FundedNext vs FTMO

In recent years, the world of proprietary trading has seen significant growth, with several firms offering aspiring traders the opportunity to trade with firm capital and earn a share of the profits. FundedNext and FTMO are two such proprietary trading firms that have gained popularity among traders seeking to leverage their skills and access larger trading capital. In this article, we will delve into a comprehensive comparison of FundedNext and FTMO, examining their key features, benefits, drawbacks, and overall suitability for different trading styles.

FundedNext vs FTMO
FundedNext vs FTMO

Introduction to FundedNext and FTMO

FundedNext

FundedNext is a prop trading firm that allows traders to trade forex, commodities and indices with the firm’s capital. The firm has a clear set of rules and risk parameters to help traders achieve consistent profits and avoid large losses. FundedNext has a structured evaluation process that requires traders to pass two phases with realistic profit targets before getting access to higher levels of trading capital. The firm also has a scale-up plan for traders who demonstrate good performance over four months.

FundedNext
FundedNext

FTMO

FTMO is a prop trading firm that allows traders to trade the financial markets with the firm’s capital. The firm has a similar philosophy to FundedNext, requiring traders to demonstrate their skills and follow risk guidelines. FTMO’s evaluation process has two stages: a Challenge stage and a Verification stage. The FTMO Challenge stage assesses the trader’s skills and knowledge, while the Verification stage checks the trader’s consistency and long-term performance. Traders who pass both stages can trade larger amounts of capital with FTMO.

FTMO
FTMO

Funded Accounts and Capital Allocation

FundedNext

FundedNext has various account options for traders, each with different capital and profit requirements. Traders can select the account size that suits their trading style and risk tolerance. The account sizes range from small accounts with low capital requirements to large accounts with high capital allocation. Traders begin with a small account size in the evaluation phase and can move up to bigger account sizes after passing each phase. The total funding amount across all accounts is limited to $300,000.

FTMO

FTMO has two account options for traders – the FTMO Challenge and the FTMO Verification. The Challenge is the first step of the evaluation process, where traders show their skills and risk management by trading a specific account size. Traders who pass the Challenge move to the Verification step, where they trade with more capital and get a profit share. The Challenge lasts for 30 days and has a profit goal of 10% (or 20% for the Aggressive option), while the Verification lasts for 60 days and has a profit goal of 5% (or 10% for the Aggressive option). The Verification also has simpler trading rules than the Challenge.

Trading Objectives and Profit Sharing

FundedNext

FundedNext is a prop firm that rewards traders for consistent and risk-managed trading, rather than chasing unrealistic profits. Traders have to reach certain profit targets in the evaluation process, and then they get a profit split with the firm. The profit split depends on the account size, and it can go up to 90% for the trader if they perform well. FundedNext also pays a 15% profit split during the evaluation stage, which is a unique benefit that sets it apart from other prop firms.

FTMO

FTMO is a prop firm that rewards traders for consistent and risk-managed trading, rather than chasing unrealistic profits. Traders have to reach certain profit targets in the evaluation process, and then they get a profit split with the firm. The profit split depends on the account size, and it can go up to 90% for the trader if they qualify for the scale-up plan. FTMO also pays the profit split on a monthly basis or on-demand after 14 days of trading. This encourages traders to develop long-term trading strategies rather than taking high-risk trades.

Trading Strategy and Instruments

FundedNext

FundedNext is a prop firm that gives traders the freedom to trade a variety of financial instruments in different markets. Traders can choose from equities, forex, commodities, or indices, depending on their preferences and skills. This allows traders to diversify their trading strategies and take advantage of different market situations. FundedNext does not offer cryptocurrencies as a trading option.

FTMO

FTMO is a prop firm that offers traders a wide selection of financial instruments in different markets. Traders can trade forex, stocks, indices, commodities, cryptocurrency, and bonds, depending on their preferences and skills. This allows traders to align their trading strategies with their market insights and choose from various trading styles and preferences.

Risk Management and Losses

FundedNext

FundedNext is a prop firm that has a robust risk management system to safeguard both traders and the firm’s capital. Traders have to follow strict risk rules and position sizing guidelines. If a trader breaches the drawdown limit during the evaluation process, the trading account may be paused temporarily, allowing traders to reassess their trading strategy and make changes if needed. FundedNext also provides raw spreads and low commissions for traders, which can help them lower their trading expenses and increase their profits.

FTMO

FTMO is a prop firm that emphasizes risk management, and traders have to follow specific risk rules during both the Challenge and Verification phases. If a trader breaks the risk limits during the evaluation, the evaluation may be stopped. However, FTMO gives traders a chance to retake the evaluation after careful analysis and improvements. FTMO also offers risk calculators and risk management advice for traders, which can help them control their positions and achieve consistent results.

Conclusion

Both FundedNext and FTMO offer aspiring traders the opportunity to access firm capital and trade the financial markets with clear risk parameters. Traders must carefully consider their trading style, risk tolerance, and objectives before choosing the most suitable proprietary trading firm. Ultimately, success in the proprietary trading space depends on traders’ trading skills, discipline, and ability to adapt to various market conditions. It is essential for traders to thoroughly understand the rules and requirements of each firm and use the evaluation process as an opportunity to hone their trading strategies and risk management skills. By selecting the right proprietary trading firm that aligns with their goals and trading approach, traders can enhance their chances of achieving long-term success in the competitive world of proprietary trading.

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