Introduction:
Choosing the right funded trading program is crucial for aspiring traders looking to kick-start their trading careers. In this blog post, we will conduct a detailed comparison between two renowned prop firms, FTMO and True Forex Funds. By examining various aspects such as program types, funding requirements, trading styles, trading platforms, leverage, and more, we aim to provide you with valuable insights to make an informed decision.
Prop Firm Overview:
a) FTMO:
FTMO, founded in 2014, has established itself as a reputable prop firm in the trading industry. With its headquarters located in Prague, Czech Republic, FTMO offers traders the opportunity to access a maximum account balance of $2,000,000. To participate in FTMO’s funded trading program, traders are required to undergo a registration process and pay a registration fee. Additionally, they need to pass a challenge to demonstrate their trading skills and discipline.
b) True Forex Funds:
True Forex Funds is a relatively newer prop firm, founded in 2021. Headquartered in Hungary, the firm provides traders with the opportunity to access a maximum account balance of $400,000. Similar to FTMO, True Forex Funds requires traders to register and pay a registration fee. They also need to pass a challenge to showcase their trading abilities and adherence to the firm’s guidelines.
Instruments:
a) FTMO:
FTMO offers a diverse range of tradable instruments, including Forex, Indices, Metals, Commodities, Stocks, and Crypto. Traders have the flexibility to explore various markets and diversify their trading portfolios.
b) True Forex Funds:
True Forex Funds also provides traders with access to a comprehensive list of instruments, covering Forex, Indices, Metals, Commodities, Stocks, and Crypto. This allows traders to explore multiple markets and capitalize on various trading opportunities.
Funding Program Types:
a) FTMO:
FTMO offers two program types: One-Step Evaluation and Two-Step Evaluation. The One-Step Evaluation program requires traders to pass a single challenge, demonstrating their ability to meet specific profit targets, manage daily losses, and drawdowns, and adhere to trading rules. Successful traders are then granted a funded account. The Two-Step Evaluation program requires traders to pass two distinct challenges, each with its own set of targets and rules. This program is designed to assess traders’ consistency and adaptability in different market conditions.
b) True Forex Funds:
True Forex Funds focuses on providing an Instant Funding program, which allows traders to immediately access a funded account upon registration and payment of the necessary fees. This program eliminates the need to pass a specific challenge, providing traders with a more streamlined process.
Instant Funding Comparison:
Both FTMO and True Forex Funds offer instant funding programs, albeit with some differences in criteria. The criteria for instant funding may include Profit Target (the level of profit to be achieved), Max Daily Loss (the maximum allowed loss in a day), Max Daily Drawdown (the maximum intraday drawdown allowed), Max Loss (the maximum loss allowed), Max Drawdown (the maximum cumulative drawdown allowed), Minimum Trading Days (the minimum number of trading days required), Maximum Trading Days (the maximum number of trading days allowed), and Profit Split (the percentage of profits retained by the trader).
One-Step Program Comparison:
FTMO and True Forex Funds have One-Step programs, which require traders to pass a single challenge for qualification. The parameters for the One-Step program may include Profit Target, Max Daily Loss, Max Daily Drawdown, Max Loss, Max Drawdown, Minimum Trading Days, Maximum Trading Days, and Profit Split. These criteria ensure that traders demonstrate consistency, risk management, and adherence to trading rules.
Two-Step Program Comparison:
FTMO offers a Two-Step program, while True Forex Funds does not currently provide this option. FTMO’s Two-Step programs consist of two distinct challenges, each with specific profit targets, trading rules, and evaluation criteria. The purpose of the Two-Step program is to assess traders’ adaptability and consistency in different market conditions, providing a more rigorous evaluation process.
Trading Styles:
a) FTMO:
FTMO allows traders to adopt various trading styles, including day trading, swing trading, and position trading. Traders have the freedom to choose the trading style that aligns with their preferences and strategies.
b) True Forex Funds:
True Forex Funds also supports multiple trading styles, such as day trading, swing trading, and position trading. Traders can select the trading style that best suits their trading approach and objectives.
Trading Platforms:
a) FTMO:
FTMO supports popular trading platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Traders can utilize these widely used platforms and access a range of advanced trading tools and features.
b) True Forex Funds:
True Forex Funds also offers MetaTrader 4 (MT4) and MetaTrader 5 (MT5) as the primary trading platforms. Traders can leverage the capabilities of these platforms to execute trades efficiently and access various trading indicators and analysis tools.
Leverage:
a) FTMO:
FTMO provides traders with leverage of up to 1:100, allowing them to amplify their trading positions and potential profits. However, it’s important to note that higher leverage also increases the risk of potential losses.
b) True Forex Funds:
True Forex Funds offers leverage of up to 1:50, enabling traders to enhance their trading positions. Traders should exercise caution and consider the potential risks associated with higher leverage.
Conclusion:
FTMO and True Forex Funds are both reputable prop firms that offer funded trading programs to aspiring traders. The choice between the two depends on individual preferences, trading goals, and the specific features offered by each firm. By considering factors such as program types, funding requirements, trading styles, trading platforms, leverage, and other relevant criteria, traders can make an informed decision that aligns with their trading strategies and objectives.
