Key Criteria When Evaluating a Prop Firm
Not all prop firms are created equal. The right choice can mean the difference between long-term growth or a frustrating churn of failed challenges. Here’s what experienced traders actually scrutinize when picking a firm—using real, current data from leading providers.
1. Drawdown Limits: Room to Breathe or Tight Leash?
- Max Drawdown: How much of your account you can lose before being disqualified.
- Daily Drawdown: Maximum allowed loss in a single day.
For example, FTMO allows a 10% max and 5% daily drawdown. On a $100K account, that’s $10,000 total and $5,000 per day. Contrast this with The5ers at just 6% max and 3% daily—$6,000 and $3,000 on a $100K account, making it much easier to breach.
Futures-focused firms like My Funded Futures and Tradeify offer just 4% max drawdown, but no daily loss limit. This can suit high-frequency traders but leaves little margin for error.
Use our PropSurvivalEngine calculator to simulate your risk of breaching drawdown limits based on your strategy.
2. Profit Split: How Much Do You Actually Keep?
Headline splits look attractive, but there are nuances:
- FTMO: Starts at 80/20, scales to 90/10 after consistent performance.
- MyFundedFX: Up to 92.75%—one of the highest, but only on certain plans.
- TopStep: 90/10, but with a required “consistency target.”
- Apex Trader Funding: 100% of your first $25,000 in profits, then 90/10.
- Funded Trading Plus: Can reach 100% split after milestones.
Some firms, like City Traders Imperium, even offer a monthly salary up to $500 per account, or scaling to 100% split. However, these perks often come with additional rules or requirements (such as higher minimum trading days or consistency targets).
3. Profit Targets: The Hurdle to Get Paid
Profit targets are the minimum you must earn in the evaluation phase. The table below shows how these targets vary:
| Firm | Profit Target | Drawdown | Profit Split | Challenge Cost | Trading Period | Scaling Potential |
|---|---|---|---|---|---|---|
| FTMO | 10% | 10% / 5% daily | 80/20 → 90/10 | $155 - $1,080 | 30d/60d | $2M |
| E8 Markets | 8% | 8% / 5% daily | 80/20 | $48 - $988 | Unlimited | $250K+ |
| FundedNext | 10% | 10% / 5% daily | 80/20 → 90/10 | $59 - $999 | 30d/60d | $4M |
| The5ers | 6% | 6% / 3% daily | 50/50 → 100% | $95 - $875 | Unlimited | $4M |
| TopStep | 6% | 4% / 2% daily | 90/10 | $49 - $149/mo | Unlimited | $150K+ |
| MyFundedFX | 8% | 8% / 5% daily | 80/20 → 92.75% | $49 - $1,499 | Unlimited | $600K |
| My Funded Futures | 6% | 4% / 0% daily | 80/20 → 90/10 | $77 - $477/mo | Unlimited | $150K |
| Funded Trading Plus | 10% | 6% / 4% daily | 80/20 → 100% | $119 - $999 | Unlimited | $5.25M |
| Blue Guardian | 10% | 6% / 4% daily | 85/15 → 90/10 | $87 - $897 | Unlimited | $4M |
| Lux Trading Firm | 10% | 6% / 0% daily | 80/20 | $299 - $4,999 | Unlimited | $10M |
Lower targets (6-8%) like at The5ers, My Funded Futures, or Tradeify mean you reach profit goals faster, but these firms often offset this with stricter drawdowns or limited instrument choices.
4. Evaluation Rules & Account Models: Hidden Pitfalls
- Trading Days: Some firms require a minimum (e.g., FTMO: 4, My Funded Futures: 2). Others, like Funded Trading Plus, have no minimum—you can pass in a single trade.
- Time Limits: Most offer either fixed periods (e.g., FTMO: 30/60 days) or unlimited time (E8 Markets, The5ers, MyFundedFX).
- Consistency Rules: TopStep requires a 50% consistency target, meaning your best day can’t be more than twice your average. This can force you to change your natural trading style.
- Trailing vs. Static Drawdown: Apex Trader Funding and Blue Guardian use trailing drawdowns—your max loss limit increases as you profit. Static drawdown (City Traders Imperium) is easier to manage.
- Instrument Restrictions: Many futures firms (TopStep, Tradeify) don’t support forex or crypto. The5ers is limited to forex, metals, and indices. If you need broad markets, check the list closely.
5. Challenge Fees: Upfront Cost vs. Value
Fees vary dramatically:
- FTMO: $155 (for $10K) up to $1,080 (for $200K)
- E8 Markets: $48 (for $5K) to $988 (for $250K)
- MyFundedFX: $49 (for $5K) to $1,499 (for $300K)
- Lux Trading Firm: $299 (for $100K) up to $4,999 (for $1M)
- TopStep: $49 to $149 per month (subscription model)
Some firms, like FundedNext, let you earn 15% of profits during the challenge itself, softening the blow if you pass. Others (e.g., Blue Guardian) refund fees only after multiple payouts.
6. Scaling Plans: Can You Grow With the Firm?
Some firms offer aggressive scaling—crucial if you want to build real capital:
- FTMO: Scale up to $2M after 4 months of profitability.
- FundedNext and The5ers: Up to $4M.
- Funded Trading Plus: Up to $5.25M on the Premium track.
- Lux Trading Firm: Scale up to $10M (the highest in this group).
But scaling usually requires consistent performance and regular milestone achievement. For example, Blue Guardian requires a 12% profit every 3 months to increase your account by 25% increments.
7. Trading Flexibility: News, Weekends, and EAs
Check if the firm’s rules fit your trading style. Some key areas:
- News Trading: FTMO allows it in the challenge phase, but not for swing trades during news. Blue Guardian and The5ers prohibit news trading on funded accounts.
- Weekend Holding: Many firms restrict this. E8 Markets and TopStep don’t allow weekend holding, while FTMO, FundedNext, and MyFundedFX do.
- Automated Trading (EAs): The5ers and TopStep don’t allow EAs; FTMO, MyFundedFX, and most others do.
If you rely on EAs, news events, or holding trades over weekends, filter firms accordingly using the PropSurvivalEngine comparison tool.
8. Instruments Available and Leverage
- Forex, Indices, Crypto, Commodities: Most firms offer a mix. Some, like Futures-only firms (TopStep, Apex), don’t offer forex or crypto at all.
- Leverage: FTMO, FundedNext, and Goat Funded Trader offer 1:100, giving more flexibility. Others, like Lux Trading Firm and City Traders Imperium, are limited to 1:10 or 1:30—meaning you’ll need more capital per trade.
Lower leverage makes it harder to hit profit targets quickly but can help with risk management. Consider your strategy and preferred markets.
9. Payouts and Withdrawal Terms
- Payout Frequency: FTMO pays monthly; Blue Guardian promises 24-hour payouts or a 100% profit split. Tradeify offers daily or 5-day payouts.
- Payout Minimums: FundedNext imposes withdrawal minimums; others allow small withdrawals from Day 0.
- Profit Split Timing: Apex Trader Funding pays 100% of the first $25K, then 90/10. Funded Trading Plus can scale to 100% split.
Faster, more frequent payouts can help with cash flow, but always check for hidden buffers or minimums.
10. Reputation, Longevity, and Support
Firms like FTMO (4.8/5 rating) and TopStep (established 2012) have proven longevity. Newer firms (e.g., MyFundedFX, Goat Funded Trader) may offer better terms but with less track record. Support responsiveness varies widely—FundedNext and MyFundedFX have reported slow response times.
Review PropSurvivalEngine health grades for current trust, payout reliability, and trader feedback before committing.
Side-by-Side Comparison Table: Top Prop Firms
| Firm | Rating | Max Drawdown | Profit Target | Profit Split | Account Sizes | Leverage | Instruments | Min Trading Days | Scaling | Challenge Cost |
|---|---|---|---|---|---|---|---|---|---|---|
| FTMO | 4.8 | 10% / 5% | 10% | 80/20 → 90/10 | $10K–$200K | 1:100 | Forex, Indices, Commodities, Crypto, Stocks | 4 | $2M | $155–$1,080 |
| E8 Markets | 4.5 | 8% / 5% | 8% | 80/20 | $5K–$250K | 1:50 | Forex, Indices, Commodities, Crypto | 5 | $250K+ | $48–$988 |
| FundedNext | 4.6 | 10% / 5% | 10% | 80/20 → 90/10 | $6K–$200K | 1:100 | Forex, Indices, Commodities, Crypto | 5 | $4M | $59–$999 |
| The5ers | 4.3 | 6% / 3% | 6% | 50/50 → 100% | $6K–$100K | 1:30 | Forex, Metals, Indices | 3 | $4M | $95–$875 |
| MyFundedFX | 4.4 | 8% / 5% | 8% | 80/20 → 92.75% | $5K–$300K | 1:100 | Forex, Indices, Commodities, Crypto | 3 | $600K | $49–$1,499 |
| TopStep | 4.5 | 4% / 2% | 6% | 90/10 | $50K–$150K | Full contract | Futures (CME, CBOT, NYMEX, COMEX) | 5 | $150K+ | $49–$149/mo |
| My Funded Futures | 4.9 | 4% / 0% | 6% | 80/20 → 90/10 | $50K–$150K | Full contract | Futures (CME Group) | 2 | $150K | $77–$477/mo |
| Funded Trading Plus | 4.5 | 6% / 4% | 10% | 80/20 → 100% | $5K–$200K | 1:30 | Forex, Crypto, Indices, Commodities | 0 | $5.25M | $119–$999 |
| Blue Guardian | 4.6 | 6% / 4% | 10% | 85/15 → 90/10 | $10K–$200K | 1:100 | Forex, Crypto, Indices, Commodities | 5 | $4M | $87–$897 |
| Lux Trading Firm | 4.2 | 6% / 0% | 10% | 80/20 | $100K–$1M | 1:10 | Forex, Indices, Commodities, Metals | 0 | $10M | $299–$4,999 |
Non-Obvious Insights and Trade-Offs
- Lower drawdown isn’t always better: Firms with 4-6% max drawdown (My Funded Futures, The5ers) are easier to breach, even if profit targets are lower.
- Unlimited time can be a double-edged sword: It reduces pressure, but some traders lose focus and fail to finish. If you thrive under deadlines, a fixed period (FTMO: 30/60 days) may help.
- Scaling plans may look huge, but most traders won’t reach $2M+: Focus on the first few milestones, not just the headline number.
- Instrument and leverage restrictions can kill your edge: If your strategy relies on crypto or high leverage, firms like Lux Trading Firm (1:10) or TopStep (futures only) may not be viable, no matter the payout split.
- Customer support can be more important than you think: Slow or unhelpful support can make resolving trading platform issues or payout delays a nightmare—FundedNext and MyFundedFX have mixed reviews here.
How to Choose: Practical Steps
- Define your trading style and needs: Do you need to hold trades over weekends? Use EAs? Trade crypto?
- Use the PropSurvivalEngine comparison tool to filter by drawdown, split, instruments, and account size.
- Calculate your risk of breaching drawdowns with our challenge survival calculator—using your real strategy stats.
- Check health grades and community feedback at /health for payout reliability and support reputation.
- Read all the rules—especially on trailing drawdown, news trading, and withdrawal minimums before paying any fees.
Bottom Line
The right approach is to match firm rules to your strategy, not just chase the highest split or lowest fee. Use the numbers, not the marketing. If in doubt, start with a smaller account to test the waters—then scale up with the firm that fits you best.