When Do Prop Firms Refund the Challenge Fee, and How Can You Lose the Refund?

"Refundable fee" is one of the most common lines in prop firm marketing. Read the terms and the refund almost always depends on a later event that many buyers never reach.

What people on X are asking

In November 2026 a prop-industry watcher pointed out that passing a challenge does not guarantee a funded account: one firm's terms say the funded contract is offered at its "sole discretion", and if it declines after you pass, you get no refund of the challenge fee. A week later a checklist thread on choosing a firm summed up the market: some firms refund the challenge fee with your first payout, some never do. Feeds are also full of promotions offering 100% or even 125% "fee refunds"; we do not link to those, because the useful question is what has to happen before any refund is paid.

What people in the thread said

• @DanSFV replied that this clause is effectively the product: passing buys you a review, not an account, so the funded-contract section should be read before the evaluation rules. We agree with the reading order. We checked the clause: FunderPro's terms (clause 11.9) do allow it to decline entry to the funded phase for risk, compliance, fraud-prevention or "other legitimate business grounds", with no refund of the challenge fee.

These are community comments, summarised in our words; the data and sources below come first.

The fact-checked answer

Refund on pass versus refund on payout. Almost every refundable fee we checked is paid back only after the funded account produces an approved withdrawal. Between passing and that point you still need a profit, the minimum days or amounts, identity checks and the firm's review. Any of those can stop the refund.

Challenge fee refund rules at three firms (checked November 11, 2026)

From each firm's own FAQ, help centre or terms on November 11, 2026. Rules change often; check the current page before buying. Listing a firm here is not a recommendation. Tap a column header to sort.

Firm and product	Refundable?	Trigger	How it is paid	Lost if…
FTMO 2-Step Challenge	Yes	First reward withdrawal request	Original payment method	No reward is ever requested
FTMO 1-Step / Instant	No	–	–	–
FunderPro Classic, One-Phase	Yes (credit)	Funded account plus first reward claimed	Added to that reward or credited	Funding declined, no reward, failed challenge
FunderPro Pro	No	–	–	–
FunderPro, any product	Full refund only within 14 days	No trades placed	Refund on request	Any trading activity
Topstep Trading Combine	Generally no	14-day guarantee on first-ever Combine if not passed (max one monthly payment)	Original payment method	Passing, later purchases, activation fees

Upgrades, resets and add-ons. Refunds usually cover only the original evaluation fee. FunderPro, for instance, says that if you upgrade to a larger account only the extra amount paid for the upgrade is creditable. Topstep lists resets, activation fees, data subscriptions and reactivations as non-refundable. Add-ons bought to change the rules are rarely included anywhere.

What a refund is worth. A refund paid only to traders who reach a payout returns little on average. If a $500 fee is refundable and one buyer in ten reaches a payout, the expected refund per buyer is $50, not $500. Your own chance is what counts, so track your attempts as described on our page about what a prop firm challenge really costs.

Expected value of a "refundable" $500 fee (illustration)

UXS arithmetic: expected refund = fee × probability of a first payout. The probabilities are illustrations, not firm statistics. Tap a column header to sort.

Your chance of reaching a first payout	Expected refund	Expected net fee
5%	$25	$475
10%	$50	$450
25%	$125	$375
50%	$250	$250

Discretion and the funded contract. Some firms issue the funded agreement only after you pass, and reserve the right to refuse it. That means the terms that decide your payout, and therefore your refund, may not be visible when you buy. Firms that sell evaluations of simulated accounts are generally not registered as brokers, so you cannot count on a regulator to resolve a refund dispute; the CFTC advises checking a firm's registration and background before trading. See whether retail prop firms are regulated for what that means.

Quick poll

What matters most to you about a prop firm's refund policy?

• That the fee comes back at all
• How soon it comes back
• That it cannot be withheld at the firm's discretion
• I ignore refunds and judge the fee as a cost

Save my answer

What each answer means

• That the fee comes back at all: Check which product: many firms refund one programme but not another.
• How soon it comes back: Most pay with the first approved payout, not on passing.
• That it cannot be withheld at the firm's discretion: Read the funded-contract and decline clauses before paying.
• I ignore refunds and judge the fee as a cost: A sensible default: treat any refund as a bonus.

Your answer is stored only in this browser (localStorage). UXS does not collect, count or publish votes, so no totals are shown.

Decision helper

Checklist

1. Find the refund clause in the terms, not only in the marketing page.
2. Note the trigger: pass, first payout, or a later payout.
3. Check which products and which payments (resets, upgrades, activation fees) are excluded.
4. Read any clause letting the firm decline funding after a pass.
5. Budget the full fee as a loss; count a refund only once it arrives.

Common mistakes

• Treating a refundable fee as a free attempt.
• Assuming the refund also covers resets or activation fees.
• Filing a card chargeback first: Topstep says this can get an account reviewed or closed.
• Forgetting that a breach before the first payout cancels the refund.

For related costs and payouts, see how a prop firm profit split is paid, whether a reset is worth paying for and the KYC documents firms ask for before a payout.

FAQ

Do prop firms refund the fee when you pass?

Rarely. The usual trigger is your first approved payout from the funded account.

Is the FTMO fee refundable?

For the 2-Step Challenge it is refunded when you request your first reward; the 1-Step and Instant fees are not refundable.

Can a firm keep my fee even if I pass?

Yes, if its terms allow it to decline funding. FunderPro's clause 11.9 says no challenge fee refund is due in that case.

Are reset and activation fees refunded?

Usually not. Topstep lists both as non-refundable.

Can I get my money back if I change my mind?

Some firms offer a short window, such as 14 days, only if you have not traded.

Is a 125% refund better than 100%?

Only if you reach the trigger; check the conditions and whether it applies to the discounted price.