Introduction
Proprietary trading firms have become a prominent avenue for skilled traders to access significant capital without risking personal funds. Among these firms, FTMO and TopStep stand out for their structured evaluation processes, capital allocation models, and profit-sharing schemes. This article provides a detailed, objective comparison of FTMO and TopStep, examining their evaluation stages, cost structures, account options, risk rules, payout systems, supported markets, and growth pathways.
Evaluation Process
FTMO Challenge and Verification
FTMO implements a two-step evaluation process.
- Challenge Stage: Traders select a virtual account size and aim to meet profit targets—typically ten percent of the chosen balance—while adhering to a maximum daily loss limit (five percent) and an overall drawdown threshold (ten percent). There is no strict time constraint, but a minimum of four trading days is required.
- Verification Stage: Once the Challenge objectives are met and results reviewed, traders enter Verification, where the profit target is reduced (generally five percent), while drawdown limits remain unchanged. The minimum trading days still apply.
- Funded Account: Successful completion of Verification grants a funded account with the same risk parameters (daily loss and drawdown limits). The profit target is removed at this stage, and traders may trade indefinitely under the prescribed risk rules.
TopStep Trading Combine and Funded Accounts
TopStep utilizes a single-step evaluation known as the Trading Combine, followed by funded simulation accounts.
- Trading Combine: Traders choose a futures buying power level (for example, fifty‑thousand, one‑hundred‑thousand, or one‑hundred‑fifty‑thousand units) and must reach a profit objective—six percent of buying power—without breaching a fixed daily loss limit and while maintaining consistency rules (no single day may account for more than half of total gains). A trailing maximum loss limit moves upward with profits; exceeding it ends the Combine.
- Express Funded Account: Passing the Combine unlocks one or more Express Funded Accounts, each mirroring the Combine’s risk parameters. Traders must achieve five non‑consecutive winning days (each with a minimum net gain of two‑hundred units) to qualify for payouts.
- Live Funded Account: After achieving an extended series of profitable days, traders may advance to Live Funded Accounts, where daily withdrawals are permitted.
Fee and Cost Structures
FTMO
- One‑Time Fee: Traders pay a single fee to enter the Challenge. Fees vary by account size—ranging from approximately eighty‑nine units of base currency for the smallest account to over one‑thousand units for the largest.
- Fee Refund: The initial fee is refunded with the trader’s first profit withdrawal from the funded account.
- No Recurring Charges: There are no additional subscription or reset fees unless traders choose multiple Challenge attempts; resets incur the same one‑time fee as a new entry.
TopStep
- Monthly Subscription: Access to the Trading Combine requires a recurring monthly fee tied to the chosen buying power—forty‑nine units for fifty‑thousand, ninety‑nine units for one‑hundred‑thousand, and one‑forty‑nine units for one‑hundred‑fifty‑thousand.
- Subscription Termination: The subscription ends upon passing the Combine.
- Reset Option: Traders may restart the Combine for a one‑time fee equal to the monthly rate. No additional charges apply during active funded simulation.
Account Profiles and Sizes
FTMO
- Account Balances: Virtual balances span from ten‑thousand up to two‑hundred‑thousand units, with intermediate tiers available.
- Profit Sharing: Traders retain up to ninety percent of net profits.
- Scaling Plan: Consistently profitable traders may qualify for increased capital with performance-based evaluations.
TopStep
- Buying Power Levels: Fifty‑thousand, one‑hundred‑thousand, and one‑hundred‑fifty‑thousand units.
- Express Funded Accounts: Up to five funded simulations can be active concurrently.
- Live Funded Accounts: Single live account per trader after meeting extended profit-day requirements.
- Profit Sharing: Traders keep one‑hundred percent of the first ten‑thousand units of cumulative profits; subsequent profits are split ninety percent to the trader and ten percent to the firm.
Risk Management Parameters
FTMO
- Daily Loss Limit: Capped at five percent of starting balance; breach leads to account termination.
- Maximum Drawdown: Ten percent of starting balance; exceeding this threshold ends the evaluation or funded account.
- Minimum Trading Days: Four days per evaluation stage.
TopStep
- Daily Loss Objective: Fixed percentage loss per session triggers trade lockout but does not end the Combine.
- Trailing Loss Rule: A dynamic drawdown limit that adjusts with account growth; breaching it concludes the evaluation or closes the funded account.
- Consistency Rule: No single profitable day may constitute more than half of aggregate gains.
- Profit Objective: Six percent of buying power during the Combine.
Profit Distribution and Withdrawals
FTMO
- Payout Frequency: Monthly by default, with on‑demand withdrawals after an initial trading period (commonly fourteen days).
- Withdrawal Limits: Traders may adjust withdrawal dates within a two‑month window following the first trade.
- Profit Sharing: Up to ninety percent of net gains.
TopStep
- Express Funded Payouts: Available after five qualifying winning days; up to fifty percent of profits may be withdrawn initially, with the remainder accessible after further winning days.
- Live Funded Payouts: Daily withdrawals permitted once a longer sequence of profitable days is achieved.
- Profit Sharing: One‑hundred percent on the first ten‑thousand in cumulative profits; ninety percent thereafter.
Tradable Markets and Platforms
FTMO
- Platforms: MetaTrader 4, MetaTrader 5, and cTrader.
- Markets: Forex pairs, equity indices, commodities, cryptocurrencies, and select stocks, reflecting real-market conditions including spreads, swaps, and commissions.
TopStep
- Platforms: Proprietary TopStepX platform, NinjaTrader, Quantower, Tradovate, and TradingView integrations.
- Markets: Futures contracts on major exchanges, including standard and micro contract sizes across multiple asset classes.
Timing and Duration
FTMO
- Challenge Duration: No fixed deadline; traders may complete objectives at their own pace with a minimum trading day requirement.
- Verification Period: Defined duration, typically up to sixty days, to meet reduced profit targets.
- Funded Account: No expiration, provided risk rules are continuously met.
TopStep
- Combine Duration: Open‑ended; traders may extend or restart until objectives are achieved.
- Express Funded Duration: Active indefinitely under compliance with risk and profit-day rules.
- Inactivity Policy: Extended dormancy may lead to account closure, but temporary breaks are accommodated.
Scaling and Growth Opportunities
FTMO
- Scaling Plan: Performance-based capital increases available upon meeting profit milestones and maintaining risk discipline.
- Premium Status: Exceptional traders may access exclusive benefits and higher allocation tiers.
TopStep
- Multiple Funded Accounts: Up to five Express Funded Accounts allow parallel growth simulations.
- Live Funded Advancement: Consistent performance across Express Accounts leads to a Live Funded Account with daily payout capability and potential scaling within that framework.
Conclusion
FTMO and TopStep both offer rigorous, transparent pathways for traders to access firm capital, yet their philosophies diverge in evaluation design, fee structures, and market focus. FTMO emphasizes multi-asset trading and a two-phase evaluation with a refundable one‑time fee, while TopStep centers on futures trading under a single-step Combine with recurring subscriptions and a profit-day milestone model. Traders should weigh preferred instruments, platform ecosystems, risk parameters, and cost commitments when selecting between FTMO and TopStep to align with their individual trading strategies and objectives.
