Every prop firm trader eventually asks the same question: FTMO or Funding Pips? Both firms are popular among funded traders, and both offer a path to a funded account. But the rules differ enough to affect your pass rate — if you don't know what to look for.
FTMO vs Funding Pips at a Glance
FTMO is one of the longest-standing and most reputable prop firms, with an extensive track record of payouts. It's known for its two-step evaluation (Challenge + Verification) and a strict but predictable rule set.
Funding Pips is newer but has grown quickly thanks to more flexible rules and multiple account types — including options with and without a minimum trading days requirement. For traders who want to scale quickly, this is an appealing alternative.
Drawdown and Risk Rules Compared
| Rule | FTMO | Funding Pips |
|---|---|---|
| Max daily drawdown | 5% | 5% |
| Max total drawdown | 10% | 10% |
| Minimum trading days | Varies by program | Often none (depends on account type) |
| Consistency rule | Only on certain programs | Depends on account type |
| Profit split | Up to 90% | Up to 90% |
Note: prop firm rules change regularly. Always check the current terms on the official website before purchasing an account — this article gives a general picture, not current contract terms.
Both firms use similar percentages, but the difference lies in how drawdown is measured — from your starting balance, or trailing from your highest equity. A trailing drawdown is far stricter than a static one, regardless of the percentage attached to it. This is the detail most traders overlook when comparing firms.
Costs and Payout Structure
Evaluation entry costs are comparable in order of magnitude between both firms, depending on the chosen account size. The bigger difference lies in payout frequency: some Funding Pips programs offer shorter payout cycles than FTMO's standard schedule. For traders who want to see cash flow sooner, this can be a deciding factor.
Which Firm Fits Which Type of Trader?
- Choose FTMO if: you value a long track record, predictability, and a large, proven community
- Choose Funding Pips if: you want flexibility in account types, want to scale faster, or have a strategy that doesn't fit within a minimum-trading-days requirement
- Still unsure: start with the smallest account size at the firm whose rule set fits you best, and build experience before scaling up
Why the Firm Matters Less Than Your Discipline
Here's the uncomfortable truth: traders who keep failing challenges at FTMO also tend to fail at Funding Pips — and vice versa. The problem rarely lies in the firm's rules. It lies in overtrading after a loss, ignoring a daily loss limit, or increasing position size after a winning week.
Before switching to an "easier" firm, ask yourself: do I actually have data showing why I failed? Or am I guessing that the next firm will fix the problem? A trading journal that tracks your rule compliance, drawdown patterns and discipline score shows whether the problem is in the rules — or in your execution.
Frequently Asked Questions
Read also: How to choose the right prop firm · How to pass your prop firm challenge