Scalping
Scalping is handled very differently by these two firms, primarily due to execution rules and risk management.
- Rules and Limitations: FTMO allows scalping without specific time restrictions on trades. In contrast, IQ Capital enforces a "15-second rule" for payouts: at least half of your trades and profits must come from positions held longer than 15 seconds. High-frequency trading (HFT) and tick scalping are prohibited in both.
- Risk and Drawdown: The EOD trailing drawdown at IQ Capital means scalpers must be careful with intraday peaks; the drawdown threshold only moves up at the end of the day based on the highest closing balance. FTMO's 2-Step static drawdown is generally more forgiving for scalpers who experience high equity swings.
- Cost and Platforms: FTMO offers MT4, MT5, cTrader, DXTrade, and TradingView with a $5 per lot commission on Forex. IQ Capital offers MT5, TradingView, and Volumetrica (ideal for order flow scalpers), with a similar $5 round-turn commission.
- Impact on Payouts: IQ Capital's risk limit (0.5% max risk per trade on funded accounts) prevents scalpers from "heavy loading" positions, while FTMO allows more flexibility in position sizing.
Swing Trading
Holding positions over long periods is a core part of swing trading, and both firms have specific conditions for this.
- Weekend Holding: FTMO requires traders on "Standard" accounts to close positions before the weekend. To hold over the weekend, traders must choose the "Swing" account type, which has lower leverage (30:1 instead of 100:1). IQ Capital allows weekend holding by default across its accounts.
- Leverage: FTMO Swing accounts provide 30:1 on Forex. IQ Capital offers 50:1 on Forex and 25:1 on Indices and Metals, providing a middle ground for swing traders.
- Drawdown Interaction: IQ Capital's EOD trailing drawdown is particularly suited for swing traders, as the threshold only updates at the daily close, ignoring intraday volatility as long as the day doesn't end at a new balance high.
- Cost of Carry: FTMO Standard accounts have swaps, while IQ Capital does not explicitly mention a swap-free option for all accounts in the provided data.
News Trading
The ability to trade high-impact economic releases is a major differentiator.
- Restrictions: FTMO "Standard" accounts prohibit opening or closing trades 2 minutes before and after high-impact news. However, their "Swing" accounts have no news restrictions. IQ Capital allows news trading across all its models without specific time-window bans.
- Execution Risk: Both firms warn against the risks of slippage during news. IQ Capital’s maximum risk limit (0.5% - 1% per trade) includes slippage and spread; if a news event causes a gap that exceeds this risk limit, it counts as a breach.
- Platforms: TradingView (available in both) is the preferred choice for news traders for its integrated economic calendar.
Automated Trading (EAs)
If you use robots, the gap between these two firms is significant.
- Permissiveness: FTMO allows almost any EA, including commercial ones. IQ Capital only allows self-developed or "transparent" systems where the trader has full access to the source code and logic. Black-box commercial bots are strictly forbidden at IQ Capital.
- Technical Requirements: IQ Capital prohibits latency arbitrage and HFT. FTMO is more lenient but also bans arbitrage and certain toxic strategies.
- Consistency: FTMO’s 1-Step and Instant accounts have a consistency rule where no single day can represent more than 50% or 30% of total profit, respectively. This affects how automated systems must be tuned to avoid "lucky" outlier days.
Copy Trading and Hedging
These strategies involve managing risk across multiple positions or accounts.
- Copy Trading: FTMO allows copy trading. IQ Capital explicitly prohibits it, as well as external signals or third-party management.
- Hedging: Both allow hedging within the same account. IQ Capital specifies that hedging between different accounts or users is a prohibited strategy.
- Risk Management: IQ Capital's 0.5% risk limit is aggregated across all trades in the same market. If you hedge, the total exposure including fees and spreads must still respect that 0.5% limit.
If you trade like this
- The Scalper or EA User: FTMO is the better choice. Their lack of a 15-second rule and their permission to use commercial EAs provide the freedom needed for high-turnover or automated strategies.
- The Low-Budget Beginner: IQ Capital is superior due to its $9 Welcome account and its Rapid model that allows for daily payouts, provided the trader can respect the strict 0.5% risk-per-trade rule.
- The Order Flow Specialist: IQ Capital wins here by offering the Volumetrica platform, which is specifically designed for footprint and volume profile analysis, though you must navigate their 15-second trade duration rule.
- The Professional Swing Trader: FTMO (Swing account) is often preferred for its static drawdown in the 2-Step model, which doesn't "trap" the trader by trailing the threshold upward during profitable runs.
Frequently asked questions
Which firm is cheaper to start with, FTMO or IQ Capital?
IQ Capital is significantly cheaper for a first experience, offering a "Welcome Offer" account for just $9 (50K size), whereas the most affordable entry at FTMO is the $10,000 1-Step account for €79. However, IQ Capital requires an additional activation fee (e.g., $129 for a 50K Core account) after passing the evaluation, while FTMO's fee is a one-time payment that is fully refundable after the first payout on 2-Step challenges.
Which firm offers faster payouts, FTMO or IQ Capital?
IQ Capital offers faster payout potential through its "Rapid - Daily Payout" model, which allows for a withdrawal after just one active session. In its standard "Core" accounts, payouts are available every 10 active sessions. FTMO has a fixed payout frequency of 14 days, making IQ Capital the choice for traders who prioritize immediate access to their profits.
Which firm has more restrictive rules for EAs, FTMO or IQ Capital?
IQ Capital is much more restrictive, as it only allows self-developed or transparent systems where the trader has full source code access, explicitly banning commercial black-box bots. FTMO, on the other hand, allows the use of EAs with very few limitations, including commercial bots, making it the preferred firm for the majority of algorithmic traders.
What is the main difference in drawdown between FTMO and IQ Capital?
The main difference is that FTMO offers a Static Drawdown option in its 2-Step challenges (the limit stays at 90% of the initial balance), whereas all IQ Capital accounts use an EOD (End of Day) Trailing Drawdown. In IQ Capital, the drawdown threshold follows your highest daily closing balance and locks at the initial balance once reached, meaning you can never "lose" the profit buffer you've locked in, but it is less flexible during the initial growth phase compared to FTMO's static model.
