Scalping
Scalping is handled differently by both firms due to their specific risk and execution rules:
- FundingPips: Fully allowed. Scalpers benefit from high leverage (up to 100:1 in 2-step accounts) and the availability of MetaTrader 5 and cTrader. However, there is a strict simultaneous lot limit: for accounts of $100k or more, you cannot exceed 40 open lots. Exceeding this twice leads to account closure.
- Papaya Funding: Permitted but with significant limitations. The firm explicitly prohibits "tick harvesting" and positions held for less than 60 seconds if they are at or near the contract limit. This makes high-frequency scalping risky, as it can be flagged as "gambling" or "abuse of leverage" during the review process.
Swing Trading
Holding positions over long periods is a point of divergence, especially regarding Master accounts:
- FundingPips: Allowed without restrictions during Evaluation. On Master accounts (Flex, Standard, and Pro models), weekend and overnight holding require the "Swing" add-on, which must be selected at purchase. Without it, positions are automatically closed at the end of the day.
- Papaya Funding: More swing-friendly by default. Weekend holding is permitted across its plans. Traders don't need to pay for extra add-ons to maintain their positions over the weekend, making it a lower-cost option for long-term strategies.
News Trading
Both firms impose restrictions on Master accounts to prevent volatility exploitation:
- FundingPips: Evaluation accounts have no restrictions. On Master accounts, you cannot open or close trades within a 5-minute window before and after high-impact news. Profits from such trades are deducted. On the "Zero" model, this is a hard breach.
- Papaya Funding: Also restricts news trading on funded accounts. The prohibited window is narrower: 3 minutes before and after the event. Violating this can lead to P&L removal or even account termination.
Automated Trading (EAs)
The use of expert advisors is one of the most complex areas due to conflicting or specific rules:
- FundingPips: Third-party EAs are only allowed if used strictly as trade or risk managers. Full automation is only permitted for personal EAs if the trader can provide proof of ownership of the code.
- Papaya Funding: There is a contradiction in their data; the FAQ mentions proprietary automation is allowed with restrictions, but the checkout catalog flags EAs as disallowed. Traders must obtain written confirmation before using any EA to avoid account forfeiture.
Copy Trading
Internal and external copying is regulated to ensure the trader is the one actually performing:
- FundingPips: You can copy between your own FundingPips accounts. You can also copy from FundingPips to external accounts. However, you cannot copy from an external source into a FundingPips account.
- Papaya Funding: Only allowed between accounts owned by the same individual. The use of external signals or account-passing services is strictly prohibited and results in immediate termination.
Hedging
- FundingPips: Strictly prohibited as a strategy.
- Papaya Funding: Permitted within a single account. However, coordinated hedging (opening opposite positions across different accounts or different firms) is banned.
If you trade like this
- If you are a Scalper or EA Developer: FundingPips is the better choice. Despite the lot limits, they explicitly allow personal EAs (with proof) and provide platforms like MT5 that are superior for high-speed execution.
- If you are a Swing Trader or use Hedging: Papaya Funding is more suitable. They allow weekend holding without extra fees and permit internal hedging, providing more breathing room for complex, long-term strategies.
Frequently asked questions
Which firm is cheaper for a $100,000 2-step evaluation, FundingPips or Papaya Funding?
FundingPips is the more economical option. Its 2-Step Standard $100,000 account costs $522, and the 2-Step Flex version is $555. In contrast, the Papaya Two $100,000 evaluation is priced at $598.
Who offers a higher maximum drawdown for $100k accounts, FundingPips or Papaya Funding?
FundingPips offers significantly more room for loss. Its 1-Step and 2-Step Flex models provide a 12% static drawdown. Papaya Funding is more restrictive, offering a 9% static drawdown on its Papaya One model and 8% on the Papaya Two model.
Which firm allows for faster payouts, FundingPips or Papaya Funding?
FundingPips is faster and more flexible. Depending on the plan, it offers weekly or even on-demand payouts (for the 2-Step Standard model). Papaya Funding has a fixed frequency where payouts are processed every 14 days, with a mandatory 14-day waiting period for the first withdrawal.
What trading platforms are available on FundingPips compared to Papaya Funding?
FundingPips offers MetaTrader 5, MatchTrader, and cTrader. Papaya Funding does not offer MetaTrader; instead, it provides DXTrade, MatchTrader, cTrader, and their proprietary PropX platform.
