In February 2026, Topstep introduced major changes to its Live Funded Account structure. The update shifts the focus from quick withdrawals toward long-term consistency and controlled capital scaling.
Since these changes were announced, both the firm and its CEO have faced significant backlash on Twitter (X), with many traders criticizing the new reserve system, payout structure, and mandatory transition to Live accounts.
1. Capital Access – How Much Can You Trade?
Before (Old Rules)
- Traders received 100% of their Live account balance immediately.
- A $100,000 account meant full access to $100,000 from day one.
- Scaling mainly applied to contract size.
After (New 2026 Rules)
- Only 20% of the account balance is available at the start.
- The remaining 80% is placed in a “Reserve.”
- The Reserve unlocks in 20% increments after reaching profit milestones.
- Milestones match Trading Combine profit targets.
- Performance is reviewed weekly before balance increases are applied.
Example: On a $100,000 Live account, you initially access $20,000. The remaining $80,000 unlocks gradually as profit targets are achieved.
This change requires traders to demonstrate sustained profitability before gaining full capital access.
2. Winning Days and Payout Rules
Before
- Winning day required $200+ net profit.
- Winning days from Express Funded Accounts carried over to Live.
- Some traders qualified for payouts quickly after moving to Live.
- Many accounts included “first $10,000 at 100%” profit split.
After
- Winning day requirement reduced to $150+ net profit.
- Winning days no longer carry over from Express to Live.
- Five new winning days in Live are required before first payout.
- Thirty winning days in Live are required to unlock:
- Daily payout access
- 100% profit withdrawals without cap
- New accounts follow a 90/10 profit split immediately.
The payout system now resets once a trader transitions to Live, increasing the time required before full withdrawal flexibility is achieved.
3. Account Size and Call-Up Logic
Before
- The largest Express Funded Account often determined Live size.
- Traders could manage multiple accounts more flexibly.
After
- Live account size is based on the average of payout-eligible Express accounts.
- Express accounts are closed once the trader moves to Live.
- The transition to Live cannot be refused once invited.
- Only one active Live account is allowed.
This limits account stacking strategies and forces consolidation into a single Live account.
4. Risk Management Changes
Before
- Static Scaling Plan controlled contract limits.
- Risk rules remained mostly fixed.
After
- Dynamic Risk Expansion system replaces the static scaling plan.
- Daily Loss Limit adjusts with account balance.
- If Daily Loss Limit is hit, the trader is locked for the day but not failed.
- Maximum Loss Limit is fixed at zero. If balance reaches zero, the account closes.
- If balance decreases significantly, risk limits tighten automatically (“Path to Reduction”).
Risk parameters now expand or contract automatically based on performance.
5. Additional Requirements
- Every trade must include a protective stop-loss.
- Topstep covers one exchange data fee for Live traders (CME default).
- No trading activity for 90 days results in permanent account closure.
Before vs After Summary
| Feature | Before | After |
|---|---|---|
| Capital Access | 100% Immediately | 20% + Reserve Unlock |
| Winning Day | $200+ | $150+ |
| Winning Days Carry Over | Yes | No |
| Profit Split | 100% First 10K (Some) | 90/10 |
| Scaling Model | Static | Dynamic Expansion |
| Full Profit Access | Earlier | After 30 Winning Days |
Why Traders Are Reacting
Many traders argue that the new reserve model delays capital access and extends the timeline before meaningful withdrawals are possible. On Twitter (X), users have criticized both the firm and its CEO, stating that the structure feels more restrictive compared to previous rules.
Supporters, however, claim the update encourages discipline and aligns funded accounts more closely with professional risk management standards.
Final Thoughts
The 2026 update significantly changes how traders scale and withdraw profits in Live accounts. While the structure may promote long-term consistency, it clearly reduces early capital flexibility and payout speed.
Whether this benefits traders or primarily protects the firm depends on trading style, patience, and risk tolerance.