FundedNext CFD Rules: A Complete Guide for Traders
9 min read
Understanding FundedNext rules before you start trading can save you from a failed challenge and a wasted fee. FundedNext runs four CFD challenge models under its Stellar brand, each with its own loss limits, profit targets, and payout structure. This guide breaks down the rules for every Stellar model so you know exactly what you're working with.
FundedNext Challenge Models: What You're Choosing Between
FundedNext's CFD side offers four Stellar models. Three are evaluation-based challenges. One skips the evaluation entirely. CFD accounts are available on MT4, MT5, cTrader, and Match-Trader.
Stellar 2-Step is the flagship. You pass two phases (8% and 5% profit targets) with a 5% daily loss limit and 10% overall loss limit. Account sizes range from $6,000 to $200,000.
Stellar 1-Step condenses the evaluation into a single phase with a 10% profit target. The tradeoff: tighter risk limits at 3% daily and 6% overall. Account sizes range from $6,000 to $200,000. You only need 2 trading days to qualify.
Stellar Lite is a two-phase model with slightly relaxed targets (8% and 4%) and mid-range loss limits (4% daily, 8% overall). Account sizes range from $5,000 to $200,000.
Stellar Instant has no evaluation at all. You get immediate access to a funded account with a 6% trailing maximum loss limit, no daily loss limit, and no minimum trading days. Account sizes run from $2,000 to $20,000.
All four models have no time limit to complete the challenge (where applicable), allow news trading, and permit overnight holding.
FundedNext Drawdown and Loss Limits by Model
The fundednext drawdown rules are where most traders trip up. Each model handles loss limits differently, so you need to know exactly which numbers apply to your account.
Here's the breakdown:
Stellar 2-Step | Stellar 1-Step | Stellar Lite | Stellar Instant | |
|---|---|---|---|---|
Daily Loss Limit | 5% of initial balance | 3% of initial balance | 4% of initial balance | None |
Maximum Loss Limit | 10% of initial balance | 6% of initial balance | 8% of initial balance | 6% (trailing) |
Max Loss Type | Balance-based | Balance-based | Balance-based | Trailing |
A few things to note:
For the Stellar 2-Step, 1-Step, and Lite models, the daily loss limit starts as a fixed percentage of the initial account balance. On a $100,000 Stellar 2-Step, that's $5,000. But if you make profit during the day, the limit expands by that amount. If you're up $2,000 at noon, your permitted loss for the day becomes $7,000. The limit resets at midnight server time, and profits from previous days do not carry over into the next day's calculation. Closed losses, floating losses, swaps, and commissions all count toward the limit.
The maximum loss limit on those same three models is also based on the initial balance. On that same $100,000 Stellar 2-Step, your account equity cannot drop below $90,000 at any point during the challenge.
Stellar Instant works differently. There's no daily loss limit, but it uses a trailing maximum loss limit of 6%. On a $10,000 account, the MLL starts at $600, meaning your equity cannot drop below $9,400. As you profit, the MLL floor trails upward: if your balance reaches $10,500, the floor moves to $9,900. Losses don't move the floor back down. The floor caps at your initial balance, so once you've profited enough, the lowest your equity can drop to is $10,000.
FundedNext Evaluation: Profit Targets and Minimum Trading Days
Each fundednext evaluation model has specific profit targets you need to hit before you can move to a funded account.
Stellar 2-Step | Stellar 1-Step | Stellar Lite | |
|---|---|---|---|
Phase 1 Profit Target | 8% | 10% | 8% |
Phase 2 Profit Target | 5% | N/A (1-step) | 4% |
Minimum Trading Days | 5 per phase | 2 | 5 per phase |
Time Limit | None | None | None |
Say you're on a $50,000 Stellar 2-Step. Your Phase 1 target is $4,000. You need to grow the account to $54,000 while staying above the $45,000 maximum loss floor and never losing more than $2,500 in a single day, across at least 5 separate trading days. A trading day counts only if you open at least one trade on that calendar day, and the days don't need to be consecutive. None of the challenge models impose a time limit.
The Stellar Instant model has no evaluation phase and no profit target to pass. You start trading on a funded account immediately after purchase.
FundedNext Payout Structure and Reward Shares
Once you pass a challenge and receive a FundedNext Account, your fundednext payout schedule depends on which model you chose.
Reward Share Percentages
Stellar 2-Step, 1-Step, and Lite: 80% reward share initially, increasing to 90% after qualifying for FundedNext Pro. Traders can reach 95% with the Lifetime Reward 95% add-on.
Stellar Instant: Starts at 70%, increasing to 80% as you advance through performance tiers.
Payout Timing
Stellar 1-Step: First payout after 5 business days of trading in the funded account. Subsequent payouts every 5 business days.
Stellar 2-Step and Lite: First payout after 21 days of trading. Subsequent payouts every 14 days. (A Bi-Weekly Reward add-on can shorten the initial 21-day wait.)
Stellar Instant: If your account grows 5% or more, you can request a payout immediately with all trades closed. If growth is between 1% and 5%, payouts are available every 14 days.
15% Challenge Phase Reward
FundedNext offers a 15% reward on profits generated during the challenge phase for Stellar 1-Step and 2-Step accounts. This reward becomes available once you reach FundedNext Pro status (see the scaling section below). The Stellar Lite model does not include this benefit, and it is not available for U.S.-based clients.
FundedNext Scaling: How the FundedNext Pro Program Works
FundedNext scaling works through the FundedNext Pro program, which lets funded traders grow their account balance up to $4 million. To qualify, you must:
Receive 4 Performance Rewards
Achieve a minimum of 4% growth in each of those qualifying cycles
Maintain an active account for at least 2 months
When you qualify, your account balance increases by 25%. On a $100,000 account, that brings you to $125,000. You can continue scaling every qualifying cycle, up to the $4 million cap. Reaching FundedNext Pro also increases your reward share to 90% and unlocks the 15% challenge phase reward for Stellar 1-Step and 2-Step accounts.
A cycle with less than 4% growth doesn't count toward scaling, but it doesn't disqualify you either. You keep going until you have 4 qualifying cycles. The maximum allocation across all Stellar 1-Step, 2-Step, and Lite FundedNext Accounts is $300,000. Stellar Instant has a separate $20,000 maximum allocation.
Stellar Instant has its own tier-based scaling system. To move up a tier, your total disbursed withdrawals in the current tier must equal at least 10% of that tier's starting balance, and you must complete at least one withdrawal. Each tier-up adds your initial balance to the account. You can scale up to 10x your initial balance, with a maximum allocation of $2,000,000.
Trading Rules That Apply Across All FundedNext CFD Models
Beyond the numbers, there are several fundednext rules around trading behavior that apply to all Stellar accounts. Violating these won't just fail your challenge. Some can result in a permanent ban.
Copy Trading
During the challenge phase, copy trading is allowed between Challenge Accounts you own, with a combined capital cap of $300,000. Once you reach a FundedNext Account (funded phase), copy trading is prohibited between that account and any other account. Traders can merge multiple FundedNext Accounts instead. Copy trading between accounts owned by different individuals is never allowed.
EAs and Automated Trading
FundedNext allows Expert Advisors (EAs), indicators, and trading bots on MT4 and MT5. Automated and algorithmic trading is not allowed on cTrader or Match-Trader, where all trades must be placed manually and only built-in indicators are permitted. Traders using EAs on MT4/MT5 must customize their settings to align with their own trading style, and an additional EA usage fee applies. For full details on EA requirements, see FundedNext's EA policy.
Strategy Consistency
FundedNext requires you to maintain the same trading strategy throughout your challenge and funded phases. Switching from manual trading to an EA (or vice versa) after passing the challenge is prohibited. Significantly changing asset classes or margin usage between the challenge and funded phases is also not allowed.
3% Risk Limit (Funded Accounts)
On FundedNext funded accounts, traders must limit risk to a maximum of 3% of their account balance at any given time. Risk is measured by potential loss based on stop-loss placement. Trades without a stop-loss set within 3 minutes are treated as 100% risk to the account. This is a corrective guideline, not a rule that gets your account terminated. Violations are handled through escalating steps: first a warning with a 50% profit deduction from the offending trade, then full profit deduction and reduced limits (1% risk, 30% margin) on the second violation, and placement into FundedNext's Disciplined Trader Program on the third.
Prohibited Strategies
FundedNext prohibits a wide range of exploitative and high-risk strategies. These include gambling behavior (excessive margin usage, overleveraging), high-frequency trading, tick scalping, grid trading, arbitrage, latency trading, one-sided betting, the Quick Strike Method, account rolling, and exploiting demo server errors or low-liquidity conditions. Cross-account hedging and group hedging are also prohibited. Using "pass your challenge" services, signal services, or sharing your account or device with others results in a permanent ban.
News and Weekend Trading
News trading is allowed across all Stellar models during both the challenge and funded phases. On funded accounts, a News Profit Split Rule applies: only 40% of profit from trades opened or closed within 5 minutes before or after a listed high-impact news event counts toward your balance. Losses during this window are fully applied.
Overnight holding is permitted across all models. Weekend holding is allowed during the challenge phase and on Stellar Instant accounts, but not on FundedNext Accounts (funded phase) for the Stellar 2-Step, 1-Step, and Lite models. All positions must be closed before market closure on those accounts.
Inactivity
Challenge accounts are marked inactive if no trades are placed for 60 consecutive calendar days (weekends and holidays included). Traders receive a warning email and have 24 hours to place a trade before the account is deactivated. Traders must also complete KYC verification within 30 days of passing a challenge, or the passed account will be invalidated.
Bottom Line
FundedNext rules vary significantly across the four Stellar CFD models, so picking the right one starts with knowing which loss limits and payout structure match your trading style. The 1-Step model gives you fewer trading days and faster payouts but tighter drawdown. The 2-Step offers more room to breathe. Lite is the budget-friendly option. And Instant removes the evaluation entirely at the cost of lower initial profit splits and smaller account sizes. Tools like Tanto let you track your performance across FundedNext accounts automatically by syncing trades from your broker. Whatever model you choose, read the rules for your specific plan on FundedNext's official help center before you place your first trade.
Last updated: March 14, 2026