For beginners, The5%ers is popular because it offers a 6% profit target (vs FTMO's 10%) and has no time limit. E8 Funding and MyFundedFX are also good for beginners due to their lenient rules. FTMO has stricter rules but is one of the most reputable firms with clear payout history. Start with a smaller account size ($10k–$25k) to learn the process.
What is the difference between a 1-step and 2-step challenge? ▼
A 2-step challenge (most common, used by FTMO, E8, etc.) requires completing Phase 1 then Phase 2 before receiving a funded account. A 1-step challenge combines both into a single phase. Instant funding accounts skip challenges entirely — you pay a higher fee for immediate access to a live funded account, though payouts are typically lower.
Are prop firms regulated? Are they safe? ▼
Most prop firms are not regulated by financial authorities since they technically provide simulated capital under a profit-sharing model rather than offering brokerage services. Reputation, payout history, and community track record are the key signals of trustworthiness. FTMO has paid out hundreds of millions and has the most established track record. Always check recent community reviews before choosing a firm.
Can I trade the same strategy across multiple prop firms? ▼
Yes, most traders run the same strategy across multiple firms simultaneously. This diversifies your income across firms and reduces the impact of any single account breach. The key is ensuring each firm's rules allow your specific strategy (scalping, news trading, EAs, etc.) before subscribing to multiple accounts.
What is a scaling plan? ▼
A scaling plan allows you to grow your funded account size based on performance. FTMO offers account scaling up to $2M. The5%ers offers a growth path. Typically, if you achieve consistent profitability over several months without violations, your account size increases automatically. This is the pathway to larger capital without paying for additional challenges.