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What Is an Activation Fee

An activation fee is a one-time payment required by some prop firms before a trader can access their funded account after passing the evaluation. This fee is separate from the initial evaluation cost and is only charged after the trader has met the profit target and completed all other requirements of the evaluation phase. It is not universal, and not all firms include this step, but for those that do, the activation fee acts as a final commitment before live profit-sharing can begin.

Why Firms Use Activation Fees

The purpose of the activation fee is to offset administrative, platform, and data costs associated with onboarding a trader into the funded environment. It may also serve as a filter to ensure that only serious and engaged traders proceed into the funded stage. From the firm’s perspective, the activation fee helps to cover risks and infrastructure costs while maintaining the sustainability of the funding model.

Some firms apply the activation fee uniformly across all account sizes, while others adjust it based on the evaluation type or account tier. In many cases, the fee structure may even vary within the same firm. For example, a standard evaluation plan might require an activation fee, while a premium or express plan may waive it entirely. Because of this variation, it is critical that traders review the details of the specific plan they are purchasing. If the account type includes an activation fee, that payment will be required in order to proceed to the funded stage.

How It Works in Practice

For example, a trader may pass a $50,000 evaluation by reaching a $3,000 profit target. Once approved, they may be prompted to pay a $100 activation fee before their funded account is issued. Only after this payment is made will they receive login credentials, access to the funded account, and the ability to begin earning payouts. If the activation fee is not paid, the process cannot continue.

It is important to note that activation fees are typically non-refundable, even if the trader later violates rules or fails to reach a payout. Traders should factor the activation fee into their overall budget and confirm whether it is required before selecting an evaluation. Some firms may advertise the activation fee separately, while others may include it in the evaluation description or mention it only in the terms and conditions.

Summary

An activation fee is a final cost required by some prop firms before a funded account can be accessed. It is paid after successfully completing the evaluation and is separate from the original evaluation fee. The requirement may vary not only by firm, but by account type within the same firm. Traders should always check the details before purchasing, as the activation fee is a mandatory step on certain plans and must be paid to receive funding. Understanding how this rule works ensures there are no surprises after passing an evaluation and avoids delays in account activation.