Scaling Rules Compared_ FTMO vs MyForexFunds
Scaling within prop trading firms has become a crucial factor for traders seeking long-term growth and sustainability. Two of the most popular firms offering scaling opportunities are FTMO and MyForexFunds. Both firms present distinct scaling rules and structures that can significantly impact how traders grow their funded accounts and manage risk over time. This article dives deep into the scaling methodologies of FTMO and MyForexFunds, providing a thorough comparison to help traders decide which platform aligns best with their growth ambitions.
Account Scaling Overview
Scaling an account generally refers to increasing a funded trading account’s size based on performance milestones. This is essential because larger accounts provide higher profit potential and allow traders to capitalize more significantly on their trading edge. Both FTMO and MyForexFunds offer traders pathways to scale their accounts, but they utilize different models and requirements to accomplish this.
FTMO employs a profit milestone approach combined with strict risk management criteria. Meanwhile, MyForexFunds provides scaling incentives structured around profit targets but with varying access depending on the account type. Understanding the key differences in their scaling systems is critical before committing to one.
FTMO Scaling Rules Explained
FTMO’s scaling process is known for its structured and performance-based system. Traders start with an initial account size, typically ranging from $10,000 to $200,000 depending on the trader’s choice. In order to scale, a trader needs to achieve consistent profitability while adhering to predefined risk parameters such as maximum daily loss and maximum overall loss limits.
The key to FTMO’s scaling is the requirement for a 10% profit target on the current funded account balance. Once the trader hits this target, they are eligible to choose from two options: either take a profit withdrawal or scale up their account size by doubling it. This means if a trader begins with a $50,000 account, generating $5,000 in profit allows them to request a $100,000 account, effectively doubling their trading capital.
However, this scaling is not immediate but contingent on passing a verification and evaluation phase again, to prove the trader’s ability to handle increased capital without breaching risk limits. Additionally, FTMO requires adherence to a trading period – usually 30 days – during the initial evaluation to demonstrate consistency. This helps prevent impulsive scaling based on short-term gains.
MyForexFunds Scaling Rules Explained
MyForexFunds offers a more flexible scaling system, heavily dependent on the type of funded account the trader opts for. The firm provides several account programs including the Rapid, Evaluation, and Accelerated programs. Each program has its own profit targets and scaling pathways.
The Accelerated program is particularly notable for its scaling potential. Traders are encouraged to reach profit targets that automatically increase their account size without the need to pass through an additional evaluation. For instance, once a trader achieves a 10% profit on an account size, MyForexFunds grants an automatic scale-up of 20% on the trading capital, allowing traders to steadily increase their balance in a smoother, ongoing manner.
Moreover, MyForexFunds emphasizes monthly profit targets rather than fixed trading periods. This flexibility allows traders to maintain consistent growth without being bound by hard deadlines. The scaling increments vary depending on the program, but many traders appreciate MyForexFunds’ model because it offers incremental scaling as profits accumulate, making the growth trajectory feel more achievable and less binary compared to FTMO.
Comparing Risk Management & Drawdown Limits
Scaling rules are inseparable from risk management policies, as prop firms restrict losses to ensure sustainability. FTMO is known for its strict maximum daily loss and total drawdown limits. Typically, the maximum daily loss is set at 5% of the account balance, and total drawdown is capped at 10%. If a trader breaches either, the funded account can be terminated or reset depending on circumstances.
This high standard of risk discipline ensures that traders scaling with FTMO must be cautious and consistent, balancing profit-taking with careful drawdown controls. As a result, scaling is a reward for disciplined trading rather than aggressive risk-taking.
On the other hand, MyForexFunds offers wider drawdown limits across its programs, sometimes allowing up to 15% or even higher total drawdown in certain accounts. The daily loss limits are more lenient as well, depending on the program selected. This can be advantageous for traders who require slightly more breathing room to navigate volatile markets but also demands responsibility to avoid excessive risk.
The looser risk limits do not mean MyForexFunds promotes reckless trading; rather, they cater to a broader range of trading styles. Traders looking for flexibility may find MyForexFunds’ risk controls more aligned with their approach, especially during scaling phases where small setbacks can be part of the process.
Profit Splits and Payouts During Scaling
Another consideration when selecting between FTMO and MyForexFunds scaling rules is how each firm handles profit splits and payouts as accounts grow. FTMO offers a profit split of typically 80/20 in favor of the trader after successfully funding an account and passing the evaluation stages. This split remains consistent even as the trader scales up to larger account sizes, meaning the trader retains a significant share of earnings at every growth stage.
Profit withdrawals are available monthly with FTMO, allowing traders to access part of their earnings while continuing to trade and meet scaling targets. This arrangement ensures continual incentive for performance without hampering capital growth.
Alternatively, MyForexFunds provides aggressive profit split ratios beginning at 75/25 but gradually increasing to 90/10 for traders who demonstrate consistent profitability and scale. The tiered profit split rewards traders who scale steadily, encouraging longer-term partnerships. Additionally, certain account programs offer weekly or bi-weekly payouts, enhancing cash flow flexibility as the trader scales their account.
This graduated profit-sharing approach by MyForexFunds aligns well with their flexible scaling rules, offering compounding benefits in both capital and profits as performance improves.
Psychological & Strategic Implications of Scaling
Scaling does not only represent a numbers game but also brings psychological and strategic challenges. FTMO’s strict scaling rules and risk limits force traders into diligent risk and money management discipline. While this hones skills and builds a steady mindset, it can also impose pressure to avoid losses, which sometimes inhibits taking well-calculated market opportunities.
The requirement to re-verify account scaling with FTMO means traders must consistently prove their competency, which can be mentally taxing but effective for long-term behavioral growth. For traders who thrive under structure and clear metrics, FTMO’s method provides a solid framework for career progression.
Conversely, MyForexFunds’ incremental scaling with wider risk parameters can reduce the psychological strain from rigid rules. Traders may feel less constrained and more empowered to adapt their style while growing their accounts steadily. However, this freedom requires enhanced self-discipline to prevent risk escalation that could lead to rapid drawdowns.
Strategically, traders using MyForexFunds might find opportunities to experiment and scale gradually through small increments, fostering innovation and flexibility in trading plans. The program’s scalability encourages traders to remain active and engaged without the looming threat of frequent re-evaluations.
Which Firm’s Scaling Rules Suit Different Trader Profiles?
For conservative traders with a focus on stringent risk management and a preference for binary scaling milestones, FTMO is likely the better fit. Their clear-cut 10% profit targets for doubling, strong loss limits, and solid profit splits create a predictable environment for systematic growth and skill cultivation.
Alternatively, MyForexFunds accommodates those who seek more flexible scaling options and are comfortable managing a slightly higher risk tolerance. Its scaling increments, wider drawdown limits, and tiered profit splits appeal to traders planning for long-term growth with room to experiment and adjust.
Day traders or scalpers who prefer rapid scaling and more frequent payouts might find MyForexFunds more attractive due to its varied program offerings like Rapid or Accelerated accounts. Meanwhile, swing traders or those who benefit from a more structured approach could lean toward FTMO.
Ultimately, the choice depends on your trading style, risk appetite, and psychological preference toward structured versus flexible environments for funding growth.
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