The FTMO Challenge is one of the most popular funded‐trading evaluations for forex and CFD traders worldwide. Thanks to its strict rules and consistent performance requirements, FTMO has earned a reputation for rewarding disciplined traders with substantial trading capital.
However, the growing presence of other proprietary trading firms, most notably TopTier Trader, means there are now more flexible avenues for skilled traders to secure funding.
In this blog post, we’ll explore how the FTMO Challenge measures up against TopTier Trader’s flexible approach, from their challenge structures and trading rules to fees, payouts, and scaling potential. By the end, you’ll have a clear understanding of which prop firm best aligns with your personal trading style and financial goals.
Overview of FTMO and TopTier Trader Prop firm
FTMO
- Launch Year: 2015
- Reputation: Considered one of the pioneers in the prop trading challenge space.
- Key Strengths:
- Credibility and a large, active trader community
- Well‐defined, time‐tested challenge rules
- High success stories and consistent payouts
Because FTMO has been in the market for several years, they’ve cultivated a reputation for strict evaluations, reliable payouts, and a robust support system (including webinars, performance coaching, and educational resources).
TopTier Trader
- Launch Year: 2021
- Reputation: Relatively new but quickly gaining momentum.
- Key Strengths:
- More flexible challenge options (1‐Phase or 2‐Phase)
- Generous scaling opportunities (up to $2 million)
- Multiple “add‐ons” to customize your trading conditions
TopTier Trader is designed for those seeking fewer restrictions, such as no strict challenge deadlines, weekend trading permissions, higher leverage options, and a more trader‐centric approach in their evaluations.
FTMO Challenge Structure vs. TopTier Trader Challenge Structure
FTMO Challenge
- Two‐Phase Evaluation:
- Phase 1 (Challenge):
- Typically 10% profit target
- 5% maximum daily loss and 10% maximum overall loss
- 4 minimum trading days (traditionally 30 days to hit the target)
- Phase 2 (Verification):
- Profit target reduced to 5%
- Same loss parameters (5% daily, 10% overall)
- 4 minimum trading days (traditionally 60 days to hit the target)
- Phase 1 (Challenge):
After successful completion, traders become “FTMO Traders” and can withdraw profits (up to 90% for the trader).
TopTier Trader Challenge
- Flexible Options:
- 1‐Phase Challenge: (Higher single‐phase target, e.g. 10%)
- 2‐Phase Challenge: (Lower targets each phase ~8% in Phase 1, ~5% in Phase 2)
In both models, the daily and total drawdown rules must be respected. Upon passing, traders receive a funded “sim” account with a 90/10 profit split starting immediately. No official time limit is enforced, though there are minimum trading days (e.g., 4 days in each phase).
Comparison Table: Key Differences in Challenge Structure
FTMO Challenge’s Trading Conditions & Rules Comparison
FTMO
- Daily Loss Limit: 5%
- Maximum Overall Loss: 10%
- Leverage: Typically up to 1:100 (depending on regulations in your region)
- Weekend Trading / Holding: Generally restricted or requires certain account types
- News Trading: Allowed, but some news events may be restricted (e.g., high‐impact releases)
FTMO’s trading conditions are generally strict and uniform, with clearly defined drawdown rules. They do, however, offer a variety of trading platforms (e.g. MetaTrader, cTrader) and provide advanced risk management tools.
TopTier Trader
- Daily Loss Limit: ~3–5% (depending on chosen challenge)
- Max Overall Loss: ~6–10% (depending on chosen challenge)
- Leverage: Up to 1:100 or 1:160, with options for “Double Leverage” add‐on
- Weekend / News Trading: Often allowed if you opt for certain add‐ons
- EAs & Algo Trading: Permitted by default or with a specific add‐on
TopTier Trader is more flexible. You can select from multiple add‐ons (like weekend trading, news trading, or no minimum days) to tailor the challenge conditions to your approach.
Comparison Table: Key Differences in Trading Rules
Profit Splits & Payouts
FTMO
- Profit Split: Up to 90/10 (trader/firm), typically starting at 80/20 but can increase with good performance or FTMO’s scaling plan.
- Payout Frequency: Usually monthly; you can request payouts any time after a minimum 14‐day period.
TopTier Trader
- Profit Split: 90/10 from the start.
- Scaling Potential: Some of TopTier’s offers mention scaling up to $2 million in funding if you consistently generate profits.
- Express Payout: Option to receive payouts in as few as 14 days if you purchase an add‐on.
N.B: The base profit split for TopTier Trader is typically 80/20. However, traders have the option to purchase a profit-split upgrade (or “add-on”) that grants a 90/10 split from the start. Furthermore, TopTier’s scaling program can potentially increase the trader’s share to up to 95% over successive scale-ups.
Verdict: Both firms offer up to a 90/10 share, which is excellent. However, TopTier Trader aims for a bigger scaling limit (potentially $2 million) compared to FTMO’s scaling plan (which also extends to six‐figure amounts but typically grows in increments).
Fees & Refund Policy
FTMO
- Fees: Scaled according to account size; e.g., a $10,000 challenge often costs around €155 (sometimes discounted to €89). Larger accounts (like $100,000) have higher fees.
- Refund Policy: If you pass Phase 1 and Phase 2 successfully and begin trading the funded account, you get your entire fee refunded with your first profit payout.
TopTier Trader
- Fees: Vary by challenge size and number of phases. A $5k account might cost $82 for 1‐Phase or $110 for 2‐Phase. More capital means higher fees. Add‐ons (e.g., double leverage, no minimum days) also increase the total cost.
- Refund Policy: Once you pass and receive your funded (sim) account, you get your base fee refunded with your first withdrawal.
Verdict: Both refund your fee upon passing. The base costs are somewhat comparable; however, TopTier Trader might turn more expensive when you add optional features. On the other hand, FTMO’s fees can be higher for large accounts. Ultimately, the difference is minimal if you plan to pass and get refunded.
Trader Experience & Support
FTMO
- Community: Thousands of traders have passed or attempted the challenge. You’ll find plenty of third‐party reviews and resources.
- Support: Generally reliable, though wait times for email or live chat can sometimes be longer due to high demand.
- Educational Resources: Offers performance coaching, webinars, and free trials. However, it’s more of an “evaluation” environment than a deep mentorship environment.
TopTier Trader
- Community: Smaller but growing. Tends to attract traders seeking flexible conditions.
- Support: Known for fast responses and a more “tailored” approach. They are more open to customizing the experience, as seen with their add‐ons.
- Trader Resources: Offers an engaged online chat, prompt email replies, and community channels. More “trader‐centric” add‐ons also help shape the challenge to your strategy.
Final Verdict: Which Challenge Is Right for You?
Choose FTMO if:
- You prefer a time‐tested prop firm with a large global reputation.
- You do well under strict, structured rules and deadlines (though they’ve recently added “unlimited time” promos so always confirm).
- You want access to a rich ecosystem of educational resources and a well‐established community.
Choose TopTier Trader if:
- You want more flexibility, no official time limits, weekend/news trading, or higher leverage are important to you.
- You’d rather pass a single‐phase challenge (and accept a slightly larger profit target) to get funded faster.
- You aim for bigger scaling opportunities (up to $2 million) and appreciate the quick, responsive customer support.
Conclusion
Both FTMO and TopTier Trader offer appealing funded‐trader challenges. FTMO stands out for its reliability, structured two‐phase approach, and large user community, making it an excellent choice if you’re comfortable with strict guidelines and deadlines.
TopTier Trader, meanwhile, caters to those who desire greater freedom such as no time limits, multiple add‐ons, single‐phase challenge options, and a swift path to scaling up large accounts.
Ultimately, the right choice depends on your trading style and preferences. Do you thrive under a classic, more regimented process (FTMO), or do you want a dynamic challenge that you can customize to fit your strategy (TopTier Trader)?
