How you lose the account
Losing an account in these firms happens through three types of breaches: hard breaches of drawdown limits, inactivity, or violations of specific trading styles.
- Funding Traders: The account is closed if you hit the daily loss limit or the maximum drawdown. It also fails if there is no trading activity for 30 consecutive days from the date of purchase. Additionally, exceeding the 2% risk limit per trade idea on Pro accounts or requesting a payout that includes the mandatory 3% safety cushion on Instant accounts results in termination.
- RZR Funded: Hard breaches include hitting drawdown limits or 30 days of inactivity. However, you can also lose the account by performing prohibited strategies like high-frequency trading (HFT) or group hedging. In Instant accounts, opening trades during high-impact news without the specific add-on is a direct cause for termination.
Maximum drawdown
The maximum drawdown is the total loss allowed before the firm closes the account. The calculation method changes significantly between their programs.
- Funding Traders: Uses both static and trailing models. In the 1-Step Pro, it is a 10% trailing drawdown that follows the balance as it increases. In 2-Step Pro accounts, it is static (6% or 10%), meaning the floor never moves.
- Numerical Example: In a $100,000 1-Step Pro account (10% trailing), if your balance reaches $105,000, your maximum loss level trails up to $95,000.
- RZR Funded: Enhanced and EnhancedX programs offer a static drawdown. Instant and Express programs use a trailing drawdown based on the balance.
- Numerical Example: In a $100,000 Enhanced account (10% static), your loss limit is fixed at $90,000. Even if your balance grows to $110,000, your limit remains $90,000.
Daily drawdown
This is the most sensitive rule because it is evaluated every 24 hours and can be hit by a temporary spike in volatility.
- Funding Traders: Calculated based on the starting day's balance. For 1-Step and 2-Step Pro6, it is 3%. For 2-Step Pro10, it is 5%.
- RZR Funded: In Instant Funding, it is balance-based. In most other plans (Express, Enhanced, Lite), it uses an "EOD high-watermark," which means it is based on the highest balance or equity recorded at the end of the day. This is a more restrictive calculation because it locks in your daily peaks.
Rules beyond drawdown
Both firms impose additional restrictions to control the "quality" of the risk taken by the trader.
- Funding Traders:
- Maximum risk of 2% per trade idea (initial balance) on Pro accounts.
- Consistency rule: The largest profit day must not exceed 50% of total profits (can be adjusted to 30% with an add-on).
- "Revive" feature: Allows continuing a Phase 1 account after a breach if it was in profit (one-time use, fee applies).
- RZR Funded:
- 3-minute rule: The majority of trades must last longer than 3 minutes; scalping is restricted.
- Consistency rules: Vary by plan. EnhancedX requires no more than 35% of profit from a single day, while Instant24 requires a 15% trade consistency.
- Prohibited Hedging: Hedging across separate accounts is strictly forbidden.
Risk that comes from the setup
The technical environment and the timing of trades can cause "accidental" breaches due to slippage or spread widening.
- Funding Traders: Operates via MT5 and TradeLocker. News trading is allowed in the challenge phase, but in the funded Pro phase, no more than 30% of profits can come from news events (5-minute window). In Instant accounts, news trading is prohibited by default, and having an open trade during a "Red Folder" event results in account loss.
- RZR Funded: Uses MT5. News trading is strictly prohibited in the funded phase for most accounts (3-minute window before/after) unless an add-on is purchased. This creates a high risk of termination for swing traders who forget to close positions before a high-impact release.
What is at stake and what you recover
The price of the challenge is the immediate risk, while the refund and payout conditions determine what you "save" once you are successful.
- Funding Traders: A $100,000 1-Step account costs $539. They offer a refund of the fee on the first payout (2-Step) or second payout (1-Step). They have a "Payout Guarantee": if they don't process your request in 2 business days, they pay you an extra $1,000.
- RZR Funded: A $100,000 Enhanced account (2-Step) costs $599, while the 1-Step version is $529. They do not offer fee refunds. However, they have a "24h Reward Guarantee": if they don't approve your payout in 24 hours, they double the amount up to $1,000.
Frequently asked questions
Which firm is cheaper for a $100,000 account, Funding Traders or RZR Funded?
RZR Funded is slightly cheaper for the 1-Step model at $529, compared to $539 at Funding Traders. However, for the 2-Step model, Funding Traders is more competitive at $539 (Pro10), while RZR Funded's Enhanced plan costs $599.
Which firm allows more freedom with EAs, Funding Traders or RZR Funded?
Funding Traders has a more restrictive EA policy, permitting them only for risk management or if they are personally developed by the trader. RZR Funded allows EAs more broadly in their evaluation programs (Express, Enhanced, Endurance) but strictly prohibits them on all Instant Funding accounts.
Which firm pays out faster, Funding Traders or RZR Funded?
Funding Traders offers payouts every 7 days for Instant accounts and 21 days for Pro accounts (reducible to 14 days with an add-on). RZR Funded has a standard 14-day cycle for all programs, which can be reduced to 7 days if the "Weekly Payout" add-on is purchased.
How does the news trading rule differ between Funding Traders and RZR Funded?
At Funding Traders, news trading in funded Pro accounts is allowed but capped (max 30% of total profit), while in Instant accounts it is prohibited. At RZR Funded, news trading is prohibited by default in the funded phase of almost all programs (3-minute window), requiring the purchase of a specific add-on to avoid account termination.
