How you lose the account
The loss of an account in both firms is primarily triggered by breaching drawdown limits, but the technical triggers vary. In FundingPips, you lose the account if you violate the daily or maximum loss limits, but also through inactivity (30 days without a trade) or by using prohibited strategies like latency arbitrage or gap trading.
In Velotrade, the account is closed if the equity touches or falls below the static drawdown floor. They also enforce a 30-day inactivity rule, although they allow one support-requested reactivation within six months. A unique risk in Velotrade is the "abusive risk" clause and the ban on Martingale or repeatedly adding to losing positions, which can lead to account termination even if drawdown limits haven't been touched.
Maximum drawdown
The maximum drawdown represents the ultimate "uncle point" for your capital.
- FundingPips: Most models (1-Step Flex, 2-Step) use a static drawdown. However, the "Zero" model uses a trailing drawdown, which is significantly riskier as the floor rises with your profits.
- Numerical Example: On a $100,000 2-Step Standard account (10% static drawdown), your floor is fixed at $90,000. Even if your balance grows to $110,000, your loss limit remains $90,000.
- Velotrade: All models use a static drawdown calculated against the starting balance of the phase. It does not trail profits or move after payouts.
- Numerical Example: On a $100,000 Classic 2-Step account (10% static drawdown), your floor is $90,000. If you reach $108,000 and then drop to $90,000, the account is closed.
Daily drawdown
This is the most common trap for traders, as it is recalculated every 24 hours.
- FundingPips: The limit is calculated based on the higher value between the opening balance or the equity at the start of the trading day (00:00 UTC+3).
- Example: If you start the day with $100,000 balance but $101,000 in floating equity, a 5% daily limit is calculated from $101,000, setting the floor at $95,950 for that day.
- Velotrade: The daily loss is recalculated at 00:30 UTC. It also uses the higher of balance or equity at that exact moment.
- Example: If at 00:30 UTC your balance is $100,000 but you have a floating profit taking your equity to $102,000, a 5% daily limit is based on $102,000. Your daily floor becomes $96,900.
Rules beyond drawdown
Risk management involves more than just loss limits; it includes operational constraints.
- Consistency and Profitable Days: FundingPips applies a 35% consistency rule for "On Demand" payouts (no single day can exceed 35% of total profit). Velotrade has no consistency percentage but requires "qualifying days" where you must realize a net profit of at least 0.8% of the starting balance.
- News Trading: FundingPips is strict on Master accounts: trades opened or closed within 5 minutes of high-impact news result in profit deduction. Velotrade allows macro news but forces closures around single-stock earnings (24-hour window).
- Stop Loss: Neither firm strictly requires a stop loss, but Velotrade explicitly warns that Stop Limit orders are disabled, increasing the risk of execution gaps.
- Lot Limits: FundingPips imposes a limit on simultaneous open lots (e.g., 40 lots for $100k+ accounts). Velotrade does not have a fixed numeric lot cap but monitors for "abusive overleveraging."
Risk that comes from the setup
The technical environment determines how much "hidden" risk you carry.
- Platforms: FundingPips offers MetaTrader 5, MatchTrader, and cTrader. This variety allows traders to choose environments they trust. Velotrade is limited to DXtrade, which may represent a learning curve risk for those used to MT4/MT5.
- Execution and Slippage: Velotrade operates on a 0.05% overnight funding fee for long and short positions across most assets. FundingPips uses a liquidity provider model with varied commissions (e.g., $5/lot for standard Forex).
- Asset Risk: Velotrade includes ETFs and a wide range of stocks with specific exposure limits per company. FundingPips focuses more on the traditional Forex/Crypto/Indices mix. The risk of "gap-downs" in stocks is a specific threat in Velotrade that Forex traders might not be prepared for.
What is at stake and what you recover
The financial risk is the cost of the challenge versus the potential for a refund.
- The Entry Cost: For a $100,000 account, FundingPips ($522 for 2-Step Standard) is significantly cheaper than Velotrade ($769 for Classic 2-Step).
- Refunds: FundingPips offers a full refund of the fee with the first payout on 1 and 2-Step models. Velotrade explicitly states there are no standard fee refunds after passing.
- Payout Caps: Velotrade introduces a major risk to profitability: the first and second withdrawals are capped at 20 times the challenge fee. Any profit above that is forfeited. FundingPips has no such cap, although it has a "Safety Cushion" on its Zero accounts where the first 3% of profit cannot be withdrawn.
Frequently asked questions
Which firm is cheaper to get a $100,000 account, FundingPips or Velotrade?
FundingPips is considerably more affordable. Its 2-Step Standard $100k account costs $522, while the 2-Step Flex is $555. In contrast, Velotrade charges $769 for its Classic 2-Step $100k account and $923 if you want the 90% profit split upgrade.
Does FundingPips or Velotrade offer a refund of the evaluation fee?
FundingPips offers a full refund of the evaluation fee with the first payout for its 1-Step and 2-Step models. Velotrade does not provide a standard fee refund after passing the challenge, meaning the initial cost is a permanent expense for the trader.
Which firm has more restrictive news trading rules, FundingPips or Velotrade?
FundingPips is more restrictive regarding timing on Master accounts, as it deduces all profits from trades executed within 5 minutes of high-impact news. Velotrade allows macro news trading but is more restrictive regarding individual stocks, requiring positions to be closed 24 hours before and after earnings or dividend events.
What platforms are available to manage risk in FundingPips versus Velotrade?
FundingPips offers a wider selection, including MetaTrader 5, MatchTrader, and cTrader. Velotrade only provides the DXtrade platform. This makes FundingPips more flexible for traders who rely on specific tools or EAs designed for the MetaTrader or cTrader ecosystems.
