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.