FundingPips and FTMO are two of the most popular prop trading firms in 2025, offering traders access to funded accounts. While FTMO is known for its structured two-step challenge model, FundingPips provides more flexibility with multiple evaluation paths, including instant funding. Here’s a quick overview of their key differences:
- Funding Models: FTMO uses a two-phase challenge system. FundingPips offers standard, express, and instant funding options.
- Profit Targets: FTMO requires 10% (Phase 1) and 5% (Phase 2). FundingPips varies by model, with targets as low as 3% per phase in some cases.
- Risk Rules: FTMO enforces a 5% daily loss and 10% total loss limit. FundingPips adjusts these limits based on the model.
- Trading Rules: FTMO has stricter rules, including a consistency requirement and news trading restrictions. FundingPips allows more freedom.
- Platforms: Both support MetaTrader and cTrader. FundingPips also includes Match-Trader.
Quick Comparison
| Feature | FundingPips | FTMO |
|---|---|---|
| Funding Models | Standard, express, instant options | Two-phase challenge system |
| Profit Targets | 3%-10% (varies by model) | 10% (Phase 1), 5% (Phase 2) |
| Daily Loss Limit | 4%-6% (varies by model) | 5% |
| Total Loss Limit | 6%-10% (varies by model) | 10% |
| Consistency Rule | None (most models) | Required during evaluations |
| News Trading | Allowed | Restricted on high-leverage accounts |
| Platforms | MetaTrader 5, Match-Trader, cTrader | MetaTrader 4/5, cTrader |
Bottom Line: Choose FundingPips for flexibility or FTMO for discipline and structure. Both cater to different trading styles and risk appetites.
Account Types and Funding Models
Available Account Options
FundingPips and FTMO cater to traders with distinct funding options tailored to different needs. FundingPips provides both standard evaluation accounts and instant funding options, coupled with a scaling program that rewards strong performance by increasing account size.
FTMO, on the other hand, operates on a challenge-based funding model, offering scaling opportunities once traders hit specific performance benchmarks. Both firms differ in their fee structures and initial costs, aligning their offerings with varying trader priorities and goals.
Let’s dive deeper into how each firm structures its evaluation process and funding models.
Funding Models and Evaluation Paths
When it comes to the evaluation process, FTMO sticks to a more traditional two-step system. Traders first complete a challenge phase, followed by a verification phase. In both stages, they must achieve set profit targets while adhering to strict risk management rules.
FundingPips, however, offers more flexibility by providing multiple evaluation paths to suit different trading styles. Alongside a standard two-phase process similar to FTMO’s, FundingPips includes an express evaluation option that combines the entire process into a single phase. For those looking to skip evaluations altogether, an instant funding option is also available. Additionally, FundingPips allows traders to reset their evaluations for free, while FTMO charges extra fees for retakes.
Account Types and Funding Models Comparison
Here’s a quick breakdown of how FundingPips and FTMO compare across key features:
| Feature | FundingPips | FTMO |
|---|---|---|
| Account Options | Offers standard and instant funding options with scalable account sizes. | Operates a challenge-based funding model with predefined account options. |
| Evaluation Process | Multiple paths (standard, express, and instant funding) with a free reset option. | Traditional two-step process (challenge and verification) with fee-based retakes. |
| Profit Targets | Flexible targets depending on the funding model, with lower targets for instant funding. | Fixed profit targets for each evaluation phase. |
| Risk Management | Tailored risk parameters specific to each funding option. | Standard daily loss and drawdown limits. |
| Scaling | Expands account size based on performance. | Scaling offered upon meeting performance benchmarks. |
This comparison highlights the flexibility of FundingPips’ approach versus FTMO’s more structured model, giving traders options based on their preferences and strategies.
Trading Rules and Evaluation Processes
Evaluation Rules and Requirements
FTMO and FundingPips take different approaches to evaluating traders. FTMO uses a two-phase evaluation system with profit targets of 10% in Phase 1 and 5% in Phase 2, requiring a minimum of four trading days per phase, but without imposing a time limit.
On the other hand, FundingPips offers three distinct evaluation models:
- One-Step Model: Achieve a 10% profit over a minimum of three days.
- Standard Two-Step Model: Reach 8% in Phase I and 5% in Phase II, with at least three trading days per phase.
- Two-Step Pro Model: Achieve 3% in each phase, requiring just one trading day per phase.
Daily loss limits also differ. FundingPips allows:
- 4% daily loss for the One-Step model,
- 5% daily loss for the Standard Two-Step model, and
- 6% daily loss for the Two-Step Pro model.
In comparison, FTMO enforces a uniform 5% daily loss limit in both evaluation phases. For overall drawdown, FTMO sets a 10% maximum total loss, while FundingPips caps total losses at 6% for the One-Step and Two-Step Pro models and 10% for the Standard Two-Step model.
These rules create distinct paths for traders, each designed with specific risk and trading styles in mind.
Risk Management and Trading Restrictions
FTMO introduces a consistency rule, which discourages traders from generating a disproportionate share of profits through single trades. In contrast, FundingPips does not impose such restrictions, allowing traders more freedom in their strategies.
FTMO also advises traders to risk no more than 1%–1.5% of their maximum drawdown (or initial account balance) on any single trade. This recommendation supports safe and steady risk management practices.
When it comes to news trading, FTMO imposes restrictions on its professional accounts with 1:100 leverage. Traders are prohibited from opening or closing trades on specific instruments during a four-minute window around major news events (two minutes before and after the announcement). However, their Swing Account with 1:30 leverage does not have these restrictions. FundingPips, on the other hand, promotes flexible trading conditions and does not enforce specific rules for trading during economic announcements.
Profit Sharing and Payout Systems
Once traders meet evaluation requirements, FTMO and FundingPips offer different payout systems. FTMO uses a structured payout model tied to performance criteria. FundingPips, however, provides more options. Their instant funding model grants immediate access to capital without requiring traders to meet profit targets. For challenge-based models, payouts depend on achieving performance milestones. Additionally, payout frequency and minimum withdrawal amounts vary, catering to different trader preferences.
Trading Rules and Payouts Comparison
| Feature | FundingPips One-Step | FundingPips Two-Step | FundingPips Two-Step Pro | FTMO Phase 1 | FTMO Phase 2 |
|---|---|---|---|---|---|
| Profit Target | 10% | Phase I: 8%, Phase II: 5% | Phase I: 3%, Phase II: 3% | 10% | 5% |
| Maximum Daily Loss | 4% | 5% | 6% | 5% | 5% |
| Maximum Total Loss | 6% | 10% | 6% | 10% | 10% |
| Minimum Trading Days | 3 days | 3 days (each phase) | 1 day (each phase) | 4 days | 4 days |
| Consistency Rule | No | No | No | Yes | Yes |
| Time Limit | – | – | – | – | – |
This table showcases the flexibility FundingPips offers through its various evaluation models, with options tailored to different profit targets, risk allowances, and trading day requirements. Meanwhile, FTMO takes a more standardized approach, emphasizing consistency and stricter rules. Ultimately, the choice between these firms depends on a trader’s individual strategy and risk appetite.
Trading Platforms and VPS Hosting
Supported Trading Platforms
FundingPips supports MetaTrader 5, Match-Trader, and cTrader, while FTMO offers MetaTrader 4, MetaTrader 5, and cTrader. These platforms come packed with advanced features like detailed charting tools, automation capabilities, and efficient order management systems. To maximize their potential, traders often rely on dependable VPS hosting, which we’ll explore next.
Why VPS Hosting Matters for Trading
VPS hosting plays a crucial role in ensuring smooth and fast trade execution. It offers ultra-low latency and high reliability, which are essential for navigating volatile markets or running automated trading systems without interruptions.
For traders using automated strategies or deploying Expert Advisors, VPS hosting ensures continuous uptime, even when local devices are offline. Key features like DDoS protection, automatic backups, and global accessibility help safeguard operations, allowing traders to meet the stringent demands of funding evaluations without worrying about technical disruptions.
QuantVPS Features and Pricing Plans
QuantVPS delivers high-performance VPS hosting tailored for trading. Plans start at $41.99/month with the VPS Lite package, which includes 4 cores, 8GB RAM, and 70GB NVMe storage. For those handling higher volumes, the VPS Pro plan costs $69.99/month (6 cores, 16GB RAM, 150GB NVMe). More demanding setups can opt for the VPS Ultra package at $132.99/month (24 cores, 64GB RAM, 500GB NVMe). For maximum power, QuantVPS also offers a Dedicated Server option at $209.99/month. Enhanced versions, such as VPS Lite+ ($55.99/month) and Dedicated+ Server ($279.99/month), are available for traders seeking additional features (all prices are billed annually).
QuantVPS stands out with its ultra-low latency (0–1ms), 100% uptime guarantee, DDoS protection, automatic backups, and global accessibility. Fully compatible with the platforms supported by FundingPips and FTMO, QuantVPS ensures traders can rely on a fast and stable hosting solution to meet performance benchmarks seamlessly.
Which Firm Fits Different Trading Styles
Strengths and Weaknesses of Each Firm
FundingPips stands out for its flexibility and accessibility, particularly appealing to traders who thrive in less restrictive environments. Most challenges with FundingPips remove consistency constraints (except for the FundingPips Zero account), allowing traders to experiment with diverse strategies. However, some account types come with a 45% consistency rule for withdrawals, which could be a drawback for those seeking total freedom. On the plus side, there are no minimum trading day requirements, making it a relaxed option. That said, this lack of structure might not suit those who prefer a more routine-based trading approach.
FTMO, on the other hand, is the go-to option for traders who value discipline and structure. Its evaluation process is strict but fair, with a minimum of 4 trading days required during the challenge phase. FTMO also enforces a consistency rule during evaluations to encourage disciplined trading habits. Additionally, FTMO advises traders to risk no more than 1% per trade idea and suggests keeping risks between 1% and 1.5% of the Maximum Drawdown per trade for effective risk management. While these measures promote safety and consistency, they might feel too rigid for beginners or traders who prefer a more relaxed framework.
Best Match for Different Trader Types
The best choice between these two firms depends on the trader’s experience level and preferred style:
- Beginners may find FundingPips more accommodating due to its flexible evaluation process and relaxed requirements.
- Experienced traders and risk-conscious professionals are likely to appreciate FTMO’s structured and disciplined approach.
- Algorithmic traders may benefit from the rule flexibility offered by FundingPips, which allows for diverse strategy implementation.
Both firms provide unlimited challenge durations, giving traders ample time to meet their goals.
Pros and Cons Comparison
| Aspect | FundingPips | FTMO |
|---|---|---|
| Pros | No consistency rule on most challenges, flexible evaluation programs, varied drawdown options, no minimum trading days, unlimited challenge duration | Structured evaluation process, advanced risk management tools, clear guidelines, professional trading environment |
| Cons | 45% consistency rule for withdrawals on certain accounts | Consistency rule during evaluation, minimum 4 trading days required, stricter evaluation criteria that may overwhelm some traders |
| Ideal For | Flexible traders, beginners, and strategy developers | Disciplined traders, experienced professionals, and those who prefer structure |
Both firms adhere to industry-standard risk limits, with daily and total loss thresholds set at 5% and 10%, respectively. These safeguards ensure basic risk protection while allowing traders to align with the firm that best matches their trading style.
Funding Pips vs FTMO – Funding Models, Rules & Payouts Compared
Conclusion
Deciding between FundingPips and FTMO ultimately depends on your trading approach and experience. FundingPips stands out for its more relaxed evaluation process, making it a great choice for beginners or algorithmic traders looking for flexibility in their strategies.
On the other hand, FTMO provides a more structured environment with disciplined evaluation standards and clear risk management rules. This setup often appeals to seasoned traders who prefer a consistent and well-defined trading framework. The key is to choose the prop firm that aligns with your trading style and risk tolerance.
Whichever firm you pick, reliable VPS hosting is crucial for smooth and uninterrupted trade execution. A dependable VPS ensures your platform performs optimally, minimizing latency and downtime – both critical for maintaining peak trading performance.
QuantVPS offers an excellent solution with ultra-low latency, a 100% uptime guarantee, and dedicated resources starting at $41.99/month (billed annually). This robust infrastructure ensures seamless trade execution, whether you’re with FundingPips or FTMO. Pairing your prop firm with a high-performance VPS can make all the difference in achieving consistent trading success.
In trading, a strong technical foundation is just as important as strategy – don’t overlook the value of reliable VPS hosting.
FAQs
What are the main differences between the evaluation processes of FundingPips and FTMO?
FundingPips and FTMO take different approaches when it comes to their evaluation processes, and these distinctions can influence which firm suits a trader’s style and objectives:
- Evaluation Phases: FTMO sticks to a two-step process, consisting of the FTMO Challenge and Verification. On the other hand, FundingPips offers more flexibility with both one-phase and two-phase evaluations available.
- Profit Targets: FTMO sets a 10% profit target in Phase 1 and 5% in Phase 2. FundingPips, however, requires a 9% target for its one-phase challenges. For its two-phase challenges, the targets are slightly lower – 8% for Phase 1 and 5% for Phase 2.
- Consistency Rule: FTMO applies a consistency rule to promote disciplined trading, while FundingPips generally skips this requirement, providing more leeway for traders.
- Minimum Trading Days: FTMO requires at least 4 trading days in both phases of its evaluation process. FundingPips, in contrast, typically does not enforce a minimum trading day rule for most of its challenges.
These variations mean that the right choice depends heavily on your trading style and what you’re looking to achieve. Taking the time to align your goals with the firm’s structure can make a big difference in your trading experience.
What are the key differences in features and usability between the trading platforms supported by FundingPips and FTMO?
FundingPips and FTMO both provide access to the widely-used trading platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms are popular among traders for their powerful tools, intuitive interfaces, and features like advanced charting, automated trading options, and a variety of technical indicators. Whether you’re a beginner or an experienced trader, these platforms offer tools to support your trading strategies.
Although both firms rely on the same platforms, the overall experience can differ based on factors like server speed, unique integrations, or additional tools provided by each firm. If you’re trying to decide which setup works best for your trading style, pay attention to details such as execution speed, platform stability, and any exclusive features the firm might offer. These elements can make a noticeable difference in your trading performance.
Which prop trading firm is better for beginners: FundingPips or FTMO?
When deciding between FundingPips and FTMO, it really comes down to your trading experience and what you’re aiming to achieve. FundingPips tends to attract newer traders thanks to its flexible trading conditions and evaluation programs designed to suit various skill levels. If you’re just starting out in proprietary trading, this could be a solid option to consider.
On the flip side, FTMO is known for its more structured and demanding evaluation process. While this might feel a bit overwhelming for beginners, it’s a strong draw for experienced traders seeking a reputable and well-established firm. The right choice ultimately hinges on your trading style and the specific features you prioritize in a prop trading firm.
