FTMO vs. TopStep: A Comprehensive Comparison for Aspiring Traders
In the world of proprietary trading, firms like FTMO and TopStep have established themselves as leading platforms for traders looking to access large capital and build their careers. Both offer a path to funded accounts through an evaluation process, but they differ in key areas such as evaluation structure, profit-sharing models, risk management rules, and payout schedules. This article will provide an in-depth comparison of FTMO and TopStep, helping you determine which platform is the best fit for your trading style and goals.
1. Overview of FTMO
What is FTMO?
Founded in 2015, FTMO is one of the most recognized and respected proprietary trading firms globally. FTMO offers an evaluation process that allows traders to demonstrate their skills and access substantial capital once they pass the FTMO Challenge and Verification Phase. The platform is known for its rigorous rules and high standards for traders, as well as its diverse range of trading instruments.
FTMO’s success has been built on its reputation for consistency, transparency, and its commitment to offering traders a pathway to succeed.
Key Features:
- Evaluation Process: FTMO’s evaluation process is a two-step system consisting of the FTMO Challenge and Verification Phase. Traders must meet a profit target of 10-20% within the 30-day Challenge while adhering to strict risk management rules, such as a 5% daily loss limit and a 10% maximum drawdown. After passing the Challenge, traders enter the Verification Phase, where they must achieve the same profit target within 60 days, with slightly more lenient rules.
- Account Sizes and Scaling: FTMO offers funded accounts ranging from $10,000 to $200,000, and traders can scale their accounts as they consistently demonstrate profitability.
- Profit Share: FTMO offers up to 90% profit share, one of the highest in the industry.
- Risk Management: FTMO enforces tight risk management rules, including a 5% daily loss limit and 10% maximum drawdown. Traders are also required to complete a minimum of 10 trading days during the Challenge phase.
- Payout Frequency: FTMO provides monthly payouts, allowing traders to withdraw their profits once a month.
2. Overview of TopStep
What is TopStep?
TopStep is another well-established proprietary trading firm that helps traders access capital and trade on behalf of the firm. Founded in 2012, TopStep has built a reputation for its transparent process and trader-friendly rules, focusing on futures trading. TopStep offers a futures trader evaluation program where traders must prove their ability to manage risk and meet profit targets before they are given a funded account.
TopStep is particularly appealing to traders who are focused on futures markets and are looking for a straightforward evaluation process with flexible rules.
Key Features:
- Evaluation Process: TopStep’s evaluation consists of a Trading Combine and Assessment. Traders in the Trading Combine must meet a profit target (typically $3,000-$6,000 for futures accounts) while staying within specific risk limits. Traders who pass this phase then enter the Assessment phase, where they must continue to demonstrate consistent performance and profitability.
- Account Sizes and Scaling: TopStep offers accounts ranging from $50,000 to $150,000 for futures trading. Traders who demonstrate consistent profitability are given opportunities to scale their accounts over time.
- Profit Share: TopStep offers up to 80% profit share for traders, which is competitive but slightly lower than FTMO’s offering.
- Risk Management: TopStep’s risk management rules are relatively relaxed compared to FTMO’s. It enforces a max drawdown of $2,000 to $4,000 (depending on the account size) and has daily loss limits that are adjustable based on account performance.
- Payout Frequency: TopStep offers weekly payouts, which provides traders with faster access to their earnings compared to FTMO’s monthly payout structure.
3. Evaluation Process: FTMO vs. TopStep
Both FTMO and TopStep offer a two-phase evaluation process, but they differ in their rules, flexibility, and approach to risk management.
FTMO Evaluation Process:
- FTMO Challenge: In the FTMO Challenge, traders must achieve a profit target (typically 10-20%) within 30 days. The challenge is highly structured, with traders required to adhere to strict risk management rules, including a 5% daily loss limit and a 10% maximum drawdown. Traders must also complete 10 trading days during the Challenge phase to qualify.
- Verification Phase: After completing the Challenge, traders enter the Verification Phase, which lasts 60 days. The profit target remains the same, but the risk management rules are slightly more relaxed, allowing more flexibility during this phase.
- Minimum Trading Days: FTMO requires traders to complete 10 trading days during the Challenge phase, which might be challenging for traders who prefer high-probability trades over frequent trades.
TopStep Evaluation Process:
- Trading Combine: TopStep’s evaluation consists of the Trading Combine, where traders need to meet a profit target (typically $3,000 to $6,000 for futures accounts) while staying within the firm’s risk management rules. The timeframe for the Trading Combine is typically 30 days, but traders can take longer if needed.
- Assessment Phase: After passing the Trading Combine, traders enter the Assessment Phase, where they must maintain consistent profitability. This phase does not have a time limit, providing traders with more flexibility compared to FTMO’s 60-day Verification phase.
- No Minimum Trading Days: Unlike FTMO, TopStep does not require traders to complete a minimum number of trading days, offering more freedom for traders who focus on quality over quantity in their trades.
4. Profit Share and Payouts: FTMO vs. TopStep
Both FTMO and TopStep offer competitive profit-sharing models, but there are differences in terms of the percentage of profits traders retain and the frequency of payouts.
FTMO Profit Share:
- Profit Share: FTMO offers up to 90% profit share, which is one of the highest in the industry.
- Scaling: FTMO allows traders to scale their accounts as they consistently demonstrate profitability.
- Payout Frequency: FTMO provides monthly payouts, which means traders receive their profits once per month.
TopStep Profit Share:
- Profit Share: TopStep offers up to 80% profit share, which is slightly lower than FTMO’s but still a competitive offering.
- Scaling: TopStep allows traders to scale their accounts based on consistent performance.
- Payout Frequency: TopStep provides weekly payouts, allowing traders to access their profits much faster than FTMO’s monthly payout system.
5. Risk Management: FTMO vs. TopStep
Both FTMO and TopStep have implemented risk management rules to help protect their capital, but their approaches differ in terms of flexibility.
FTMO Risk Management:
- Daily Loss Limit: FTMO enforces a 5% daily loss limit, meaning traders cannot lose more than 5% of their account balance in a single trading day.
- Maximum Drawdown: FTMO has a 10% maximum drawdown rule, which limits the total loss a trader can incur from their highest balance.
- Minimum Trading Days: FTMO requires 10 trading days to be completed during the Challenge phase, ensuring traders demonstrate consistency.
TopStep Risk Management:
- Daily Loss Limit: TopStep’s daily loss limits are adjustable, depending on the account performance. It is typically around $1,000 for smaller accounts and increases for larger accounts.
- Maximum Drawdown: TopStep enforces a $2,000 to $4,000 maximum drawdown (depending on account size), providing more flexibility compared to FTMO’s 10% drawdown.
- No Minimum Trading Days: Unlike FTMO, TopStep does not require a minimum number of trading days, making it more flexible for traders who prefer to focus on high-quality trades instead of meeting a specific trading day requirement.
6. Conclusion: FTMO vs. TopStep – Which is Right for You?
Both FTMO and TopStep offer excellent opportunities for traders to gain access to funded accounts, but the right choice depends on your trading preferences and style.
- Choose FTMO if you prefer a more structured evaluation process with stricter rules and higher profit-sharing potential (up to 90%). FTMO’s monthly payouts, minimum trading days requirement, and strict risk management rules are ideal for traders who are comfortable with a disciplined, proven system.
- Choose TopStep if you value flexibility and prefer a more relaxed evaluation process with no minimum trading days requirement. TopStep’s weekly payouts, adjustable risk management rules, and slightly lower profit share (up to 80%) might be appealing to traders who prefer more freedom and quicker access to their profits.
Ultimately, both platforms offer traders the chance to build a career with substantial capital backing. The decision between FTMO and TopStep will depend on your personal trading approach, risk tolerance, and desire for flexibility versus structure in your trading journey.
