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Prop Firm Fine Print

Money Prop Firms

Beyond the Hype — What the Rules Actually Mean

Every prop firm looks the same on the surface: profit target, max drawdown, consistency rules, profit split. But the fine print is where firms differ in ways that can make passing anywhere from straightforward to nearly impossible. A 0.5% minimum profitable day sounds small — until you realise it forces you to manufacture 7 winning days at 0.5% each just to qualify, demanding a 3.5% monthly return in perfectly smooth increments. Most retail traders cannot do this consistently.

This page breaks down each rule, explains how it is calculated, and highlights the life-or-death differences between firms that look identical on the surface. We start with FTMO as the baseline — the industry standard since 2015.

Why FTMO first? FTMO is the gold standard for a reason. Their rules are clearly documented, consistently applied, and free of hidden traps. Understanding FTMO's fine print gives you a reference point to spot when other firms diverge — for better or worse.
Rule FTMO (2-Step) FTMO (1-Step) What This Actually Means
Profit Target 10% (Challenge) / 5% (Verification) 10% 2-Step splits the target into two phases, reducing the temptation to gamble on the first phase. 1-Step asks for the full 10% in one go — faster but requires tighter risk control from day one.
Max Daily Loss 5% of initial capital (static per day, based on balance at 00:00 CET) 3% of initial capital This is the single most violated rule. In the 2-Step model, 5% is reset every day based on your closing balance. Lose 4% on Monday, Tuesday you get a fresh 5%. In the 1-Step model, the 3% limit is tighter — one bad trade can end you. Many firms do not reset daily; they use a trailing max loss instead, which is far more forgiving.
Max Loss 10% of initial capital (static, never moves up) 10% of initial capital (trailing, locks in profits) Critical difference. 2-Step: once you hit 10% down, you are done — but if you make profit, the limit does not move up, so you have more room. 1-Step: the limit trails your highest balance, meaning if you reach $110K and then drop to $104K, you fail (10% of $110K = $11K, $110K - $11K = $99K limit). The trailing method protects the firm better but squeezes you as you profit.
Min Trading Days 4 per phase None A "trading day" counts when you open a trade, not when you close it. Open 4 trades in one day? That is 1 day, not 4. You need trades opened on 4 separate calendar days. 2-Step requires this in both phases — you cannot rush through in one lucky session. 1-Step has no minimum, letting you pass in a single day if you hit the target.
Consistency Rule None (Discipline Score is informational only) Best Day ≤ 50% of total profit days Another major difference. 2-Step: no consistency enforcement beyond the 4-day minimum. 1-Step: your single best day cannot account for more than half your total profitable days' profit. If your best day was $10K and your total profit days sum to $16K (62.5%), you fail — even if you hit the 10% target. You must keep trading to dilute that outlier until it drops below 50%. This catches one-hit-wonder strategies.
Time Limit None None Both are unlimited in time. This is generous. Some firms impose 30-day or 90-day limits, which changes your strategy entirely — you cannot afford to wait for setups.
News Trading Restricted on FTMO Account (Standard type) Restricted on FTMO Account During evaluation, you may trade news freely. Once funded (Standard account), certain news windows are blocked. The Swing account type has no news restrictions. If you trade news, you must pick the Swing type — but this is only available for the 2-Step path.
Weekend / Overnight Not allowed on Standard; allowed on Swing Not allowed (Swing not available for 1-Step) 1-Step traders cannot hold over weekends or overnight — full stop. 2-Step traders can choose the Swing account type to hold positions. If you swing trade, you must use the 2-Step route with a Swing account.
Profit Split Up to 90% 90% Both models offer 90% on the funded account. The fee is refunded with the first payout on 2-Step. On 1-Step, the fee is not refunded. Over multiple payouts, 90% is among the best in the industry — but check if the split changes after scaling.
Scaling Yes — up to $2M (based on performance) Yes — up to $2M FTMO scales your account by 25% every time you hit 10% profit, up to $2M total. Not all firms offer scaling, and those that do often require 3-6 months of consistent profits first. FTMO's scaling is among the most straightforward.
Instant Funding No No FTMO does not offer instant funding. You must pass the evaluation first. Some newer firms let you buy a pre-funded account at a higher fee — faster, but you risk more capital upfront if you lose it.
Entry Fee (100K account) $540 (refunded with first payout) $540 (not refunded) The fee is a one-time cost. 2-Step refunds it; 1-Step does not. On 2-Step, the effective cost is zero if you pass. On 1-Step, the fee is a sunk cost. Some firms charge monthly fees — FTMO does not.
The "Same Rules" Trap
Two firms can both claim "10% max drawdown" — but one calculates it from your starting balance (static) while the other calculates it from your highest-ever balance (trailing). These sound identical but behave completely differently once you are in profit. The trailing version forces you to risk less as you grow. Always check how a limit is calculated, not just what the limit is.
InstantFunding is an instant-funding firm: you pay upfront and skip the evaluation. Their main selling point is "no profit target" — but the fine print reveals a different story. Compare against the FTMO 2-Step baseline.
Rule InstantFunding FTMO (2-Step) What This Actually Means
Profit Target None listed 10% / 5% IF's marketing says "no profit target," but to request a payout you must first reach +5% gain to "lock in" smart drawdown. This functions as a hidden profit target — you cannot withdraw a cent until you hit 5%.
Max Daily Loss None 5% static IF has no daily loss limit — you can lose 9% in one day and keep trading as long as you stay under the 10% total. FTMO's 5% daily cap is more restrictive but protects you from catastrophic blowups.
Max Loss 10% static → 5% static after smart drawdown lock at +5% gain 10% static Both start at 10% static. The trap: when smart drawdown locks at +5%, it tightens to 5% of starting balance permanently. If you reach $115K on $100K, you can still only lose $5K total ($95K floor). FTMO keeps 10% forever — giving you more buffer as you profit.
Min Trading Days None 4 per phase IF is easier — no minimum. But without a daily limit either, you could theoretically blow the account in one bad session and lose your fee immediately.
Consistency Rule None None (informational) Neither firm enforces consistency during evaluation. Both allow one-lucky-trade passes.
Time Limit None None Both are unlimited. No time pressure.
News Trading Permitted Restricted on Standard IF is more permissive — trade news freely. FTMO requires the Swing account type for news.
Weekend / Overnight Permitted Permitted on Swing only IF allows weekend holding on all accounts. FTMO limits this to Swing (2-Step only).
Profit Split 80% Up to 90% IF's 80% is 10 points below FTMO's 90%. On a $10K profit, that is $2K less in your pocket.
Scaling Not available Up to $2M IF does not scale accounts. FTMO scales 25% per 10% profit up to $2M.
Instant Funding Yes — core offering No IF's main draw: buy an account, trade immediately, keep 80%. No evaluation risk, but you risk the full fee if you blow the account — and you cannot withdraw until smart drawdown locks.
Entry Fee (10K account) $149 (not refunded) $155 equiv. ($540 for 100K, refunded) IF is slightly cheaper to start. But FTMO refunds the fee on first payout (2-Step), making the effective cost $0. IF's is a sunk cost.
Copy Trading Website & support: permitted; PDF §7.7.1: "COPYING BETWEEN INTERNAL ACCOUNTS" banned Not restricted IF's support staff and website say copy trading is fine. The PDF (§7.7.1) bans "COPYING BETWEEN INTERNAL ACCOUNTS" — copying between two IF accounts you control. General third-party copy trading (e.g. following a signal provider on a separate platform) is NOT explicitly listed among the prohibited practices. However, broad catch-all clauses in §7.7.1(e) could be used to restrict it. Read the fine print carefully: if you copy-trade between multiple IF accounts, that is explicitly a breach.
The Smart Drawdown Trap
InstantFunding's smart drawdown sounds like a safety feature — and it is, for the firm. Once you reach +5% gain, your maximum loss permanently shrinks from 10% to 5% of starting capital. This means you can never risk more than 5% of your initial balance, even if you are up 20% or 30%. The marketing sells this as "locking in profits," but it also locks in a tighter leash.
Website vs. PDF: Copy Trading — What Does §7.7.1 Actually Say?
InstantFunding's support staff and website marketing indicate copy trading is acceptable. The PDF Terms (§7.7.1) list prohibited practices including "COPYING BETWEEN INTERNAL ACCOUNTS" — meaning you cannot copy trades between two accounts you control within InstantFunding. General third-party copy trading services are NOT explicitly listed in the prohibited practices. However, the PDF also contains broad catch-all clauses (e.g. §7.7.1(e): trades causing "justified concerns" that IF "might suffer financial or other harm") that could theoretically be applied to any strategy. The discrepancy is not as stark as it first appears — but the gap between what support promises and what the fine print allows is worth noting.
FundingPips offers multiple account models. This comparison uses the Zero Rapid (1-step evaluation, 8% target) against the FTMO 2-Step baseline. Note: FundingPips has both a web-based Terms page and a PDF Terms document with conflicting language — the PDF is generally stricter.
Rule FundingPips (Zero Rapid) FTMO (2-Step) What This Actually Means
Profit Target 8% (1-step, no verification) 10% / 5% Slightly easier on paper. But the funded account has hidden requirements (see below) that make ongoing profitability harder than it looks.
Max Daily Loss 4% (eval) / 5% (funded) 5% static Tighter during evaluation: 4% gives you less room for an off day than FTMO's 5%. Funded matches at 5%.
Max Loss 8% static (both phases) 10% static FP's 8% is 2pts tighter. On $100K, FTMO gives $10K room; FP gives $8K. Both are static.
Min Trading Days 1 (evaluation) 4 per phase Easier in evaluation. But see the funded requirement below.
Hidden: 7 Profitable Days Zero funded: 7 days ≥0.25% every 30 days None Buried in ToS §8(d)(iii). Zero funded accounts require 7 profitable days (≥0.25% each) per 30-day period. Miss it → account closed. Not on the Trading Objectives page — only in fine print. Punishes low-frequency strategies. On $100K, you need $250 on 7 separate days within every 30-day window.
Consistency Rule 35% on evaluation (Zero) None (informational) Your best day cannot exceed 35% of total profit over profitable days. Forces 3+ relatively even trades. FTMO 2-Step has no enforcement.
Time Limit None (eval); 30-day cycles (funded) None Unlimited evaluation like FTMO. But funded accounts have 30-day resetting cycles with the 7 profitable day requirement — ongoing pressure FTMO does not have.
News Trading Not permitted Restricted on Standard FP is stricter — no news at all. FTMO restricts only Standard (Swing is unrestricted). If you trade news, FP is not viable.
Weekend / Overnight Permitted (some models) Permitted on Swing only Similar to FTMO Swing — allowed on compatible account types.
Profit Split 80% Up to 90% 80% matches IF. $2K less per $10K vs FTMO. On $50K/yr profit, that is $10K difference.
Scaling Up to $2M Up to $2M Both scale to $2M. FP's thresholds may differ — one area where they match FTMO on paper.
Entry Fee (15K account) $299 (not refunded) $81 equiv. ($540 for 100K, refunded) Cheaper for small accounts but expensive per-dollar. FTMO refunds the 2-Step fee on first payout.
Copy Trading Website: allowed; PDF/ToS: banned Not restricted Like InstantFunding, FundingPips' marketing and support suggest copy trading is fine — but the PDF Terms explicitly bans copy trading and third-party management. The "pretty" web terms and the PDF conflict on this point. If you copy trade, you are at risk — the PDF is the controlling document and the firm can terminate you for it.
The Hidden 7-Day Rule
FundingPips' Zero funded account requires 7 profitable days (≥0.25% each) every 30 days — failure means account closure. This rule is not disclosed on their Trading Objectives page. It appears only in the Terms of Service (section 8(d)(iii)). On a $100K account, that is $250 minimum profit on 7 separate days within every 30-day window. If you take a 2-week vacation, you might return to a closed account. If you trade a low-frequency strategy (3-4 trades per month), you cannot satisfy this rule. This is arguably the most significant fine-print trap in the prop firm industry today.
Web Terms vs. PDF Terms
FundingPips has both a web-based Terms page and a downloadable PDF. The two documents have conflicting language on several points, with the PDF generally being more restrictive. If you are considering FundingPips, read the PDF — not just the web version. In any dispute, the PDF is almost certainly the document the firm will rely on.

The Fine-Print Categories

Every prop firm rule can be evaluated across these dimensions. When comparing firms, check each one carefully — a difference in any single category can flip a page from passable to impossible.

Profit Target

The percentage gain required to pass. Lower is easier, but watch for time limits that force rushed trading.

Max Daily Loss

How much you can lose in a single day. Is it static (fixed dollar amount) or dynamic (based on daily balance reset)? Is it calculated from equity or balance? Does it include floating losses or only closed trades?

Max Total Loss (Drawdown)

Is it static or trailing? Does it track your highest balance or stay fixed at initial capital? Trailing drawdowns tighten as you profit and are significantly harder to manage.

Minimum Trading Days

Some firms require 4, 7, 10, or even 20 days. Each day must have at least one trade opened. This prevents one-lucky-trade passes but adds time pressure.

Consistency Rules

The hidden killer. Rules like "no single day exceeds 30% of total profit" or "minimum 0.5% profit per winning day" sound reasonable but create mathematical traps. A 30% rule with a 10% target means you need at least 4 profitable days with increasing sizes. A 0.5% minimum profitable day means you must generate 3.5% per month just to qualify — before profit split.

Time Limit

Unlimited (FTMO) vs 30/60/90 days. A deadline changes risk behaviour — traders take shots they should not. Unlimited time lets you wait for high-probability setups.

Profit Split

80% vs 90% matters, but what matters more is: when do you get paid? Monthly? On demand? After reaching a milestone? Can you withdraw any time or only after certain conditions?

Fee Structure

One-time fee, refundable fee, monthly subscription, or "activation fee"? Monthly fees punish slow, consistent traders. Refundable fees incentivise the firm to pass you.

Scaling Plan

Does the account grow? Under what conditions? Some firms require 3+ months of 10%+ returns before scaling — a high bar that most traders will not clear.

Instant Funding

You pay upfront for a funded account and keep most of the profits. The risk: you lose your fee if you blow the account. No evaluation, but also no safety net.

Trading Restrictions

News bans, weekend holding bans, lot size limits, EA restrictions, copy-trading bans. Some firms ban grid strategies or hedging. Read the full list — not just the highlights.

Example: The 0.5% Profitable Day Trap
Firm X defines a "profitable day" as any day with at least 0.5% gain. Firm Y defines it as any day with a gain greater than $0. Both require 7 profitable days to qualify. On the surface, same rule. In reality:

Firm Y: A $10 day on a $100K account counts. You can have 6 small wins and 1 big winner — fine.
Firm X: Each winning day must produce at least $500 (0.5% of $100K). To get 7 qualifying days, you need a minimum of $3,500 in total profit across 7 separate days — and you must do this while staying under the drawdown limits. A 3.5% monthly return may not sound like much, but achieving it in perfectly smooth 0.5% increments with no losing days is extraordinarily difficult for most retail traders. This one sentence in the fine print turns a 6-week evaluation into a 4-month grind for many.

FTMO is used as the baseline because of their transparent rule documentation and consistent track record since 2015. InstantFunding and FundingPips data sourced from their public websites, trading objectives pages, and official PDF Terms & Conditions documents. Important: Several firms maintain separate web-based and PDF terms that contain conflicting language — the PDF is the controlling document and may include restrictions (such as copy trading bans or minimum profitable day requirements) that are absent or downplayed on the website. Always read the full PDF terms before purchasing any challenge. This is educational material — always verify current terms directly with the firm.