When choosing a prop trading firm, payout structures and terms significantly impact your earnings. Here's a quick breakdown:
- FTMO: Starts with an 80% profit split, increasing to 90% through scaling. Refunds challenge fees upon success. Offers bi-weekly payouts processed within 8 hours.
- MyForexFunds: Begins at 75%, rising to 85% by the third month. Lower fees but faces regulatory challenges. Payouts are bi-weekly.
- The Funded Trader: Offers up to 95% profit splits but lacks transparency on fees, refunds, and payout schedules.
Quick Comparison:
| Feature | FTMO | MyForexFunds | The Funded Trader |
|---|---|---|---|
| Initial Profit Split | 80% | 75%-85% | 80% |
| Max Profit Split | 90% | 85% | 95% |
| Challenge Fee Range | $155–$2,050 | $49–$1,299 | Not disclosed |
| Fee Refund Policy | Full refund | Evaluation only | Not disclosed |
| Payout Frequency | Bi-weekly | Bi-weekly | Not disclosed |
| Current Status | Stable | Regulatory issues | Stable |
Summary: FTMO offers reliable payouts and stability, while The Funded Trader provides higher profit potential. MyForexFunds has lower fees but faces uncertainty due to regulatory issues. Your choice depends on your priorities: stability, profit splits, or lower upfront costs.
FTMO vs. My Forex Funds Review (COMPLETE & UNBIASED)
How Prop Trading Payouts Work: Key Factors to Consider
Understanding how prop trading payouts operate - covering profit splits and withdrawal schedules - can help you gauge the earning potential offered by different firms. The way these firms structure their payouts directly affects your bottom line, so it’s worth breaking down the key elements that influence how much you take home.
Profit Splits and Their Impact on Your Income
Profit splits dictate how trading profits are divided between you and the firm. For example, in an 80/20 split, you keep 80% of the profits, while the firm retains 20%. Many top-tier prop firms offer splits ranging from 80% to 90%, though some firms may provide lower percentages. The exact split you receive often hinges on factors like your account type, trading performance, or eligibility for scaling programs. Take FTMO, for instance - they start with an 80% split but allow traders to earn up to 90% through scaling opportunities. Profit splits can also vary within the same firm depending on the type of account or optional add-ons you choose.
Now let’s look at how payout schedules affect your cash flow.
Payout Frequency and Withdrawal Flexibility
The frequency of payouts plays a big role in managing your cash flow. While monthly payouts are the norm for many platforms, some firms offer faster options like bi-weekly or even on-demand withdrawals, which can be available 7 to 14 days after your first trade. For instance, FTMO processes approved payouts within 1–2 business days, typically via bank transfers. On-demand withdrawals give you more flexibility and quicker access to funds, while scheduled payouts provide consistency, making it easier to plan your finances.
These payout structures form the foundation for comparing different prop trading firms in greater detail.
FTMO: Payout Structure and How Much You Can Earn
FTMO offers traders an attractive payout model, starting with an 80% profit split and a refundable evaluation fee. There’s also potential for increased earnings through their scaling opportunities. Let’s break down how their profit splits, scaling options, and fees work.
Profit Split Rates and Growth Potential
FTMO kicks things off with an 80% profit split - meaning if you earn $1,000, you take home $800. But it gets better. With their scaling program, the profit split can jump to 90%. For instance, on a $100,000 account that generates $5,000 in monthly profits, you’d pocket $4,500.
What’s more, the scaling program doesn’t just improve the profit split. It also includes a 25% increase to your account balance, giving you even more room to grow and trade at higher levels.
Evaluation Fees and Refund Policy
FTMO charges a one-time evaluation fee, which varies depending on the account size and the risk challenge you choose. Here’s a breakdown of the fees:
Standard Risk Challenge Fees:
- $10,000 account: $155
- $25,000 account: $250
- $50,000 account: $345
- $100,000 account: $540
- $200,000 account: $1,080
Aggressive Risk Challenge Fees:
- $10,000 account: $250
- $25,000 account: $345
- $50,000 account: $540
- $100,000 account: $1,080
The good news? FTMO refunds this fee once you successfully pass the Challenge, complete the Verification phase, and make your first profit withdrawal. Essentially, for traders who succeed, the fee is reimbursed, ensuring it doesn’t eat into your earnings. Plus, there are no additional hidden fees to worry about.
MyForexFunds: Payout Structure and How Much You Can Earn
MyForexFunds operates with a tiered profit-sharing model that rewards traders for consistent success. When you start, you’ll receive a competitive base profit split. As you hit specific earnings milestones and maintain steady performance, your share of profits increases, giving you the chance to retain more of what you earn over time.
How Tiered Profit Sharing Works
This system is designed to motivate traders to stay consistent and aim for higher returns. The better your performance, the more you get to keep, creating a clear incentive to grow and excel within the program.
Affordable Challenge Fees
One standout feature of MyForexFunds is its accessible challenge fees. These fees vary depending on the account size you choose, making it easier for traders to start without a major financial commitment. Plus, the fees are typically refunded after your first profit withdrawal, allowing you to explore different account sizes or take on multiple challenges without significant upfront costs.
Convenient Payout Schedule
Once you’ve completed the evaluation phase, MyForexFunds offers bi-weekly payout options. This regular schedule helps traders manage their cash flow effectively and ensures timely access to their earnings.
The Funded Trader: Payout Structure and How Much You Can Earn
When it comes to understanding the payout structure of The Funded Trader, some specifics like profit splits, fees, refund policies, and payout schedules remain unverified in publicly available sources. To get the most accurate and current details, it's best to review the platform's official documentation. Here's a breakdown of the key aspects where information is still unclear:
Profit Split Rates and Earning Potential
The exact profit split rates and details about performance-based scaling are not confirmed by available sources. For precise figures, refer directly to The Funded Trader's official materials.
Fees and Refund Conditions
Information about fees for evaluation challenges or refund policies is not provided by the sources. To fully understand the fee structure and any refund terms, consult the platform's official guidelines.
Payout Schedule and Withdrawal Options
Details about how often payouts occur or the available withdrawal methods are not specified in the sources. For clarity on these aspects, check the platform’s official communications.
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Side-by-Side Payout Comparison
Looking at payout structures helps identify which platform offers better earning potential for traders. Each platform's compensation setup can influence its appeal based on your trading style and priorities.
Here’s a breakdown of their key payout metrics:
| Feature | FTMO | MyForexFunds | The Funded Trader |
|---|---|---|---|
| Initial Profit Split | 80% | 75%–85% | 80% |
| Maximum Profit Split | 90% | 85% | Up to 95% |
| Challenge Fee Range | $155–$2,050 | $49–$1,299 (Evaluation) | Information not available |
| Fee Refund Policy | Fully refundable upon success | Refundable for Evaluation only | Information not available |
| Current Status | Operational | Facing regulatory issues | Operational |
FTMO and The Funded Trader both start with an 80% profit split, while MyForexFunds offers a range between 75% and 85%. However, The Funded Trader stands out by allowing traders to achieve a maximum profit split of up to 95%, which is higher than FTMO's 90%.
When it comes to fees, MyForexFunds has the lowest starting cost at $49, compared to FTMO’s $155. However, MyForexFunds' ongoing regulatory challenges raise concerns about its reliability. On the other hand, FTMO fully refunds challenge fees upon success, whereas MyForexFunds only refunds its Evaluation fees.
Refund policies and operational stability are key differentiators. While MyForexFunds' lower fees might seem appealing, its regulatory issues could pose risks. FTMO offers a more stable and reliable option with reasonable fees and a full refund policy. The Funded Trader, with its standout 95% maximum profit split, could be a lucrative choice for traders who qualify for its premium challenges.
Ultimately, the choice depends on your trading goals and risk tolerance. FTMO and The Funded Trader emerge as the more dependable platforms, each with unique strengths. FTMO’s stability and clear refund policy appeal to those seeking reliability, while The Funded Trader’s higher earning potential might attract traders willing to take on more ambitious challenges. Up next, we’ll dive into real-world scenarios to see how these platforms perform in practice.
Real-World Examples: Which Platform Pays More?
Understanding how different platforms impact earnings can help traders make informed decisions. Each platform caters to unique trader needs, whether it's minimizing upfront costs, maximizing profit share, or ensuring frequent payouts.
For Traders Focused on Low Upfront Costs
For those mindful of initial expenses, platforms with low fees and refund policies are appealing. FTMO stands out with its refundable fee, reducing the financial risk upfront. MyForexFunds offers lower initial fees in some of its programs, though these can vary, so it’s worth checking for updates. As for The Funded Trader, their fee structure may differ, so reviewing their website for the most current details is essential. Clearly, assessing upfront costs is a critical step in selecting the right platform.
For Traders Seeking the Highest Profit Splits
If maximizing earnings is a priority, profit splits become a key factor. The Funded Trader offers splits as high as 95%, providing an opportunity for substantial long-term gains. FTMO, on the other hand, offers a competitive profit share that improves with consistent performance, creating a rewarding structure for growth-minded traders. MyForexFunds has a profit-sharing model that some traders view as less aggressive compared to others. Choosing the right platform here depends on how much weight you place on profit splits.
For Traders Requiring Frequent Payouts
Steady cash flow is crucial for many traders, and frequent payouts can make all the difference. FTMO is well-known for its reliable payout schedule, allowing traders to plan their finances with greater certainty. Payout options and frequency can vary across platforms, so it’s always a good idea to review the latest terms and conditions to ensure they align with your trading goals.
Other Factors That Affect Your Real Earnings
While profit splits and payout schedules lay the groundwork, other elements like evaluation difficulty, trading rules, and account size options significantly influence how much you can actually earn.
Challenge Difficulty and Pass Rates
The evaluation phase is your ticket to accessing a funded account, so how challenging it is directly impacts how soon you can start earning. For instance, FTMO requires traders to hit a 10% profit target within 30 days during the Challenge Phase and a 5% target within 60 days in the Verification Phase. These targets come with strict limits on daily and overall drawdowns. If you’re close to meeting the target, FTMO offers retakes or extensions to help you succeed.
Similarly, MyForexFunds sets profit targets that are slightly less demanding and also provides free retakes under specific conditions. On the other hand, The Funded Trader doesn’t fully disclose its evaluation process, which might make it harder to gauge the difficulty upfront.
Trading Rules and Restrictions
Once you’ve passed the evaluation, trading rules can further shape your earnings. Platforms often enforce risk management measures like daily loss limits and position sizing rules. While these rules are designed to safeguard your account, they might also restrict more aggressive trading strategies. Additionally, some platforms impose restrictions on trading styles, which could limit your ability to implement your preferred techniques.
Account Size Options and Profit Potential
The size of your funded account is a key factor in determining your earning potential. Larger accounts allow for greater profits and more flexibility in position sizing, though they often come with higher evaluation fees.
FTMO offers account sizes up to $200,000, with opportunities for successful traders to scale to even larger accounts over time. Historically, MyForexFunds provided a range of account sizes and scaling programs that allowed traders to grow their accounts quickly. However, the platform’s current regulatory issues have affected its operations.
The Funded Trader also provides multiple account size options, and understanding its scaling policies is essential for estimating your long-term earning potential. With larger accounts, traders can achieve higher profits, though it’s important to weigh this against the initial costs and challenges of obtaining such accounts.
Together with payout terms, these factors paint a clearer picture of your overall trading profitability.
Final Verdict: Which Platform Pays the Most?
FTMO stands out by offering a full refund of the challenge fee once traders successfully complete both the Challenge and Verification phases. This refund is typically included with the trader's first withdrawal, effectively reducing the initial costs and increasing net profits.
FAQs
How does the profit split affect your earnings with these prop trading firms?
Profit splits are a major factor in how much you can earn as a trader with different firms. For instance, FTMO offers a standard 80% profit split, which can go up to 90% if you qualify for their scaling plan. MyForexFunds, although currently inactive, used to provide splits ranging from 75% to 85%. On the other hand, The Funded Trader stands out with tiered profit-sharing options that can reach as high as 100%, depending on your performance and account type.
The variation in profit splits can significantly affect the portion of your earnings you get to keep. That’s why it’s essential to pick a platform that matches your financial objectives and trading approach.
What risks should traders consider when choosing a prop trading firm with regulatory issues like MyForexFunds?
When choosing a prop trading firm, understanding potential regulatory risks is crucial. Take MyForexFunds (MFF) as an example. In 2023, the U.S. Commodity Futures Trading Commission (CFTC) brought legal action against MFF, citing allegations of misleading claims, misuse of client funds, and unfair trading practices. Although the case was eventually dismissed, it highlighted concerns about the firm's transparency and reliability.
To navigate these risks, traders should dig deep into a firm's regulatory status, payment policies, and history before making any commitments. Conducting thorough research can go a long way in creating a safer and more reliable trading experience.
How do FTMO and MyForexFunds refund policies impact trader costs and risks?
FTMO reimburses the challenge fee to traders who successfully pass both evaluation phases and receive their first profit payout. This helps lower the overall expense and financial risk for those who meet the program's criteria.
On the other hand, MyForexFunds used to offer refundable registration fees for specific account types, but this option is no longer available. It's important to carefully review the policies of each firm to fully understand how they might impact your initial costs and any associated risks.