--- title: "What Is a Retail Trader? - Get Funded Now" description: "A retail trader trades their own money in a personal account, not for a firm. How they differ from institutional traders, and what the evidence says." url: "https://getfundednow.com/learn/retail-trader" language: "en" last_modified: "2026-09-22" publisher: "Get Funded Now (getfundednow.com)" translations: es: "https://getfundednow.com/es/learn/retail-trader" pt-BR: "https://getfundednow.com/pt-br/learn/retail-trader" fr: "https://getfundednow.com/fr/learn/retail-trader" it: "https://getfundednow.com/it/learn/retail-trader" de: "https://getfundednow.com/de/learn/retail-trader" disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds." --- Trading styles # The retail trader: trading your own account. A retail trader is an individual who trades their own money in a personal account, as opposed to an institutional trader who trades a firm's capital for a bank, fund or proprietary trading firm. Retail traders usually trade smaller sizes, pay higher costs and use leverage. Regulators' data show most retail accounts trading leveraged products lose money. [All trading lessons](https://getfundednow.com/learn) · [Read the trading rules →](https://getfundednow.com/rules) ## Retail vs institutional traders The differences are about capital, costs, access and oversight. **Retail and institutional traders compared** | | Retail trader | Institutional trader | | --- | --- | --- | | Whose money | Their own | The firm's or its clients' | | Typical size | Small | Large | | Costs | Retail spreads and commissions | Negotiated, usually lower | | Risk limits | Self-imposed | Set and enforced by the firm | ## What the evidence says about retail results European regulators found that 74-89% of retail accounts trading CFDs typically lose money, and large studies of retail day traders reach similar conclusions - see [how much day traders make](https://getfundednow.com/learn/how-much-do-day-traders-make). The figures describe retail traders as a group; individual results vary. ## Where a prop firm evaluation fits A retail prop firm evaluation sits between the two. The trader is an individual, but trades a simulated account under a firm's risk limits and, if they pass, can receive a share of simulated profit. The trader's maximum loss is the fee, not their own trading capital. The rules - daily loss limits, drawdowns and consistency rules - resemble the limits an institutional desk imposes. Step by step ## How to identify it Whatever kind of trader you are, the useful questions are the same. 1. Whose money is at risk, and how much of it? 2. What does each trade cost, including spread and commission? 3. Who sets the risk limits, and are they enforced? 4. What does an honest record of your results show? Worked example ## The concept, walked through ### The same idea, two traders, described An illustrative comparison in words. It is not a record of any real traders. 1. 1. Retail An individual buys a currency pair in their own account, with a stop they may or may not keep. 2. 2. Institutional A desk trader takes the same view with the firm's capital, inside a loss limit a risk manager enforces. 3. 3. Evaluation A trader on a simulated prop account takes it inside a daily loss limit that ends the account if breached. The idea was identical. What differed was whose money was at risk and who enforced the limits. Common mistakes ## Where traders go wrong ### Assuming retail means beginner It describes the account and the money, not the skill. ### Ignoring cost differences Retail costs are higher and matter most to short-term strategies. ### Having no enforced limits Without a firm's risk manager, the trader has to impose them. Limitations ## What it cannot tell you No chart concept predicts price. These are the limits worth keeping in view. - Retail results cited here come from particular markets and studies and describe groups, not individuals. - The boundary between retail and professional categories is set differently by different regulators. In an evaluation ## Using it on a simulated account GFN accounts are simulated. Traders who pass and trade a funded account can receive a share of simulated profits as real payouts, and the fee is the maximum loss. - [What is the daily loss limit?](https://getfundednow.com/rules/daily-loss-limit) - Trading rule - The firm-set limit most evaluations are measured against - 3% on Instant and 5% on 1 Step and 2 Step. - [How often do I get paid?](https://getfundednow.com/rules/payouts) - Trading rule - How payouts from simulated profit are made. - [How much of the profit do I keep?](https://getfundednow.com/rules/profit-split) - Trading rule - The share of simulated profit paid to traders. Questions ## Asked about this concept An individual who trades their own money in a personal account, rather than trading a firm's capital as an institutional trader does. The evidence says so for leveraged products: European regulators found 74-89% of retail CFD accounts typically lose money. Keep learning ## Related lessons - [How Much Do Day Traders Make?](https://getfundednow.com/learn/how-much-do-day-traders-make) - Indicators and trading styles - An honest answer to the income question: what large studies of retail day traders found, and why a per-month figure is the wrong thing to look for. - [The History of Social and Copy Trading](https://getfundednow.com/learn/history-of-copy-trading) - Indicators and trading styles - From signal sharing to automated copying: how social and copy trading developed, how the three forms differ, and why the rules around it tightened. - [Swing Trading vs Day Trading](https://getfundednow.com/learn/swing-trading-vs-day-trading) - Indicators and trading styles - How swing trading and day trading differ on holding time, screen time, costs and overnight risk - and why neither is the easier route. Sources ## What this page relied on 1. [Retail investor](https://en.wikipedia.org/wiki/Retail_investor) - Wikipedia. Retrieved 23 September 2026. The distinction between retail and institutional participants. 2. [ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors](https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors) - European Securities and Markets Authority. Retrieved 23 September 2026. National regulators' finding that 74-89% of retail CFD accounts typically lose money. Educational content only, not investment advice or a recommendation to trade. Chart concepts describe what price has done; none of them predicts what it will do, and trading any strategy can lose money. Get Funded Now accounts are simulated and trade virtual funds. Last reviewed 22 September 2026. Ready when you are ## Your capital stays yours. The risk is ours. One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes. [Start your challenge →](https://getfundednow.com/challenges) · [Read the rules](https://getfundednow.com/faq) No subscriptions or hidden fees Payouts every 14 days $400,000 max total allocation --- Source: https://getfundednow.com/learn/retail-trader Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt