Quick Verdict
Before diving into the details: FTMO and TopStep serve different markets. If you already know what you trade, this verdict is all you need.
Best for Forex & Metals Traders
The dominant prop firm for forex, gold, silver, and index CFD traders. Offers the largest account sizes in the industry (up to $400k+) and a proven two-phase challenge model. Fixed drawdown rules make it easier to plan your risk.
Best for Futures Traders (ES, NQ, CL)
The gold standard for CME futures traders since 2012. If you trade E-mini S&P, Nasdaq, crude oil, or bonds, TopStep is specifically built for you. Weekly payouts and a subscription-based evaluation make it accessible.
The Fundamental Difference: This Is a Market Choice, Not a Rules Comparison
Most "FTMO vs TopStep" articles compare profit targets and drawdown rules as if these firms are direct competitors. They're not. FTMO and TopStep target entirely different markets, and the correct firm for you is determined by what you trade — not which rules you prefer.
Here's the core division:
FTMO Markets
Forex pairs (EUR/USD, GBP/USD, USD/JPY, etc.), equity indices as CFDs (SPX500, NAS100, DAX, FTSE), metals (Gold XAUUSD, Silver XAGUSD), and select crypto — all traded as OTC CFDs through FTMO's broker partners.
TopStep Markets
CME exchange-traded futures exclusively: E-mini S&P 500 (ES), Micro E-mini S&P (MES), E-mini Nasdaq (NQ), Micro E-mini Nasdaq (MNQ), crude oil (CL), US Treasury bonds (ZB), Euro FX (6E), and more.
This distinction matters enormously. Futures and forex are fundamentally different instruments. Futures trade on a centralized exchange (CME Group) with fixed contract sizes, expiry dates, and commissions per contract. Forex is decentralized, traded over-the-counter with variable spreads. The risk management rules, margin requirements, and intraday behavior differ significantly between the two.
If you walk into a TopStep evaluation wanting to trade EUR/USD, you're in the wrong place. If you walk into FTMO wanting to trade the ES futures contract, FTMO doesn't offer it. Choose based on your market — everything else is secondary.
With that said, let's cover the detailed comparison for traders who are either flexible on markets or genuinely deciding between the two asset classes.
Side-by-Side Comparison: FTMO vs TopStep
All figures based on $100k equivalent accounts as of 2026. TopStep does not offer a $100k account — their largest is $150k — so we compare similar tiers.
| Feature | FTMO | TopStep |
|---|---|---|
| Founded | 2015 (Prague) | 2012 (Chicago) — oldest active prop firm |
| Markets | Forex, Indices (CFD), Metals, Crypto | CME Futures only (ES, NQ, MES, MNQ, CL, ZB, etc.) |
| Evaluation Fee ($100k equiv.) | ~$540 one-time (no recurring) | ~$375/month subscription |
| Evaluation Model | 2-phase challenge (Phase 1 → Phase 2 → Funded) | Trading Combine (single ongoing evaluation) |
| Profit Target | 10% Phase 1, 5% Phase 2 | No fixed % target — consistency-based evaluation |
| Daily Loss Limit (Eval) | 5% of account balance | 2% of account size |
| Max Drawdown (Eval) | 10% (fixed from starting balance) | 3% trailing from highest equity point |
| Drawdown Type (Funded) | Fixed 10% — simpler to manage | Trailing — moves up with profits, never down |
| Profit Split | 80% (up to 90% with scaling) | 90% from first payout |
| Payout Frequency | On-demand (14-day minimum first payout) | Weekly |
| Max Funded Account | $400,000+ (via scaling plan) | $150,000 |
| Scaling Plan | Yes — 25% increase each cycle | No formal scaling |
| News Trading | Not allowed (positions must be closed during major news) | Allowed (futures react differently to news) |
| Weekend Holding | Yes — swing traders can hold | No — all positions must close before weekend |
| Trading Hours | Flexible — forex markets open nearly 24/5 | CME market hours (subject to exchange schedule) |
| Minimum Trading Days | 4 days (Phase 1), 4 days (Phase 2) | 10 winning days in the Combine |
| Subscription Model | No — one-time challenge fee | Yes — pay monthly, evaluate continuously |
| Free Retry | No (must repurchase) | Keep evaluating with same subscription |
| Platform | MetaTrader 4/5, cTrader | Quantower, NinjaTrader, TradingView, R|Trader |
Key insight: TopStep's subscription model means you pay monthly until you pass — but you never lose your evaluation attempt at the end of the month. FTMO's one-time fee means if you blow the challenge, you pay again. Your expected pass timeline should drive this decision.
FTMO Deep Dive
FTMO was founded in Prague in 2015 and has since become the most recognised name in forex prop trading. Their two-phase challenge model has been widely copied by competitors, which is itself a testament to how well it works as an evaluation framework.
How the FTMO Challenge Works
The process has three stages. In Phase 1, you must hit a 10% profit target on your chosen account size (e.g., $10,000 on a $100k account) within 30 days, while keeping daily losses below 5% and total drawdown below 10%. In Phase 2, the profit target drops to 5% and you have another 60 days, with the same risk limits. Upon passing both phases, you become an FTMO Funded Trader and receive real capital to trade.
Markets and Instruments
FTMO supports over 300 instruments across forex pairs, CFD indices (SPX500, NAS100, UK100, DAX), metals (Gold XAUUSD, Silver XAGUSD), commodities, and select crypto. This breadth makes FTMO attractive to traders who use a multi-asset approach or who trade gold alongside forex pairs — a common professional strategy.
The Scaling Plan
One of FTMO's standout features is their scaling plan. Every four months, if you generate at least 10% profit and follow the rules, your account size increases by 25%. Starting at $100k, you can scale to $200k, $400k, and beyond. This is how FTMO's maximum account size reaches $400,000+ — it's earned through consistent performance over time.
Fixed Drawdown: The Practical Advantage
FTMO uses a fixed drawdown model. Your maximum loss is always 10% of your initial account balance — it never moves. On a $100k account, your absolute floor is always $90,000, regardless of whether you've traded up to $115k and back down. This simplicity is a meaningful operational advantage. You can plan your risk precisely without tracking a moving floor.
News Trading Restriction
FTMO prohibits opening or holding positions during high-impact news events (specifically in the 2 minutes before and after). This is a genuine constraint for news traders but is manageable for most systematic or technical traders. Check the FTMO Economic Calendar in your trader dashboard for scheduled events.
TopStep Deep Dive
TopStep was founded in Chicago in 2012, making it the oldest active prop trading firm in the industry. They predate FTMO by three years and built their model from the ground up for futures traders. Their Chicago roots are deliberate — the CME Group exchange is based in Chicago, and TopStep's founders came from traditional futures trading backgrounds.
The Trading Combine: A Different Philosophy
TopStep's evaluation is called the Trading Combine, and it operates differently from FTMO's challenge. There is no fixed profit target percentage to hit. Instead, TopStep evaluates consistency: you must achieve 10 winning days to pass, while keeping losses within their drawdown rules. The focus is on demonstrating that you can trade profitably without blowing up — not on hitting an arbitrary number by a deadline.
This philosophy suits day traders well. You're not racing against a 10% target; you're demonstrating process. For traders who have solid risk management but don't always generate outsized returns, this consistency-based approach can feel more natural.
CME Futures: What You're Actually Trading
TopStep gives you access to the full CME futures lineup. The most popular instruments among TopStep traders are the ES (E-mini S&P 500, $50/point), the MES (Micro E-mini S&P, $5/point), the NQ (E-mini Nasdaq, $20/point), and the MNQ (Micro E-mini Nasdaq, $2/point). The micro contracts are particularly useful for newer traders or those managing tighter risk in the funded phase.
Weekly Payouts
TopStep pays weekly, which is faster than most prop firms. After your first withdrawal (which requires hitting a small buffer above starting balance), you can request payouts every week. For traders who depend on trading income, the weekly cadence is a genuine lifestyle advantage.
The Subscription Model
TopStep charges a monthly subscription fee rather than a one-time evaluation fee. The $150k account tier costs approximately $375/month. The key benefit: if you have a bad month, you don't pay a fresh fee to restart — you simply continue the next month on the same subscription. This removes the psychological pressure of "I paid $540 and now I'm going to blow it" that many FTMO traders feel. The downside: if it takes you six months to pass, you've paid 6x the monthly fee.
Maximum Account Size
TopStep's maximum funded account is $150,000. There is no formal scaling plan beyond this. For high-performing traders who want to grow to $400k+, FTMO's scaling program is a meaningful advantage. However, $150k in futures notional exposure is substantial — the leverage inherent in futures contracts means $150k of TopStep capital controls significantly more market exposure than $150k in a forex account.
The Trailing Drawdown Explained (The Most Important Difference)
If you're seriously considering TopStep, you must understand the trailing drawdown. It's the single most counterintuitive rule in prop trading and the reason many traders lose their funded accounts on days they were actually profitable earlier.
How It Works
TopStep's drawdown limit is not fixed to your starting balance. It follows your highest equity point upward — and never comes back down.
The critical implication: In the example above, you made $1,500 in the first two trades but still lost your funded account because you gave back more than $1,500 from that peak. A profitable morning can end in account closure if you keep trading into the afternoon. TopStep rewards traders who know when to stop.
Trailing Drawdown vs FTMO's Fixed Drawdown
FTMO uses a fixed drawdown model. On a $100k account, your floor is always $90,000 — period. It doesn't matter if you ran the account up to $115k and came back down. As long as you don't hit $90,000, you're fine. This is dramatically simpler to manage mentally and operationally.
The trailing model rewards consistent daily performance and penalizes overtrading after a good session. The fixed model rewards overall account growth and is more forgiving of volatile equity curves. Neither is objectively better — they suit different trading styles. Scalpers and session-based day traders tend to handle trailing drawdowns well. Swing traders who let winners run over multiple days generally prefer FTMO's fixed model.
Subscription vs One-Time Fee: The Real Cost Analysis
The fee model is the second most important practical difference between these two firms. Here's an honest breakdown of what you'll actually spend.
The math is straightforward: if you're confident you can pass within one to two months, FTMO's one-time fee is competitive or cheaper. If your realistic timeline is three or more months — either because you're newer to prop firm evaluations or because you've failed evaluations before — TopStep's subscription model likely costs less in the long run.
There's also a psychological cost to consider. FTMO's fee-per-attempt model creates real financial pressure on each evaluation cycle. Some traders perform worse under that pressure. TopStep's subscription removes that anxiety — a bad week is just a bad week, not $540 down the drain. For traders who struggle with performance anxiety, this difference alone can be worth factoring into your decision.
Breakeven point: TopStep becomes more expensive than FTMO after approximately 1.5 months at the $150k tier. If you're a disciplined, experienced trader who expects to pass quickly, FTMO wins on cost. If you're still developing consistency, TopStep's forgiving subscription model is the smarter financial choice.
Who Should Choose FTMO
FTMO is the right choice if the following describes you:
FTMO is also the better choice for traders who run multi-session strategies across the Asian, London, and New York sessions — forex operates nearly 24/5, giving maximum flexibility regardless of your timezone.
Who Should Choose TopStep
TopStep is the right choice if the following describes you:
TopStep's Chicago roots and CME-focused model also mean their support team deeply understands futures-specific issues — expiry rollovers, commission structures per contract, and market hours nuances. For a futures trader, this institutional knowledge is valuable.
The Final Verdict
There is no universally "better" firm between FTMO and TopStep. The correct answer depends entirely on what you trade.
If you trade FOREX, Gold, or Index CFDs: Choose FTMO. It's the industry leader for these markets, offers the largest funded accounts available, and its fixed drawdown model is operationally simpler.
If you trade CME Futures (ES, NQ, MES, MNQ, CL): Choose TopStep. It was built for this, has been doing it since 2012, and its weekly payouts and subscription model fit the futures day trading lifestyle well.
If you trade both markets — for example, you scalp NQ futures in the morning and swing trade EUR/USD — the correct answer is to open accounts at both firms. There is no rule against holding multiple prop firm funded accounts simultaneously. Many professional traders do exactly this, diversifying their prop capital across firms and markets the same way they diversify their personal trading strategies.
The one scenario where you should think harder: if you're flexible on markets and purely deciding based on rules and fees. In that case, evaluate your expected pass timeline. Pass quickly and consistently? FTMO's one-time fee wins. Need time and multiple cycles? TopStep's subscription is kinder to your wallet. Hate trailing drawdown mechanics? FTMO's fixed floor is easier to manage. Want weekly cashflow from a funded account? TopStep pays out faster.