Are you an aspiring trader looking to fund a trading account to trade with real money? You may have seen two popular funded trading account providers - TopStep and FTMO. It is no secret that both offer tantalizing prospects, but the vast range of opportunities available can seem overwhelming, especially for beginners. So how do you decide which provider is right for you? In this blog post, we'll delve into each option and compare their funding offers, risk management policies, and customer support services so that you can make an informed decision on what's best for your individual needs as a trader.
What is TopStep?
Topstep offers traders the opportunity to start trading with a funded account of up to $150,000. The trader must complete the Trading Combine to prove their trading skills to qualify for the funding. In addition, they offer traders the chance to trade their own capital, with access to various markets, including forex, futures, options, and equities. They also provide educational resources and support for traders.
What is FTMO?
FTMO offers traders the opportunity to start trading with a funded account of up to $200,000. The trader must pass the FTMO Challenge, a rigorous evaluation of their trading skills and strategies. They offer traders the chance to trade their capital, with access to various markets, including forex, futures, options, and equities. They also provide educational resources and support for traders.
TopStep Vs FTMO: TopStep Evaluation
TopStep is an excellent way for traders to make real money. To start, traders must pass Steps 1 and 2 of the Trading Combine, designed to assess their trading skills. Once accepted, they will be given an account with real money to trade with. Then, if they succeed in their trades, they will move on to a live account where they can keep their profits.
The Trading Combine is an excellent way for new and experienced traders to test their skills in simulated markets. New traders can use the Trading Combine to gain experience in a risk-free environment, while professional traders can use it to test new strategies or systems.
To participate in the Trading Combine, traders must first register on the Topstep site. The first step of the Trading Combine is to hit a profit target of 6% of the buying power selected by the user. Once they pass this step, they move on to the next, which tests their ability to limit losses. Here, they must hit a weekly loss limit of $1,000 and adhere to a scaling plan which does not over-leverage the account. If they succeed in this step, they can choose either a standard or pro account.
FTMO Vs. TopStep: FTMO Evaluation Process
FTMO evaluates its candidates through a rigorous assessment process. FTMO offers a unique two-step evaluation process to discover trading talents: the FTMO Challenge and the Verification. The FTMO Challenge is designed to assess a trader's ability to adapt their trading style and risk management based on predefined rules. The Verification tests if the trader can maintain profitability over a prolonged period while adhering to strict guidelines set by FTMO.
For those looking to participate in the FTMO Challenge, the rules are simple: within 30 days, the goal is to make a profit of $1,000 from a $10,000 balance account, without exceeding the daily loss limit of $500 or the overall loss limit of $1,000, and trading for at least 10 days.
The Verification step is slightly easier, requiring traders to make a profit of $500 with the same $10,000 account within 60 days, with the same drawdown limits of $500 daily and $1,000 overall.
Should traders complete the evaluation program, they will be offered access to FTMO's proprietary trading accounts with balances of up to $400,000. It should be noted that FTMO provides two types of accounts: Normal and aggressive. In this example, we are discussing the Normal account.
FTMO Vs. TopStep: Cost
When choosing a proprietary trading firm, the cost is an important factor to consider. This is because the fees associated with these platforms can vary greatly, so it's important to compare and evaluate available options.
In this comparison article, we will compare the costs of two popular trading platforms - TopStep and FTMO. For example, we will use their 10K account of FTMO and 50K account of TopStep.
FTMO has a refundable fee of $155 for the 10K account. However, if you pass the evaluation process, they will refund you the fee, and there are no monthly subscription fees. This means that the cost of using FTMO's 10K account is essentially zero if you pass the evaluation process.
On the other hand, the TopStep Trading Combine fee is $165 for a $50K account. In addition, if a trader passes the Trading Combine, afterward, a monthly subscription may be based on your chosen account. This means that the cost of using TopStep's 50K account will vary depending on your chosen subscription plan.
Overall, FTMO and TopStep offer a cost-effective trade method with a funded account. However, FTMO may be a more affordable option for traders who can pass the evaluation process and avoid the refundable fee. On the other hand, TopStep's subscription-based pricing model may be a better fit for traders looking for more flexibility and customization in their trading experience.
TopStep Vs FTMO: Profit Splits
Now in this TopStep Vs FTMO article, we will have a closer look at the profit splits of these two prop trading firms.
FTMO Profit Splits
FTMO also offers a profit split of 80/20. This means that traders who can generate profits through the platform will receive 80% of the profits, while FTMO will keep the remaining 20%.
In addition to the default profit split of 80/20, FTMO also offers a scaling plan for qualified traders. If a trader meets the conditions of this plan, their account balance will be increased by 25%, and the profit split will automatically change to 90/10. This means that qualified traders will receive an even larger share of their profits, making it an attractive option for those looking to maximize their earnings.
Overall, FTMO's profit split and scaling plan offer a potential opportunity for traders to earn a higher share of their profits. However, it's important to note that the eligibility for the scaling plan and the conditions for maintaining it will vary, so it's worth considering this when comparing different funded trading platforms.
TopStep Profit Splits
TopStep offers a different profit split model compared to FTMO. Instead of a fixed profit split, the amount that traders receive will depend on the total amount of funds they have received from the platform.
Traders of TopStep's firm will receive 100% of the profits from first payouts, up to a total of $5,000. This means that traders who can generate profits will receive the full payouts.
However, after the first $5,000 of funds have been received by the trader, the profit split will become 90/10, with the trader receiving 90% of payouts and Topstep retaining 10% of the requested payout. This means that once a trader has received $5,000 in payouts, they will receive a slightly smaller share of their profits compared to the initial phase of their trading activity.
Overall, TopStep's profit split model offers an opportunity for traders to receive a higher share of their profits during the early stages of their trading activity. However, once they have reached the $5,000 payout threshold, the profit split will become less favourable for traders.
Who should choose TopStep?
TopStep is an innovative program that allows traders to access funding based on their performance. It's the perfect solution for traders looking to take their trading to the next level, but it's not for everyone.
Traders who need instant gratification or don't want to follow the rules won't be successful with TopStep. The program is structured and requires traders to stick to specific risk management strategies during the evaluation process. If you don't have the discipline to follow these rules, you better look for another solution.
TopStep is also not the right choice for traders who have unrealistic expectations. This program doesn't offer a get-rich-quick scheme. Instead, it allows traders to gain funding based on their performance. You still have to put in the work, and there's a chance you could lose money during the evaluation process.
In short, TopStep can be an excellent solution for traders looking for an opportunity to take their trading to the next level and have the discipline to follow the rules. But it's not the right choice for everyone. If any of the points above sound like you, you may want to look for another funding solution. Do your research and figure.
Who should choose FTMO?
FTMO is a prop trading firm that offers new and experienced traders the opportunity to test and improve their trading strategies. The firm is known for its affordable pricing, high-profit potential, and industry-leading trader guidance tools.
If you're new to prop trading and want to start with a reputable and trusted firm, FTMO is an excellent choice. They offer a challenging yet affordable trading program that allows you to earn up to 90% of your profits. This means you can make a lot of money while improving your trading skills.
Even if you have your capital to trade, FTMO is still a great option. They have some of the best trader guidance tools in the industry, and their program is designed to help traders become more conscientious and confident. This can be invaluable for anyone who wants to improve their trading skills and become more successful.
Additionally, FTMO offers its traders the largest selection of tradable assets. This means you can trade forex, equities, crypto, and more from a single platform. This can be very convenient for traders who want to diversify their portfolios and take advantage of a wide range of market opportunities.
If you're interested in prop trading and want to work with a reputable and trusted firm, you should consider signing up for FTMO. They offer a challenging and affordable program to help you earn big profits and improve your trading skills. So why not sign up today and see what you can achieve?
TopStep Vs. FTMO: Customer Support
When it comes to customer support, both TopStep and FTMO offer excellent options for traders. TopStep is dedicated to providing high-quality customer service and can be reached by phone during business hours. They also have a chat function available on their website and can be contacted via email.
FTMO takes customer support a step further by offering 24/7 support. You can reach customer support via email, live chat, Whatsapp, or phone, and customer support is available in 15 languages. This makes FTMO an excellent choice for traders who need assistance outside of regular business hours or who need help in a language other than English.
Overall, both TopStep and FTMO offer high-quality customer support options. Which one is right for you will depend on your specific needs and preferences. If you need support during non-business hours or in a language other than English, FTMO may be the better choice. Otherwise, both firms offer excellent customer support options.
Conclusion
TopStep and FTMO offer a great opportunity for traders to start trading with a funded account. However, they differ slightly in terms of the fund size they offer, the evaluation process they require, and the markets they provide access to. Therefore, it is essential to research each service thoroughly before deciding which one best suits the trader's needs.