Every trader dreams of managing large capital without risking their own money. Prop trading firms have made this possible through the use of funded accounts. However, the path to getting funded can vary significantly depending on the model offered. Two of the most common models are Instant Funding and the 2-Phase Funded Account.
In this blog, we’ll break down the difference between these two funding options, explore their pros and cons, and reveal how FundedSquad, a revolutionary prop firm, is reshaping the landscape with the most flexible, affordable, and trader-focused approach in the industry.
Instant Funding vs 2-Phase Funded Accounts: Key Differences
| Feature | Instant Funding | 2-Phase Funded Account |
| Access to Capital | Immediately after payment | Must pass Phase 1 and Phase 2 evaluations |
| Evaluation Required | No | Yes – with profit targets and rules |
| Profit Targets | Lower and more achievable (e.g., 6%) | Typically higher (9-10%) across two stages |
| Drawdown Rules | Flexible (Up to 12% overall) | Often strict (Max 6% overall) |
| Profit Split | Up to 100% | Typically 80%-90% |
| Payout Frequency | On-demand (in hours with FundedSquad) | Bi-weekly or monthly |
| Refund | No refund (you trade right away) | Refundable upon passing both phases |
What is Instant Funding?
Instant funding allows traders to skip the traditional evaluation process and access a funded account immediately. You pay a one-time fee, get access to simulated capital, and start trading instantly – no minimum trading days, no phases, and no delays.
FundedSquad, for example, offers an instant funding account for just $249, and a $50,000 account for $449, among the lowest rates in the industry.
Related Blog: Is Instant Funding Right for You? Here’s What You Need to Know
Key Benefits of Instant Funding:
- No wait. Just trade. Start immediately after purchase.
- Low Pressure: No need to prove consistency over several days or hit strict targets.
- Fast Payouts: With FundedSquad, payouts are processed within 12 hours, or you get $1,000 as a bonus.
- Scalable Accounts: Double your account size with every 10% profit until you reach $1 million.
Testimonial: “Awesome experience! Traded for a week and got my first payout within 24 hours of requesting. No consistency BS. Wish the team all the best!” – Vin, FundedSquad Trader
What is a 2-Phase Funded Account?
The 2-Phase Evaluation Model is a more traditional approach where traders must pass two trading challenges before accessing live capital. Each phase has:
- A set profit target (often 8-10%)
- Rules on drawdowns and lot sizing
- A minimum number of trading days
With FundedSquad, this model has been optimized:
- Profit Target: Only 6% in each phase
- No Time Limit: Trade at your pace
- Flexible Drawdown: Up to 6% daily drawdown
- Payout Split: Up to 90% once funded
Why Choose 2-Phase Funding?
- Proof of skill: Ideal for disciplined traders looking to validate their strategy.
- Lower cost upfront
- Refundable Fees after successful evaluation
Which One Should You Choose?
Instant vs Challenge Funding boils down to your goals, experience, and risk tolerance:
- Choose Instant Funding if:
- You want to start trading right away
- You’re confident in your strategy
- You value time and payout speed
- You want guaranteed scaling without restrictions
- Choose 2-Phase Evaluation if:
- You prefer proving your trading skills first
- You want a lower initial cost with refundable fees
- You want the discipline of a structured plan
Why FundedSquad is the Best Prop Firm for Both Options
FundedSquad is not just another prop firm, it’s a movement for traders, built by traders. With transparency, fairness, and innovation at its core, it’s quickly becoming the top choice for prop traders globally.
Here’s Why FundedSquad Stands Out:
- Lowest Profit Targets in the industry (6%)
- Guaranteed Payouts within 12 hours or $1,000 bonus
- Instant Simulated Funding from $249
- Aggressive Scaling Plan – double your account with every 10% profit
- 24/7 Discord Support & Community
- Reliable Platform & Trade Locker System
💬 Veronica Vila shares: “Funded Squad truly delivers. Payout on demand is a huge plus. Built by traders, for traders.”
Final Thoughts
Choosing between instant funding and 2-phase funded accounts isn’t a one-size-fits-all decision. But if you’re looking for flexibility, speed, and a prop firm that puts traders first, FundedSquad is your answer.
Whether you’re a beginner tired of unrealistic evaluations or a seasoned pro ready to scale fast, FundedSquad offers the most competitive funding models to fit your needs.
