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Comparing Challenges: FundedNext & The Funded Trader

As we compare these challenges, we’ll also look at their features, benefits, and drawbacks so you can find the firm that best aligns with your simulated trading goals.

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Planning on trading with an evaluation firm? There are several reputable platforms to choose from. But first, you must pass their simulated trading challenges to prove your skills, discipline, and consistency. In this article, we’ll compare the challenges between FundedNext and The Funded Trader.

Trading challenges help firms determine whether a simulated trader can generate consistent virtual profits. As we compare these challenges, we’ll also look at their features, benefits, and drawbacks so you can find the firm that best aligns with your simulated trading goals.

FundedNext vs The Funded Trader
Photographer: Ground Picture

FundedNext Challenges

FundedNext is a proprietary trading firm based in the United Arab Emirates but with offices across the U.S. and Southeast Asia. To join FundedNext as a full-time simulated trader, you’ll need to successfully pass one of their challenges.

There are three challenges that will test you under specific rules and trading objectives. If you can adhere to the rules, such as managing drawdowns and hitting virtual profit targets, you’ll be able to receive a virtually funded demo account.


Best For: New simulated traders looking for a balanced challenge to prove their skills

The FundedNext Stellar Challenge is a two-phase challenge and has a lower virtual profit target. Simulated traders must reach a virtual profit target of 8% in Phase 1 and 5% in Phase 2 while maintaining a maximum virtual daily drawdown of no more than 5%. It’s also crucial to stay disciplined and prevent your virtual max drawdown from exceeding 10% of the initial virtual account balance.

This challenge boasts 5 minimum trading days and no time limit to complete so you can take your timepassing. You can also attempt the Stellar challenge in a single step, although the rules become more strict. You’ll have to achieve 10% virtual profit and maintain a 3% virtual daily drawdown and a 6% virtual max drawdown. The leverage for the one-step challenge is only 1:30.


Best For: Experienced simulated traders

The FundedNext Evaluation Challenge is a tightrope walk that must be completed in a limited time. It’s a two-phase process. In Phase 1, you have to achieve a 10% virtual profit target in four weeks. In Phase 2, the virtual profit target lowers to 5%, and the time limit increases to eight weeks. The virtual daily drawdown for both phases is 5%, while the virtual max drawdown is 10%.

This challenge is also flexible on strategies such as allowing simulated news trading, weekend holding, Expert Advisors (EAs), and trade copiers.


Best For: Simulated traders with moderate experience seeking quick evaluation and funding opportunities

This challenge has two pathways: consistency and non-consistency. For a consistency account, you’ll need to keep the number of simulated trades each week consistent and maintain the same level of virtual profit. You must also conduct a simulated trade for a minimum of 10 simulated trading days and achieve a virtual profit of 25%. This one-step challenge doesn’t allow simulated news trading and weekend trading.

The non-consistency challenge is also one-step and has the same virtual profit target and minimum simulated trading days. It also allows weekend holding.

simulated funded trading
Photographer: MIND AND I

The Funded Trader Challenges

The Funded Trader (TFT) was founded in 2021 and has grown rapidly into a reputable proprietary trading firm. Compared to FundedNext, we offer simple rules and reasonable virtual profit targets.

TFT has multiple simulated challenges with different account sizes: Standard, Royal, Rapid, and Knight.

Standard Challenge

Best For: Novice traders aiming to build a steady simulated trading career with strong foundational support

The Standard Challenge is a two-phase evaluation process. You can conduct a simulated trade with between $5,000 and $400,000 on a swing or regular demo account.

In the first phase, simulated traders have unlimited days to achieve a 10% virtual profit target. During this period, you’ll need to maintain the virtual max drawdown at 10% and the maximum virtual daily drawdown at 5%.

If you purchase the add-on feature, you can increase the virtual max drawdown to 12% and the virtual daily drawdown to 6%. You can also purchase EAs as add-ons.

In Phase 2, the virtual profit target drops to 5% while all other parameters stay the same.

Royal Challenge

Best For: Experienced simulated traders looking for substantial funding opportunities to amplify their simulated trading ventures

The Royal Challenge is also a two-phase program, but the virtual profit target is slightly lower. Traders must achieve 8% virtual profit in Phase 1 and 5% in Phase 2 over unlimited simulated trading days. You can also hold positions over the weekend, which is a big perk for simulated retail traders.

What’s more, the Royal Challenge allows your preferred simulated trading tools, such as EAs and news trading. Its simulated trading account varies from $50,000 to $400,000.

Traders must maintain a maximum 5% virtual daily drawdown and a 10% virtual max drawdown. You’ll also need to trade a minimum of five simulated trading days.

Rapid Challenge

Best For: Active simulated traders who want rapid evaluation and funding for immediate trading actions

This is our fastest evaluation program, in which you can get your first payout within one month. The Rapid Challenge is also divided into two phases. In Phase 1, you have an 8% virtual profit target, with a maximum virtual daily drawdown of 5% and a virtual max drawdown of 8%. Unlike with FundedNext, there are no minimum simulated trading days in the Rapid Challenge.

In Phase 2, the virtual profit target is lowered to 5%, while the maximum virtual daily drawdown and virtual max drawdown remain the same. If you meet these trading objectives, you’ll pass the evaluation process and become eligible for a virtual funded demo account. From here, you can scale your profit percentages and claim your virtual profit split after 14 days.

Knight’s Challenge

Best For: Professional simulated traders aiming for significant capital to scale their trading strategies and portfolios

This is a one-step challenge designed for seasoned simulated traders. In the Knight’s Challenge, you have unlimited calendar days to achieve a 10% virtual profit target. During this period, your account should not go below the maximum virtual daily drawdown of 3% equity.

You must also maintain a virtual max drawdown of 6% from the starting virtual balance of the demo account.

FundedNext vs. The Funded Trader Challenges: Which Is Right for You?

While FundedNext has been around longer, The Funded Trader is growing rapidly and has a 4.5 rating on Trust Pilot. When comparing simulated trading challenges, you’ll see that TFT’s challenges have more reasonable virtual target profits and simpler rules to follow. This increases your chances of success.

Thousands of simulated traders trust our secure proprietary trading firm. We offer both beginners and experts several pathways to earn a funded demo account. You can even customize your challenge and opt for additional support, such as EAs.

Join our Challenge today and start your journey to become a simulated funded trader.


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