Topstep and FTMO are two of the largest prop firms in the world, and traders constantly ask which one is easier to pass. The honest answer is that it depends on how you trade. They are built differently, and the difference that matters most is how each one handles drawdown.
Let us break down the rules side by side, explain the drawdown mechanics that trip people up, and figure out which one fits which kind of trader.
The account rules side by side
Both firms run an evaluation phase where you prove you can hit a profit target without breaching loss limits. The headline numbers are similar, but the structure is not.
- FTMO uses a profit target around 10 percent in phase one and 5 percent in phase two, with a 5 percent daily loss limit and a 10 percent maximum loss limit.
- Topstep uses a profit target that scales with account size, a daily loss limit, and a trailing maximum drawdown that follows your account up.
- FTMO is primarily forex and CFD focused. Topstep is built around futures trading on the CME.
- FTMO has a time element in its traditional challenge. Topstep removed its minimum trading day pressure but keeps a consistency expectation.
Drawdown mechanics: the part that actually matters
This is where most traders get caught, so read this part twice. The two firms calculate your maximum drawdown in fundamentally different ways.
FTMO traditionally uses a static maximum loss measured from your starting balance. Once you know your floor, it does not move. This is more forgiving, because a profitable run does not raise the level at which you fail.
Topstep uses a trailing drawdown. As your account grows, the level at which you breach trails up behind your highest balance. This means you can be up significantly, give some back, and still breach even though you are above your starting balance.
A trailing drawdown punishes giving back profit. A static drawdown only cares about your starting line. Knowing which one you are on changes how you manage every winning trade.
If you do not understand which type you are trading under, you can think you have plenty of room when you are actually one bad trade from failing. This single misunderstanding ends more Topstep accounts than anything else.
Cost and structure
FTMO charges a one-time fee per challenge attempt that is refunded with your first payout once funded. Topstep runs on a monthly subscription for the evaluation, which changes the math depending on how long you take to pass.
If you are confident and fast, FTMO can be cheaper overall. If you need several months to prove yourself, the monthly model can add up, but it also removes the pressure of a hard deadline.
Which suits which trading style
There is no universally easier firm. There is only the firm that fits how you trade:
- If you trade forex or indices and want a static, predictable drawdown, FTMO is the natural fit.
- If you trade futures and prefer no hard time limit, Topstep makes more sense.
- If you tend to give back profit during a session, the FTMO static drawdown will be far more forgiving than the Topstep trailing model.
- If you are a fast, decisive trader who passes quickly, FTMO is usually cheaper.
The bottom line
Stop asking which firm is easier and start asking which firm matches your style and your weaknesses. Then track your progress against the exact rules of that firm so you always know how much room you have. The trader who knows their numbers passes. The one who guesses breaches.