In recent years, the rise of funded trading programs has provided aspiring traders with opportunities to access capital and trade in the financial markets without using their own money. These programs allow traders to showcase their skills and potential profitability, and in return, receive funded accounts with specific risk limits. Among the popular funded trading companies, Funded Trading Plus and FTMO have gained significant attention. In this article, we will delve into the details of each program, examining their features, benefits, and drawbacks, to help traders make an informed decision about which one suits their trading goals and style.
Introduction to Funded Trading Programs
Before diving into the comparison, let’s briefly explain what funded trading programs are and how they work. Funded trading programs are initiatives where traders can apply for a funded trading account after proving their trading skills and meeting specific criteria. These programs typically involve multiple stages of evaluation and a combination of profit targets, drawdown limits, and trading rules that must be followed to maintain the funded account.
Funded Trading Plus: Overview
Funded Trading Plus is a relatively newer player in the funded trading space. The company offers traders the chance to trade various asset classes, including forex, commodities, indices, and crypto, using MetaTrader 4 and MetaTrader 5 platforms. Like other funded trading programs, Funded Trading Plus requires traders to pass a single phase evaluation that involves low risk trading and reaching a profit target to qualify for a funded account.
FTMO: Overview
FTMO is one of the pioneers in the funded trading industry, known for its rigorous evaluation process and excellent reputation. Traders seeking to join FTMO’s program can trade various asset classes, including forex, cryptocurrencies, indices, commodities, and futures, using their preferred platforms. The company has a three-stage evaluation process that consists of the FTMO Challenge, the Verification, and the FTMO Account stages. The company has been operating since 2014 and has earned trust among the trading community.
Evaluation Process: Funded Trading Plus vs FTMO
Funded Trading Plus Evaluation Process
Funded Trading Plus follows a single phase evaluation process that involves low risk trading and reaching a profit target within a specified period. Traders can choose their preferred platform and asset class, including forex, commodities, indices, and crypto. Successful completion of this evaluation leads to a funded account with a predefined trading capital size, which varies depending on the trader’s chosen package.
FTMO Evaluation Process
FTMO has a three-stage evaluation process that tests the trading skills and consistency of the traders. The first stage is the FTMO Challenge, which requires traders to reach a profit target and follow risk management rules on a demo account. The second stage is the Verification, which also uses a demo account, but with different trading objectives. The third stage is the FTMO Account, which involves trading with real money and adhering to certain conditions. The trading capital size varies depending on the account type and the performance in the previous stages.
Risk Management and Rules: Funded Trading Plus vs FTMO
Funded Trading Plus Risk Management
Funded Trading Plus has risk management rules to protect both the trader and the company’s capital. Traders must respect a maximum daily and trailing drawdown limit during their evaluation period, which varies depending on the chosen package. There are no restrictions on the position size based on the account size, but traders must follow the margin requirements and the leverage limits for each asset class.
FTMO Risk Management
FTMO has strict risk management rules that apply to both the evaluation and funded account stages. The company has a maximum loss limit (MLL) and a maximum daily loss (MDL) that traders must respect during trading. The MLL is the maximum amount that a trader can lose from the initial balance, and the MDL is the maximum amount that a trader can lose in a single trading day. If either of these limits is breached, the evaluation will be terminated, and traders will not advance to the funded account stage.
Trading Instruments and Platforms: Funded Trading Plus vs FTMO
Funded Trading Plus Trading Instruments and Platforms
Funded Trading Plus provides a wide range of tradable assets, such as forex, commodities, indices, and crypto. The platform is powered by Eightcap, which enables traders to select their preferred platform, such as MetaTrader 4 or MetaTrader 5. This might be a benefit for traders who are used to these popular third-party platforms.
FTMO Trading Instruments and Platforms
FTMO offers a variety of instruments and assets, including forex, cryptocurrencies, indices, commodities, stocks, etc. The selection may vary depending on the chosen package and platform. FTMO supports popular third-party platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which is a benefit for traders who are used to these platforms for their trading activities.
Account Sizes and Profit Sharing: Funded Trading Plus vs FTMO
Funded Trading Plus Account Sizes and Profit Sharing
Funded Trading Plus provides various account packages, each with different risk parameters and capital sizes. Traders can select the package that matches their trading style and risk appetite. The profit-sharing arrangement with Funded Trading Plus depends on the chosen package, with traders receiving a percentage of their profits that ranges from 50% to 90%, depending on the account balance. Traders also have the chance to scale their account balance to the next level at 10% profit target, up to $2,500,000.
FTMO Account Sizes and Profit Sharing
FTMO offers various account types, each with different capital sizes and risk parameters. The profit-sharing structure is performance-based, and traders receive up to 90% of their profits after reaching specific profit targets. FTMO also has a Swing account type that has no restrictions for trading around news releases and holding trades overnight or over the weekend. FTMO also has a Scaling Plan that enables traders to increase their capital if they generate consistent profits in four consecutive monthly cycles.
Conclusion: Which One to Choose?
Funded Trading Plus and FTMO are funded trading programs that allow traders to trade without using their own capital. The choice between them depends on individual preferences, trading styles, and goals.
Funded Trading Plus offers a wider range of tradable assets and uses its own platform. FTMO focuses on forex and cryptocurrencies and supports third-party platforms like MT4 and MT5.
Both programs have evaluation fees, but FTMO does not charge a subscription fee after getting the funded account.
Traders should compare the features, costs, and reputation of each platform before deciding. Funded trading programs can help traders access larger capital and advance their trading careers, but they require caution, discipline, and dedication to succeed in the financial markets.
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