Prop Firm Refundable Fee: The Credit-Not-Cash Refund

Refundable Fee: The Refund That Is Not Cash

By PropTrader1 2 min read Published October 28, 2026

Affiliate Disclosure: FYI - this site contains affiliate links to services I think may suit you. If you make a purchase through these links, I may earn a commission at no extra cost to you. Some offers include discounts I have negotiated specifically for you.

Keep up to 90% of your profits. Start from €79.

Rewards up to 90% — the 1-Step pays from day one.
2-Step fee refunded in full with your first reward.
$650M+ paid to 4.5M+ traders — the 11-year standard.

Get the latest discount (affiliate link)

A refundable fee is an evaluation fee returned to the trader as part of a reward - not refunded at purchase, and not always paid in cash. The two details that decide its value: the trigger (which reward) and the form (cash add-on vs credit against future costs).

Worked examples (checked 28 October 2026): FTMO refunds 100% of the 2-Step fee with your first reward, in cash - but its refund FAQ excludes the 1-Step and Instant fees. FundedNext pays the fee as a "Refundable Fee" with your first Performance Reward on the Stellar 2-Step, and with your third reward on a Stellar 1-Step bought on or after 12 January 2026 - a real delay most traders miss. FundedNext also sells a 150% Reward add-on that scales the return.

Why the form matters: a fee returned as a credit against a future attempt only has value if you were going to buy another attempt; cash has value always. Read which one the terms give you.

Refund policies in full: prop firm refund policies; the cash benchmark: FTMO account prices.

Plain-language material on leveraged-trading risk is maintained by the ESMA investor corner.

Part of the payouts cluster and the full prop firm glossary.

Frequently Asked Questions

Why is a 50% drawdown harder to recover than a 10% one?

A 50% drawdown requires a 100% gain to recover, while a 10% drawdown only needs 11.1%. Recovery math is exponential. At 30% drawdown you need 42.9% to break even. This is why prop firms cap drawdown at 10-12% rather than higher percentages.

What is the 3-5-7 rule in forex?

The 3-5-7 rule suggests risking 1-3% per trade, keeping total open risk at 5% or less, and limiting single market exposure to 7%. It is a general risk guideline, not a prop firm rule, but following it naturally keeps you within most max drawdown limits.

What is a good maximum drawdown?

For prop firm trading, keeping your actual drawdown under 5% is excellent. Most firms allow 10-12%, but staying well below the limit demonstrates strong risk management and gives you a buffer for unexpected market events.

Is maximum drawdown calculated on balance or equity?

It depends on the firm and drawdown type. Static drawdown is typically calculated on starting balance. Trailing drawdown follows your highest equity. Some firms include floating losses in their calculation, making equity the relevant measure.

What happens when you breach maximum drawdown?

Breaching maximum drawdown results in immediate and permanent account closure. All positions are closed automatically, the challenge is terminated, and there is no refund or appeal. It is the final rule with no second chances.

What is the difference between daily drawdown and maximum drawdown?

Daily drawdown resets every day and limits your loss within a single session. Maximum drawdown is cumulative across the entire challenge or funded period. You can breach max drawdown through many small daily losses that accumulate over time.