1. Evaluation Models and Capital Allocation
Both firms offer a variety of paths to funding, but their structures cater to different trader profiles.
- Funding Traders: Primarily focuses on two-step evaluations (Pro and Novice) and a robust Instant Funding model. Their "Novice" account is unique, offering a free Phase 1 to lower the barrier to entry, though Phase 2 requires payment.
- QT Funded: Provides more diversity in its evaluation steps, offering 2-Step (Prime/Power), 3-Step (Prime), and Instant models. This allows traders to choose between lower-cost, high-step challenges or more direct paths.
- Capital Limits: Funding Traders allows a higher single-account ceiling for Instant Funding ($400,000) compared to QT Funded’s limit of $99,000 for Instant accounts. However, both firms cap total allocation at approximately $400,000.
2. Drawdown Mechanics and Risk Constraints
The way drawdown is calculated is a critical differentiator for risk management.
- Drawdown Calculation: Funding Traders utilizes Balance-based drawdown for its 2-step evaluations, which is generally more favorable for traders holding positions. However, their Instant accounts use a Trailing Drawdown (equity/balance based), which becomes static once the account reaches a 3% profit "cushion."
- QT Funded Drawdown: Similar to Funding Traders, QT Funded uses static drawdown for its Prime and Power models but applies a Trailing Drawdown to Instant accounts.
- The "Safety Cushion" (Funding Traders): A significant rule in Funding Traders' Instant accounts is that the first 3% of profit is non-withdrawable. This acts as a buffer for the firm but means the trader does not see their first 3% of gains in their bank account.
- Mandatory Stop Loss (QT Funded): QT Funded mandates a Stop Loss on all funded accounts within 60 seconds of opening a trade. Failure to do so is a rule violation, making it less suitable for traders who manage risk manually or use mental stops.
3. Trading Rules and Strategy Restrictions
- News Trading: Both firms impose restrictions on funded accounts. Funding Traders prohibits news trading within a 2-minute window (Pro/Novice) or 10-minute window (Instant). QT Funded has a 5-minute restriction window but offers a "Prime On Demand" account that removes this limitation, providing an edge for news-event traders.
- Expert Advisors (EAs): Funding Traders strictly prohibits autonomous EAs. QT Funded allows them but requires a pre-approval process, which adds a layer of bureaucracy but ultimately allows for automated strategies.
- Account Stacking and Consistency: Funding Traders has a 15% consistency rule for Instant accounts (no single day can exceed 15% of total profit). QT Funded has a higher threshold (35% for Prime, 25% for Instant), allowing for more volatility in daily performance.
- The "Biggest Loss < Biggest Win" Rule: Funding Traders enforces a strict rule where your largest loss cannot exceed your largest win. If it does, you must continue trading until a larger win is achieved, which can trap traders in a cycle of "trading for the sake of the rule" rather than for profit.
4. Platform Availability and Execution Costs
- Brokerage and Platforms: Both firms offer TradeLocker and MetaTrader 5. QT Funded adds cTrader to its roster, which is often preferred by professional traders for its advanced order execution and interface.
- Leverage: Both offer 50:1 on Forex. However, Funding Traders provides significantly higher leverage on Indices (up to 20:1) compared to QT Funded's commodity and index offerings.
- Commissions: QT Funded maintains a flat $4/lot commission across most assets. Funding Traders varies between $3 and $6/lot depending on the account type (Instant accounts pay the higher $6 fee), making QT Funded slightly more cost-effective for high-frequency traders.
5. Payout Frequency and Guarantees
- Funding Traders Payouts: They offer a "Payout Guarantee" where payments are processed within 2 days or the trader receives an extra $1,000. Payouts start every 14 or 21 days but can be upgraded to "On Demand" via paid add-ons.
- QT Funded Payouts: Depending on the model, QT Funded offers Biweekly or On Demand payouts as a standard feature (especially for QT Power and Prime On Demand).
- Profit Split: Both start at 80% and offer upgrades to 90% or 100% through specific account types or add-ons. Funding Traders' Instant accounts start at 90%, which is high for the industry.
6. Summary: Choosing the Right Firm
When to choose Funding Traders:
- If you want a 90% profit split from day one on Instant accounts.
- If you are looking for a high-capital Instant Funding option up to $400,000.
- If you value a payout guarantee with financial compensation for delays.
- If you are a manual trader who doesn't use EAs and can comply with strict "win vs loss" ratios.
When to choose QT Funded:
- If you require cTrader as your primary trading platform.
- If you use Expert Advisors (subject to their approval process).
- If you want the option of 3-Step evaluations to reduce the initial challenge cost.
- If you trade News and want an account (Prime On Demand) that permits it.
- If you prefer On Demand payouts without necessarily paying for extra add-ons.
