FTMO vs BrightFunded: Which Prop Trading Firm Is Better in 2026?

Introduction

As proprietary trading continues to grow, traders have an expanding menu of firms offering simulated capital and profit‑sharing. FTMO is a veteran of the industry, while BrightFunded is a younger European firm that has garnered attention with its streamlined evaluation and generous scaling plan. Although both companies promise professional‑level funding and fast payouts, their rules and account structures differ. We reviewed their latest policies, trading rules and user feedback to help you decide which firm better suits your strategy.

FTMO Overview

Founded in 2015, FTMO established the two‑phase evaluation model that many prop firms have since adopted. Headquartered in Prague, it serves traders worldwide and offers accounts in U.S. dollars or euros. FTMO uses MetaTrader 4, MetaTrader 5 and cTrader, with a range of instruments including forex majors and minors, indices, commodities and a limited selection of cryptocurrencies. The firm’s evaluation process focuses on risk discipline: traders must hit profit targets while respecting strict daily and overall drawdown limits. Successful traders can scale their accounts to multimillion‑dollar levels with profit splits up to 90%.

FTMO evaluation structure

• Phase 1 (FTMO Challenge): Traders must achieve a 10% profit target while keeping losses under a 5% daily limit and a 10% overall drawdown. At least four trading days are required, but there is no hard deadline.
• Phase 2 (Verification): The profit target drops to 5%, and the same risk limits apply. There is no time limit. Passing both phases leads to a funded FTMO account.
• Funded account: There is no profit target. Traders still abide by the 5% daily and 10% overall drawdown rules and can earn an 80% profit split. After meeting FTMO’s scaling criteria—achieving at least a 10% net profit over four months and completing two payouts—the split increases to 90% and account balance can grow by 25% increments up to $2 million.
• Payouts: Profit withdrawals are available every 14 days. Traders receive payments via bank transfer or electronic methods, typically within a day or two. Fees for the evaluation are refunded once traders pass Phase 1 and Phase 2.
• Trading restrictions: FTMO allows unrestricted trading during the evaluation stages, but funded accounts (except swing accounts) cannot open or close positions within two minutes of high‑impact news releases. Swing accounts remove this restriction. Overnight and weekend positions are allowed.

Want to learn more you can read our full review here [Full FTMO Review]

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BrightFunded Overview

BrightFunded is a new entrant based in the Netherlands. Launched in 2023, the firm aims to simplify the evaluation process and focus on long‑term growth. It offers a single two‑step challenge that funnels traders into a funded “Star” account. BrightFunded uses MetaTrader 5, cTrader and DXTrade, providing access to over 150 instruments across forex, indices, commodities and more than forty cryptocurrencies. Its account sizes range from $5 k to $200 k, and leverage can reach 1:100 on major currency pairs, with lower ratios on indices and metals. BrightFunded markets itself as transparent, with clear rules and fast payouts.

BrightFunded evaluation and funded account rules

• Two‑step evaluation: The evaluation comprises a Challenge and Verification. The Challenge has an 8% profit target, and the Verification requires 5%. Traders must finish each phase within unlimited time but must place trades on at least five days per phase. Daily loss is capped at 5% of the starting balance, and overall drawdown is 10%. If either limit is hit, the account is closed.
• Hedging and news trading: Hedging is allowed within a single account but not across multiple accounts or prop firms. During the evaluation, news trading is permitted without restriction. Once funded (Star account), traders may not open or close positions within five minutes before or after major news releases. Profits earned during the restricted window can be removed, but the account is not violated; a swing‑trading exemption applies if trades have been open for at least 48 hours.
• Funded Star account: After passing both phases and completing an identity check, traders receive a funded account. The default profit split is 80%, though it can increase to 90% with an add‑on. BrightFunded pays traders via crypto (USDC on ERC‑20) or euro bank transfer. The first payout can be requested 30 days after placing the first trade, and subsequent payouts are available every 14 days. There is no minimum payout amount.
• Scaling plan: BrightFunded reviews the Star account every four months. To qualify for a scale‑up, traders must be profitable in at least two of the four months, achieve a combined net profit of 10%, have processed at least two payouts and end the period with a positive balance. When these criteria are met, the firm increases account size by 30% of the original balance and boosts the profit split. After the third scale‑up, traders keep 100% of profits. Scaling continues indefinitely as long as performance requirements are met.
• Payout frequency add‑ons: Traders may purchase a weekly or bi‑weekly payout add‑on. The weekly add‑on allows payouts every seven days but introduces a maximum cap per withdrawal. The bi‑weekly add‑on permits payouts every 14 days, also with a cap. Without add‑ons, traders adhere to the standard 30‑day/14‑day schedule.

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Evaluation Model & Trading Rules Comparison

FTMO’s structured evaluation vs. BrightFunded’s streamlined challenge: FTMO’s two‑phase challenge is rigorous, requiring a 10% and 5% profit target while respecting both daily and overall drawdowns. BrightFunded’s two‑step evaluation halves the targets to 8% and 5% and uses the same daily and overall drawdown percentages (5% daily, 10% total). FTMO requires only four trading days; BrightFunded mandates five days per phase.

Risk and drawdown: FTMO imposes a daily loss limit of 5% and an overall drawdown of 10% in both evaluation and funded stages. BrightFunded’s limits mirror FTMO’s at 5% daily and 10% overall. BrightFunded’s funded accounts have no daily loss reset method (loss is measured daily and resets at midnight), while FTMO resets the daily loss at midnight Prague time. Both firms close an account if the maximum drawdown is hit.

Time limits and trading days: Neither firm imposes a fixed deadline to reach the profit target. FTMO’s four trading days requirement encourages quick engagement, whereas BrightFunded’s five‑day minimum ensures traders demonstrate consistency across each phase.

News and overnight trading: FTMO restricts news trading only in funded non‑swing accounts. BrightFunded allows news trading during the evaluation but prohibits opening or closing trades within a five‑minute window around major announcements once funded. Both companies allow overnight and weekend holding.

Payouts, Profit Split and Scaling

FTMO: Profit splits start at 80% and can reach 90% through the scaling plan. Payouts are processed every 14 days, and there is no minimum withdrawal amount. Scaling increases the account by 25% of its starting balance every four months if performance criteria are met, up to a $2 million cap.

BrightFunded: The default profit split is 80% but can move to 90% with an add‑on. Traders receive their first payout 30 days after their first trade and every 14 days thereafter. Weekly and bi‑weekly add‑ons shorten this interval. The scaling plan increases the account by 30% of its original size every four months, and after the third scale‑up the profit split becomes 100%. There is no cap on account size; scaling can continue indefinitely as long as requirements are met.

Platforms, Markets and Trading Flexibility

FTMO provides MetaTrader 4/5 and cTrader accounts with leverage around 1:100 for forex and lower ratios for indices, commodities and crypto. BrightFunded offers MetaTrader 5, cTrader and DXTrade. It lists more than 150 instruments, including all major forex pairs, popular indices and over forty cryptocurrencies, with leverage up to 1:100 on forex and lower on other asset classes. Both firms allow the use of expert advisors and manual strategies, though BrightFunded forbids hedging across different prop firms. Copy trading within a single account is allowed on both platforms.

Reputation, Trust and User Feedback

FTMO is widely considered one of the industry’s most reputable firms, with thousands of traders praising its clear rules, reliable payouts and disciplined approach. Negative feedback usually focuses on the strict daily loss limit and the two‑minute news restriction on funded non‑swing accounts. BrightFunded has quickly built a positive reputation for transparency and fast payouts—many users report receiving withdrawals within hours. Traders appreciate the scaling plan and the lack of minimum withdrawal. Criticisms largely revolve around the hedging restriction across multiple prop firms and the five‑minute news restriction on funded accounts.

Which Firm Is Better for Different Trader Types?

• New traders: BrightFunded’s lower profit targets (8% and 5%) and unlimited time may feel less intimidating. FTMO’s 10% and 5% targets teach strong risk discipline but require more aggressive trading to pass.
• Risk‑averse traders: Both firms enforce a 5% daily and 10% total drawdown. BrightFunded’s daily reset can be easier to manage, while FTMO’s scaling to 90% profit split may compensate risk‑tolerant traders in the long term.
• News traders: FTMO allows news trading in the evaluation and swing accounts but restricts it around announcements in standard funded accounts. BrightFunded permits news trading in the evaluation but enforces a five‑minute restriction on the funded account; however, an exemption exists for swing trades held for at least 48 hours.
• Traders seeking fast payouts and scaling: BrightFunded stands out with its ability to pay weekly or bi‑weekly via add‑ons and scale accounts by 30% every four months, eventually reaching 100% profit splits. FTMO pays every 14 days and scales accounts more conservatively but to a higher potential dollar amount.
• Experienced traders with large targets: FTMO’s higher first‑phase target and $2 million cap may appeal to skilled traders seeking bigger simulated capital. BrightFunded’s emphasis on consistent growth and frequent payouts may suit those who prefer steady income and progressive scaling.

Final Verdict

FTMO remains a benchmark in the prop firm industry for its robust two‑phase challenge, disciplined risk controls and proven scaling system. It suits traders who are comfortable meeting higher profit targets and want the potential to build a multi‑million‑dollar account. BrightFunded offers a gentler entry with its 8% and 5% targets and attracts traders looking for quick payouts, flexible scaling and a path to a 100% profit split. Your choice depends on whether you prioritise long‑term scaling and strict risk discipline (FTMO) or prefer a simpler evaluation with flexible payouts and a progressive profit split (BrightFunded). Both firms reward consistent risk management and can be excellent partners for serious traders in 2026.

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