Funded trading solves a unique problem: access to capital. But to win a funded account, you’ll first need to pass a prop firm’s challenge to prove you can be successful. In this guide, we’ll compare the FTMO Challenge and TFT’s Royal Challenge so you can determine which one is best for you.
Specifically, we’ll look at each firm’s $100,000 challenge.
FTMO Challenge
FTMO is a popular prop trading firm that provides funded accounts ranging from $10,000 to $200,000. This means that once you pass an FTMO challenge, you have a unique opportunity to manage a funded account without risking your own capital. In the process, you’ll also grow your trading skills and become proficient in the Forex market.
Mechanics
There’s a three-step evaluation process to becoming funded with FTMO:
1. FTMO Challenge
To start the FTMO Challenge, you have to purchase a challenge from the firm’s website. You can customize the challenge by selecting your currency, risk level (normal or aggressive), and account balance ($10,000 to $200,000).
For the $100,000 FTMO challenge, you get unlimited trading days, although you must trade for at least four days (they need not be consecutive). The maximum daily loss allowed is $5,000, while the maximum total loss can’t exceed $10,000.
The profit target for this challenge is $10,000. Upon successfully reaching the profit target, your challenge fees will be refunded.
2. Verification
Once you pass the trading objectives set by FTMO, you’ll move to the verification step. Everything remains the same here except the profit target, which is reduced to $5,000. This makes the trading objectives easier.
The goal at this stage is to test your trading consistency. FTMO wants to be sure you can maintain profitability in the long run while abiding by its rules.
3. FTMO Account
During the verification stage, FTMO will review your account to ensure all your trades align with real market conditions. Upon passing the evaluation, you become an FTMO Trader.
There’s no profit target here, and you have the flexibility to trade your strategy with peace of mind. However, you must still follow the drawdown rules (Maximum Daily Loss and Maximum Loss).
You can claim up to 90% profit split as a funded trader with FTMO. The funded accounts work on a 30-day rolling basis, starting from the day of your first trade. FTMO calculates your profit based on this 30-day period.
FTMO Challenge Pros
The FTMO Challenge has a balance-based drawdown of 5% daily and a 10% maximum drawdown. You can request the first payout 30 days after placing the trade on your funded account.
You can also avail of payout on-demand as an add-on after a period of 14 calendar days from the first trade, for an additional cost. FTMO’s profit withdrawal options include cryptocurrency and direct bank deposit.
FTMO Challenge Cons
The FTMO Challenge is expensive compared to TFT’s Royal Challenge. The $100,000 FTMO Challenge is $567, while the same challenge with TFT costs $489 ($440 with the current discount).
What’s more, FTMO is a luxury platform and isn’t beginner-friendly. It also has a 10% profit requirement, as opposed to TFT’s 8%.
The Funded Trader Royal Challenge
The Royal Simulated Challenge is a two-phase process to becoming funded with The Funded Trader. It’s much more flexible than the FTMO Challenge.
Mechanics
The biggest advantage of the Royal Simulated Challenge is that traders can use their preferred simulated trading tools. This includes expert advisers (EAs) and trading news. What’s more, there are no lot size limits, and traders can hold positions over the weekend—a big perk for part-time traders.
The Royal Challenge simulated trading account ranges from $50,000 to $400,000.
Phase 1: TFT Challenge
You can trade unlimited calendar days in all phases of the Challenge. However, you must trade for a minimum of five days. Once you meet the simulated trading objectives, you can proceed to the next phase.
The trading objective in Phase 1 includes an 8% profit target with a maximum 5% daily drawdown and a 10% maximum initial deposit drawdown. Challenge leverage in this phase is 1:200.
Once you pass the Royal Simulated Challenge, your fees will be refunded.
Phase 2: Verification
The verification phase is free, and all trading objectives remain the same. The only key difference here is that the profit target is reduced to 5%. So, for a $100,000 account, you’ll need to achieve a $5,000 profit in this phase.
Earn a Funded TFT Account
Our team will review your account to verify that it meets the trading objectives. Once approved, you can do simulated funded trading on the Royal account. There’s no profit target for funded traders.
The leverage for this account is 1:100, and you can claim an 80–90% profit split as a TFT funded trader.
TFT Royal Challenge Pros
The Royal Challenge has no lot size limits. It also has a lower simulated profit target than the FTMO Challenge, 8% vs. 10% respectively.
We let you hold positions over the weekend, which makes the competition fair to swing traders. We also calculate the daily drawdown with simulated equity and balance. You can request a payout after 14 days of placing the first trade.
News trading is also allowed, and EAs are enabled.
TFT Royal Challenge Cons
You have to wait for 30 days to receive your very first payout. Your account will be put in demo mode while we evaluate your trades. You must also maintain strict risk management and trading volume to keep the funded account active.
Unlock Access to Large Capital With TFT
Compared to the FTMO Challenge, The Funded Trader’s $100,000 Royal Challenge is more affordable. We also offer several competitions with prizes, including a free Challenge account. Our profit target is lower. And we have a thriving and highly engaged community on Discord, where traders discuss strategies and share tips.
The Funded Trader is a secure platform trusted by thousands of traders. It’s a fair-playing ground for both experienced and novice traders. Anyone can become funded with us and manage hundreds of thousands of dollars in capital.
Join TFT’s Challenge today to start your journey as a funded trader.
