How to choose a prop firm for day trading step by step
Pick the wrong prop firm and you'll burn entry fees on programs that don't fit how you trade. All three test you through structured challenges, fund you if you pass, then split profit. But FTMO, FundingPips, and The5ers diverge on mechanics, leverage, asset menus, and what they'll actually pay out.
Overview
FTMO launched in 2015 out of Australia. They've collected awards, Deloitte Technology Fast 50 in 2019-2020, EY Entrepreneur Of The Year Award in Technology for 2022, though I can't independently verify those from public records. You can trade forex, crypto, indices, commodities, stocks, and options. Max account? $200,000.
FundingPips appeared in 2022, registered in Comoros. Forex, metals, energies, crypto, indices, that's it. Account ceiling is $100,000. They mention a 2025 Global Recognition Award somewhere on their site.
The5ers started in 2016, UK-based. They fund forex, futures, commodities, indices, crypto, metals. Accounts scale up to $320,000. The website credits them with Trader Choice Awards from PropFirmMatch: "Most Trusted Firm of the Year," "Best Customer Support," and a few others.
None of these accolades show up in documentation I could verify. Each firm operates under different regulatory frameworks and blocks traders from certain countries.
Programs
FTMO Challenge Structure
Two paths: 1-Step or 2-Step. Profit split lands at 90%. Max drawdown? 10%.
1-Step FTMO Challenge:
One phase, then you're funded. Daily drawdown sits at 3%.
| Account Size | Fee |
|---|---|
| $10,000 | $79 |
| $25,000 | $199 |
| $50,000 | $319 |
| $100,000 | $499 |
| $200,000 | $999 |
2-Step Challenge:
Adds a verification round. Daily drawdown opens up to 5%.
| Account Size | Fee |
|---|---|
| $10,000 | $89 |
| $25,000 | $250 |
| $50,000 | $345 |
| $100,000 | $540 |
| $200,000 | $1,080 |
They also list a "Free Trial" up to $200,000 for testing strategies.
FundingPips Challenge Structure
Single program: "2-Step Standard." Profit split? 100% after the challenge. Target's 8%, max drawdown 12%, daily 4%. They advertise on-demand payouts.
| Account Size | Fee |
|---|---|
| $5,000 | $32 |
| $10,000 | $59 |
| $25,000 | $159 |
| $50,000 | $269 |
| $100,000 | $555 |
Promotions run constantly. I've seen "20% OFF All Evaluations" and "10% OFF $100K Accounts" cycling through their pages. Codes include "FP20" and "FP10." There's a "1K Instant Account Giveaway" and a "+30% Withdrawable Bonus on Every Deposit."
The5ers Challenge Structure
Multiple tracks. Hyper Growth is 1-Step. High Stakes offers either funded accounts or 2-Step challenges, plus a few specialty programs. Payouts are listed as on-demand.
Hyper Growth (1-Step):
| Account Size | Fee | Profit Split | Profit Target | Max Drawdown | Daily Drawdown |
|---|---|---|---|---|---|
| $5,000 | $74 | 100% | 10% | 10% | 3% |
| $10,000 | $150 | 100% | 10% | - | 3% |
High Stakes (Funded Accounts, 1-Step):
Entry's cheaper, but your split drops to 50%:
| Account Size | Fee | Profit Split | Max Drawdown | Daily Drawdown |
|---|---|---|---|---|
| $20,000 | $100 | 50% | 10% | 5% |
| $40,000 | $200 | 50% | 10% | 5% |
| $80,000 | $400 | 50% | 10% | 5% |
| $160,000 | $800 | 50% | 10% | 5% |
| $320,000 | $1,600 | 50% | 10% | 5% |
$100K 1 Step Challenge:
| Fee | Profit Split | Profit Target | Max Drawdown | Daily Drawdown | |---|---| | $249 | 50% | 10% | 6% | 3% |
High Stakes (2-Step):
| Account Size | Fee | Profit Split | Profit Target | Max Drawdown | Daily Drawdown | Payout |
|---|---|---|---|---|---|---|
| $100,000 | $545 | 50% | 10% | 10% | 10% | Bi-weekly |
Platforms and Rules
Trading Platforms and Leverage
Platform access and leverage caps vary wildly:
| Firm | Platforms | Max Leverage |
|---|---|---|
| FTMO | MetaTrader 4, MetaTrader 5, cTrader | 100 |
| FundingPips | MetaTrader 5, cTrader, Match-Trader, MetaTrader 4 | 2,000 |
| The5ers | - | 100 |
FundingPips hands you 2,000× leverage. That's twenty times what FTMO or The5ers allow.
Tradable Assets
FTMO: Forex, crypto, indices, commodities, stocks, options, exotics, metals, CFDs on cash and equities.
FundingPips: Forex, metals, energies, crypto, indices. Nothing else.
The5ers: Forex, futures, commodities, indices, crypto, metals.
Expert Advisor (EA) Policy
FTMO: No EA policy appears in public documentation.
FundingPips: EAs allowed. Commission's $1 per lot.
The5ers: No EA policy I could locate.
Payout and Payment Methods
FTMO supports a long list:
- Payout: Bank wire, crypto, card transfers (Mastercard, Visa, Discover, Diners Club, Apple Pay, Google Pay, Skrill, Bitcoin, Ethereum, Litecoin, USDC)
- Payment: Credit/debit cards, crypto, e-wallets (Mastercard, Visa, Discover, Diners Club, Apple Pay, Google Pay, Skrill, Bitcoin, Ethereum, Litecoin, USDC, Bank Transfer)
FundingPips:
- Payout: Credit Card, Rise, Tradin, Crypto, Bank Transfer, USDC Crypto, E Wallet, Visa, Mastercard, Apple Pay, Google Pay, Skrill, Neteller, PayPal, Bitcoin, Paysafe Card, Astropay
- Payment: Credit Card, Crypto, Bank Transfer, E Wallet, Visa, Mastercard, Apple Pay, Google Pay, Skrill, Neteller, PayPal, Bitcoin, Paysafe Card, Astropay
The5ers: Not disclosed. I couldn't find payment method details anywhere in their public materials.
Geographical Restrictions
Blocked countries:
- FTMO: Venezuela, Cuba, Sudan, Ukraine, United States, Australia
- FundingPips: Venezuela, United Arab Emirates
- The5ers: No restrictions in available docs
Offers
FTMO Reward Activity
FTMO publishes monthly reward figures. June claim: over 8,300 rewards paid out, totaling more than $18.9 million. Largest single payout that month hit $64,758, paid to a trader named Paul in the UK.
No third-party audit backs these numbers.
FundingPips Promotional Offers
Discount codes cycle through constantly:
- Codes: "FP20" (20% off), "FP10" (10% off)
- Seasonal: "20% OFF All Evaluations," "10% OFF $100K Accounts"
- Giveaway: "1K Instant Account Giveaway"
- Bonus: "+30% Withdrawable Bonus on Every Deposit" and "30% bonus on rewards transfer" through Tradin Transfer
- Other: "4th-Reward Registration Fee Refund"
The5ers Recognition and Awards
The5ers lists three awards from Trader Choice Awards on PropFirmMatch: "Most Trusted Firm of the Year," "Best Trading Conditions," "Best Customer Support."
I can't verify these claims through public documentation.
Summary
Account size, leverage, tradable assets, and where you're allowed to trade, all four shape your choice.
Entry cost? FundingPips starts lowest at $32 for $5K. The5ers' Hyper Growth runs $74 for the same size. FTMO's 1-Step is $79, but that gets you $10K. Bigger accounts cost more across the board.
Profit splits shift by program. FundingPips and The5ers' Hyper Growth both pay 100% during challenges. FTMO keeps 10%. The5ers' High Stakes funded accounts knock you down to 50%. Daily drawdown rules range from 3% to 10%, tight or forgiving, depending on the track.
Leverage? FundingPips dominates at 2,000×. FTMO and The5ers cap you at 100×. All three support MT4 and MT5. FTMO and FundingPips add cTrader to the mix.
FTMO offers the widest asset menu, options and exotics included. The5ers adds futures. FundingPips limits you to five asset classes, cutting out equities and futures entirely.
Geography can disqualify you outright. FTMO bars the U.S. and Australia. FundingPips only blocks Venezuela and the UAE. Compare these firms side-by-side if you're weighing more options.
EA support? FundingPips confirms it's allowed. FTMO and The5ers don't clarify in available materials.
Gaps in disclosure exist everywhere. FTMO doesn't list profit targets for its 1-Step challenges. FundingPips doesn't spell out withdrawal conditions tied to bonus offers. The5ers doesn't specify payout methods or EA policy anywhere I could verify.
Frequently asked questions
What is the lowest entry cost among these three firms?
FundingPips wins at $32 for $5K. The5ers charges $74 for Hyper Growth, FTMO $79 for $10K on the 1-Step. Fees climb as account size grows.
Which firm allows the highest leverage?
FundingPips by a mile, 2,000×. FTMO and The5ers lock you at 100×. High leverage amplifies risk fast. Breach drawdown limits and you're out.
Can I use Expert Advisors?
FundingPips says yes, commission's $1 per lot. FTMO supports MT platforms but doesn't publish an EA policy. The5ers doesn't mention EAs in any docs I've seen. You'll need to ask them directly.
Are payouts verified by third parties?
Not in any public documentation I've found. FTMO shares reward figures on social media. FundingPips and The5ers don't publish comparable transparency reports. Ask for payout verification or service-level agreements before you pay entry fees.
Which firm is best for U.S. traders?
None. FTMO explicitly bars U.S. residents. FundingPips and The5ers don't list the U.S. as restricted, but confirm eligibility before you open an account.
What is the difference between 1-Step and 2-Step challenges?
1-Step is a single eval phase, then funding. 2-Step adds a verification round to check consistency. The 1-Step typically has tighter daily drawdown, 3% versus 4-5%, and costs less upfront. 2-Step fees run higher but give you more room for daily swings.