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Prop Firm Rules

In the prop trading industry, rules can vary significantly from one firm to another, depending on their risk management policies.

While there are some well-known common rules, such as restrictions on the use of Expert Advisors (EAs), High-Frequency Trading (HFT), latency arbitrage, and any trading activity that exploits platform inefficiencies, there are also firm-specific rules that traders need to consider.

Through extensive research into the terms and conditions of all listed prop trading firms, we have identified some major key rules that you should be aware of before joining any of these funded programs.
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The 5%ers
4.7
4
reviews
Updated on:
February 1, 2025

The5%ers has established specific rules and guidelines, including certain prohibited practices. Below is an overview of the most pertinent information:

1. High Stakes Program Requirements

  • Minimum Profitable Days: Traders participating in the High Stakes program must achieve a minimum of 3 profitable days to pass the evaluation. A profitable day is defined as one where the closed positions yield a positive profit of at least 0.5% of the initial balance.

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2. Prohibited Trading Practices

To ensure market integrity and responsible trading, The5%ers prohibits the following practices:

  • One-Sided Bets: Consistently taking positions in a single direction without considering market conditions or conducting proper analysis is not allowed.
  • Arbitrage: Exploiting price discrepancies or glitches within different markets of similar or identical assets is forbidden.
  • Trading Bracketing: Placing pending orders around high-impact news events, such as opening buy and sell stops close to the price before the news, is prohibited.
  • System Exploitation: Intentionally or unintentionally employing trading strategies that take advantage of system errors, such as inaccuracies in price display or delays in updating, is not permitted.

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3. Risk Management Guidelines

The5%ers emphasizes the importance of effective risk management:

  • Risk Assessment: Traders are encouraged to conduct a self-assessment to understand their risk appetite, tolerance, and personality traits that may affect trading decisions. This includes aligning trading strategies with individual risk profiles and timeframes.
  • Advanced Risk Techniques: The5%ers provides resources on advanced risk and money management techniques to help traders minimize risk and maximize profits. These include building a solid trading plan and developing the right mindset and psychology when trading.

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4. Can I Trade During News?

  • Instant Funding (Hyper-Growth) & Bootcamp:
    News trading is allowed, but bracket strategies (placing both BUY STOP & SELL STOP orders simultaneously around news) are prohibited.
  • High Stakes Program:
    Holding trades through news is allowed, but executing orders 2 minutes before and after high-impact news is prohibited.
    • Example: For US CPI at 15:30 GMT+2, no new orders between 15:28 - 15:32.
    • Profits made during this time won't count toward targets, and losses are absorbed by you.

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Adhering to these rules and guidelines is essential for maintaining your account's standing with The5%ers. Engaging in prohibited practices can lead to actions ranging from the removal of conflicting positions to the termination of the account and cessation of cooperation. For the most detailed and up-to-date information, please refer to The5%ers' official FAQs.

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FTMO
4.2
1
reviews
Updated on:
February 1, 2025

FTMO has established specific rules and guidelines, including certain prohibited practices. Below is an overview of the most pertinent information:

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1. Trading Instruments and Strategies

Traders are permitted to use various trading strategies, provided they align with legitimate trading practices and do not exploit system errors or delays. It's essential to avoid strategies that could harm FTMO's services or misuse the Evaluation Process and/or FTMO Account. For detailed information on acceptable instruments and strategies, please refer to FTMO's guidelines.

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2. Forbidden Trading Practices

FTMO explicitly prohibits certain trading behaviors to ensure market integrity:

  • Exploiting System Vulnerabilities: Utilizing strategies that take advantage of errors in price displays, delayed updates, or slow data feeds is forbidden.
  • Manipulative Trading: Engaging in trades, alone or in coordination with others, that manipulate the market—such as simultaneously entering opposite positions across multiple accounts—is not allowed.
  • Automated Exploitation: Using software, artificial intelligence, or high-speed data entry methods to manipulate or gain an unfair advantage on the trading platform is prohibited.
  • Non-Replicable Strategies: Implementing strategies that are not reasonably replicable in actual market conditions, such as opening substantially larger positions compared to usual trades, is not permitted.
  • Gap Trading: Engaging in gap trading, especially around major global news or macroeconomic events, is considered a high-risk practice and is forbidden.

For a comprehensive list of prohibited practices, please review FTMO's Terms & Conditions, specifically clause 5.4.

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3. Trading According to a Real Market

FTMO requires that all trading activities reflect genuine market conditions. Traders must not use practices that contradict the functioning of a real market. This ensures that trading strategies are legitimate and do not interfere with standard market operations.

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4. Consistency in Trading

Consistency is crucial for long-term success. FTMO evaluates traders based on their ability to maintain consistent trading behaviors and results. While the Consistency Score is currently informative and does not affect the outcome of the Evaluation Process, it highlights the importance of disciplined and steady trading practices.

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5. News Trading and Holding Positions

FTMO has specific guidelines regarding trading during news events and holding positions overnight or over weekends:

  • FTMO Account: Traders are restricted from trading during certain news releases and from holding trades over weekends. For example, during significant USD news announcements, trading USD-related forex pairs and indices is restricted from 2 minutes before to 2 minutes after the event.
  • FTMO Account Swing: This account type does not have restrictions for news trading or holding trades over the weekend, making it suitable for swing traders who need to hold positions for extended periods.

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6. Maximum allocation

FTMO have a maximum capital allocation limit when you are an FTMO Trader, which is $400,000 (prior to scaling) per trader or strategy, at any given time.

Equivalent limits are in place for other currencies – €320,000; £280,000; CAD 480,000; AUD 520,000; CHF 320,000 or CZK 8,000,000.

These limits are in place due to risk mitigation & diversification measures.

Please be careful not to get multiple accounts through various registrations as this is not permitted. If from FTMO discover identically traded strategies through various accounts, and exceeding the total of fictitious $400,000 in active FTMO Accounts, they reserve the right to suspend those accounts as per the contract.

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Adhering to these rules and guidelines is essential for maintaining your account's standing with FTMO. Engaging in prohibited practices can lead to actions ranging from the removal of conflicting positions to the termination of the account and cessation of cooperation. For the most detailed and up-to-date information, please refer to FTMO's official FAQ and Terms & Conditions.

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ThinkCapital
0
0
reviews
Updated on:
December 30, 2024

ThinkCapital introduce 200k and 300k account sizes for their challenges.

Funding Pips
4.45
4.55
reviews
Updated on:
December 11, 2024

A new trading model has been introduced: Funding Pips has launched Funding Pips Zero, an instant funding trading program.

Key Features:

  • Profit Split: 95%
  • Payout Frequency: Bi-weekly

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Funding Pips
4.45
4.55
reviews
Updated on:
November 12, 2024

New Trading Evaluation Launched: Introducing the new 2-step FundingPips Plus with New key Features:

  • Profit Split: 80%
  • Payout Frequency: Every 5 Days
  • No Consistency Rule

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Funding Pips
4.45
4.55
reviews
Updated on:
November 11, 2024

Crypto Payout Update:

The $500 limit on crypto rewards has been removed; you can now request your payout via crypto without any limit.

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Finotive Funding
4
1
reviews
Updated on:
October 15, 2024

Risk Rules Update:

  • 10% Tolerance for Risk/Volume Increases: You can now increase your risk/volume by up to 10% once funded.
  • All FX Pairs Now in the Same Instrument Class: If you trade any FX pair during the challenge phase, you are now allowed to trade all FX pairs — Majors, Minors, and Exotics — once funded.
Blue Guardian
4.53
11
reviews
Updated on:
September 15, 2024

Minimum Trading Days change:

A minimum trading period of 3 days has been added across all phases. Traders must achieve at least 0.5% profit on each of these days. These days do not need to be consecutive—any day with at least 0.5% profit will count toward the 3-day minimum trading period

For Traders
0
0
reviews
Updated on:
September 9, 2024

New trading platform:

Added cTrader to the trading platforms offered.

Finotive Funding
4
1
reviews
Updated on:
September 6, 2024

New Account Sizes:

Finotive Funding has introduced new account sizes, $75,000 account for Instant Accounts, $150,000 and $75,000 accounts for Challenge and Finotive Pro Accounts.

Funded Trading Plus
3.6
1
reviews
Updated on:
September 3, 2024

New trading platforms:

Added Platform 5 and Platform 4 to the trading platforms offered, note that these platforms are not available for U.S. traders.

FundedNext
4.68
5
reviews
Updated on:
August 19, 2024

New payment option:

Added  Apple Pay and Google Pay to payment options.

Finotive Funding
4
1
reviews
Updated on:
August 19, 2024

New payment option for crypto:

Added NOWPayments for crypto payment.

BrightFunded
4.6
4
reviews
Updated on:
August 5, 2024

Breach Rule Update:

Negative Available Margin or Hedging Between Different Accounts,If your account is found with a Negative Available Margin or Hedging Between Different Accounts, you will receive a Soft Breach instead of a Hard Breach. Only the trades that caused the breach will be closed, enabling you to resume trading on the affected accounts without disruption.

NOTE: If a Negative Available Margin is detected, the relevant account will always be subject to a Soft Breach. However, if Hedging Between Different Accounts is detected, a Soft Breach will be issued only once. After this initial Soft Breach, the relevant accounts will be subject to a Hard Breach.‍Effective Tuesday, August 13, 2024‍

FundedNext
4.68
5
reviews
Updated on:
August 2, 2024

New Payment Option for Nigerian:

Naira is available as a local payment option for Nigerians.

Funding Pips
4.45
4.55
reviews
Updated on:
July 24, 2024
  • New Trading Model:
    • 2- Step evaluation model, FundingPipsX.
For Traders
0
0
reviews
Updated on:
July 22, 2024

New platform:

Added TradeLocker to the offered platforms.

Are we missing a rule?

Let us know if we should add something specific.
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