Topstep vs. Earn2Trade: A Comprehensive Comparison for Aspiring Traders
When it comes to prop trading, two of the most respected names in the industry are Topstep and Earn2Trade. Both firms offer traders the opportunity to gain access to real capital and trade for profit, but they differ in their evaluation processes, risk management policies, profit sharing, and more. Understanding these differences is key for any trader looking to choose the right platform for funding.
In this article, we will dive into a detailed comparison of Topstep and Earn2Trade, highlighting their strengths, weaknesses, and key differences to help you make an informed decision.
1. Overview of Topstep
What is Topstep?
Topstep is a proprietary trading firm that allows traders to prove their skills through an evaluation process and then manage a funded account if they are successful. Known for its rigorous selection process and strong educational support, Topstep primarily focuses on futures trading but also offers forex trading in certain programs.
Key Features:
- Evaluation Process: Topstep uses a two-phase evaluation system to test traders’ abilities. This ensures that only disciplined, profitable traders make it to the funded stage.
- Account Sizes: Traders can choose account sizes ranging from $50,000 to $150,000, offering different options depending on your risk appetite and trading style.
- Profit Share: Topstep offers a 90% profit share on funded accounts, allowing traders to keep the majority of their profits once they pass the evaluation.
- Risk Management: The firm has strict risk management rules, such as a $1,000 daily loss limit and a $2,000 maximum drawdown on funded accounts.
- Payout Frequency: Topstep processes bi-weekly payouts, providing traders with consistent and regular access to their profits.
2. Overview of Earn2Trade
What is Earn2Trade?
Earn2Trade is a prop trading firm that also offers funding opportunities to skilled traders. It is designed to provide access to substantial capital once traders demonstrate their ability through an evaluation process. Earn2Trade offers a variety of programs for futures and forex traders, with a focus on futures trading and a reputation for being a bit more flexible in terms of entry costs.
Key Features:
- Evaluation Process: Earn2Trade offers a two-phase evaluation system known as the Gauntlet and the Gauntlet Mini. The evaluation process is straightforward and well-regarded in the industry for being clear and transparent.
- Account Sizes: Earn2Trade provides account sizes starting at $25,000 and going up to $200,000, giving traders more flexibility in choosing the size that fits their trading strategy.
- Profit Share: Earn2Trade offers traders up to 80% profit share, slightly less than Topstep, but still competitive within the industry.
- Risk Management: Earn2Trade enforces a $1,000 daily loss limit and has a maximum drawdown of $2,000, similar to Topstep.
- Payout Frequency: Earn2Trade offers monthly payouts, which means traders receive their profits on a monthly basis rather than bi-weekly.
3. Evaluation Process: Topstep vs. Earn2Trade
The evaluation process is the core of any proprietary trading firm, and both Topstep and Earn2Trade have structured programs that aim to test traders’ profitability and discipline.
Topstep Evaluation Process:
- Phase 1: Traders in Phase 1 must hit a $3,000 profit target in 15 days while respecting the firm’s strict risk management guidelines.
- Phase 2: In Phase 2, traders are required to achieve another $3,000 profit target in 10 days, with the same risk management constraints applied.
- Flexibility: Topstep’s evaluation process is relatively short, which requires traders to meet their profit goals quickly, making it ideal for traders who can handle pressure and consistently make profitable trades.
Earn2Trade Evaluation Process:
- Gauntlet Program: In the Gauntlet program, traders must meet a 10% profit target in 30 days while adhering to risk management rules. This is a bit more lenient compared to Topstep’s evaluation process.
- Gauntlet Mini Program: For traders looking for a quicker route to funding, Earn2Trade offers the Gauntlet Mini, which requires a 5% profit target in 15 days with a lower entry cost.
- Flexibility: Earn2Trade’s programs offer more time to meet the profit targets, especially in the Gauntlet, which gives traders 30 days to meet the profit target.
4. Profit Share and Payouts: Topstep vs. Earn2Trade
Profit sharing and payout frequency are crucial factors for traders deciding which firm to work with. Both firms offer profit-sharing programs, but they differ in percentages and payout schedules.
Topstep Profit Share:
- Profit Share: Topstep offers an impressive 90% profit share once traders have passed the evaluation and are trading on a funded account.
- Payout Frequency: Topstep processes bi-weekly payouts, so traders can access their profits every two weeks, which is a relatively quick turnaround for prop trading firms.
Earn2Trade Profit Share:
- Profit Share: Earn2Trade offers traders up to 80% profit share, which is competitive, but slightly lower than Topstep’s 90%.
- Payout Frequency: Earn2Trade offers monthly payouts, meaning traders receive their profits on a monthly basis. While this gives traders more time to accumulate profits, it also means waiting longer for access to earnings compared to Topstep’s bi-weekly schedule.
5. Risk Management: Topstep vs. Earn2Trade
Risk management is critical for any proprietary trading firm to ensure that both the trader and the firm protect their capital. Both Topstep and Earn2Trade have strict risk management policies, but there are slight differences in their rules.
Topstep Risk Management:
- Daily Loss Limit: $1,000 daily loss limit for funded accounts.
- Maximum Drawdown: $2,000 maximum drawdown on the account.
- Leverage: Topstep offers leverage of up to 1:100 depending on the account size and instrument being traded.
Earn2Trade Risk Management:
- Daily Loss Limit: $1,000 daily loss limit for funded accounts.
- Maximum Drawdown: $2,000 maximum drawdown on the account.
- Leverage: Earn2Trade typically offers lower leverage than Topstep, with 1:20 leverage for smaller accounts, but this can increase as the account size grows.
6. Key Differences: Topstep vs. Earn2Trade
| Feature | Topstep | Earn2Trade |
|---|---|---|
| Profit Share | Up to 90% | Up to 80% |
| Evaluation Process | Two-phase (15 days and 10 days) | Gauntlet (30 days), Gauntlet Mini (15 days) |
| Account Sizes | $50,000 to $150,000 | $25,000 to $200,000 |
| Risk Management | $1,000 daily loss limit, $2,000 max drawdown | $1,000 daily loss limit, $2,000 max drawdown |
| Payout Frequency | Bi-weekly | Monthly |
7. Conclusion: Topstep vs. Earn2Trade – Which is Right for You?
Both Topstep and Earn2Trade offer compelling opportunities for aspiring traders to access real capital and scale their trading careers. The right choice depends on your preferences for evaluation timelines, profit-sharing goals, and payout frequency.
- Choose Topstep if you want a higher profit share (up to 90%), a bi-weekly payout schedule, and are comfortable with a shorter, more intense evaluation process. Topstep’s rigorous evaluation process and larger profit share can be perfect for traders who are confident in their abilities and prefer quicker access to funding.
- Choose Earn2Trade if you prefer more time to complete your evaluation (30 days in the Gauntlet program), want lower entry costs, and are okay with monthly payouts. Earn2Trade’s flexibility in account size and profit-sharing options makes it an appealing choice for traders who want more time to demonstrate their skills or who are just starting their funded trading journey.
Both firms offer solid opportunities for traders to build a career, but it’s important to carefully assess your own trading goals, risk tolerance, and the structure that will best support your development as a successful trader.
