How you lose the account
The most direct way to lose an account in both firms is by breaching drawdown limits, but there are operational nuances:
- Goat Funded Trader: You lose the account if you hit the daily or maximum drawdown, trade prohibited strategies (Martingale or Grid), or use third-party EAs. An inactivity period of 30 days also results in account closure.
- Lark Funding: Beyond the drawdown, a hard breach occurs if you fail to use a Stop Loss (mandatory unless an add-on is purchased). You also lose the account for gambling behaviors, HFT, or violating the inactivity rule of 30 days.
Maximum drawdown
The maximum drawdown defines the total life of your account.
Goat Funded Trader:
- Evaluation Phases: Static (e.g., 10% on the 2-Step Standard). It does not move with profits.
- Instant Funding: Trailing. It follows the highest recorded balance.
- Instant Premium: EOD (End of Day) high-watermark. It is recalculated at the end of the day based on the highest balance/equity.
- Numerical Example: In a $100,000 2-Step Standard account (10% static), your account is terminated if equity drops to $90,000, regardless of whether you reached $110,000 previously.
Lark Funding:
- 3-Step: 5% Static.
- 1-Step Career: 7% Static.
- Instant: 8% Trailing based on the highest closed balance. It locks at the initial balance once you reach an 8% gain.
- Numerical Example: In a $100,000 Instant account, if you close trades at $105,000, your maximum drawdown level rises to $97,000 ($105,000 - 8%).
Daily drawdown
This is the most common "silent killer" of accounts due to how it is calculated.
- Goat Funded Trader: Most models use an EOD high-watermark. It is based on the higher of the balance or equity at 5 PM EST. The "Instant HERO" model is different; it uses the starting balance of the day at 5 PM EST.
- Lark Funding: The 3-Step model has no daily loss limit, which is a significant risk relief. However, the 1-Step Career and Instant models have a 5% limit calculated from the previous day's closed balance at 5 PM EST.
Rules beyond drawdown
Risk is also hidden in how you are forced to trade:
- Goat Funded Trader:
- Consistency Rule: On Instant accounts, a single day cannot represent more than 15% (Goat/HERO) or 20% (Pro) of your total profits.
- 120-Second Rule: Trades must be open for at least 2 minutes. Profits from shorter trades are removed.
- News Trading: Profits are capped at 1% of the initial balance if generated within 2 minutes of high-impact news.
- Lark Funding:
- Mandatory Stop Loss: You must place a SL on every trade unless you pay a 10% price increase.
- Position Limit: For resets (Surrender/Smart Restart), you cannot have taken a loss greater than 1% on any single position.
- Copy Trading: Allowed between Lark funded accounts, but strictly prohibited between evaluation accounts.
Risk that comes from the setup
The technical environment can cause "accidental" breaches:
- Platforms: GFT offers a wide range (MatchTrader, cTrader, TradeLocker, Volumetrica, MT5). Lark focuses on DXTrade, cTrader, and MatchTrader. A lack of MT5 on Lark (for US/certain clients) may force traders into unfamiliar interfaces like DXTrade, where execution errors are more likely.
- Execution: GFT uses "Liquidity Providers" while Lark uses a "Liquidity Provider". In both cases, slippage during news can push equity below the daily limit before a trade is closed, even if the balance was safe. GFT's "Goat Guard" acts as a safety mechanism that automatically closes trades at a 2% loss, though it is not 100% guaranteed.
What is at stake and what you recover
- Goat Funded Trader: Prices are competitive (e.g., $365 for a $100k 3-Step). You can recover your initial fee as a refund, but only after the 4th payout. They also offer a "Reset" for a percentage of the original price to avoid starting from Phase 1.
- Lark Funding: A $100k 3-Step costs $370. There is no refund of the evaluation fee. However, they offer a "Surrender" (75% discount to restart) if you haven't breached more than 75% of your drawdown, and a "Smart Restart" (free restart) for the 1-Step Career if certain risk conditions were met.
Frequently asked questions
Which firm has more restrictive consistency rules, Goat Funded Trader or Lark Funding?
Goat Funded Trader is more restrictive in this regard, as it applies consistency rules to its Instant Goat (15%), Instant Pro (20%), and Instant HERO (15%) accounts. Lark Funding does not have a consistency rule, allowing traders to have a "big day" without penalizing their withdrawals.
Does Lark Funding or Goat Funded Trader require a mandatory stop loss?
Lark Funding requires a mandatory stop loss on all trades across its programs, unless the trader pays a 10% add-on at checkout. Goat Funded Trader does not require a stop loss, giving the trader more freedom but increasing the risk of a catastrophic account breach.
Which firm is cheaper for a $100,000 3-step evaluation, Goat Funded Trader or Lark Funding?
Goat Funded Trader is slightly cheaper, with its $100,000 3-Step evaluation priced at $365. Lark Funding's 3-Step evaluation for the same size is priced at $370.
Who offers more frequent payouts, Goat Funded Trader or Lark Funding?
Goat Funded Trader offers biweekly payouts as standard, but its Instant accounts can reach payouts every 10 days (Premium/Standard). Lark Funding typically pays every 14 days for evaluations, although its Instant accounts allow the first payout on demand and subsequent payouts every 30 days.
