FTMO vs MyForexFunds
In this post, we will compare FTMO to MyForexFunds. Both firms are among the most well-known proprietary trading firms operating in the market today. A comparison will be made between their evaluation programs. We will evaluate these two options so that traders can make an informed choice about which one to join.
FTMO is a prop trading firm based in the Czech Republic that specializes in Forex trading and offers traders up to $2,000,000 in the capital as well as a profit split of up to 90%. In order to maintain their position as market leaders, they are now offering traders a profit share of up to 90%, with the firm retaining just 10% of the earnings made by traders.
The catch is that you are required to first pass their FTMO challenge. High-profit splits are typically offered by funded programs that need you to pass their evaluation, which many evaluation prop firms offer.
MyForexFunds is a very young participant in the industry; nonetheless, they claim to have provided more than 180,000 traders with access to forex trading accounts in a relatively short period of time. They provide trading conditions that are comparable to those offered by the other prop firms that we have researched. One thing that sets them apart from FTMO is the fact that they also provide instant funding without requiring you to complete any challenges.
The Funded Trader Programs
MyForexFunds offer 3 different types of accounts depending on your experience levels. But we will only focus on the Evaluation program, so we are able to compare it with FTMO Normal Evaluation.
MyForexFunds
Their Forex Funded Account Evaluation program allows forex traders to demonstrate their level of expertise in the market. Semi-professional traders who are interested in taking their careers to the next level but lack the financial resources to do so have the opportunity to join them.
Their evaluation program consists of a two-step process, during which a potential funded trader may demonstrate their proficiency in forex, CFDs, or commodities. The Evaluation trading account sizes vary from $10,000 to $200,000, and profit-split distributions take place once per month during the first month and then twice every week after that. A trader is allowed a maximum of $600,000 in capital from evaluation accounts, but only $300,000 in each trading account.
They seek to find genuine forex prop firm traders who can demonstrate the level of trading expertise necessary to be successful with a forex prop firm by using their evaluation trading account process. You will be rewarded for maintaining your consistency and accuracy in trading, as well as your good trading risk management abilities.
FTMO
The evaluation process for both normal risk accounts and aggressive risk accounts is divided into two parts: the first stage is the challenge, and the second stage is the verification. Both of these stages are followed by the completion of the evaluation. As soon as you have finished each of these stages, you will be eligible to become a funded FTMO trader.
They need to be absolutely certain that you are capable of risk management before they will let you trade on their behalf. Trading Objectives were the result of this motivation on their part. You may demonstrate that you are a disciplined and experienced trader by ensuring that you satisfy the trading objectives. They do not impose any restrictions on the instruments or position sizes that you can trade, so you are free to trade however you see fit.
They also now have a capital scaling program, which allows you to increase the balance of your funded account by 25% after achieving specific requirements.
The Challenge
FTMO Challenge
Your capacity as a trader will essentially be judged based on how well you can complete two stages of the challenge. The first step is to complete the challenge, and then there will be a verification stage where you will need to show that the previous success was not a fluke. In all aspects, the FTMO Challenge will last for a period of thirty calendar days. It is the number of days you have to complete the task. If you are able to accomplish the profit goal in a shorter amount of time while still following all of the requirements, you will advance straight to the Verification step. Nevertheless, the absolute minimum number of trading days required is 10.
FTMO verification is the next stage. You now have twice as much time to get the target profit while still sticking to all of the guidelines. This indicates that you have a total of sixty days to finish the verification process.
You are not authorized to hold transactions over the weekend if you are subject to the standard FTMO challenges unless you have gained authorization earlier in the week.
The profit target to pass is 10% for the first stage, and 5% for the second stage. The daily drawdown is set at 5%, while the overall drawdown is 10%.
After purchasing a challenge from FTMO, the verification and challenge will be carried out on a demo account, the details of which will be made available to you at the time of purchase.
Below is an example of the rules for the normal $10,000 funding in FTMO. They have made slight changes in the trading period and the stage 2 profit target.
MyForexFunds Challenge
The Evaluation account is the one that is being put to the test in the MyForexFunds challenge. The challenge is comparable to FTMO in that it consists of two steps and somewhat similar rules.
During the 30-day procedure, you will be required to engage in trading for a minimum of 5 days. After that, there will be a 60-day stage 2 challenge. The profit target set for the first stage of the challenge is 8%, and for the second stage, the profit target is 5%.
Within any given 24-hour period, the maximum daily drawdown that can occur on your forex trading account is 5% of the account’s balance or equity. And the total maximum drawdown is 12%.
The three programs that are compared to FTMO are outlined below. You will also receive a refund of your one-time fee, just like in FTMO, provided that you pass the evaluation period.
The Differences
As we mentioned above, the minimum trading days in MyForexFunds is only 5 days compared to 10 days in FTMO. The profit target for the first stage is also lower in MyForexFunds with only 8% compared to 10% in FTMO. But the profit target for the second stage is the same.
Both prop firms are somewhat relaxed regarding the rules, especially during the evaluation period. Both allow news trading, however, in FTMO, once you are a funded trader, only their Swing account is allowed to trade the news.
Both also allow you to use EAs. Fortunately, MyForexFunds does not require you to send your EAs for approval anymore. You are free to use your EAs.
Scaling Plan
The scaling plans for FTMO and MyForexFunds are slightly different. But unlike other prop firms that automatically scale your account, instead, they scale in cycles of 4 months. If you are looking to scale really fast, it is not possible.
MyForexFunds has a scaling-up plan in which, if you have made a profit of at least 10% during a period of 4 months and at least 2 of those 4 months were profitable, they will boost the size of your account by an additional 30% of the amount that it was initially set at.
The FTMO Account operates on a cycle that is every four months, with the capital being added at such intervals. In order to qualify for an increase in capital of 25%, the trader has to achieve a net profit of at least 10% over the course of four consecutive monthly cycles. In addition to this, the trader has until the end of the term of four months to carry out at least two payments. This is significant because it demonstrates that the trader’s account balance must be higher than the beginning account balance (in profit) prior to the scale-up process being initiated.
Below is an example of the scaling plan from FTMO. Keep in mind that this is for $400,000. FTMO funded trader’s capital is only as high as $200,000. So if it takes 16 months to get from $400,000 to $800,00, you can imagine how long it would take from $200,000 to $800,000.
Summary
Both FTMO and MyForexFunds are quite similar with only a few differences. In terms of the rules, MyForexFunds has better drawdown rules, lower minimum trading days, and also a lower profit target in their first stage. The fees are also cheaper in MyForexFunds.
Regarding profit split, FTMO offers 80/20 but can go as high as 90/10 on the scale-up plan. While MyForexFunds has a 75/25 split in the first month, it goes to 80/20 in the second month, and 85/15 in the third month.
In a way, MyForexFunds is a better value compared to FTMO. However, FTMO has the brand. They are the most famous and well-known prop firm, that has been around for a long time. So it all comes down to whether you want to stick with a well-known and established prop firm like FTMO. Or do you want something with a better value and overall trading rules like in MyForexFunds?
We compiled a summary of the comparison between the two evaluation programs to make it easier for you to compare.
