TEFS Rules for Instant Funding and Challenges

📜 TEFS Rules for Instant Funding and Challenges
At TEFS, rules are not there to restrict you, they are there to protect your account, encourage discipline, and prepare you for long-term trading success. Whether you take the 1-phase evaluation challenge or choose instant funding, knowing the exact requirements will help you keep your account in good standing and get paid.
🏁 Understanding the TEFS Challenge
A TEFS challenge is your entry test for a funded account. Pass it once and you gain access to a funded simulated account.
Main rules for challenges:
● Profit Target: Earn 10% on your starting balance. Example: Turn $10,000 into $11,000.
● Max Drawdown: Keep your single-day losses under 4%. That means no more than $400 on a $10,000 account.
Here’s the catch- both realized losses (trades you’ve closed) and floating losses (trades still open but currently losing) count toward this limit. If you’re not watching both, you might accidentally cross the line without even hitting the “close” button. Staying mindful of your daily P&L and unrealized trades is a habit that separates disciplined traders from the rest.
📖 Read the full breakdown here: Max Daily Drawdown Guide.
● Max Daily Drawdown: Limit losses to 4% in a single day. For example, $400 on a $10,000 account. Details here: Max Daily Drawdown Guide.
● Minimum Trading Days: Trade at least 4 separate days before passing.
● No Time Limit: Take as long as you need.
● Multiple Challenges: You can run more than one at a time, but no opposite positions across accounts.
Important: Once you pass the challenge, the funded account keeps the same drawdown rules — 6% Max Drawdown and 4% Max Daily Drawdown — but there are no minimum trading days and no time limit going forward.
💼 Instant Funding Rules
If you prefer to skip the evaluation, TEFS offers instant funding. This gives you a funded simulated account right away.
Rules for instant funding:
● Max Drawdown: Limited to 5% of your starting balance. If you hit it, the account is closed. See full explanation: Understanding Max Drawdown.
● No Max Daily Drawdown Rule: There is no daily drawdown requirement. However, TEFS strongly suggests avoiding losses greater than 4% in a single day to maintain long-term consistency.
● Profit Split & Payout Rules:
○ Keep 65% to 90% of your net profits, depending on your performance and account type.
○ Minimum profit threshold: $400 for most packages ($200 for Intro packages).
○ Request payouts by the 10th of the following month, paid on the 15th.
○ Maximum payout per month: $15,000.
○ TEFS covers outgoing transfer fees; you cover incoming bank fees.
○ Full payout details here: TEFS Payouts & Profit Split Explained.
📊 The Trading Environment
TEFS gives you a simulated environment that feels like real trading, so you can build skills without risking real money.
● Simulated Capital: All trades happen in a realistic virtual environment with live market data.
● Professional Tools: Level 2 market depth, advanced stock scanners, and realistic commissions.
● Live Market Hedging: Profitable traders may have their simulated trades mirrored in the real market by TEFS.
● Learn more: Simulated vs Real Trading – How TEFS Prepares You for the Real Markets.
🚦 Why These Rules Exist
These rules ensure:
✅ Safe and disciplined trading habits
✅ Realistic risk management
✅ Consistent long-term performance
✅ Protection of your trading capital
Follow them and you put yourself in the best position to stay funded, get paid, and grow as a trader.
🏆 The Bottom Line
Whether you pass the TEFS challenge or go straight into instant funding, the key to success is the same:
✅ Respect your drawdown limit
✅ Keep losses manageable
✅ Trade with consistency
✅ Follow the payout process carefully
✅ Treat your account like it is real money because the profits are
Master these rules and you will master your trading journey with TEFS.
📢 Ready to put your skills to the test? Get started with a TEFS Challenge or secure Instant Funding today and take the first step toward earning real payouts.