What Are Prop Firm Activation Fees? A Trader’s Guide

If you're pursuing a funded trading account through a proprietary trading firm, there's one extra cost many traders overlook—the activation fee. It’s not always listed front and center, but it can be a required payment after you pass the evaluation phase. If you don’t plan for it, it could delay or even block your access to the funded account you worked hard to earn.

In this guide, we’ll explain how activation fees work, why firms charge them, the difference between one-time and monthly structures, and how to avoid surprises by choosing the right firm.

What Is an Activation Fee?

An activation fee is a payment required by some prop firms before you can unlock access to your funded account. This is not the same as the evaluation fee—it’s paid after you’ve hit your profit target, followed all trading rules, and passed the firm's challenge.

Think of it as a final “unlock” payment that grants you funded account trading access and the ability to earn real payouts.

Why Prop Firms Use Activation Fees

Prop firms use activation fees to cover backend costs—account creation, platform access, risk setup, and data feeds. These are real business expenses that kick in only when a trader transitions from simulation to live.

There’s also a strategic reason. Charging a fee helps filter out non-serious traders who might pass by luck or inconsistency. From a business standpoint, it keeps the funding model sustainable by reducing unnecessary overhead.

Not every firm uses this model though. Several popular prop firms listed on our directory don’t charge activation fees at all, which can make a big difference if you're evaluating multiple options.

One-Time vs Monthly Fees: What’s the Difference?

Some firms charge a one-time activation fee, which often grants lifetime access to the funded account. Others go with a monthly model, where you pay a smaller amount regularly while your account stays active.

A few firms offer a choice—pay a larger fee once and never worry again, or choose a smaller recurring fee that adds up slowly over time.

This structure can heavily influence your decision. A cheap evaluation might seem appealing, but if it requires a steep activation fee later, your total cost could end up much higher than expected.

To help you compare, we maintain a regularly updated promo section with discounts and limited-time offers—many of which include reduced or waived activation fees.

Real Example: How It Works in Practice

Let’s say you pass a $100K evaluation. You’ve followed all the rules, reached the target, and gotten approved. Before issuing your funded account credentials, the firm asks for a $125 activation fee.

Once that’s paid, you’re in—you receive your funded account login, can place trades in the markets, and become eligible for payouts.

But if you don’t pay? The process ends there. You won’t be granted access until the fee is submitted.

Refundability: Can You Get the Fee Back?

In nearly all cases, activation fees are non-refundable. That means if you break a rule, don’t reach a payout, or decide not to continue trading, you won’t see that money again.

This is why we always suggest reading the firm’s terms carefully before purchasing. If the fee isn’t clearly mentioned on the checkout page, it’s likely buried in the fine print.

We regularly publish deep dives on topics like this in our blog, where you’ll find trader-focused guides that cut through the confusion.

Key Takeaways for Traders

Before you sign up for an evaluation, make sure you understand:

• Whether the firm charges an activation fee

• If the fee is one-time or monthly

• If the cost changes by account size or plan type

• Whether the fee is clearly stated up front

• If the firm offers promotions or discounts to reduce it

The good news? Not all prop firms charge an activation fee, and some even run limited-time offers where the fee is waived completely.

Choosing the right firm upfront—especially one without hidden costs—can make a big difference in your funding journey.