Prop Firm Rules Compared: FTMO vs Topstep vs Apex vs FundedNext (2026)

Choosing a prop firm based on price or brand alone is a common mistake. The evaluation rules determine your probability of passing more than your trading strategy does.

A strategy that passes FTMO with a 15% success rate might pass Apex at 25% or fail Topstep at 5% — not because the strategy is better or worse, but because the rules interact differently with its characteristics. Trailing drawdown punishes strategies that let profits run. Consistency rules punish strategies with lumpy returns. Tight daily loss limits punish strategies with wider stops.

This guide breaks down every major rule across the top firms so you can match your strategy to the firm that gives you the best odds.

Drawdown is the most important rule because it determines how much room you have to lose money before you fail. But not all drawdown is the same.

FTMO — 10% static, balance-based. Your floor is fixed at 90% of your starting balance. If you profit $20,000 on a $100K account, your floor is still $90,000 — you now have $30,000 of drawdown room. This is the most forgiving drawdown type among major firms.

FundedNext — 10% static, balance-based. Same as FTMO. The floor doesn't trail upward. You get progressively more room as you profit.

Topstep — Trailing, intraday. Your floor follows your highest equity in real-time. On a $100K account with $3,000 trail: if equity hits $105,000, your floor is now $102,000. This is the most aggressive drawdown type. Profits tighten your remaining drawdown room.

Apex — Trailing, end-of-day. Similar to Topstep but the floor only updates at market close, not intraday. More forgiving because intraday equity spikes don't move the floor.

The5ers — 6% balance-based (Hyper Growth). Only 6% max drawdown — the tightest absolute limit among major firms. Requires extremely disciplined risk management.

MyFundedFX — 8% balance-based. Tighter than FTMO (10%) but still static. The 8% means your floor is $92,000 on a $100K account.

Daily loss limits vary from 3% to 5% and use different calculation methods.

5% daily loss: FTMO, FundedNext, MyFundedFX. On a $100K account, you can lose up to $5,000 per day. This is the industry standard and gives reasonable room for 3-5 trades with 1% risk each.

4-5% daily loss (varies): Apex Trader Funding. Depends on account size. Generally slightly tighter than FTMO for equivalent account sizes.

Fixed dollar amounts: Topstep uses fixed dollar amounts — $1,000 for 50K, $2,000 for 100K, $4,500 for 150K. The $1,000 limit on a $50K account is effectively only 2%, making it the tightest daily limit relative to account size.

3% daily loss: The5ers Hyper Growth program. This is extremely tight — on a $100K account, you can only lose $3,000 per day. At 1% risk per trade, that's only 3 losing trades before you're out. Requires smaller position sizes or wider stops than other firms.

The daily loss limit determines your maximum position size. If your daily limit is $3,000 (The5ers) versus $5,000 (FTMO), you need to trade 40% smaller positions to have the same margin of safety.

Profit targets determine how long you'll likely need to pass the evaluation.

FTMO: 10% Phase 1, 5% Phase 2. No time limit. This is generous — you can take months if needed. The two-phase structure means you need to prove profitability twice.

FundedNext Evaluation: 10% Phase 1, 5% Phase 2. Minimum 5 trading days per phase. Express model requires 25% in one phase (much harder target).

Topstep: $3,000 on 50K, $6,000 on 100K, $9,000 on 150K. No time limit. One phase only. The single-phase structure is simpler but means one failed attempt starts over.

Apex: $1,500 on 25K up to $20,000 on 300K. Minimum 7 trading days. One phase. Large accounts have proportionally higher targets.

The5ers Hyper Growth: 6% Phase 1, 4% Phase 2. 3 minimum trading days. The lower targets partially offset the tighter drawdown rules.

MyFundedFX: 8% Phase 1, 5% Phase 2. Minimum 5 trading days.

When comparing firms, calculate the target-to-drawdown ratio: FTMO is 10%/10% = 1:1. The5ers Hyper Growth is 6%/6% = 1:1. MyFundedFX is 8%/8% = 1:1. They're all roughly equivalent in difficulty — the differences are in drawdown TYPE, not ratio.

Beyond drawdown and daily loss, some firms have additional rules that catch traders off guard:

Consistency rule (FundedNext Evaluation): No single day can account for more than 30% of total profit. This doesn't apply to the Express model. This is the biggest hidden rule in prop trading.

Scaling plan (Topstep): Your maximum position size is limited based on your account equity. You start with a smaller limit and unlock larger sizes as your account grows. This effectively prevents you from making one big bet to hit the profit target.

Minimum trading days: FTMO (4), FundedNext (5), Apex (7), The5ers (3), MyFundedFX (5). This prevents lucky one-trade passes.

Weekend holding (various): Some firms prohibit holding positions over the weekend. Others allow it but with margin requirements that effectively limit your position size.

News trading restrictions (various): Some firms restrict trading within minutes of major news releases. Check your firm's specific policy — violations can result in profit disgorgement even if you were profitable.

PropJournal tracks all applicable rules for your specific firm and alerts you to potential violations before they happen.

Payout splits determine how much of your profits you keep once funded.

FTMO: 80% standard, upgrades to 90% after certain milestones. Payouts available after 14 days of first trade on funded account. This is the industry benchmark.

FundedNext: 80% standard, up to 90% with scaling. Unique feature: 15% profit share during evaluation phase, meaning you earn money even before getting funded.

Topstep: 100% of first $10,000 in profits, then 90/10 split. The 100% first-$10K is extremely generous for new funded traders.

Apex: 100% of first $25,000 in profits, then 90/10 split. The most generous initial payout in the industry. If you profit $20,000, you keep all of it.

The5ers: 80/20 split. Scaling program can grow accounts up to $4M, so the lower split is offset by potential account size.

MyFundedFX: 80/20 split. Straightforward, no scaling bonuses.

When comparing payouts, consider the full picture: Apex gives 100% on first $25K with a $657/month subscription. FTMO gives 80-90% with a one-time $1,080 fee for 200K. The break-even depends on how quickly you generate profits.

Based on the rule analysis, here are recommendations by trading style:

Forex scalpers: FTMO or FundedNext. Balance-based drawdown is forgiving for frequent trades. FTMO's no-time-limit and static drawdown give maximum flexibility.

Futures day traders: Topstep or Apex. Purpose-built for futures. Apex's EOD trailing is more forgiving than Topstep's intraday. If you're a newer trader, start with Apex.

Swing traders: FTMO is the clear winner. Static drawdown means overnight positions don't ratchet up your floor. No consistency rule means big winners don't hurt you. No time limit means you can wait for ideal setups.

Conservative traders (tight risk management): The5ers Hyper Growth. Tight rules but low profit targets (6%) and a scaling program to $4M. If you can trade within 3% daily loss, the reward is significant.

Budget-conscious traders: Apex frequent discounts (often 50-80% off), or FundedNext starting at $32 for $6K accounts. FTMO is premium priced but has the highest brand trust.

Maximum payout seekers: Apex (100% on first $25K) or Topstep (100% on first $10K) for immediate returns. FTMO/FundedNext for long-term scaling potential.

PropJournal supports all of these firms with firm-specific compliance monitoring, drawdown tracking, and alert thresholds customized to each firm's exact rules.