Which is better in 2023?
Ever since proprietary trading firms have become the hottest topic on the Forex market, traders are looking for the best solutions for prop trading. In this article, we will compare two valid prop firms we found trustworthy and could recommend them anytime to new or pro traders.
What is a forex prop firm?
Before jumping into comparisons, let’s learn about prop firms and why they may be good options for traders.
To get funded by a Proprietary trading firm, traders have to go through a two-phase evaluation program. Then the firm funds them and they receive a profit sharing from the total profits they made.
This way of trading is increasingly popular since traders only pay a marginal one-time fee, – which is 100% refundable fee – receive up to $200,000 in their trading account and make thousands or not ten thousands of dollars in return, while their downside risk would be very limited since prop firms cover clients funded losses.
FTMO vs TFF: Evaluation process
To pass the evaluation phases traders have to maintain the following determiners, which are called trading objectives:
- Trading period: Maximum number of days the phase lasts.
- Profit Target: Amount of profits the trader should make to pass the evaluation.
- Daily Loss Limit: Trader’s accounts daily stop-loss based on equity.
- Maximum Loss Limit: Trader’s accounts overall stop-loss based on equity.
|Trading objectives||FTMO normal risk||TFF|
|Trading Period Phase 1||30 calendar days||30 calendar days|
|Trading Period Phase 2||60 calendar days||60 calendar days|
|Minimum Trading Days Phase 1 & 2||10 calendar days||5 calendar days|
|Profit Target Phase 1||10%||8 %|
|Profit Target Phase 2||5%||5%|
|Daily Loss Limit||5%||5%|
|Maximum Loss Limit||10%||10%|
|Profit Split||80% or 90% after scale up||80%|
If we would compare the FTMO normal risk and TFF accounts then we can see that TFF’s profit target for phase 1 is fairly lower, at only 8% and the minimum trading days to pass the evaluation phases are also half of what FTMO offers. While FTMO provides a profit split of up to 90%, it is only achievable after trading for 4 months and being eligible for their scaling plan.
True Forex Funds made the evaluation easier for its trader with only 5 minimum trading days and their traders enjoy continuously an 80% profit split without scaling plan requirements.
If you’d ask yourself what is the best-case scenario for your profit split to arrive, then you need to count at least 35 days with FTMO from the start but with TFF it is only 25 days until you receive your profits.
FTMO vs TFF: Account sizes vs fees
Now, that you are familiar with their trading objectives, we are going to go through pricing. There is an initial fee involved to prop trading services and the traders cannot lose more than the initial fee if something would go south. But of course, with the right skills, practice and determination most traders are thriving forward to funding.
The mostly known currencies including USD, EUR or GBP are available for any type of account if you would choose FTMO or TFF. On top of that FTMO offers CAD, AUD, CHF or CZK.
|Account Balance||FTMO normal risk||TFF|
By comparison, TFF accounts are actually pretty decently priced for every account’s size. The greatest difference in prices is observable in TFF’s $10,000 account, which is only half of the FTMO’s normal risk accounts. With a constant 80% profit split and for a cheaper price TFF is offering a better value for all of their account sizes.
FTMO vs TFF: Broker, platform, instruments
Besides both firms choose the same top Tier-1 liquidity provider solutions to provide tight spreads, but True Forex Funds is offering spreads from 0.0 pips and on average much lower spreads on their instruments. The widely known MetaTrader 4 and 5 are also available with both firms and cTrader is forthcoming at TFF to meet the needs of the rising new trading era. Let’s look into some of their instruments and compare their spreads which are displayed at peak trading hours.
By comparison, both firms offer a diverse range of asset classes to trade, – including FX, Commodities, Indices, Stocks or Crypto – so most traders can enjoy trading with both companies. By far, TFF is offering more attractive spreads to fit the demands of all types of traders.
FTMO vs TFF: Trading Rules
|Weekend trading||Yes, crypto trading for every phase||Yes, crypto trading for every phase|
|Overnight trading||Not allowed if the market is closed for more than 2 hours||Yes, for every phase|
|News trading||Not allowed||Allowed|
|Max Capital||$400,000 (and $200,000 for an aggressive account)||$400,000|
|Scaling Plan||Yes, only to $2M||Yes, unlimited|
|KYC||Yes, after Verification||Yes, after Phase 2|
|Dashboard w account statistics||Yes||Yes|
Traders working with FTMO regular accounts have limitations on news trading and they are not permitted to hold positions over the weekend. While swing accounts may have no restrictions, traders must deal with reduced leverage of only 1:30. If it would happen that news is traded on FTMO’s regular trading account, then the trader may lose the right to manage the funded account.
Contrarily, True Forex Funds does not impose any trading restrictions on customers using their accounts, which might be quite advantageous to you.
Also, TFF’s KYC process is automated to save time for its clients, while FTMO’s verification can take days after passing.
FTMO vs TFF: Dashboard
The most interesting fact is that prop firms offer data-driven statistics to better their trader’s crafts. While both firms have statistics like RRR, expectancy, profit factors, win rate etc. FTMO stands out with its viewable economic calendar on its Metrix, so traders do not need to open a new tab to search for news events. True Forex Funds added other useful tools for traders, such as daily returns, profitability allocations or profit by holding time to mention a few, which can be leading indicators to traders’ success.
FTMO vs TFF: Profit Split
FTMO offers a 90% profit split but it is only attainable if the traders met the scaling plan conditions, which means it is only achievable after the 4th month. 90% sounds attractive, but it can be a hustle to reach this consistency.
True Forex Fund’s 80% profit split is standard for every funded account. Their average payout arrival time is below 24 hours, since it is automated, while FTMO’s payouts are processed usually 24-72 hours after the payout date.
TFF is only one year old, but it’s payout proofs and market attendance has been outstanding compared to how FTMO could improve since its operations started in 2014. In the first year, TFF paid traders up to $14 million dollars to 110+ countries with mainly same-day delivery. If we compare the two firms prices, rules and trading objectives, True Forex Funds would be the better choice to get fully funded up to $400,000 from where FTMO can be a smart choice for trader’s alternative growth to expand their limits.