Funding Pips vs FTMO Profit Split and Drawdown Rules Compared

Matched-account buyer comparison · prices and rules checked July 25, 2026

Funding Pips vs FTMO: Matched 100K Two-Step Scorecard

This compares Funding Pips 100K 2 Step Pro with FTMO 100K 2-Step. Funding Pips lowers the target and price by also tightening the daily and total loss budgets, so the apparent speed advantage must be tested against your strategy’s variance.

100K decision point	Funding Pips	FTMO
Current price	$399 one-time for 100K 2 Step Pro	€439 promotional · €540 reference
Profit targets	6% phase 1 · 6% phase 2	10% Challenge · 5% Verification
Daily / maximum loss	3% daily · 6% static maximum	5% maximum daily loss · 10% maximum loss
Minimum trading days	1 day per phase	4 days per phase
Funded concentration	2% maximum risk per trade idea on 50K+ Master Accounts; same-direction re-entry grouping matters	No comparable numeric risk-per-trade-idea row on the standard 2-Step objectives
Reward	Weekly 80% on the Pro model	80% standard, potentially 90%; request from day 14
Fee refund	2 Step Pro is excluded from the fourth-reward registration-fee refund	Initial 2-Step fee returned with first reward
Best fit	Trader with low-volatility execution who values lower targets, fewer days, and weekly rewards	Trader who needs wider loss room and an included first-reward fee refund

Advanced way to shop this comparison

1. Calculate cost to first eligible payout: use total path cost, likely attempts, resets, activation, add-ons, and refund timing—not the entry price alone.
2. Translate drawdown into trades: account for spread, commission, swap, slippage, correlated positions, and whether the floor is static or trails balance/equity.
3. Replay the funded stage: test your daily P&L against consistency, profitable days, risk-per-idea, news, buffers, minimums, caps, and payout timing together.
4. Verify trust operationally: identify the contracting entity, review rule-change history and complaint themes, get written strategy approval, and complete a small payout before buying multiple accounts.

Official sources used for this snapshot

• Funding Pips 2 Step Pro
• Funding Pips current offer
• FTMO Challenge
• FTMO objectives

Prices and terms change. Reconfirm the exact product, add-ons, platform, country eligibility, and agreement at checkout.

strong>TL;DR: FTMO and Funding Pips are two leading proprietary trading firms with distinct approaches to profit splits and drawdown management. FTMO offers an 80-90% profit split with a standard 5% daily loss and 10% maximum loss on two-step accounts (or 3% daily/10% trailing on 1-step), while Funding Pips provides flexible 60-100% splits based on payout frequency and supports 5% daily/10% static or 3% daily/6% static loss limits depending on the account type. Both enforce consistency rules (FTMO’s 50% Best Day Rule, Funding Pips’ 15-35% consistency scores) and support scaling to $2 million in funded capital. FTMO supports MT4 and MT5, whereas Funding Pips offers MT4, MT5, cTrader, and MatchTrader for traders seeking platform flexibility. Payout schedules range from weekly (Tuesday) at Funding Pips to bi-weekly at FTMO, with monthly and on-demand options available at Funding Pips for higher profit splits.

Key Points

• Research indicates that FTMO and Funding Pips use different models to manage risk and reward traders, with FTMO favoring a strict but predictable structure and Funding Pips offering a highly flexible tiered approach.
• FTMO generally provides a standard 80% profit split that can scale to 90%, while Funding Pips offers variable splits ranging from 60% to 100% depending on your chosen payout frequency.
• The loss limit rules differ significantly based on the evaluation phase. FTMO relies heavily on a 5% daily loss limit and 10% maximum loss, though their newer 1-step program uses an end-of-day trailing drawdown. Funding Pips offers static drawdowns on most accounts but implements a trailing drawdown on its instant funding model.
• Both firms enforce specific consistency rules to prevent gambling. FTMO uses a 50% Best Day Rule on its 1-step challenges, while Funding Pips requires consistency scores between 15% and 35% to access higher payout tiers.

Understanding Proprietary Trading Models

Proprietary trading firms, or prop firms, provide simulated capital to traders who pass an evaluation process. In exchange for trading the firm’s capital, the trader keeps a percentage of the simulated profits generated. Evaluating different firms requires looking closely at how they divide profits and how they measure losses.

Why Rules Matter for Traders

For a beginner or intermediate trader, picking a firm based purely on the highest profit split is a common mistake. The rules governing daily losses, overall drawdowns, and payout schedules determine how likely you are to actually keep an account and receive a withdrawal. A thorough understanding of these parameters is necessary to align a firm with your specific trading strategy.

Introduction to Prop Firm Trading Metrics

When you evaluate a prop firm, you are essentially looking at a contract. The firm agrees to provide you with a funded trading environment, and you agree to operate within their defined risk parameters. Two of the most critical elements of this agreement are the profit split and the loss limit rules. A profit split is the percentage of the trading profits that you are allowed to withdraw to your own bank account. If you make a $10,000 profit and have an 80% split, you take home $8,000. Drawdown rules dictate how much money you are allowed to lose before the firm revokes your trading account. Drawdown is usually measured in two ways. The daily loss limit restricts how much you can lose in a single 24-hour period. The maximum overall loss limit restricts how much you can lose across the entire lifespan of the account. Understanding the mathematical relationship between your profit targets and your loss limit constraints is the foundation of long-term success for any funded trader.

Funding Pips vs FTMO Profit Split and Drawdown Rules Compared

Evaluating Funding Pips and FTMO profit split and loss limit rules requires looking at two distinct philosophies in the prop trading industry. FTMO is one of the oldest and most established firms in the space, known for its rigid, professional, and structured environment. Funding Pips is a newer firm that has gained popularity by offering highly flexible payout schedules, lower entry barriers, and various evaluation models. FTMO operates primarily on a two-step evaluation model, though they recently introduced a one-step challenge. Funding Pips offers a wider variety of paths, including a one-step challenge, a standard two-step challenge, a two-step pro challenge, and an instant funding model known as the Zero account. Because the account options differ so widely, a direct comparison of their profit splits and loss limit mechanics requires breaking down the rules for each specific account type.

Analyzing Profit Split Structures

The percentage of profits you keep varies greatly between FTMO and Funding Pips. While FTMO offers a straightforward baseline, Funding Pips ties your profit split directly to how often you want to withdraw your money.

FTMO Profit Split Mechanics

FTMO uses a structured profit split model that applies to almost all of its traders. When you pass the standard 2-step evaluation and receive your funded account, you start with an 80% profit split. This means that for every dollar of profit you generate, you keep 80 cents, and FTMO keeps 20 cents. If you qualify for the FTMO Scaling Plan by demonstrating consistent profitability over a four-month period, FTMO will permanently upgrade your profit split to 90%. In 2026, FTMO introduced a 1-step challenge. Traders who pass this specific single-phase evaluation begin with a 90% profit split immediately upon reaching the funded stage, bypassing the standard 80% starting tier. Withdrawals at FTMO are processed bi-weekly, meaning you can request a payout every 14 days after your first trade on the funded account.

Funding Pips Profit Split Mechanics

Funding Pips takes a completely different approach to profit sharing. Instead of a flat percentage, they offer variable profit splits based on your chosen payout frequency. This structure gives traders the flexibility to choose between faster access to cash or a higher percentage of the profits. Funding Pips offers the following profit split tiers based on payout schedules:

• Tuesday Payday: Traders can request a payout every Tuesday, receiving a 60% profit split. This allows for weekly liquidity.
• Bi-weekly Schedule: Traders who wait 14 days to request a withdrawal receive an 80% profit split.
• On-Demand Payouts: Traders who meet specific consistency criteria can request payouts on demand and receive a 90% profit split.
• Monthly Schedule: Traders who wait a full 30 days to withdraw their profits receive a 100% profit split, keeping all the money they generate.

Additionally, traders who purchase the “Zero” instant funding account automatically receive a 95% profit split on a bi-weekly schedule.

Worked Examples of Profit Splits

To understand how these percentages affect your actual income, it is helpful to look at realistic dollar amounts. The following examples assume a trader is managing a $100,000 funded account and generates a 5% return in a single month.

FTMO Payout Example on a 100000 Dollar Account

Imagine you have a $100,000 FTMO account (standard 2-step model) and you generate $5,000 in net profit over 14 days.

1. Gross Profit: $5,000
2. FTMO Standard Profit Split: 80%
3. Trader Share Calculation: $5,000 x 0.80 = $4,000
4. Firm Share: $1,000

If you request this withdrawal, FTMO will process a $4,000 payment to your bank account or cryptocurrency wallet within 1 to 2 business days. If you have successfully scaled your FTMO account to the 90% tier, your share of that same $5,000 profit would be $4,500.

Funding Pips Payout Example on a 100000 Dollar Account

Now assume you generated the exact same $5,000 profit on a $100,000 Funding Pips standard account. Your payout depends entirely on when you click the withdrawal button. Scenario A (Tuesday Payday): You decide you want your money immediately at the end of the week. You accept the 60% tier.

• Gross Profit: $5,000
• Trader Share Calculation: $5,000 x 0.60 = $3,000

Scenario B (Bi-weekly): You wait 14 days to request the payout, aligning with the 80% tier.

• Gross Profit: $5,000
• Trader Share Calculation: $5,000 x 0.80 = $4,000

Scenario C (Monthly): You have enough personal capital to cover your living expenses, so you leave the profit in the account for a full 30 days to access the 100% tier.

• Gross Profit: $5,000
• Trader Share Calculation: $5,000 x 1.00 = $5,000

This flexibility allows a trader to treat the account like a weekly paycheck or a monthly investment dividend, depending on their personal financial needs.

Understanding Drawdown Rules

Drawdown rules are the safety mechanisms prop firms use to limit their risk. If you breach a loss limit, your account is immediately closed, and you forfeit the challenge or funded account. Drawdowns are typically divided into two categories. The maximum daily loss limits what you can lose in a single day. The maximum overall loss limits the total amount your account can drop from its starting balance or highest peak.

FTMO Drawdown Limits Explained

FTMO enforces strict but transparent loss limit rules. On their standard 2-step evaluation and funded accounts, FTMO utilizes a 5% maximum daily loss and a 10% maximum overall loss. The FTMO daily loss limit is calculated based on your account balance at midnight Central European Time (CET). If your starting balance for the day is $100,000, your daily loss limit is exactly 5% of your initial account size, which is $5,000. Therefore, your equity cannot drop below $95,000 during that day. This includes closed trades, open floating losses, commissions, and swap fees. The FTMO overall maximum loss on a standard account is static. It is fixed at 10% of the initial account balance. On a $100,000 account, your equity can never drop below $90,000 at any point. Because this limit is static, any profits you leave in the account serve as a buffer. However, FTMO’s new 1-step challenge features different rules. It uses a 3% maximum daily loss and a 10% end-of-day (EOD) trailing maximum loss. A trailing drawdown follows your account balance upward as you make profits, making it significantly more restrictive than a static drawdown.

Funding Pips Drawdown Limits Explained

Funding Pips adjusts its loss limit rules depending on the evaluation model you choose. They offer static drawdowns on most accounts, which is highly preferred by traders who hold trades for longer durations. For the Funding Pips 1-step model, the daily loss limit is 3%, and the overall maximum loss is 6%. This overall loss is static. For the Funding Pips 2-step standard model, the daily loss limit is 5%, and the overall maximum loss is 10%. This matches FTMO’s standard rules. For the Funding Pips 2-step pro model, the rules are tightened to a 3% daily loss limit and a 6% overall maximum loss limit. For the Funding Pips Zero account (instant funding), the firm enforces a 3% daily loss limit and a 5% trailing overall maximum loss limit. Furthermore, on the Zero account, the firm implements a “Safety Cushion” rule, meaning the first 3% of profits you make cannot be withdrawn, acting as a mandatory buffer.

Worked Examples of Drawdown Scenarios

The best way to fully comprehend loss limit rules is to track a hypothetical trading account over a few days. The following examples show how FTMO and Funding Pips calculate rule breaches in real-time.

FTMO Daily Drawdown Scenario

Assume you are trading a $100,000 FTMO standard account with a 5% daily loss limit ($5,000) and a 10% static max loss limit ($90,000 floor). Day 1: You start the day with a balance of $100,000. Your daily loss limit allows your equity to drop by $5,000, meaning your equity cannot touch $95,000. You take a trade and make a $3,000 profit. You close the trade. Your balance at midnight CET is $103,000. Day 2: At midnight, FTMO recalculates your daily loss limit. The formula is your midnight balance minus 5% of the initial account size ($5,000). Calculation: $103,000 – $5,000 = $98,000. During Day 2, your equity cannot drop below $98,000. If you enter a trade and your floating equity drops to $97,999, you will breach the daily loss limit and lose the account, even though your overall account is still in profit.

FTMO 1-Step Trailing Drawdown Scenario

Now assume you are trading the new FTMO $100,000 1-step challenge. This account has a 10% end-of-day trailing drawdown. The starting floor is $90,000. Day 1: You make $4,000 in profit. Your balance at the end of the day is $104,000. Midnight Recalculation: Because this is an EOD trailing drawdown, the 10% loss limit trails your highest end-of-day balance. The new maximum loss limit is calculated as $104,000 minus $10,000. Your new absolute floor is $94,000. Day 2: You lose $2,000. Your balance at the end of the day is $102,000. Midnight Recalculation: The trailing drawdown only moves up, never down. Because your balance decreased, your max loss floor remains locked at $94,000. You now have $8,000 of breathing room before you breach the account.

Funding Pips Static Drawdown Scenario

Assume you are trading a $100,000 Funding Pips 1-step account. This account has a 6% static maximum loss. Your absolute floor is fixed at $94,000 and will never move. Day 1: You make $4,000. Your balance is $104,000. Your absolute floor remains $94,000. You now have a $10,000 buffer before hitting the maximum overall loss. Day 2: You make another $4,000. Your balance is $108,000. Your absolute floor is still $94,000. You now have a $14,000 buffer. Unlike the FTMO 1-step trailing model, the Funding Pips static model rewards you for keeping profits in your account by increasing your physical breathing room. This makes static drawdowns highly favorable for swing traders who rely on wide stop losses and allows weekend holding without penalty.

Additional Rules Impacting Withdrawals

Beyond the standard loss limit constraints, both firms implement specific consistency rules. These rules are designed to ensure that traders are using a repeatable strategy rather than relying on a single lucky gamble to generate all their profits.

The FTMO Best Day Rule

FTMO applies a “Best Day Rule” specifically to its 1-step challenge and 1-step funded accounts. This rule dictates that your most profitable day cannot account for more than 50% of your total positive days’ profit. For example, if your total profit on the account is $10,000, no single day of trading could have generated more than $5,000 of that profit. If you made $6,000 on a single day, you do not lose your account. However, you will not be permitted to pass the evaluation or request a withdrawal until you continue trading and generate more profit on other days, bringing that $6,000 win down to 50% or less of the total pie. This rule forces traders to demonstrate consistency over multiple trading sessions and reveals common mistakes traders make when evaluating their edge.

Funding Pips Consistency Rules

Funding Pips does not enforce consistency rules on its standard 2-step evaluations, but it applies strict consistency metrics to specific account types and payout tiers. If you trade the Funding Pips Zero (instant funding) account, you must maintain a 15% consistency score. This means your largest single winning day cannot exceed 15% of your total account profits. You must also log at least 7 profitable days every 30 days to keep the Zero account active. Furthermore, if you want to qualify for the 90% “on-demand” payout tier on standard Funding Pips accounts, you must meet a 35% consistency score. This means no single day can represent more than 35% of your total profit. If your profits are heavily skewed toward one massive winning trade, you will be restricted to the lower profit split tiers until your trading history balances out. Funding Pips also implements a 3% single-trade max loss rule on funded accounts. Splitting a trade into multiple smaller positions on the same asset counts as a single trade. If any single trade idea results in a loss exceeding 3% of your initial account balance, the account is breached.

Scaling Plans and Capital Growth

For intermediate traders who demonstrate consistent profitability, both prop firms offer scaling plans. A scaling plan allows the firm to increase your initial simulated capital, allowing you to generate larger dollar returns using the same percentage gain.

FTMO Scaling Plan Rules

FTMO offers a highly structured and predictable scaling program that increases your account balance by 25% increments. To qualify for an FTMO scale-up, you must meet the following criteria within a four-month cycle:

1. You must generate at least 10% total net profit over the four months.
2. You must process at least two successful reward withdrawals within that cycle.
3. Your account balance must be positive at the exact time of the scale-up review.

If you meet these requirements, FTMO will increase your initial balance by 25%. For example, a $100,000 account will become a $125,000 account. Your loss limit constraints (5% daily, 10% max) are mathematically adjusted to reflect the new larger balance. Furthermore, your profit split is permanently upgraded to 90% for all future payouts. FTMO allows traders to scale accounts up to a maximum initial balance ceiling of $2,000,000 across the platform.

Funding Pips Hot Seat Program

Funding Pips uses a multi-tier scaling system referred to as the Hot Seat program. The firm evaluates traders based on their payout consistency and total profit generated. The program is broken into levels. For example, the Launchpad Level requires a trader to successfully complete four payouts and generate 10% total profit. Achieving this rewards the trader with a 20% increase in capital and a 1% increase in their maximum loss limit. Subsequent tiers require eight payouts and 20% total profit, further increasing capital. Once a trader reaches the elite “Hot Seat” tier, they are granted on-demand payouts with a 100% profit split, alongside monthly financial bonuses based on the size of their account. The maximum scaled funding available at Funding Pips is $2,000,000.

General Trading Rules and Restrictions

Beyond math and metrics, prop firms have rules regarding the physical execution of trades. These rules impact day traders, swing traders, and algorithmic traders differently. FTMO offers two variations of their accounts: Normal and Swing. The Normal account prohibits traders from holding open positions over the weekend. It also enforces strict news trading restrictions, prohibiting the opening or closing of trades two minutes before and after high-impact economic news events. The FTMO Swing account removes these restrictions, allowing weekend holding and news trading, but reduces the available leverage to 1:30. Funding Pips generally allows traders to hold trades overnight and over the weekend on their standard challenges, though restrictions may apply to the Zero instant funding model. Funding Pips allows third-party Expert Advisors (EAs) and algorithmic trading, provided they function as risk management tools. However, they strictly prohibit high-frequency trading (HFT), latency arbitrage, tick scalping, and toxic order flow. Both firms support popular trading platforms. FTMO supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), while Funding Pips offers support across MT4, MT5, cTrader, and MatchTrader, giving forex traders and professionals more platform flexibility and usability options.

Comparison Table of Trading Parameters

The following table summarizes the core differences between the standard $100,000 two-step evaluation models offered by both firms.

Feature	FTMO (Standard 2-Step)	Funding Pips (Standard 2-Step)
Profit Target (Phase 1)	10%	8%
Profit Target (Phase 2)	5%	5%
Maximum Daily Loss	5%	5%
Maximum Overall Loss	10% (Static)	10% (Static)
Minimum Trading Days	4 Days per phase	3 Days per phase
Starting Profit Split	80%	60% to 100% (Frequency based)
Maximum Profit Split	90% (via Scaling)	100% (Monthly or Hot Seat)
Payout Frequency	Bi-weekly (14 days)	Tuesday, Bi-weekly, Monthly
Scaling Plan Requirement	10% profit over 4 months	Tiered progression (10% + 4 payouts)
Maximum Funded Capital	$2,000,000	$2,000,000

Note: Data applies to the standard two-step accounts. Variations apply to 1-step and instant funding models.

Frequently Asked Questions

Conclusion and Key Takeaways

Comparing the profit splits and loss limit rules of FTMO and Funding Pips reveals two excellent prop firms that cater to slightly different types of traders. FTMO remains the industry standard for a reason. Their rules, while strict, are incredibly clear and uniformly applied. The 5% daily loss and 10% static max loss provide a stable framework for day traders and swing traders alike. The mandatory 80% starting profit split, bi-weekly payout schedule, and predictable 4-month scaling plan are designed for traders who want a professional, reliable environment without complex tier systems. Funding Pips appeals to traders who prioritize flexibility and rapid liquidity. The ability to request daily payout or weekly payouts, even at a lower 60% split, provides immediate cash flow that many full-time traders require. For those willing to wait 30 days, the 100% profit split is highly competitive. Furthermore, their lower 8% profit target on the phase one evaluation and static loss limit models offer an accessible entry point for intermediate traders. However, traders must be hyper-aware of the nuanced rules at Funding Pips, such as the 3% max loss per trade on funded accounts and the strict consistency scores required for instant funding and on-demand payouts. Ultimately, the best firm depends on your specific strategy and the pros and cons unique to your situation. If you rely on large, infrequent winning trades, FTMO’s lack of consistency rules on their standard 2-step account will suit you perfectly. If you are an intraday trader who prefers fast, weekly payouts and smaller profit targets, Funding Pips provides the specialized infrastructure required to support that style. Regardless of which firm you choose, strict risk management and a thorough understanding of the daily loss limit reset mechanics are the true keys to securing long-term prop trading capital.