FundedNext has scrapped its 70% margin rule with immediate effect, retiring one of the tighter conditions baked into its funded-account framework โ and doing something prop firms rarely do when they rewrite the rulebook: it reversed the penalties traders had already collected under the old rule and left their profits untouched. The change applies to both existing and newly opened accounts, and the retroactive cleanup is arguably the bigger story than the rule removal itself.
What FundedNext Actually Changed
The 70% margin threshold is gone across every FundedNext account, old and new. The firm has also stripped the Margin Usage Card out of trader dashboards, a clear signal that margin utilization is no longer being policed under the previous system. For traders, that means one fewer gauge to babysit during execution โ position sizing and overall account risk now carry the weight that a separate margin ceiling used to share.
It is a meaningful simplification. Newer funded traders in particular often conflated margin limits with drawdown rules, treating two different controls as if they were the same thing. If the distinction between those account guardrails is still fuzzy, our explainer on what drawdown means in prop trading is a useful primer.
Cleared Violations and Protected Profits
The part that sets this apart from a routine tweak is retroactive. Traders who picked up warnings or violations under the 70% rule during their current cycle will have those records wiped clean. More importantly, any profit generated while the rule was technically breached stays in the account โ no clawbacks, no deductions.
FundedNext extended the same treatment to accounts running under its 1% Risk and 30% Margin structure: current-cycle margin penalties reversed, earnings retained. Traders on those account types do still have to honor the 1% risk requirement, so the relief is targeted at the margin mechanics rather than a blanket loosening of the rulebook. Anyone weighing account models can see how conditions like these shape the funded experience across the market’s leading prop firms.
Risk Limits Stay, Margin Limits Go
FundedNext was explicit that its 3% risk limit is unchanged. That distinction is the whole point: margin usage and risk exposure are not the same measurement. A trader can deploy heavy margin while still sizing positions conservatively and keeping downside risk in check โ and it is the downside risk the firm still cares about.
By anchoring its rulebook to risk rather than a fixed margin figure, FundedNext is lining its conditions up with how much a trader can actually lose, not how much of the account’s buying power is in play at any given moment. That is a more defensible way to protect capital, and it maps neatly onto the discipline that separates traders who pass from those who blow up mid-evaluation โ a theme we dig into in our rundown of the biggest mistakes prop traders make during a challenge. It also fits the wider set of evaluation rules traders should understand before funding an account.
What This Means for the Broader Prop Industry
Across the prop space, firms have spent the past year quietly auditing rules that add complexity without materially improving risk control. Overlapping restrictions โ a margin cap sitting on top of a drawdown limit sitting on top of a risk-per-trade rule โ tend to generate confusion, support tickets, and disqualifications that have little to do with genuinely reckless trading. FundedNext removing one layer while keeping a clearly defined risk ceiling is very much in step with that broader move toward leaner, more legible conditions.
The retroactive element is the more interesting signal, though. Restoring profits and erasing prior violations is a retention play as much as a rules change: it tells funded traders that a policy correction will not quietly cost them money they already earned. In an industry where trust erodes fast whenever payouts or account records are involved, that gesture carries weight โ and it connects directly to how firms structure profit splits and payouts in the first place. Expect competitors to feel pressure to justify any rule that looks more like friction than protection. This is not FundedNext’s only recent structural change, either; the firm also trimmed its flagship contest to 14 days, suggesting a deliberate push to make its programs simpler and faster to navigate.
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Source: Forex Prop Reviews
