Prop firm rules change. Firms close. New plans launch with different limits. This page consolidates every rule you need to know — in one table, with dollar-value examples, and plain-English explanations of what each rule actually means when you are trading live. Last updated March 2026.
1. Full rules comparison — all four major firms
| Rule | FTMO | TopStep | The5%ers | FundedNext |
|---|---|---|---|---|
| Challenge Rules | ||||
| Daily loss limit | 5%of day-start balance | Variesby plan / account size | 4%of account balance | 5%of account balance |
| Max drawdown type | Staticfrom initial balance | Trailing EODend-of-day equity | Staticfrom initial balance | Staticfrom initial balance |
| Max drawdown % | 10% | See planstypically 2–6% | 5%stricter than FTMO | 10% |
| Profit target (Phase 1) | 10% | 6–10%by plan | 6%lower than FTMO | 8% |
| Profit target (Phase 2) | 5% | N/Asingle phase | N/Asingle phase | 5% |
| Min trading days | 4 daysper phase | None | None | 5 daysper phase |
| Time limit | None | None | None | None |
| Consistency rule | None | None | Best day ≤ 50%of total profits | Best day ≤ 40%of total profits |
| Trading during news | Allowed | Allowed | Allowed | Allowed |
| Weekend holding | Allowed | Not allowedfutures close | Allowed | Allowed |
| EAs / bots allowed | Yesown EAs only | Yes | Yes | Yesown EAs only |
| Copy trading | Not allowedbetween accounts | Not allowed | Not allowed | Not allowed |
| Funded Account Terms | ||||
| Profit split | 80–90%increases to 90% | Up to 90% | Up to 100%at higher tiers | 80–90% |
| Payout frequency | Monthly+on-demand after 14d | Monthlyon-demand option | Monthly | Monthly14-day first payout |
| Max funded capital | $2,000,000scaling plan | $150,000per account | $4,000,000slow scaling | $300,000 |
| Instruments | Forex, CFDsindices, crypto, metals | Futures onlyCME, CBOT, NYMEX | Forex, CFDsstocks, crypto, metals | Forex, CFDsindices, crypto |
| Refundable fee | Yeson first payout | Monthly subno refund | Yeson first payout | Yeson first payout |
2. Dollar values by account size
The percentage rules look abstract until you calculate the dollar amounts at your account size. Here are the hard numbers for the most common challenge sizes — the figures you need to write in your journal before each session.
| Daily loss limit (5%) | $1,250 |
| Max drawdown (10%) | $2,500 |
| Drawdown floor | $22,500 |
| Profit target P1 (10%) | $2,500 |
| Profit target P2 (5%) | $1,250 |
| Daily loss limit (5%) | $5,000 |
| Max drawdown (10%) | $10,000 |
| Drawdown floor | $90,000 |
| Profit target P1 (10%) | $10,000 |
| Profit target P2 (5%) | $5,000 |
| Daily loss limit (4%) | $1,000 |
| Max drawdown (5%) | $1,250 |
| Drawdown floor | $23,750 |
| Profit target (6%) | $1,500 |
| Consistency rule max | $750 best day |
| Daily loss limit (5%) | $5,000 |
| Max drawdown (10%) | $10,000 |
| Drawdown floor | $90,000 |
| Profit target P1 (8%) | $8,000 |
| Consistency rule max | $3,200 best day |
Why this matters: Most traders know the percentages. Fewer know the dollar amount in real time during a session. Write your daily loss limit in your journal before you open your platform — not after you have already taken the trade that blew it.
3. What each rule actually means
Daily Loss Limit — the most misunderstood rule
The daily loss limit is not calculated from your current balance. It is calculated from your balance at the start of each trading day (midnight CET for FTMO). This catches traders who grow their account and then have a bad session on a larger base.
FTMO example: You started the month at $100,000. You grow to $108,000 by mid-month. You have a bad day and lose $6,500. The daily limit that day was $5,400 (5% of $108,000) — you blew it by $1,100. The challenge ends.
Loss of $6,500 > $5,400 → challenge terminated
Static vs Trailing Drawdown — the crucial difference
Static drawdown (FTMO, The5%ers, FundedNext): The floor is set from day one and never moves. On a $100k account with 10% static drawdown, your floor is $90,000 for the entire challenge — whether your account grows to $120k or stays flat. The risk of breaching the floor decreases as your account grows.
Trailing drawdown (TopStep): The floor moves up as your equity grows. If your starting balance is $50,000 and you reach $56,000, your trailing floor moves to $50,300 (assuming 10% trail on $53,000 peak — TopStep uses end-of-day equity, not intraday peaks). Once you hit 10% above your starting balance on TopStep, the trailing floor locks at breakeven. This is significantly harder to manage during growth phases.
After 3 days, account grows to $56,000 → floor now ~$50,400
Must reach $55,000+ for floor to lock at $50,000 (breakeven)
Consistency Rule — only The5%ers and FundedNext
This rule prevents traders from passing a challenge on one outsized winning day. If your best single trading day accounts for more than 50% (The5%ers) or 40% (FundedNext) of your total profits, the challenge fails — even if you hit the profit target.
In practice: trade consistently across multiple days. If you are on The5%ers and have $1,800 total profit, your best day cannot exceed $900. If a great setup presents itself that could produce $1,200, you would need to reduce position size so the maximum profit stays within the limit.
Best day: $1,700 → exceeds 50% of $3,200 ($1,600) → consistency fail
Needed best day: $1,600 or less
Minimum Trading Days — not the same as calendar days
FTMO requires 4 trading days per phase (Challenge and Verification). FundedNext requires 5 days per phase. "Trading day" means a day where at least one trade was opened and closed. A day where you only had an open trade is not counted. You cannot compress the challenge into fewer sessions than required.
No maximum. FTMO and FundedNext have no time limit. You can take 6 months to reach the profit target if needed — as long as you never breach the loss limits.
You can then hit the profit target in the same session or the next day.
4. Account sizes and challenge fees (2026)
Most firms offer multiple account sizes. Fees scale with account size. For FTMO, The5%ers, and FundedNext, the challenge fee is refundable when you receive your first funded account payout. TopStep charges a monthly subscription rather than a one-time fee.
Fee amounts change frequently. Check each firm's current pricing page before purchasing. Approximate 2026 fees for a $100k account: FTMO ~€540, The5%ers ~$495–$595, FundedNext ~$549–$649. TopStep charges ~$375/month for the $150k combine with no refund.
5. Scaling plans — how to grow beyond the initial account
All four firms offer scaling plans that allow consistently profitable funded traders to manage larger capital over time. The specifics vary significantly.
FTMO scaling
FTMO scales up to $2,000,000 per trader. After 4 consecutive months of profitability, FTMO increases your account by 25%. There is no limit to the number of funded accounts you can hold — some traders run multiple accounts simultaneously to manage more capital while staying within individual account risk limits.
TopStep scaling
TopStep offers a Performance Coach program where traders with strong track records can scale up. The primary model is multiple Combine accounts — there is no published automatic scaling formula. Withdrawals are processed monthly.
The5%ers scaling
The5%ers runs a slow-scale Bootcamp model. Starting at $5k or $20k, accounts double as traders hit profit milestones. The top tier is $4,000,000, though reaching it takes years of consistent performance. The profit split also increases toward 100% at the higher tiers. This is designed for long-term, conservative trading rather than rapid scaling.
FundedNext scaling
FundedNext allows traders to scale up to $300,000 per account. After a period of consistent performance, you can request an account size increase. The firm also offers an Evaluation model (two phases) and a Stellar model (single phase) with different scaling mechanics.
6. Dead and closed prop firms — do not send money here
Closed firms — verified as of March 2026
MyFundedFX — Closed February 2026. Ceased operations and stopped processing payouts. Do not attempt to fund an account or purchase a challenge here.
MyForexFunds — Shut down by the CFTC and Ontario Securities Commission in August 2023 for fraud. $310M in assets frozen. Do not use.
TrueForexFunds — Closed May 2024. Announced closure with 30 days notice, citing regulatory pressure and liquidity issues.
Funding Pips — Paused operations January 2026. Status unclear as of March 2026 — treat as closed until confirmed otherwise.
If a firm you are considering is not FTMO, TopStep, The5%ers, or FundedNext, research it thoroughly before sending money. Look for: verifiable payout history from real traders, regulatory standing, how long they have been operating, and whether they have a published track record of payouts during market stress. Small prop firms have a high failure rate.
FTMO's daily loss limit is 5% of your account balance at the start of each trading day. On a $100,000 account, that is $5,000. If your account was $102,000 at midnight CET, the limit for that day is $5,100. The limit resets at midnight CET daily. Breach this limit — even intraday on a floating loss — and the challenge ends immediately.