FTMO vs MyForexFunds vs The5%ers: 2026 Prop Firm Comparison

July 23, 2026

FTMO vs MyForexFunds vs The5%ers: 2026 Prop Firm Comparison

TL;DR: These three prop firms take meaningfully different approaches to challenges, drawdown rules, and profit splits. MyForexFunds collapsed in 2023 under regulatory pressure, so this comparison covers what it was, why it matters as a cautionary reference, and how FTMO and The5%ers stack up for traders looking for a funded account in 2026.**

What This Comparison Actually Covers

There is no shortage of prop firm rankings online. Most of them are affiliate-driven and list every firm as a top pick. This post takes a different approach. We compare FTMO and The5%ers directly across the criteria that matter most to working traders: challenge structure, drawdown limits, payout terms, fee recovery, scaling plans, and support responsiveness.

MyForexFunds is included because many traders still search for it, and understanding what happened there is useful background for evaluating any prop firm you are considering today.

If you are new to prop trading, what is a prop firm and how does it work gives you the foundational context before you read further.

The MyForexFunds Collapse: What Happened and Why It Matters

MyForexFunds (MFF) was one of the fastest-growing prop firms in the industry between 2021 and 2023. It attracted traders with relatively low challenge fees, a fast-track evaluation option called the Accelerated Program, and aggressive marketing. At its peak, it was processing a high volume of funded accounts.

In August 2023, the Commodity Futures Trading Commission (CFTC) and the Ontario Securities Commission (OSC) took coordinated action against Traders Global Group Inc., the company behind MyForexFunds. Regulators alleged the firm was operating as an unregistered commodities pool operator, misrepresenting its business model to customers, and structured its operations in a way that profited more from traders failing their challenges than from successful trading. The firm's assets were frozen and it ceased operations.

This is not a minor footnote. It changed how serious traders evaluate prop firms.

What to take from it:

Regulatory standing matters. A firm operating in a jurisdiction with no regulatory oversight carries real risk.
Understand who takes the other side of your trades. Many prop firms use simulated environments; knowing how your firm operates affects whether a payout is realistic.
Low fees can reflect a business model that relies on challenge revenue rather than actual funded trading profits.

Neither FTMO nor The5%ers were implicated in any regulatory action. Both have continued operating through this period, which itself is a relevant data point.

FTMO: Structure, Rules, and Who It Suits

Challenge Structure

FTMO runs a two-phase evaluation. Phase 1 requires a 10% profit target. Phase 2 requires 5%. Both phases carry a 10% maximum overall loss limit (total account drawdown) and a 5% maximum daily loss limit. The minimum trading period per phase is 10 calendar days with no maximum. There is no minimum number of trading days enforced beyond that baseline.

FTMO offers accounts in multiple sizes, commonly ranging from $10,000 to $200,000 in simulated capital. The challenge fee scales with account size and is refunded upon your first profit split if you pass.

Payout Structure

The standard profit split starts at 80% to the trader. FTMO has a program called FTMO Scaling Plan, where consistent performance over a set period can increase the split to 90%. Payouts are processed on a bi-weekly basis once you are funded, or you can request them monthly depending on the account terms you select.

Drawdown Rules

FTMO uses what it calls a "trailing" maximum loss on some account types, meaning the overall drawdown ceiling moves upward as your balance grows, but never resets downward. This can catch traders who grow an account and then give back gains, thinking they have more cushion than they do. Understanding exactly which drawdown model applies to your account type before you start is important.

Fees and Refund Policy

Challenge fees range from roughly $155 for a $10,000 account to around $1,080 for a $200,000 account at typical pricing. These figures can change, so verify on FTMO's site before purchasing. The fee is refunded with your first payout if you pass both phases.

Who FTMO Suits

FTMO fits traders who are comfortable with structured, deadline-free evaluation phases, want a well-established firm with a long operational track record, and prefer clear, consistent rules. It has strong brand recognition and a large community, which means finding shared experience and third-party resources is straightforward.

best indicators for passing prop firm challenges

The5%ers: Structure, Rules, and Who It Suits

Challenge Structure

The5%ers operates differently from FTMO in one meaningful way: it offers multiple program tracks rather than a single evaluation model. As of 2026, their main offerings include a Bootcamp model (lower cost entry, longer path to scaling) and an Instant Funding model (pay more upfront, start trading live capital immediately without a challenge phase).

The Bootcamp path requires traders to hit incremental profit targets to scale their account size. Rather than a single phase-one, phase-two structure, progression is tied to performance milestones over time. This suits traders who prefer a gradual, lower-pressure environment.

The Instant Funding track bypasses evaluation entirely. You pay a higher fee, receive a funded account, and trade within defined risk limits. There is no challenge to pass.

Profit Targets and Drawdown

On the Bootcamp path, initial profit targets are set lower than FTMO's, typically in the range of 6-8% per milestone depending on the account tier. Maximum drawdown limits are also somewhat tighter in some configurations. Because The5%ers has multiple tracks with different parameters, you need to read the specific terms for whichever program you are entering rather than applying a single set of rules across the board.

The Instant Funding model has strict daily and overall loss limits. Breaching these ends the funded status. The firm bills this as a model aligned with how a real prop desk operates.

Payout Structure

Profit splits on The5%ers start at around 50% for some of the lower entry tiers and scale upward as you progress through milestones. At higher scaling stages, the split can reach 100% on profits up to a certain monthly cap, which is an unusual structure you will not find at FTMO. The logic is that you are building toward full profit ownership through demonstrated consistency.

This structure rewards longevity and steady performance rather than a single strong evaluation run.

Scaling Plan

The5%ers places heavy emphasis on scaling. Each time a trader hits a defined profit target, the account size increases. The stated end goal of some programs is reaching a six-figure funded account through organic progression. Whether a given trader gets there depends entirely on sustained performance, but the pathway is at least clearly defined.

Who The5%ers Suits

The5%ers fits traders who want flexibility in how they enter the system, are willing to accept a lower initial profit split in exchange for a more gradual evaluation, or want to avoid a high-pressure pass-or-fail two-phase challenge. It also suits traders who can sustain consistent results over weeks and months rather than relying on a strong short-term run.

Head-to-Head: Key Criteria Side by Side

Which Firm Has Stricter Drawdown Rules?

Both firms enforce daily and overall loss limits. FTMO's 5% daily and 10% overall limits are well-known and apply consistently across standard accounts. The5%ers' limits vary by program but are generally comparable. The difference is that FTMO's trailing drawdown mechanic on some accounts requires active attention as your balance grows, while The5%ers Bootcamp model uses a more static reference.

Neither firm is dramatically looser than the other. Any funded trader who ignores drawdown rules will lose their account at either firm.

Which Firm Is Cheaper to Enter?

Entry cost depends on the account size you choose and the program track. FTMO's fees are well-documented and refundable. The5%ers Instant Funding is more expensive upfront but avoids the time cost of an evaluation. The Bootcamp entry is generally lower cost than FTMO for comparable account sizes.

If you are budget-constrained, The5%ers Bootcamp is worth looking at. If you want your fee returned quickly and you are confident in your challenge performance, FTMO's refund policy is attractive.

Which Has Better Support?

FTMO has an established support structure with documented response times and a large knowledge base. Community forums and third-party resources are extensive given the firm's age and size. The5%ers has a smaller footprint but is generally noted for responsive support relative to its size.

Neither firm offers the kind of real-time trading desk support you would find at an institutional prop firm. Both operate primarily through ticketing and email.

FAQ

Q: Is MyForexFunds coming back? A: As of mid-2026, there is no credible indication that MyForexFunds has resumed or will resume operations. The regulatory actions taken in 2023 resulted in frozen assets and the effective shutdown of the business. Traders who lost challenge fees or pending payouts had limited recourse. Treat any site claiming to be a relaunched MFF with significant skepticism.

Q: Does FTMO allow news trading? A: FTMO has specific rules around trading during high-impact news events. On standard accounts, certain restrictions apply within a defined window around major releases. FTMO offers a "Swing" account type that explicitly allows news trading and weekend holding. Read the rules for the specific account type you purchase, as they differ.

Q: Can you hold trades overnight with The5%ers? A: This depends on the program track. The5%ers Instant Funding and Bootcamp accounts generally allow overnight and weekend holding, which is one reason swing traders often prefer it over firms with stricter overnight restrictions.

Q: What happens if a prop firm shuts down while I have a funded account? A: You have limited legal protection in most cases. Prop firms operate in a largely unregulated space, and funded accounts are not bank deposits. The MyForexFunds situation showed that traders with pending payouts had difficulty recovering funds once the firm was frozen. This is an argument for withdrawing profits regularly rather than letting them accumulate inside the account.

Q: Is the profit split percentage the only thing that matters when comparing prop firms? A: No. A 90% split from a firm with highly restrictive drawdown rules and slow payouts may be worth less in practice than an 80% split from a firm with clean rules, fast processing, and reasonable risk parameters. Evaluate the full picture: fee structure, drawdown model, payout frequency, withdrawal minimums, and the firm's track record of actually paying traders.

The Bottom Line

FTMO is the more established option with clearer rules, a refundable challenge fee, and a well-documented operational history. It suits traders who are ready to pass a structured evaluation and want a firm they can verify has been paying out consistently for years.

The5%ers offers more flexibility in how you enter and a scaling structure that rewards sustained performance over time. Its Instant Funding track is worth considering if you want to skip the challenge entirely and your strategy has already proven itself.

MyForexFunds is not a current option. Its collapse is a useful reminder that due diligence on any prop firm should include understanding the business model, not just the profit split on offer.

Neither firm is the right choice until you have a strategy that you can demonstrate works under real conditions. The challenge fee is not the biggest cost of a failed attempt. The time spent on a bad strategy is.