TopStep vs FTMO: A Comprehensive Comparison (2024)

When it comes to proprietary trading, choosing the right platform can make all the difference. TopStep and FTMO are two of the leading names in this space, offering unique opportunities and challenges for traders. This article dives deep into the comparison between TopStep vs FTMO, exploring what each platform offers, and helping you decide which might be the best fit for your trading career.

Why Choose a Prop Trading Firm?

Proprietary trading firms offer traders the ability to trade with firm capital, significantly increasing potential earnings without risking personal funds. Both TopStep and FTMO provide structured pathways to becoming funded traders, but they cater to different styles and preferences.

What is TopStep?

TopStep, based in the US, focuses primarily on futures trading. It is designed to help traders hone their skills through a two-step evaluation process known as the Trading Combine. This process assesses a trader's ability to profit while effectively managing risks.

How Does TopStep Work?

Traders start with a simulated account where they must meet specific trading objectives, including risk management and consistency. Successful traders who pass these phases are eligible to trade real capital. TopStep is particularly noted for its focus on futures and its comprehensive educational resources.

Features of TopStep

• Futures Trading Focus: TopStep specializes exclusively in futures markets, making it an ideal platform for traders interested in commodities, currencies, and indices. This focus ensures that all tools and resources are optimized for futures trading, providing a targeted and effective trading environment.
• Educational Resources: TopStep offers a wealth of educational materials, including webinars, video tutorials, and articles designed to teach both fundamental and advanced trading concepts. This educational suite is continually updated to reflect market changes and trading best practices.
• Trading Combine: The Trading Combine is a two-stage evaluation process where traders demonstrate their ability to manage risk and make consistent profits. Successful completion of the Combine allows traders to manage real capital, with TopStep backing them financially.

What is FTMO?

FTMO operates out of Europe and provides opportunities across various markets, including forex, commodities, and cryptocurrencies. It is well-known for its robust challenge and verification process, which tests traders’ ability to adhere to trading guidelines and achieve set profit targets.

How Does FTMO Work?

FTMO also uses a two-step evaluation process. Traders are first tested in a simulated environment where they must meet specific trading objectives similar to TopStep but with the addition of trading a broader range of instruments.

Features of FTMO

• Diverse Markets: FTMO provides traders with the opportunity to trade a wide range of instruments including forex, stocks, commodities, and cryptocurrencies. This variety enables traders to diversify their strategies and capitalize on different market conditions.
• High Profit Share: FTMO offers one of the highest profit-sharing models in the industry, allowing traders to keep up to 90% of the profits they generate. This generous profit share is designed to attract skilled traders who can maximize their earnings potential.
• FTMO Challenge: The FTMO Challenge is a rigorous testing phase that evaluates a trader's ability to adhere to prescribed risk parameters and achieve profit targets. Passing the Challenge grants access to FTMO’s funding, empowering traders to operate with substantial capital.

Features Comparison: TopStep vs FTMO

Both TopStep and FTMO have unique strengths, but how do they compare in key areas?

• Range of Markets: FTMO offers a wider range of trading instruments compared to TopStep’s focus on futures.
• Profit Sharing: FTMO tends to offer a higher profit share ratio.
• Educational Support: TopStep provides more structured educational content, especially for futures trading.

TopStep Pros

• Excellent for futures traders.
• Strong educational programs.
• Transparent evaluation criteria.

TopStep Cons

• Limited to futures trading.
• Requires passing rigorous Trading Combine phases.

FTMO Pros

• Broad market access.
• High profit share potential.
• Flexible challenge conditions.

FTMO Cons

• More stringent profit targets.
• Higher cost for entry in certain programs.

User Experience and Interface

User interface and experience are critical, particularly in trading platforms where speed and ease of access can impact performance. TopStep offers a straightforward, user-friendly interface geared towards futures trading. It simplifies the journey from training to trading live, making it accessible even for those new to futures.

Conversely, FTMO provides a more versatile interface that supports a variety of trading instruments and is equipped with advanced analytical tools to cater to diverse trading strategies.

Cost Analysis

Cost is an important factor when considering which prop trading firm to join. TopStep's entry cost is primarily linked to the subscription fee for the Trading Combine, which varies based on the trading account size you choose. FTMO requires a one-time fee for the Challenge, which is refunded once you become a funded trader.

Training and Support

Both platforms provide substantial support to their traders. TopStep edges out slightly with a more structured educational approach, offering detailed courses, webinars, and one-on-one coaching options. FTMO, while also offering educational resources, focuses more on providing analytical tools and a supportive trading community.

Which Platform is Right For You?

While both platforms offer excellent opportunities, TopStep stands out for traders specifically interested in futures markets. Its comprehensive educational resources, combined with a clear, straightforward path to becoming a funded trader, make it an ideal choice for those looking to specialize in this area.

Are you ready to take your trading to the next level? Whether you're leaning towards the comprehensive futures trading support of TopStep or the diverse market access provided by FTMO, both platforms offer unique advantages that could be the key to your success. Choose the one that best fits your trading style and goals.

FAQs About TopStep and FTMO

What exactly does a prop trading firm do?

Prop trading firms allow individuals to trade with the firm’s capital, sharing profits while mitigating personal financial risk.

Can I trade cryptocurrencies on these platforms?

Yes, FTMO allows trading cryptocurrencies, while TopStep focuses solely on futures, including digital asset futures.

How long does it take to become funded with TopStep or FTMO?

The timeline can vary; typically, it takes a few weeks to months, depending on the trader's ability to meet the respective platform’s criteria.

What happens if I fail the evaluation phase?

Both platforms allow you to retry the evaluation (sometimes at a discount), encouraging learning and improvement.

Which platform is better for a beginner trader?

TopStep, with its focus on education and a simpler market focus, might be more suitable for beginners.