It is one of the shortest rules in the Fewpips rulebook and one of the easiest to overlook: every trade on a funded account must have a stop-loss and a take-profit attached. Miss it, and an otherwise clean trade can be flagged during a compliance audit. This guide explains exactly where the requirement applies, why it exists, what triggers a flag, and how to comply without changing how you trade.
The Rule, Stated Plainly
On Fewpips funded accounts, a stop-loss (SL) and take-profit (TP) must be placed on all trades. This applies to:
- CFD Funded accounts (1-Step, 2-Step, 3-Step funded phase)
- Instant funded accounts
- Futures Funded accounts
During the challenge phase, an SL and TP on every position is strong best practice and the smartest way to respect your daily loss and per-trade limits, but the hard, audited requirement applies to funded accounts. Build the habit during your evaluation so it is automatic by the time you are funded.
Why Fewpips Requires SL and TP on Funded Accounts
The requirement is not bureaucracy - it is the mechanism that makes every other risk rule enforceable in real time.
- Every trade has defined risk. A stop-loss caps the loss on any single position, which is what keeps you inside the per-trade limit (no single trade idea may lose more than 2% of the starting balance) and inside your daily loss limit.
- It prevents one-sided betting. A position with no stop is an open-ended bet on the firm's capital - exactly the behaviour the rules are designed to stop.
- It protects against gap and runaway risk. A take-profit and stop mean a position cannot drift unmanaged into a drawdown breach while you are away from the screen.
- It demonstrates professional discipline. Funded capital is committed behind defined-risk trades, not hope.
How SL and TP Connect to the Other Rules
Think of the stop-loss as the tool that keeps you inside three limits at once:
Per-trade cap: a single trade idea may not lose more than 2% = $1,000.
Daily loss limit (CFD funded, 4%): you may not lose more than $2,000 in a day.
If you set your stop so the trade risks about $1,000, you are inside the per-trade cap, and you would need two full stop-outs before approaching the daily limit. The stop-loss is what turns these numbers into an automatic guardrail instead of something you have to watch by hand.
What Triggers a Compliance Flag
Every funded account goes through a post-trade compliance audit before payouts. On the SL/TP rule, the audit looks for:
- Open or closed trades on a funded account with no stop-loss attached.
- Trades placed without a take-profit.
- Patterns suggesting stops were removed after entry to let a losing position run (a form of one-sided betting).
Because rule violations breach a funded account immediately and without warning, a habit of trading without protective orders is one of the avoidable ways traders lose otherwise profitable accounts.
How to Stay Compliant
1. Attach SL and TP at entry, every time
Set both orders at the moment you open the position, not "once it moves my way." Most platforms let you define stop and target on the order ticket before you click buy or sell - use it.
2. Size the position from the stop, not the other way around
Decide where your stop belongs based on the chart, then size the position so the distance to that stop equals your intended risk (for example around 1% of the account). This keeps you inside both the per-trade and daily limits automatically.
3. Do not widen or remove a stop to avoid a loss
Moving a stop further away to dodge a loss is the fastest route to a daily-loss or max-drawdown breach, and removing it entirely can read as one-sided betting in the audit. If the trade is wrong, take the planned loss.
4. If you trade automated strategies, build SL/TP into the logic
EAs are not permitted on funded accounts, but on approved CFD challenge automation, make sure every order the system sends carries a stop and target so the funded transition is clean.
Frequently Asked Questions About SL and TP Requirements
Do I need a stop-loss and take-profit during the challenge too?
The hard, audited requirement is on funded accounts. During the challenge it is best practice and the easiest way to stay inside your daily loss and per-trade limits - and building the habit early means nothing changes when you get funded.
Does this apply to every account type?
Yes, on the funded side: CFD Funded (1/2/3-Step), Instant, and Futures Funded all require a stop-loss and take-profit on every trade.
Can I move my stop-loss after entry?
You can manage a trade normally - including moving a stop to lock in profit. What you should never do is widen a stop to avoid taking a loss or remove it entirely, which risks a drawdown breach and can be flagged as one-sided betting.
What happens if I forget to set a take-profit on one trade?
The requirement is that funded trades carry both orders. A pattern of trading without protective orders is what the audit targets. The safe approach is to make attaching SL and TP part of your entry routine so it never happens.
Why does Fewpips care if it is my profit on the line?
On a funded account it is the firm's simulated capital backing your trades. Defined-risk orders are what make the funded relationship sustainable - and they protect you from the single biggest cause of blown accounts: an unmanaged position.
The SL/TP rule asks for nothing that a disciplined trader is not doing already. Attach both orders at entry, size from your stop, and respect the loss when you are wrong - and this rule will never be the reason a payout is held.