what does simulated funded account mean?

A simulated funded account is one that only allows you trade unreal assets in a simulated environment just like a demo account. Your trades are then copied by the prop firm (using copy trading mechanism) and then executed on their own live account then they share the profits with you (profit split).

Some prop firms offer simulated accounts while other offer live accounts. The advantage of simulated funded accounts is that the terms and conditions (such as drawdown, loss limit, evaluation fee etc.) are less stringent than on live accounts. The disadvantage of simulated funded accounts is that they may be slippage since trades are not executed in real time.

Live funded accounts are often more expensive than simulated funded accounts because of the additional risk taken by the prop firm in executing the trades on the spot.

Simulated funded account means you are funded with fake money. This is what prop firms are based on, you pay for an evaluation but the paid account doesnt contain real money, so you trade with fake money in a demo account.

A simulated funded account is an account where your trades are executed in a virtual environment, not directly in the live financial markets. Even though the account looks like a real trading account—with real spreads, charts, and execution—it is ultimately a simulation. The prop firm uses your performance inside this simulation to determine whether you earn payouts.

In other words, the money you “trade” is not real market capital. You’re trading inside a model that mirrors market conditions, and the firm pays you based on your results, not on actual profits generated in the live market.