No Activation Fee Prop Firms 2026: Skip Hidden Costs - Complete Guide
Some prop firms charge activation fees after you pass your evaluation—an unexpected cost that can eat into your profits. This comprehensive guide covers prop firms that don't charge these hidden fees, helping you find transparent pricing and avoid surprise costs in 2026.
No activation fee prop firms provide transparent pricing without hidden costs. Source: Unsplash
What Is an Activation Fee?
An activation fee is a charge some prop firms require after you pass your evaluation challenge and before you receive your funded account. This fee is separate from the initial challenge fee you pay to start the evaluation. Activation fees typically range from $50 to $500+ depending on the account size, and they're often not clearly disclosed upfront.
Activation fees can significantly impact your profitability, especially if you're starting with smaller account sizes. For example, a $200 activation fee on a $10,000 account represents 2% of your capital—money that could otherwise be used for trading or withdrawn as profit.
Reputable prop firms like FTMO (challenge fee refunded with first payout), FundedNext (no hidden fees), and TopStep (transparent pricing) don't charge activation fees. Compare all options using our prop firm comparison tool or explore best prop firms for firms with transparent pricing.
Top Prop Firms Without Activation Fees 2026
1. FTMO
FTMO is one of the most transparent prop firms regarding fees. They charge no activation fees, and their challenge fee is refunded with your first payout. This means once you pass your evaluation and start trading the funded account, FTMO refunds the challenge fee you paid initially.
FTMO's fee structure is completely transparent: you pay a one-time challenge fee to start the evaluation, and if you pass, you receive your funded account with no additional activation costs. The challenge fee refund makes FTMO essentially free if you're successful, which is a significant advantage over firms that charge activation fees.
This transparent pricing, combined with FTMO's industry-leading reputation, up to 90% profit split, and excellent support, makes it one of the best choices for traders who want to avoid hidden fees and unexpected costs.
2. FundedNext
FundedNext offers transparent pricing with no activation fees or hidden costs after passing evaluations. Their fee structure is clear: you pay the challenge fee upfront, and once you pass, you receive your funded account with no additional activation costs.
FundedNext's Express Model and standard evaluations both have no activation fees. The firm is known for its transparent terms and fair pricing, making it an excellent choice for traders who want to avoid hidden costs.
3. TopStep
TopStep offers transparent pricing with no activation fees. Their Trading Combine program has clear, upfront costs with no hidden fees after passing. TopStep is known for its educational focus and fair pricing structure.
TopStep's pricing is straightforward: you pay for the Trading Combine, and if you pass, you receive your funded account with no additional activation costs. This transparency, combined with their educational resources, makes TopStep popular among futures traders.
4. MyFundedFX
MyFundedFX offers no activation fees and transparent pricing. The firm is known for flexible trading conditions and fair terms, making it attractive for traders who want to avoid hidden costs.
5. Apex Trader Funding
Apex Trader Funding offers transparent pricing for futures traders with no activation fees. Their PA (Performance Account) options have clear, upfront costs with no hidden fees after passing evaluations.
Why Do Some Prop Firms Charge Activation Fees?
Some prop firms charge activation fees for various reasons, though reputable firms typically don't:
- Account Setup Costs: Some firms claim activation fees cover account setup, platform configuration, and administrative costs. However, these costs should be minimal and covered by profit splits.
- Additional Revenue: Activation fees provide an additional revenue stream beyond profit splits. This can indicate a firm is less confident in traders' profitability or wants to maximize revenue upfront.
- Risk Management: Some firms use activation fees to ensure traders are serious and committed. However, the challenge fee already serves this purpose, making activation fees redundant.
- Platform Fees: Some firms claim activation fees cover platform or data feed costs. However, reputable firms absorb these costs as part of their business model.
The reality is that activation fees are often unnecessary. Reputable prop firms make money from profit splits, not from charging traders fees. If a firm needs activation fees to be profitable, it may indicate other issues with their business model or terms.
How to Identify and Avoid Activation Fees
1. Read Terms of Service Carefully
Always read the prop firm's terms of service, fee structure, and pricing pages carefully. Look for mentions of "activation fee," "setup fee," "account activation," or similar terms. Reputable firms clearly state they don't charge activation fees, while firms that do charge them may bury this information in fine print.
2. Check Reviews and Community Feedback
Check reviews, forums, and community discussions about the prop firm. Other traders often share experiences about hidden fees, including activation fees. If multiple traders report unexpected activation fees, it's a red flag. Reputable firms have transparent pricing that's well-documented in reviews.
3. Ask Support Directly
Contact the prop firm's support team and ask directly about all fees, including activation fees, setup fees, and any other costs beyond the challenge fee. Reputable firms are transparent and will clearly state their fee structure. If a firm is evasive or unclear about fees, consider it a red flag.
4. Compare Fee Structures
Compare fee structures across multiple prop firms using our prop firm comparison tool. Look for firms that explicitly state "no activation fees" or "transparent pricing." Firms that are upfront about having no activation fees are typically more trustworthy overall.
5. Calculate Total Costs
Calculate the total cost of getting funded, including challenge fee, any activation fees, and other potential costs. Compare this total cost across firms to understand the true cost of getting funded. Remember that lower challenge fees don't always mean lower total costs if activation fees are involved.
Red Flags: Other Hidden Fees to Watch For
Beyond activation fees, watch for these other hidden costs that can reduce your profitability:
Monthly Platform Fees
Some firms charge monthly fees for platform access or data feeds. These can add up over time and reduce profitability.
Data Feed Charges
Firms may charge for real-time data feeds, especially for futures or stocks. Verify if data feeds are included or cost extra.
Excessive Reset Fees
While reset fees are common, excessive reset fees (more than 50% of challenge fee) can be a red flag. Some firms offer free or discounted resets.
Withdrawal Fees
Some firms charge fees for withdrawals, especially for certain payment methods or amounts. Reputable firms typically don't charge withdrawal fees.
Inactivity Fees
Firms may charge fees if you don't trade for a certain period. Check if inactivity fees apply and what the requirements are.
Account Maintenance Fees
Some firms charge monthly or annual account maintenance fees. These should be clearly disclosed upfront if they exist.
Impact of Activation Fees on Profitability
Activation fees can significantly impact your profitability, especially for smaller account sizes:
| Account Size | Activation Fee | % of Capital | Impact |
|---|---|---|---|
| $10,000 | $200 | 2.0% | Significant |
| $25,000 | $300 | 1.2% | Moderate |
| $50,000 | $400 | 0.8% | Moderate |
| $100,000 | $500 | 0.5% | Minor |
As shown in the table, activation fees have a larger percentage impact on smaller accounts. A $200 activation fee on a $10,000 account represents 2% of your capital—money that could be used for trading or withdrawn as profit. This is why choosing firms with no activation fees is especially important for traders starting with smaller account sizes.
How to Verify a Firm Has No Activation Fees
1. Check Official Documentation
Review the firm's official website, terms of service, pricing pages, and FAQ sections. Reputable firms with no activation fees typically state this clearly. Look for phrases like "no activation fees," "transparent pricing," or "no hidden costs." If activation fees aren't mentioned at all, that's usually a good sign, but verify with support to be certain.
2. Read User Reviews
Check reviews on Trustpilot, Reddit, trading forums, and other platforms. Traders who've been surprised by activation fees often share these experiences. If you see multiple reports of unexpected activation fees, it's a red flag. Conversely, if reviews consistently mention transparent pricing and no hidden fees, that's a positive sign.
3. Contact Support
The most reliable way to verify is to contact the firm's support team directly. Ask specifically: "Do you charge any activation fees, setup fees, or other costs beyond the challenge fee after passing the evaluation?" Reputable firms will give you a clear, direct answer. If support is evasive or unclear, consider it a warning sign.
4. Check Comparison Resources
Use comparison tools and resources like our prop firm comparison tool to see fee structures side-by-side. These resources often highlight firms with transparent pricing and no activation fees, making it easier to identify the best options.
Benefits of Choosing No-Activation-Fee Prop Firms
Higher Profitability
Without activation fees, more of your trading profits stay with you. This is especially important for smaller accounts where activation fees represent a larger percentage of capital. Every dollar saved on fees is a dollar that can compound through trading.
Transparent Pricing
Firms that don't charge activation fees are typically more transparent overall. They're upfront about all costs, which builds trust and helps you make informed decisions. Transparency is a sign of a reputable, well-run prop firm.
Better Value
No-activation-fee firms often provide better overall value. They make money from profit splits (when you're profitable), not from charging fees. This aligns their interests with yours—they succeed when you succeed.
Reduced Risk
Lower total costs mean less financial risk. If you need to retake an evaluation, you're not paying activation fees multiple times. This reduces the financial burden of the prop trading journey and makes it more accessible.
Frequently Asked Questions
Are activation fees refundable?
Activation fees are typically non-refundable, which is why it's important to choose firms that don't charge them. Some firms may refund activation fees under specific circumstances (like account closure within a certain period), but this is rare. It's better to choose firms with transparent pricing and no activation fees from the start.
Can I negotiate activation fees?
Some firms may be willing to waive or reduce activation fees, especially for larger account sizes or repeat customers. However, if you need to negotiate to avoid fees, it's often better to choose a firm that doesn't charge them in the first place. Reputable firms with transparent pricing don't require negotiation.
Do activation fees vary by account size?
Yes, activation fees typically increase with account size. A $10,000 account might have a $200 activation fee, while a $100,000 account might have a $500 fee. However, the percentage impact is usually higher on smaller accounts. This is another reason why no-activation-fee firms are especially valuable for traders starting with smaller accounts.
Are there any legitimate reasons for activation fees?
While some firms claim activation fees cover setup costs, platform fees, or administrative expenses, reputable prop firms typically absorb these costs as part of their business model. They make money from profit splits when traders are successful, not from charging fees. If a firm needs activation fees to be profitable, it may indicate other issues with their business model.
What should I do if a firm charges an unexpected activation fee?
If a firm charges an unexpected activation fee that wasn't clearly disclosed, contact their support and ask for clarification. Review the terms you agreed to—if activation fees weren't mentioned, you may have grounds to dispute them. However, prevention is better: always verify fee structures before starting an evaluation to avoid surprises.
How do I calculate total costs including activation fees?
To calculate total costs, add the challenge fee, any activation fees, reset fees (if applicable), and any other upfront costs. Compare this total across firms to understand true costs. Remember that lower challenge fees don't always mean lower total costs if activation fees are involved. Always look at the complete picture when comparing prop firms.
Related Resources
Best Prop Firms
Top-rated proprietary trading firms
Reputable Prop Firms
Trusted and reliable prop trading companies
Cheap Prop Firms
Affordable prop trading options
Cheapest Prop Firms
Lowest cost prop trading firms
All Prop Firms
Complete directory of prop firms
Compare Prop Firms
Compare all prop firms side-by-side