FTMO vs Alpha Trader Firm: Which Prop Trading Firm Is Better in 2025?

Introduction

Prop trading has exploded in popularity, leaving traders spoiled for choice with dozens of firms promising robust funding and generous profit splits. Two names often mentioned in forums and review sites are FTMO, a market leader known for its disciplined two‑step evaluation process, and Alpha Trader Firm, an up‑and‑coming prop house offering multiple challenge structures and instant funding. While both aim to bring traders to professional funding, they differ significantly in their evaluation models, risk parameters, add‑on options and payout structures. This analysis breaks down those differences so you can decide which firm matches your trading style in 2025.

FTMO Overview

FTMO has set the standard for transparent and fair evaluations. Headquartered in Prague and operating globally, the firm built its reputation on a straightforward two‑phase challenge. Traders pick an account size from $10k up to $200k and trade on MetaTrader 5 or cTrader in a simulated environment. The FTMO Challenge requires a 10% profit target while respecting a 5% daily loss limit and a 10% overall drawdown. Once that benchmark is achieved within an unlimited timeframe (with at least four active trading days), the trader advances to the Verification stage, where the profit target drops to 5% and the drawdown rules stay the same. Passing both phases secures a funded FTMO Account with no further profit targets but identical risk thresholds.

Payouts on funded accounts are bi‑weekly. Traders receive 80% of their profits as standard, with the option to reach 90% through FTMO’s scaling plan. This plan rewards consistent profitability over four‑month cycles with a 25% account size increase and a higher split, up to a maximum notional capital of $2 million. FTMO refunds the challenge fee once the trader completes the Verification and claims the first payout. News trading is unrestricted during the challenge but limited on the funded account; trades must be closed for two minutes around scheduled high‑impact events unless the trader chooses a swing account add‑on. Overnight and weekend positions are allowed, but high‑frequency arbitrage, copy trading across firms and certain forms of latency exploitation are prohibited.

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Alpha Trader Firm Overview

Alpha Trader Firm (ATF) positions itself as a flexible alternative, offering multiple challenge tracks and instant funding for traders who want to bypass evaluations. The company provides four primary paths: 1‑Step, 2‑Step, 2‑Step PRO and Instant Funding. All accounts trade simulated capital on platforms such as MetaTrader 5 and TradeLocker. ATF supports a wide range of instruments, including forex majors, minors, indices, commodities and cryptocurrencies. Unique to ATF is a choice of add‑ons that allow or restrict trading on weekends and during news events. Without these add‑ons, positions must be closed by Friday afternoon and traders must avoid high‑impact news windows.

Across all challenge types, ATF uses a drawdown framework similar to FTMO: a 5% daily loss limit and a 10% total loss limit for evaluation accounts. Once funded, risk rules shift slightly depending on the program. The firm also enforces a floating PnL rule, meaning open losses cannot exceed 3% of the account balance (1% for instant funding). Traders must also pay attention to the Trader Score, a metric that tracks how much of their total profit comes from their biggest winning day. A Trader Score at or below 30% (or 20% for instant funding) is required to request withdrawals, encouraging consistent performance over time.

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2‑Step Challenge

ATF’s regular 2‑Step Challenge closely resembles FTMO’s model but with slightly different thresholds. Stage One requires traders to hit a 10% profit target, while Stage Two lowers the goal to 5%. Each stage calls for a minimum of three trading days, but there is no maximum time limit to meet the targets. A one‑time fee covers the first phase; the second phase is free, and the fee is refunded after the trader receives the first payout. When funded, accounts keep the same 5% daily and 10% total drawdown limits and add a floating loss rule (open losses cannot exceed 3%). Profit splits are generous: ATF pays 100% of profits for traders who choose the standard 30‑day payout. Those who prefer faster withdrawals can select the weekly add‑on for an 80% split or an on‑demand add‑on for a 70% split.

2‑Step PRO Challenge

For traders seeking more flexibility, the 2‑Step PRO programme reduces the profit targets to 8% and 4% and removes the minimum trading day requirement entirely. Participants can trade at their own pace and still enjoy a full fee refund after their first payout. Risk parameters on funded accounts tighten: the maximum loss falls to 5%, and the daily loss to 3%, while the floating PnL limit remains 3%. The PRO package automatically includes the News Trading and Weekend Trading add‑ons, allowing traders to hold positions through weekends and trade during high‑impact economic releases without restriction. Profit split options mirror those of the regular 2‑Step: 100% for the standard monthly payout, 80% for weekly withdrawals and 70% for on‑demand payouts.

1‑Step Challenge

ATF’s 1‑Step Challenge is a single‑phase evaluation requiring an 8% profit target. Traders must complete seven profitable trading days, each generating at least 0.50% return, but there is no overarching time limit. Risk parameters are somewhat relaxed relative to the 2‑Step: the maximum loss is 6% and the daily loss is 3%, with a 3% floating PnL limit. After passing, the trader is funded with the same rules. The standard payout splits are identical (100% for monthly, 80% for weekly, 70% for on‑demand), and the challenge fee is refunded after the first withdrawal. The 1‑Step suits traders confident in hitting a single target without a second phase to cushion mistakes.

Instant Funding

The Instant Funding path removes evaluations altogether. Traders pay a higher one‑time fee and start trading a funded account immediately. There is no profit target to qualify for withdrawals, but risk rules are strict: the maximum loss is a 5% trailing drawdown, the daily loss limit is 3%, and open losses cannot exceed 1% of the balance. To request a payout, traders must complete ten profitable trading days, each achieving at least 0.50%, and maintain a Trader Score of 20% or less. News trading is forbidden unless the trader purchases the add‑on, and weekend positions must be closed unless a weekend add‑on is purchased. As with the challenge accounts, the profit splits are 100% (standard monthly), 80% (14‑day add‑on) and 70% (on‑demand). Fees for instant accounts are non‑refundable.

Evaluation Model & Trading Rules Comparison

Profit targets and structure – FTMO keeps it simple with two phases of 10% and 5%, whereas Alpha Trader offers a range: 10%/5% for its standard 2‑Step challenge, 8%/4% for the 2‑Step PRO, 8% for the 1‑Step and no target for Instant Funding. FTMO’s targets are higher overall but only require four trading days. ATF’s 2‑Step requires three days in each phase, the 1‑Step demands seven profitable days, and the 2‑Step PRO has no minimum days. Instant Funding requires ten profitable days after funding but no target. This means ATF gives traders more options depending on their strategy: you can choose a quick but lower target (8%) or a longer evaluation with a higher target but fewer phases.

Drawdown rules – Both firms enforce a 5% daily drawdown and 10% total drawdown in their standard evaluations. FTMO resets the daily limit at midnight CET, while ATF bases it on the higher of start‑of‑day balance or equity. ATF adds a floating PnL rule (open losses not exceeding 3% in challenge accounts or 1% in instant accounts), ensuring traders cannot let losers run. In the 2‑Step PRO, the overall loss limit drops to 5%, and the daily loss remains 3%, providing a tighter safety net. Instant accounts use a trailing drawdown that adjusts upward when new equity highs are reached. These nuances mean ATF is slightly more flexible for intraday traders but still demands discipline.

Time limits and minimum days – FTMO imposes no time limits but requires four trading days per phase. ATF offers unlimited time across all programs; however, the minimum profitable day requirements vary: three days per phase for the regular 2‑Step, no minimum in the 2‑Step PRO, seven profitable days in the 1‑Step, and ten profitable days for Instant Funding withdrawals. These requirements ensure traders are consistently profitable rather than relying on a single lucky trade. If you prefer to complete a challenge as quickly as possible, FTMO’s smaller minimum might be an advantage; however, ATF’s PRO track eliminates this requirement entirely.

News and weekend trading – FTMO allows trading through news in the challenge but imposes a two‑minute blackout around major announcements on funded accounts unless a swing account is purchased. ATF handles this with add‑ons: the standard accounts prohibit trading five minutes before and after red‑folder news and require positions closed by Friday at 4 p.m. Eastern; purchasing the News Trading Add‑on lifts all news restrictions, while the Weekend Trading Add‑on allows traders to hold positions through weekends. These optional add‑ons give ATF clients more flexibility but increase costs.

Consistency and trader score – FTMO does not enforce a formal consistency rule. ATF eliminates conventional consistency rules but introduces the Trader Score, limiting the percentage of total profits generated on the best day (30% for challenge accounts, 20% for instant accounts). Failure to maintain an appropriate Trader Score delays payouts. This filter encourages a smoother equity curve without restricting trade frequency or style.

Restricted strategies – FTMO bans high‑frequency arbitrage, copy trading and certain forms of latency exploitation. ATF publishes a detailed list of prohibited strategies: grid trading, latency or reverse arbitrage, tick scalping (sub‑30‑second trades), account management by third parties, signal trading, martingale, hedging between accounts and exploiting data feed glitches. Expert Advisors and copy trading are also banned. Both firms emphasise manual trading and genuine skill.

Payouts, Profit Split and Scaling

FTMO processes payouts every two weeks. The default profit split is 80%, rising to 90% for traders who consistently meet the scaling criteria. Funded account holders are eligible to scale their account size by 25% every four‑month cycle provided they earn 10% net profit, process two withdrawals and remain in overall profit. The challenge fee is refunded after the first payout. Payouts are typically handled quickly (often within 24 hours) via bank wire or cryptocurrency.

Alpha Trader Firm offers a unique approach: traders can choose the payout frequency and profit split by purchasing add‑ons. The standard 30‑day payout option pays 100% of profits; adding weekly payouts drops the split to 80%, while on‑demand payouts (more frequent) lower it to 70%. This applies to all funded accounts, including instant funding. For 2‑Step and 1‑Step challenges, the initial fee is refunded after the first withdrawal. Instant Funding fees are not refundable. ATF typically processes payouts within five business days, and trading is paused during payout processing to protect open equity.

Platforms, Markets and Trading Flexibility

FTMO offers MetaTrader 5 and cTrader with competitive spreads. Traders can employ discretionary or algorithmic strategies as long as they avoid banned practices. The company provides a swing account option to loosen news restrictions but otherwise requires caution around macroeconomic events. Leverage in evaluation accounts is generally 1:100 for forex majors, slightly reduced on indices and commodities, and decreased further once funded.

Alpha Trader Firm provides MetaTrader 5 and the TradeLocker platform. There are no lot size restrictions, and traders are free to scale positions as long as they remain within risk limits. Stop‑loss orders are not mandated, reflecting the firm’s flexible stance, but traders must respect maximum risk caps (3% or 1% depending on the account). Without add‑ons, news and weekend trading are restricted; with add‑ons, there are no such limits. Accounts inactive for 30 days are closed automatically.

Reputation, Trust and User Feedback

FTMO’s longevity has earned it widespread respect. Traders frequently praise the firm’s customer service, reliability and clear rules. Critics mainly cite the high 10% profit target and 5% daily loss, which some consider too demanding. However, the firm’s consistent payout processing and generous scaling plan maintain its status as a top choice for serious traders.

Alpha Trader Firm is a newer entrant but has grown rapidly through its flexible offerings. Reviews highlight the choice of add‑ons and the ability to earn 100% of profits on the standard payout schedule. The absence of a consistency rule is appreciated, while the Trader Score requirement ensures sustainable trading. Some traders note that the additional fees for news and weekend trading can add up, and the strict list of banned strategies may catch inexperienced users off guard. Instant Funding accounts also carry higher fees and no refund eligibility, which can be a drawback. Nonetheless, the firm receives positive feedback for its quick payouts and supportive environment.

Which Firm Is Better for Different Trader Types?

• New traders might appreciate FTMO’s clear two‑step structure and detailed support materials. The high profit target of 10% can be challenging, but the unlimited timeframe and four‑day minimum reduce pressure. ATF’s 2‑Step challenge offers similar progression with the option to choose a lower target (8%) and a wider range of profit split options. However, the added complexity of add‑ons and Trader Score may overwhelm beginners.
• Intermediate traders looking for flexible timelines may gravitate toward ATF’s 2‑Step PRO, which has no minimum trading day requirement and reduced profit targets. FTMO’s scaling plan becomes attractive at this stage, offering larger capital once traders prove consistent profitability.
• High‑velocity or news traders might prefer ATF because of its news and weekend add‑ons. These allow trading through economic releases and holding positions over weekends, albeit for an extra fee. FTMO’s standard funded accounts restrict news trading, but its swing account option provides similar flexibility with a different cost structure.
• Traders seeking instant capital will be drawn to ATF’s Instant Funding program. It bypasses evaluations entirely, offers 100% profit split under the standard payout, and has a reasonable 5% trailing drawdown. However, it requires ten profitable days and carries non‑refundable fees. FTMO does not offer a comparable direct funding route.
• Long‑term growth seekers may prefer FTMO due to its comprehensive scaling plan that can expand the account to millions. ATF does not currently advertise a formal scaling program beyond improving splits and opening larger accounts, though traders can take multiple challenges to increase overall capital.

Final Verdict

FTMO remains a benchmark in the prop trading industry thanks to its clear rules, reliable payouts and substantial scaling potential. Traders who can meet the 10% and 5% targets without breaching the strict 5% daily loss will appreciate FTMO’s professional environment and long‑term capital growth. The firm’s risk controls encourage disciplined trading and reward consistency.

Alpha Trader Firm offers a more customisable path with its one‑step, two‑step and instant funding options. Lower profit targets, flexible timeframes and the ability to trade news and weekends (with add‑ons) provide variety for different trading styles. The Trader Score introduces a quality filter without imposing a traditional consistency rule, and the 100% profit split on the default payout schedule is appealing. However, strict restrictions on automated strategies and add‑on fees may deter some traders, and there is no high‑end scaling programme akin to FTMO’s.

Ultimately, your choice should align with your risk tolerance, desired payout frequency and willingness to adhere to each firm’s risk parameters. Visit FTMO if you want a proven two‑phase challenge, structured scaling and a straightforward path to high capital. Visit Alpha Trader Firm if you prefer flexible evaluations, optional add‑ons for news and weekend trading, and the ability to keep all profits under the standard payout plan. As always, read each firm’s terms carefully before committing.

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