Lux Trading Firm Rules Explained: Drawdown, Profit Targets & Time Limits (2026)

Lux Trading Firm Rules Overview

Lux Trading Firm is a London-based proprietary trading firm founded in 2020 that offers funded accounts to qualified traders. The firm specializes in a streamlined evaluation model with a simplified 1-step assessment process—a significant advantage over the traditional 2-step evaluations common in the industry.

Lux Trading Firm targets experienced traders across multiple asset classes including forex, indices, commodities, metals, and crypto. The firm is particularly appealing to algorithmic traders using Expert Advisors (EAs), forex traders, and anyone seeking more flexible trading rules around news events and overnight position holding. Funded accounts scale up to $2.5M, and the firm offers one of the more generous profit splits available at up to 80% to funded traders.

The evaluation model is designed to be accessible while still maintaining risk standards. There's no minimum daily trading requirement, which differentiates Lux from competitors that enforce strict activity quotas. All trading is conducted through established platforms—MT4, MT5, and cTrader—across live markets with real volatility and spreads.

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Account Types and Pricing

Lux Trading Firm offers four distinct account tiers, each with an evaluation cost and corresponding starting capital. Evaluation fees are non-refundable upon failure, which is a standard policy across the prop trading industry but worth noting upfront.

Account Tier	Starting Capital	Evaluation Cost	Monthly Fee
Starter	$10,000	$99	$99/month (during evaluation)
Standard	$25,000	$199	$199/month (during evaluation)
Advanced	$50,000	$299	$299/month (during evaluation)
Professional	$100,000	$499	$499/month (during evaluation)

Important note: There is no free tier or free trial evaluation available. All traders must purchase an evaluation to participate, though the costs are tiered to match starting capital amounts. Once a trader becomes funded, the monthly fees cease and the account moves to profit-sharing mode.

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Profit Targets

Lux Trading Firm's evaluation process uses a 1-step model, meaning traders progress directly from evaluation to funded status without a secondary review phase. This is notably streamlined compared to competitors offering 2-step evaluations.

While the specific profit target percentages are not detailed in the publicly available information, standard industry practice for 1-step evaluations typically ranges from 8-10% of the starting capital balance. Traders should verify the exact profit target for their selected tier during the account setup process, as this directly impacts evaluation difficulty and timeline.

The evaluation period duration is not specified in public materials, but Lux emphasizes that there is no minimum daily trading requirement—a flexible rule that accommodates part-time traders, weekend traders, and those with irregular schedules. This is a notable advantage for traders who cannot commit to daily activity.

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Drawdown Rules

Drawdown limits are critical risk-management parameters in any prop trading firm. They define the maximum losses a trader can incur before the account is closed.

Daily Drawdown Limit: Specific daily drawdown percentages for Lux Trading Firm are not detailed in publicly available materials. Traders should confirm the daily loss threshold during account registration, as most firms enforce between 2-5% daily drawdown limits.

Maximum Drawdown (Overall): Similarly, the trailing or static maximum drawdown limit—the total account loss threshold before account termination—should be verified with Lux directly. Standard practice across the industry ranges from 5-10% maximum drawdown.

Reset Conditions: Daily drawdown limits typically reset at the start of the next trading day (usually based on GMT or the firm's designated timezone). Maximum drawdown is cumulative and does not reset during the evaluation or funded phases. If a trader hits either drawdown limit, the account is closed, and the trader loses access to that capital.

Recommendation: Before purchasing an evaluation, contact Lux Trading Firm directly to confirm exact drawdown percentages for your chosen tier. These parameters significantly affect trading strategy and risk tolerance requirements.

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Trading Restrictions

Lux Trading Firm is known for relatively flexible trading rules compared to some competitors. Here's what is confirmed:

• Expert Advisors (EAs): Allowed — Algorithmic and automated trading strategies are permitted, making this firm ideal for EA developers and systematic traders.
• News Trading: Allowed — Traders can trade around major economic announcements and high-volatility events. This removes a significant restriction found at many competing firms.
• Holding Positions Over Weekends: Allowed — Traders may hold open positions through Friday close into Monday open, reducing forced position closures and providing more trading flexibility.
• Restricted Instruments: Not specified in available data; likely standard forex pairs, indices, commodities, and crypto across the supported markets (forex, indices, commodities, metals, crypto).
• Lot Size Limits: Not specified; typically firms enforce micro-lot minimums and position size caps relative to account balance. Verify with the firm directly.
• Copy Trading: Generally not permitted at proprietary trading firms, though not explicitly stated for Lux. Traders should confirm.
• Scalping: Not explicitly restricted in available information. Lux's flexibility on trading style suggests scalping is likely permitted, but confirm during onboarding.

Time Restrictions: No specific trading hours restrictions are mentioned. Traders can trade during standard market hours for their selected asset class (forex, indices, commodities, metals, crypto).

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Profit Split and Payouts

Profit Split: Lux Trading Firm offers up to 80% profit split to funded traders. This is among the most generous in the prop trading industry, positioning Lux competitively against firms like FTMO, which typically offer 80% splits as well.

The exact percentage may vary slightly based on account tier, trading performance, or tenure with the firm. Traders should confirm their specific split during the funding agreement process.

Payout Frequency: Profits are distributed bi-weekly—every two weeks. This is faster than some competitors that offer monthly-only payouts, allowing traders to access earnings more frequently.

Minimum Withdrawal Amount: Not specified in public information. Most prop firms enforce minimum withdrawal thresholds (typically $100-$500) to reduce administrative overhead. Confirm with Lux before your first payout request.

Processing Time: The firm does not publicly specify withdrawal processing times. Industry standard is 3-7 business days for transfers to verified bank accounts. Cryptocurrency withdrawals (if offered) may be faster. Ask during onboarding.

Fee Structure During Funding: Once funded, the monthly evaluation fees no longer apply. Traders only keep their profit percentage. There may be management or service fees; verify whether the 80% split is net of all fees or if additional charges apply.

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Scaling Plan

Lux Trading Firm's scaling plan is a key differentiator, allowing successful traders to grow their funded capital significantly over time.

Maximum Account Size: Funded accounts scale up to $2.5M, providing substantial capital for traders who demonstrate consistent profitability and adherence to risk rules.

Scaling Requirements: The exact scaling milestones and performance criteria are not specified in public information. Typical scaling models in the industry follow one of two patterns:

• Drawdown-based scaling: After reaching 2-3 consecutive months of profitability without hitting maximum drawdown, the account is increased by a percentage (e.g., 25-50%).
• Profit-based scaling: After hitting certain cumulative profit targets, the account size is increased.

Lux emphasizes a "transparent scaling plan," suggesting clear, defined criteria. Traders should request the specific scaling roadmap during registration to understand growth timelines and requirements.

Scaling Timeline: From initial funding to maximum scaling, traders typically need 6-18 months of consistent profitability depending on the scaling schedule. Lux's exact timeline should be confirmed.

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Lux Trading Firm Rules vs Competitors

To understand how Lux Trading Firm stacks up, here's a comparison with two major competitors:

Rule Category	Lux Trading Firm	FTMO	The Funded Trader (TFT)
Evaluation Steps	1-step (streamlined)	2-step (Phase 1 + Phase 2)	2-step
Profit Split	Up to 80%	80% (confirmed)	80%
Payout Frequency	Bi-weekly	Monthly	Monthly
Expert Advisors	Allowed	Allowed	Allowed
News Trading	Allowed	Restricted (news events)	Restricted
Weekend Holding	Allowed	Restrictions apply	Restrictions apply
Maximum Account Size	$2.5M	Up to $2M	Up to $1M+
Minimum Daily Trading	None	Required	Required

Key Advantages for Lux: The 1-step evaluation is faster and more transparent than 2-step competitors. The flexibility on news trading and weekend holding is a significant advantage for discretionary traders. Bi-weekly payouts are faster than most competitors, and the absence of a minimum daily trading requirement is ideal for part-time traders.

Key Disadvantages: Lux is a newer firm (founded 2020) with less brand recognition and track record than FTMO (established 2012) or other firms with longer histories. This may concern some traders evaluating firm reliability.

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Red Flags and Fine Print

• Non-Refundable Evaluation Fees: All evaluation costs ($99-$499) are non-refundable if you fail to meet the profit target. Budget for potential losses before purchasing an evaluation.
• No Free Trial or Demo: Unlike some competitors offering demo evaluations or free trial periods, Lux requires immediate payment. New traders cannot test the platform without committing financially.
• Limited Brand History: Lux was founded in 2020, making it newer than established competitors like FTMO (2012). While newer doesn't mean untrustworthy, traders should research the firm's regulatory status, fund custody, and payout track record independently.
• Unconfirmed Drawdown Details: Specific daily and maximum drawdown percentages are not publicly listed. These are critical risk parameters—confirm before funding. A firm offering unusually high drawdown limits may be higher-risk.
• Profit Target Verification: The exact percentage profit target for each tier is not publicly specified. Confirm this is achievable for your trading style before paying the evaluation fee.
• Platform Dependency: Trading requires MT4, MT5, or cTrader. If the firm's broker integration has technical issues, it could impact your trading ability and drawdown-hitting risk. Test platform stability during evaluation.
• Scaling Criteria Clarity: While Lux emphasizes a "transparent" scaling plan, specific requirements aren't publicly detailed. Request the exact scaling roadmap in writing before funding.
• Funding Agreement Terms: The complete terms of service, including clauses on account closure, dispute resolution, and fee changes, should be reviewed before signing. Prop trading firms occasionally modify rules; ensure you understand the contract.
• Regulatory Status: Verify that Lux Trading Firm and its partnered brokers are properly regulated. The firm is based in the UK; confirm FCA status or equivalent regulatory oversight if trading from your country.

Bottom Line: Lux Trading Firm offers competitive terms, especially for traders who value flexibility (news trading, weekend holding, no minimum daily requirements) and faster payouts (bi-weekly). However, the relative newness of the firm, combined with limited public disclosure on drawdown rules and profit targets, means careful due diligence is essential. Contact the firm directly to clarify any ambiguities before committing evaluation fees.