Prop Firm Rules Compared (2026)
Every prop firm challenge is governed by a handful of rules — and breaching any one of them ends the account instantly. Below is a side-by-side comparison of the major firms, followed by a detailed rule reference for each. The single most misunderstood mechanic is static vs trailing drawdown; get that wrong and you can fail while sitting near breakeven.
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Comparison at a glance
| Firm | Drawdown | Max DD | Daily limit | Split | Asset focus |
|---|---|---|---|---|---|
| FTMO | Static | 10% | 5% | 80% | Forex / CFD |
| FundedNext | Static | 10% | 5% | 90% | Forex / CFD |
| The5%ers | Static | 4% | 4% | 100% | Forex / CFD |
| FundingPips | Trailing (balance) | 8% | 5% | 85% | Forex / CFD |
| BrightFunded | Trailing (equity) | 10% | 5% | 85% | Forex / CFD |
| Apex Trader Funding | Trailing (balance) | 6% | — | 90% | Futures |
Rules change frequently and firms occasionally close. Always verify current terms on the firm's official site before purchasing a challenge.
Per-firm rule reference
Static drawdown means your floor never moves up — passing becomes easier as profits accumulate. FTMO US operates via Oanda partnership with slightly different conditions.
View full rules →15% profit share even during the challenge phase. The 40% consistency rule is easy to violate on a big winning day — track it carefully.
View full rules →Tightest drawdown in the industry (4%) but no minimum trading days and scaling to $4M. Up to 100% profit split. Suits slow, disciplined traders.
View full rules →Trailing drawdown trails your highest closed balance — as you profit, your floor rises. Budget your risk accordingly.
View full rules →Trailing equity drawdown is the most punishing variant: the floor rises with your intraday peak, not just closed balance. A $3k intraday swing followed by a pullback can blow the account even if you end green.
View full rules →Futures only (CME: ES, NQ, CL, etc.) — NOT compatible with MT4/MT5. No daily loss limit on most accounts. Up to 20 simultaneous accounts allowed. End-of-day trailing drawdown.
View full rules →Static vs trailing drawdown — why it matters
The maximum drawdown is the floor your balance can never touch. It comes in two flavors that behave very differently:
Static (absolute) drawdown
The floor is fixed in dollars when you start. On a $100k account with 10% drawdown you can't go below $90k — ever. As you profit, your buffer grows, so disciplined traders get safer over time. This is the friendlier model.
Trailing drawdown
The floor moves up as your account hits new highs. The most punishing versions trail your intraday peak equity, not just closed balance — so if you're up $3k mid-session then give it back, your floor may have ratcheted up and you can blow the account even while near breakeven on paper. This rule catches the most people.
SimTrade's challenge simulator models all three variants exactly and shows your remaining risk budget in real dollars as you trade, so you learn where the floor actually sits before it costs you a fee.
Frequently asked questions
What is a prop firm challenge?
A prop firm challenge (or evaluation) is a paid test where you prove you can trade profitably under a set of rules. You pay a one-time fee — typically $100 to $1,000+ depending on account size — and if you hit the profit target without breaching the drawdown or daily-loss rules, you get a funded account and keep a share of the profits (commonly 80–90%). If you break a rule you fail and forfeit the fee.
What is the difference between static and trailing drawdown?
Static drawdown fixes your account's minimum balance at a dollar level set when you start — it never moves, so every dollar of profit increases your buffer. Trailing drawdown moves the floor up as your account hits new highs. The most punishing version trails your intraday peak equity, meaning you can blow the account even while sitting near breakeven if you gave back an unrealised gain. Trailing drawdown is the rule that fails the most traders.
Which prop firm is easiest to pass?
Firms with static drawdown (like FTMO and FundedNext) are generally more forgiving than firms with trailing drawdown, because your floor never rises against you. Firms with no minimum trading days (like The5ers) suit faster traders. The right firm depends on your style — use a challenge simulator to test the rules before paying a fee.
Can I practice a prop firm challenge for free?
Yes. SimTrade's free prop firm challenge simulator lets you pick a firm, choose an account size, and trade against that firm's exact rules — drawdown floor, daily loss limit, profit target and consistency rule — so you learn where the limits bite before risking a real challenge fee.
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