How you lose the account
At Breakout, the account is lost immediately if the equity touches the maximum or daily drawdown limits. Beyond the numbers, Breakout is extremely strict regarding strategy replication: any trade deemed "hard to replicate" in a live environment (due to extreme swings or auto-deleveraging risks) can lead to closure. Additionally, using third-party strategies, "pass-your-challenge" services, or hedging across different accounts is grounds for termination.
Cashed also terminates the account upon hitting drawdown floors. A distinctive risk factor here is the inactivity rule: the account can be closed after 90 consecutive days without trading. While Cashed allows algorithmic trading via API, it prohibits "account farming" and coordinated hedging between different users to guarantee payouts.
Maximum drawdown
Both firms utilize a static maximum drawdown, which is generally safer for the trader as the limit does not "trail" or rise with profits. However, it is a fixed floor that never resets, even after a payout.
- Breakout: The limit is 6% for Classic accounts, 5% for Pro, and 3% for Turbo.
- Numerical Example: If you purchase a $100,000 Classic account, your maximum drawdown floor is $94,000. If your equity (including open trades) touches $94,000.00 at any moment, the account is closed. This floor remains at $94,000 even if you grow the account to $110,000.
- Cashed: The limit is 6% for Standard and Instant accounts, and 7% for Flex accounts.
- Numerical Example: On a $120,000 Standard account, the 6% limit places your floor at $112,800. Just like Breakout, this is calculated against equity and includes floating losses.
Daily drawdown
This is the most frequent "silent killer" of accounts, and both firms calculate it differently.
- Breakout: Fixed at 3% for all plans. It is recalculated daily at 00:30 UTC based on the closed balance of that moment. It ignores floating profits or losses for the calculation, but monitors the limit against the equity.
- Numerical Example: If you start the day with a balance of $10,000, your daily limit is $300 (floor at $9,700). If you have an open trade in profit that brings your equity to $10,500, but you haven't closed it by 00:30 UTC, your limit for the next day is still calculated on the $10,000 balance, not the $10,500 equity.
- Cashed: Ranges from 3% (Standard/Instant) to 4% (Flex). It is calculated at 00:00 UTC based on the greater of the starting capital or the closed balance.
- Numerical Example: On an $80,000 Flex account (4%), if your balance is $82,000 at midnight, the 4% is calculated on $82,000 ($3,280 limit). If your balance had dropped to $78,000, the 4% would still be calculated on the $80,000 starting capital ($3,200 limit).
Rules beyond drawdown
Breakout prohibits copy trading from third parties, signals, or external analysts. Hedging is only allowed within the same account if the position already has a substantial profit or loss; doing it to "lock in" a pass is prohibited. It does not require a stop loss.
Cashed allows EAs and bots via API but strictly prohibits wash trading and spoofing. A significant detail is that Cashed does not publish a specific list of banned countries, stating only that "legal and sanctions restrictions apply," which creates a transparency risk for users in sensitive jurisdictions. It also does not require a stop loss.
Risk that comes from the setup
Breakout uses a proprietary terminal and its own simulated engine. This means traders cannot use MetaTrader 4 or 5, losing the familiarity of those tools. Execution risk is tied to their internal liquidity book. They offer Crypto, Indices, and Commodities, with fixed leverage (e.g., 10:1 for BTC) that cannot be modified, which might be restrictive for high-volatility strategies.
Cashed is exclusively focused on Crypto (Perpetuals and Prediction Markets). Like Breakout, it uses a proprietary platform, which carries the risk of execution slippage during high volatility. A specific risk at Cashed is the lack of published commission rates; fees are "displayed in the platform," meaning the cost of trading isn't fully transparent until the account is active.
What is at stake and what you recover
At both firms, the fee paid for the evaluation is the primary risk, as neither firm offers a refund upon passing or failing.
- Breakout: You risk between $20 (for a $5k Turbo) and $1,090 (for a $200k Pro). You can recover 80% of the profits (or 90% if the add-on was purchased). Withdrawals are via USDC (ERC-20) with a $50 minimum.
- Cashed: You risk between $5 and $1,000. Interestingly, Cashed allows "Build Your Own" accounts where you choose the drawdown and target. You recover 80% to 90% of profits. Payouts are in USDC on the Solana network, which is cheaper in network fees but requires a compatible wallet.
Frequently asked questions
Which firm is cheaper to start a $10,000 evaluation, Breakout or Cashed?
Breakout offers a $10,000 Classic account for $85 (or $40 in its Turbo version with tighter limits). Cashed does not have a native $10,000 account in its Standard tier; it offers a $12,000 account for $100. In terms of absolute entry price for this range, Breakout's Turbo is the cheapest option at $40, although it only allows a 3% maximum drawdown compared to the 6% of Cashed.
Does Breakout or Cashed have a more restrictive daily drawdown rule?
Breakout is more restrictive because its daily drawdown is always 3% based on the closed balance at 00:30 UTC. Cashed is slightly more flexible, offering up to 4% on its Flex accounts and using the "greater of starting capital or closed balance" for the calculation, which provides a larger cushion if the account balance drops below the initial capital.
Can I use Expert Advisors (EAs) more freely on Breakout or Cashed?
Cashed is much less restrictive for automated trading, as it explicitly allows bots and algorithmic execution via API. Breakout, on the other hand, only allows trading through its proprietary terminal (no MetaTrader) and strictly prohibits third-party, commercial, or "pass-the-evaluation" strategies, effectively limiting automation to very specific proprietary developments.
Which firm pays out faster and has a lower minimum withdrawal, Breakout or Cashed?
Breakout is generally faster for the first payout, allowing on-demand requests 24/7 from the first day with an approval time of 12 to 24 hours. Cashed requires a 1% net profit for the first payout on Instant accounts (then every 48 hours), while Standard/Flex accounts are on demand. Cashed has a lower minimum withdrawal of 20 USDC, compared to Breakout's 50 USD limit.
