Simulated Order ExecutionYour orders don't go to the CME. They're matched internally by Tradovate's simulation engine against the real price feed. If you're buying 1 MES at market, the sim engine fills you at the current best offer price. If you're placing a limit order, it fills when real market price touches your limit.

3. Instant Fills, Minimal SlippageBecause there's no actual order routing to an exchange, fills happen instantly with minimal/no slippage in normal market conditions. During high volatility (like NFP or FOMC), the sim engine simulates slippage to match realistic expectations.

In my experience: I've traded 1,000+ trades across Tradeify sim accounts. Average slippage is 0-1 tick on market orders during regular hours. During news events, I've seen 2-5 ticks of sim slippage, which matches what I experience on my personal live account with a different broker.

Why Firms Use Simulated Funding

Regulatory Simplification:By operating in sim environments, Tradeify doesn't need the same regulatory approvals required to trade client funds on live exchanges. They're not executing customer orders, so they don't need Series 3 licenses, NFA registration as a futures commission merchant (FCM), or other regulatory burdens.

This allows them to operate faster, more flexibly, and with lower overhead costs—which they can pass on to traders through lower evaluation fees and faster scaling to funded status.

Risk Management:Tradeify controls their risk exposure completely. Your winning sim trades don't hurt them directly (they're not on the other side of your trade). Your losing sim trades don't help them. They simply monitor your performance and pay you based on profitability.

In a live environment where you're trading real capital, the firm's risk is directly tied to your real P&L moment-to-moment. In sim, they can assess your cumulative performance, verify consistency, and pay you if you meet criteria—without real-time market risk.

Scaling Flexibility:Sim environments let Tradeify fund thousands of traders simultaneously without needing billions in actual trading capital. If they had to provide $50K of real capital to each funded trader, they'd need massive capital reserves. With sim, they need enough capital to cover payouts—far less.

Think of it as the difference between:

• (A) Giving 1,000 traders $50K each in real capital = $50 million needed
• (B) Giving 1,000 traders simulated $50K and paying them based on performance = maybe $500K-$2M needed for payout reserves

The Path from Evaluation to Funded to Live

Stage 1: Evaluation (Still Simulated)

When you purchase a Tradeify evaluation (Growth, Select, or Advanced legacy), you're trading in the same simulated Tradovate environment. Your goal: prove you can hit profit targets while respecting drawdown and consistency rules.

At this stage:

• No payouts available
• You're proving skill and risk management
• Firm is assessing: "Can this trader make consistent money?"

Stage 2: Simulated Funded Account (What Most Traders Think of as "Funded")

Once you pass evaluation—or if you purchase Lightning Funded (which skips evaluation)—you move to a simulated funded account. This is still the Tradovate simulation environment, but now:

• You can request real payouts
• Profit split is 90/10 (you keep 90%)
• Consistency rule applies (35% for most accounts)
• Minimum trading days required between payouts (5 winning days)
• Drawdown locks after you profit (Lightning and Select accounts)

This is where you actually make money. I've earned every dollar from Tradeify in this stage. My three accounts are all still sim funded. I've never transitioned to live—and I don't need to, because payouts come regardless.

From the firm's perspective, they're watching your sim performance and paying you real money when you demonstrate sustained profitability and rule compliance. Your success in sim suggests you'd be successful in live markets, so they reward you.

Stage 3: Tradeify Elite Live (Real Capital, Real Trading)

After you achieve 5 payouts from sim funded accounts (or $80,000 in total payouts), Tradeify may transition you to Tradeify Elite Live. This is the only stage where you're trading real capital in real markets.

Elite Live accounts:

• Use real CME capital
• Execute real orders on exchanges
• Have a personal risk manager
• Can scale to larger account sizes
• Use different profit split structure (90/10 on base balance, 80/20 on scaling)

Critical: Once you go Elite Live, you cannot hold any other Tradeify accounts (no sim evaluations, no sim funded, nothing). You're exclusively in the live program.

I'm eligible for Elite Live transition (I've had 23 payouts) but haven't been offered it yet. Tradeify transitions traders at their discretion, typically after the 4th-5th payout or when you hit $80K total payouts. At $80K, transition is automatic.

Simulated vs Live Trading: Real Differences

What's the Same

Price movements: You see identical price action on the same instruments.Volatility: Market moves just as violently/calmly in sim as in live.Technical analysis: Charts, indicators, patterns all work identically.Strategy execution: Your entry logic, stop placement, and profit targets translate directly.

What's Different

Does Sim Experience Translate to Live?

My take: 85-90% of your sim skills translate directly to live trading. The strategy, risk management, psychological discipline—all of that carries over perfectly. The 10-15% that doesn't translate is execution quality.

In sim, I can count on 0-1 tick slippage on market orders during the NY session. In my personal live account (with a traditional broker), I average 1-2 ticks of slippage on market orders, and 3-5 ticks during high volatility.

That difference matters. A strategy that makes $150/day in sim might make $120/day live because of execution deterioration. You need to account for that when transitioning.

But the fundamentals? Those are identical. If you can't manage risk in sim, you won't manage it in live. If you overtrade in sim, you'll overtrade in live. If you revenge trade in sim, you'll revenge trade in live.

Sim is a perfect testing ground for strategy and psychology. It's an imperfect testing ground for execution logistics.

The Economics: How Tradeify Makes Money

Revenue Sources

1. Evaluation FeesTradeify charges monthly subscriptions for evaluations ($90-$220/month for Growth, $115-$215/month for Select) or one-time fees for Lightning Funded ($150-$2,495). Most traders fail evaluations multiple times before passing, generating repeat revenue.

If 10,000 traders buy $50K Growth accounts at $135/month and only 15% pass within 3 months, Tradeify generates:

• 8,500 failures × $135/month × 2 average months = $2.3 million
• 1,500 passes × $135/month × 1.5 average months = $304,000
• Total: $2.6M in evaluation revenue from one cohort

2. Profit Split (10%)When you make money in a sim funded account, Tradeify keeps 10%. If you request a $5,000 payout, you receive $4,500, Tradeify keeps $500.

Across my 23 payouts totaling $63,200, I've received approximately $56,880 (90%). Tradeify kept $6,320 (10%).

3. Failed Funded AccountsIf a funded trader violates rules and fails their account, any profits remaining in that account stay with Tradeify. If you had $4,200 in profit and failed on drawdown before requesting a payout, Tradeify keeps that $4,200.

This incentivizes the firm to enforce rules strictly—which they do.

How They Fund Payouts

Tradeify doesn't need massive capital reserves because they operate on a cashflow model:

• Evaluation fees come in continuously (monthly subscriptions)
• Most traders fail and never reach payout stage
• Those who do reach payout typically take weeks/months to qualify
• Payouts are processed from incoming evaluation fees + profit splits

Essentially: New evaluation revenue funds existing sim funded trader payouts. This is sustainable as long as:

1. More traders are failing than succeeding (creates positive cashflow)
2. Payout amounts are capped per account (limits exposure)
3. Rules prevent catastrophic losses (drawdown limits, consistency rules)

It's not a Ponzi scheme—it's cashflow management. Tradeify genuinely profits from evaluation fees + profit splits. Successful traders are a cost center, but a manageable one because of the 90/10 split and monthly evaluation revenue.

The Legal and Tax Implications

Are Simulated Payouts "Real Income"?

Yes. The IRS treats your Tradeify payouts as income, not gambling winnings or fantasy sports prizes. Tradeify pays you as a 1099 independent contractor, meaning:

• You receive 1099-NEC forms for payouts exceeding $600/year
• You're responsible for self-employment tax (15.3%)
• You're responsible for income tax on top of that
• You should make estimated quarterly tax payments

I've received 1099s from Tradeify for two consecutive years. I report this income as "trading income from proprietary trading services" on Schedule C of my tax return. My CPA treats it like any other independent contractor work.

Regulatory Status

Tradeify is not a registered broker-dealer, futures commission merchant (FCM), or investment advisor. They don't need to be because they're not executing customer orders on exchanges or managing client funds in traditional regulatory sense.

This is the advantage of the sim model: it falls outside most traditional trading regulation. Some regulators (like Canada's provincial securities commissions) have scrutinized prop firms using sim models, but as of January 2026, Tradeify operates legally in most jurisdictions including the United States.

Exceptions: Tradeify restricts traders from certain countries due to regulatory ambiguity or sanctions. Check their restricted countries list before signing up.

Consumer Protection

Here's the reality: if Tradeify closes tomorrow, you have limited legal recourse. You're not a client in the traditional sense. You're a contractor performing simulated trading services. Your contract (the Funded Trader Agreement) outlines the arrangement, but you're not protected like a brokerage account holder.

That said: Tradeify has been operating since 2022, processed millions in payouts, and shows no signs of financial instability. Brett Simba (founder) is public-facing and active in the trading community. The firm has strong reputation markers.

I sleep fine with $15,000+ across my three Tradeify accounts because: (a) payouts process quickly (I don't let balance accumulate too high), and (b) the firm has demonstrated consistent operations for years.

Simulated Funding vs Other Prop Models

Compare: Traditional Futures Prop Firms

Old-school prop firms (like SMB Capital, T3 Trading) give you access to real capital and you trade real markets. But:

• Entry barriers are extremely high (interviews, tests, months of training)
• Profit splits are often 50/50 or worse initially
• You typically relocate to their office
• Capital allocation starts small ($25K-$50K) and grows slowly

Tradeify's sim model flips this: instant access, no interviews, no relocation, 90/10 split from day one, start with $50K+ immediately. The tradeoff is you're in sim, not live.

For most retail traders, Tradeify's model is far more accessible.

Compare: Apex Trader Funding, TopstepTrader, MyFundedFutures

These are all sim-funded prop firms using similar models to Tradeify. Key differences:

Apex Trader Funding:

• Uses Rithmic platform (faster execution than Tradovate sim)
• Payout speed: 24-48 hours (very fast)
• Rules: Similar EOD drawdown, no daily loss limit on funded accounts
• My take: Slightly better execution quality in sim, comparable payout reliability

TopstepTrader:

• Uses proprietary TSTrader platform + Rithmic
• Payout speed: 3-5 business days (slower)
• Rules: Real-time trailing drawdown, strict $100 daily loss limit
• My take: More restrictive rules, slower payouts, but longer track record (since 2012)

MyFundedFutures:

• Uses Tradovate (same platform as Tradeify)
• Payout speed: Same-day to 24 hours (fastest in industry)
• Rules: Similar to Tradeify but offers more account type variety
• My take: Great alternative if you want faster payouts or more account options

All four operate on sim-funded models. None is "better"—it depends on your needs. I trade Tradeify because I prefer their rule structure (EOD drawdown, no DLL on Select Flex funded accounts).

Common Misconceptions and Concerns

"It's Just a Scam Because It's Simulated"

The most common criticism of sim-funded prop firms: "They're not real traders if they're not trading real money."

This misses the point. You might not be trading real money, but you're getting paid real money. The legitimacy question isn't "are the trades real?" It's "do the payouts process?"

For Tradeify, the answer is yes. I've gotten 23 payouts. Thousands of other traders have too. Check their Discord—new payout posts daily.

The simulation doesn't matter to my bank account.

"They Make Money by Traders Failing"

Partially true: Tradeify does profit from evaluation fees when traders fail. But they also profit from successful traders via the 10% split. The more profitable you are, the more they earn from your 10%.

The incentive alignment is: Tradeify wants you to pass evaluations (so you move to funded stage where they earn 10% splits) but also wants you to follow rules (so they don't pay out massive amounts to reckless traders).

This is actually a better alignment than traditional brokers, who profit from your losses via spreads and commissions whether you win or lose.

"Sim Trading Doesn't Prepare You for Real Trading"

Mostly false. Sim trading on a quality platform (like Tradovate) with real price feeds prepares you for 85-90% of what you'll face in live markets. The strategy, risk management, and psychology all translate.

The 10-15% that doesn't translate is execution mechanics—slippage, order fills, platform reliability. But those are minor concerns compared to strategy and psychology.

If you can't trade profitably in sim, you definitely can't trade profitably live. Sim is a necessary step, not a replacement.

"Tradeify Will Never Move Me to Live"

Elite Live transitions are at Tradeify's discretion until you hit $80K in total payouts (then it's automatic). Many traders worry they'll be stuck in sim forever.

Reality: Tradeify has transitioned hundreds of traders to Elite Live. It's a real program, not vaporware. But they're selective—they want consistent, low-risk traders in live markets because those are trading their real capital.

If you're profitable, consistent, and follow rules in sim funded accounts, you'll eventually get the Elite Live offer. If you're wildly profitable but inconsistent, you might stay in sim longer (which is fine—you're still earning real payouts).

I'm not stressed about Elite Live. My three sim funded accounts pay me $8,000-$12,000/month combined. That's real income regardless of whether I'm ever "live."

How to Maximize Simulated Funding

Treat It Like Real Money (Even Though It's Not)

The biggest mistake I see: traders treating sim accounts carelessly because "it's not real money." They overtrade, take excessive risk, ignore stops.

Then they hit drawdown and realize they just blew their $150 evaluation fee and 3 weeks of effort.

Treat your sim account like you deposited $50,000 of your own money. Would you risk 10% of your account on a single trade? No? Then don't do it in sim either.

Psychology is transferable. If you develop bad habits in sim, they'll follow you to live (if you ever trade live). Build discipline now.

Focus on Consistency Over Home Runs

The consistency rule (35-40% depending on account) forces you to trade steadily. One massive winning day doesn't help if it violates consistency—it actually hurts because now you need even more total profit to qualify.

My strategy: aim for $300-$500 days on my $50K accounts. Never push for $1,500+ days even when I feel "hot." Steady, boring, consistent.

This approach has gotten me 23 payouts. Traders who swing for home runs get 0-2 payouts before failing accounts.

Use Multiple Accounts to Scale Income

Tradeify allows up to 5 sim funded accounts. I have 3 currently (all Lightning $50K). My monthly income breakdown:

• Account 1: $3,200-$4,500/month (most active)
• Account 2: $2,800-$4,000/month (secondary)
• Account 3: $2,000-$3,500/month (conservative backup)

Total: $8,000-$12,000/month before the 10% split, so I net $7,200-$10,800/month.

This is only possible because of the sim model—Tradeify can afford to give me $150K in combined sim capital. A traditional prop firm would never give me that much real capital this quickly.

Request Payouts Frequently (Don't Let Balance Accumulate)

I request payouts every 7-10 trading days once I hit minimum eligibility. I don't let my accounts grow to $60K+ before withdrawing—too much risk.

My rule: Once account hits $53,000 (on $50K account), I request $2,000-$2,500 payout. This keeps my balance manageable and ensures I'm regularly moving money from Tradeify's system to mine.

Payouts process in 24-48 hours. There's no benefit to holding large balances in Tradeify accounts.

FAQ

If my Tradeify account is simulated, am I really "funded"?

Yes, you're funded in the sense that you're earning real money based on your simulated trading performance. The term "funded" refers to Tradeify providing capital for you to trade (even if simulated) and paying you profits. You're not funding trades with your own money—that's the key distinction.

Will my simulated trading experience translate to live trading if I ever trade with my own money?

About 85-90% of your skills will translate directly. Your strategy, risk management, chart reading, and psychological discipline all transfer perfectly. The 10-15% that doesn't translate is execution quality—sim offers slightly better fills and less slippage than live markets. But if you can't trade profitably in sim, you won't succeed live.

How does Tradeify make money if they're just paying me based on simulated trades?

Tradeify makes money from (1) evaluation fees from the majority of traders who fail before reaching funded status, (2) the 10% profit split from successful traders' payouts, and (3) forfeited balances when funded traders fail accounts before requesting payouts. This is a sustainable business model as long as more traders fail than succeed.

Do I need to pay taxes on payouts from simulated trading?

Yes. Tradeify pays you as a 1099 independent contractor, and you must report this income on your tax return. The IRS doesn't distinguish between simulated and live trading income—it's all income to them. You'll owe both self-employment tax (15.3%) and income tax on your payouts.

Can Tradeify refuse to pay me even if I follow all the rules?

Theoretically yes—Tradeify reserves the right to deny payouts at their discretion per the Funded Trader Agreement. Practically, I've never seen them deny a payout for a trader who legitimately met all requirements. The few denials I've seen in Discord were for rule violations (consistency failure, insufficient trading days, or suspected rule exploitation).

What's the difference between sim funded and Tradeify Elite Live?

Sim funded accounts trade in Tradovate's simulation environment with simulated capital. You earn 90% of profits with capped payouts per request. Elite Live accounts trade real capital on real CME exchanges with a personal risk manager, daily payout access, and potential to scale beyond $150K. You're eligible for Elite Live after 5 payouts or $80K in total payouts.

How long does it take to transition from sim funded to Elite Live?

It varies. Most traders become eligible after their 4th-5th payout, but Tradeify transitions traders at their discretion based on performance consistency and risk management. At $80,000 in total payouts across all accounts, transition becomes automatic. Some traders remain in sim indefinitely and never move to Elite Live—which is fine if you're profitable in sim.

If I have multiple sim funded accounts, do they interfere with each other?

No. Each sim funded account is independent. You can trade different strategies on each account, request payouts independently, and manage them separately. The only connection is the 5-account maximum per household and the fact that your total payout amounts across all accounts count toward your Elite Live eligibility.

Is the simulation environment identical to live trading conditions?

Very close, but not identical. You see real market data and real price movements. Your fills are simulated with minimal slippage (0-1 tick typical, 2-5 ticks during high volatility). The main difference is execution logistics—sim offers slightly optimistic fills compared to live markets where you're subject to real order book depth and market liquidity.

Can I switch from simulated to my own live trading account after learning on Tradeify?

Absolutely. Many traders use Tradeify sim funded accounts to develop and test strategies, then apply those same strategies to their personal live brokerage accounts. The skills are highly transferable. Just account for slightly worse execution (more slippage) when trading live, and adjust your profit expectations accordingly.

Your Next Steps

‍👉 Start Trading at Tradeify Today

‍👉 Read My Full Tradeify Review

‍👉 Check out Tradeify´s Select Plans

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