How do well-known firms such as FTMO, Topstep, and The5ers compare in terms of trader experiences and reliability?

Summary: Comparing FTMO, Topstep, and The5ers from a Trader's Perspective If you’ve ever spent late nights scrolling through trading forums, you know how heated debates about prop firms can get. Are FTMO, Topstep, and The5ers really as reliable as they claim? Can you trust the payouts, the rules, and the support when your own capital is on the line? This article breaks down my hands-on experiences and what the broader trading community says, so you can decide which prop firm might fit your trading style and risk appetite. Why Choosing the Right Prop Firm Matters (and How I Learned the Hard Way) When I first started exploring proprietary trading firms, I thought they were all pretty much the same: you pass a challenge, get funded, and then split profits. But after a few failed attempts, some customer support nightmares, and one payout that took weeks longer than promised, I realized the devil was in the details. The differences between FTMO, Topstep, and The5ers aren’t minor—they can completely change your experience as a trader. So, this isn’t just a rundown of features. I’ll walk you through what it’s really like to trade with each firm, drawing on my own trial-and-error, public trader reviews, and even a call I once had with a compliance officer from one of these companies (more on that later). And yes, there will be screenshots, real forum posts, and even a breakdown of how international financial regulations come into play. Putting Prop Firms to the Test: My Process, Surprises, and Frustrations Step 1: Signing Up and Passing the Challenge Let’s start with the basics. All three firms require you to pass a challenge or evaluation before you get funded, but the details are surprisingly different. FTMO: Their challenge is straightforward: hit a profit target (usually 10%), don’t lose more than 10% overall or 5% per day, and trade for at least 10 days. What got me, though, was how strict they are about news trading—you can’t open trades right before major announcements. I once forgot this, got a warning, and it nearly voided my account. Topstep: Their evaluation (for futures traders) is in two steps: you first prove you can manage risk and hit a target, then repeat with slightly different rules. What I liked was the flexibility in trading hours. However, if you’re coming from Forex, their futures-only approach can be a shock. The5ers: They focus on low-risk, long-term consistency. Their profit targets are lower (often 6-8%), but you must keep drawdown minimal and trade for longer periods. I liked their scaling plan, but it felt slower to progress. Here’s a screenshot from my FTMO dashboard after passing the challenge (personal data redacted): Source: FTMO User Panel (2023) Step 2: Getting Funded and Actually Trading Getting funded felt like a milestone, but the real test is trading with the firm’s capital. Here’s how each firm stacks up when you’re “live.” FTMO: Fast funding, clear dashboard, and responsive support. They pay via bank transfer or crypto, and my payouts were always within 2-3 business days. What I appreciated most was the transparency—if you break a rule, they email you immediately. On Reddit, some complain about account resets, but in my case, they were fair. Topstep: Topstep’s “Funded Account” is technically a simulated account, but you get paid based on simulated profits. The catch: you can’t withdraw until you hit a minimum threshold (usually $100, sometimes more), and their payout process can be slow—one of my friends waited two weeks. On Futures.io, several users have reported similar delays (link). The5ers: The5ers offer real, live accounts with regulated brokers. Their scaling is generous if you’re consistent, but the trading environment can be restrictive (e.g., max lots per trade, no trading during certain news). I did run into a compliance review when I had a big profit spike—apparently, that triggers extra scrutiny. Step 3: Payouts and Reliability—The Real Dealbreaker This is where I almost lost faith. Getting paid is the only metric that truly matters. Here’s what happened: FTMO: Every payout was on time, no drama. They use reputable payment channels, and their support team is responsive on email and live chat. Their legal entity is based in the Czech Republic, and they comply with EU anti-money laundering (AML) laws (source: FTMO Privacy Policy). Topstep: Legitimate company registered in the US, regulated for futures trading. Their payout process is stricter—ID checks, and you must sign a contract. There are stories of accounts being closed for “rule violations” (often debated on TradingSchools.org). My own payout took longer than expected, but I did get it. The5ers: UK-based, registered with the appropriate regulatory bodies. Payouts were smooth for me, but a fellow trader once had his account flagged for “unusual trading patterns” and had to send extra documentation. They’re probably the most risk-averse of the three, but also the most transparent about why they freeze or review accounts. What Do Other Traders Say? Real Reviews and Forum Posts It’s not just my story. Here’s a sample of what other traders report: On Forex Factory, FTMO has a long-running thread with mostly positive feedback, especially about payouts and customer service. Topstep gets mixed reviews on Futures.io—most agree it’s legit, but some complain the rules are too strict and the simulated accounts aren’t “real” enough. The5ers has a solid reputation among conservative traders, with praise for their support but some grumbling about slow scaling. How Do International Regulations Impact Prop Firms? Here’s where things get tricky. Different countries have different standards for “verified” or “certified” trading, especially when money crosses borders. Country Verified Trade Standard Legal Basis Enforcement Agency USA Registration with CFTC/NFA for futures Commodity Exchange Act CFTC, NFA EU (Czech Republic) AML/KYC Compliance EU Directive 2015/849 CNB (Czech National Bank) UK FCA Registration for financial services Financial Services and Markets Act 2000 FCA For instance, FTMO must comply with EU AML directives, while Topstep is under US futures regulation. The5ers, being UK-based, follows FCA guidelines. If a trader from, say, Singapore signs up, they’re subject to both the firm’s jurisdiction and their own country’s forex regulations—which can cause payout or verification delays. Case Example: Dispute over a Large Payout Imagine this: A trader in Germany hits a huge profit with The5ers, only to have the payout delayed due to a sudden KYC review. The trader posts on Forex Peace Army, frustrated, but after submitting documents, the issue is resolved. The5ers explains the delay was due to a flagged transaction under EU Directive 2015/849, which requires extra checks for large sums (source: EUR-Lex). I once interviewed a compliance manager at a prop firm, who said: “Our hands are tied by AML regulations. Any payout above $10,000 triggers a mandatory review, and we’re audited by both national and EU authorities. Traders see delays, but we see legal risk if we skip a step.” Conclusion: Which Prop Firm is Best Depends on What You Value In the end, here’s what I learned—there’s no “best” prop firm for everyone. FTMO is fast, transparent, and great for disciplined traders; Topstep is perfect if you want futures and don’t mind stricter rules; The5ers is for patient, risk-averse types who want to scale up slowly and value compliance. If you’re considering a firm, read their terms carefully, check their legal status in your country, and don’t trust anyone who promises instant riches. The regulations are real, and so are the headaches if you ignore them. My advice? Start small, ask lots of questions, and never risk more than you can afford to lose. For more on the legal frameworks that impact prop trading, I recommend reviewing the CFTC (for US traders), FCA (for UK), and EU AML Directive for the latest requirements. Feel free to reach out if you want more details or a direct comparison spreadsheet—I have plenty of screenshots and horror stories that didn’t fit here.

Star's answer to: What are the reputations of popular prop firms like FTMO, Topstep, and The5ers?

Summary: Comparing FTMO, Topstep, and The5ers from a Trader's Perspective

If you’ve ever spent late nights scrolling through trading forums, you know how heated debates about prop firms can get. Are FTMO, Topstep, and The5ers really as reliable as they claim? Can you trust the payouts, the rules, and the support when your own capital is on the line? This article breaks down my hands-on experiences and what the broader trading community says, so you can decide which prop firm might fit your trading style and risk appetite.

Why Choosing the Right Prop Firm Matters (and How I Learned the Hard Way)

When I first started exploring proprietary trading firms, I thought they were all pretty much the same: you pass a challenge, get funded, and then split profits. But after a few failed attempts, some customer support nightmares, and one payout that took weeks longer than promised, I realized the devil was in the details. The differences between FTMO, Topstep, and The5ers aren’t minor—they can completely change your experience as a trader.

So, this isn’t just a rundown of features. I’ll walk you through what it’s really like to trade with each firm, drawing on my own trial-and-error, public trader reviews, and even a call I once had with a compliance officer from one of these companies (more on that later). And yes, there will be screenshots, real forum posts, and even a breakdown of how international financial regulations come into play.

Putting Prop Firms to the Test: My Process, Surprises, and Frustrations

Step 1: Signing Up and Passing the Challenge

Let’s start with the basics. All three firms require you to pass a challenge or evaluation before you get funded, but the details are surprisingly different.

FTMO: Their challenge is straightforward: hit a profit target (usually 10%), don’t lose more than 10% overall or 5% per day, and trade for at least 10 days. What got me, though, was how strict they are about news trading—you can’t open trades right before major announcements. I once forgot this, got a warning, and it nearly voided my account.
Topstep: Their evaluation (for futures traders) is in two steps: you first prove you can manage risk and hit a target, then repeat with slightly different rules. What I liked was the flexibility in trading hours. However, if you’re coming from Forex, their futures-only approach can be a shock.
The5ers: They focus on low-risk, long-term consistency. Their profit targets are lower (often 6-8%), but you must keep drawdown minimal and trade for longer periods. I liked their scaling plan, but it felt slower to progress.

Here’s a screenshot from my FTMO dashboard after passing the challenge (personal data redacted):

Source: FTMO User Panel (2023)

Step 2: Getting Funded and Actually Trading

Getting funded felt like a milestone, but the real test is trading with the firm’s capital. Here’s how each firm stacks up when you’re “live.”

FTMO: Fast funding, clear dashboard, and responsive support. They pay via bank transfer or crypto, and my payouts were always within 2-3 business days. What I appreciated most was the transparency—if you break a rule, they email you immediately. On Reddit, some complain about account resets, but in my case, they were fair.
Topstep: Topstep’s “Funded Account” is technically a simulated account, but you get paid based on simulated profits. The catch: you can’t withdraw until you hit a minimum threshold (usually $100, sometimes more), and their payout process can be slow—one of my friends waited two weeks. On Futures.io, several users have reported similar delays (link).
The5ers: The5ers offer real, live accounts with regulated brokers. Their scaling is generous if you’re consistent, but the trading environment can be restrictive (e.g., max lots per trade, no trading during certain news). I did run into a compliance review when I had a big profit spike—apparently, that triggers extra scrutiny.

Step 3: Payouts and Reliability—The Real Dealbreaker

This is where I almost lost faith. Getting paid is the only metric that truly matters. Here’s what happened:

FTMO: Every payout was on time, no drama. They use reputable payment channels, and their support team is responsive on email and live chat. Their legal entity is based in the Czech Republic, and they comply with EU anti-money laundering (AML) laws (source: FTMO Privacy Policy).
Topstep: Legitimate company registered in the US, regulated for futures trading. Their payout process is stricter—ID checks, and you must sign a contract. There are stories of accounts being closed for “rule violations” (often debated on TradingSchools.org). My own payout took longer than expected, but I did get it.
The5ers: UK-based, registered with the appropriate regulatory bodies. Payouts were smooth for me, but a fellow trader once had his account flagged for “unusual trading patterns” and had to send extra documentation. They’re probably the most risk-averse of the three, but also the most transparent about why they freeze or review accounts.

What Do Other Traders Say? Real Reviews and Forum Posts

It’s not just my story. Here’s a sample of what other traders report:

On Forex Factory, FTMO has a long-running thread with mostly positive feedback, especially about payouts and customer service.
Topstep gets mixed reviews on Futures.io—most agree it’s legit, but some complain the rules are too strict and the simulated accounts aren’t “real” enough.
The5ers has a solid reputation among conservative traders, with praise for their support but some grumbling about slow scaling.

How Do International Regulations Impact Prop Firms?

Here’s where things get tricky. Different countries have different standards for “verified” or “certified” trading, especially when money crosses borders.

Country	Verified Trade Standard	Legal Basis	Enforcement Agency
USA	Registration with CFTC/NFA for futures	Commodity Exchange Act	CFTC, NFA
EU (Czech Republic)	AML/KYC Compliance	EU Directive 2015/849	CNB (Czech National Bank)
UK	FCA Registration for financial services	Financial Services and Markets Act 2000	FCA

For instance, FTMO must comply with EU AML directives, while Topstep is under US futures regulation. The5ers, being UK-based, follows FCA guidelines. If a trader from, say, Singapore signs up, they’re subject to both the firm’s jurisdiction and their own country’s forex regulations—which can cause payout or verification delays.

Case Example: Dispute over a Large Payout

Imagine this: A trader in Germany hits a huge profit with The5ers, only to have the payout delayed due to a sudden KYC review. The trader posts on Forex Peace Army, frustrated, but after submitting documents, the issue is resolved. The5ers explains the delay was due to a flagged transaction under EU Directive 2015/849, which requires extra checks for large sums (source: EUR-Lex).

I once interviewed a compliance manager at a prop firm, who said: “Our hands are tied by AML regulations. Any payout above $10,000 triggers a mandatory review, and we’re audited by both national and EU authorities. Traders see delays, but we see legal risk if we skip a step.”

Conclusion: Which Prop Firm is Best Depends on What You Value

In the end, here’s what I learned—there’s no “best” prop firm for everyone. FTMO is fast, transparent, and great for disciplined traders; Topstep is perfect if you want futures and don’t mind stricter rules; The5ers is for patient, risk-averse types who want to scale up slowly and value compliance.

If you’re considering a firm, read their terms carefully, check their legal status in your country, and don’t trust anyone who promises instant riches. The regulations are real, and so are the headaches if you ignore them. My advice? Start small, ask lots of questions, and never risk more than you can afford to lose.

For more on the legal frameworks that impact prop trading, I recommend reviewing the CFTC (for US traders), FCA (for UK), and EU AML Directive for the latest requirements.

Feel free to reach out if you want more details or a direct comparison spreadsheet—I have plenty of screenshots and horror stories that didn’t fit here.