In the realm of funded trading, FTMO and Topstep stand out as two of the most prominent options available to traders seeking financial backing. Both platforms offer unique advantages and have developed reputations within the trading community. In this article, we delve into a detailed comparison of FTMO and Topstep, exploring their features, evaluation processes, profit-sharing structures, and overall suitability for traders.
Table of Contents
Overview of FTMO and Topstep
What is FTMO?
FTMO is a well-established proprietary trading firm that specializes in providing traders with the opportunity to manage significant capital. Founded in 2014, FTMO has gained recognition for its structured evaluation process and support for traders looking to prove their skills.
What is Topstep?
Topstep focuses primarily on futures trading and offers traders the chance to earn funding through its unique evaluation process. Established in 2010, Topstep has built a solid reputation by fostering a community of traders and providing educational resources alongside funding opportunities.
Evaluation Process
FTMO Evaluation
The FTMO evaluation consists of two distinct phases: the FTMO Challenge and the Verification phase.
- FTMO Challenge: In this initial phase, traders must demonstrate their trading skills within a 30-day period. They are required to meet specific profit targets while adhering to strict risk management rules, including a maximum daily loss and a maximum overall loss. Successful completion of this phase grants access to the Verification phase.
- Verification: During this 60-day period, traders must again meet profit targets, but the criteria are slightly relaxed. If successful, traders are awarded a funded account where they can start trading with FTMO’s capital.
Topstep Evaluation
Topstep’s evaluation consists of a single phase known as the Trading Combine.
- Trading Combine: This evaluation allows traders to demonstrate their ability to trade futures contracts. Traders have 14 days to achieve a specific profit target, with established risk parameters. The process encourages consistent performance while providing flexibility in trading strategies.
Profit Sharing Models
FTMO Profit Sharing
FTMO offers a competitive profit-sharing model. Traders keep 70% of their profits, with the potential to increase this percentage to 80% based on performance. This model incentivizes traders to perform well, as higher profits directly benefit them.
Topstep Profit Sharing
Topstep’s profit-sharing structure allows traders to retain 80% of their profits. This straightforward model is attractive to many traders, especially those who value a higher percentage of profit retention. Additionally, Topstep offers tiered funding options, allowing traders to increase their capital as they prove their capabilities.
Account Types and Capital Allocation
FTMO Account Types
FTMO provides several account options based on the trader’s evaluation results. Traders can choose from various funding levels, typically ranging from $10,000 to $200,000. Each account type has different parameters regarding risk limits and profit targets, catering to a variety of trading styles.
Topstep Account Types
Topstep also offers different account sizes, primarily focused on futures trading. Traders can select from accounts that start at $50,000 and can go up to $150,000 or more. The capital allocation is dependent on the trader’s performance during the Trading Combine, encouraging traders to strive for higher account sizes.
Support and Resources
FTMO Support and Resources
FTMO prides itself on providing extensive resources to support traders. They offer access to educational materials, webinars, and a community of traders for networking and sharing strategies. The platform also provides advanced trading tools and analytics to help traders optimize their performance.
Topstep Support and Resources
Topstep emphasizes trader education, offering a plethora of resources, including webinars, articles, and a robust trading community. Their platform also features trading contests and challenges that promote engagement and continuous learning among traders.
Choosing the Right Platform for You
When considering FTMO versus Topstep, several factors come into play:
1. Trading Style and Market Focus
- FTMO is more suitable for forex and CFD traders, given its diverse account options and focus on global markets.
- Topstep, on the other hand, specializes in futures trading, making it an ideal choice for traders focused on this market.
2. Evaluation Preferences
Traders who prefer a structured evaluation process may find FTMO’s two-phase system more appealing. Conversely, those looking for a quicker, more flexible assessment might favor Topstep’s Trading Combine.
3. Profit Sharing and Account Sizes
Both platforms offer competitive profit-sharing models, but traders should assess which structure aligns better with their trading goals. The flexibility in account sizes also plays a crucial role in decision-making.
Conclusion
In summary, both FTMO and Topstep provide excellent opportunities for traders seeking funding. FTMO offers a robust evaluation process and a focus on forex and CFDs, while Topstep excels in futures trading with a simpler evaluation model. The choice between the two ultimately depends on individual trading preferences, style, and goals.
For more detailed information, you can visit the article we aim to outrank here.