What you are signing up for
A prop firm evaluation is a test where you trade with simulated money to prove you are profitable. If you reach the profit target—the specific amount of gain required to pass—without breaking any rules, the firm gives you access to a funded account where you keep a percentage of the profits.
- IQ Capital offers a "Welcome Offer" for just $9 to get a $50,000 account, though most of its standard "Core" accounts cost between $195 and $999.
- Instant Funding provides a wider range of entry points, such as the "Evolve" accounts starting at $49 or "Micro" accounts for as little as $42.
Both firms charge an initial fee to take the test. IQ Capital also requires an activation fee once you pass the evaluation, while Instant Funding typically includes everything in the initial purchase.
How hard each one is
The difficulty is defined by the drawdown, which is the maximum loss you are allowed to have before the firm closes your account.
- IQ Capital uses a "Trailing EOD" drawdown. This means the loss limit follows your highest account balance at the end of the day. If you make money, your "floor" rises, but it never goes back down, even if you lose money the next day.
- Instant Funding uses various systems, but its "Smart Drawdown" is unique. It moves up as you gain profit, but once it reaches a certain level (like -5% of your starting balance), it locks permanently. This means once you are safely in profit, the drawdown stops chasing you.
IQ Capital is stricter with daily risk. They have a "Maximum Risk Limit" of 1% during evaluation. This means if the total risk of your open trades exceeds 1% of the account, you get a warning. Three warnings and you fail.
How long it takes
Beginners often feel pressured by time, but both firms are quite flexible.
- IQ Capital gives you 90 days to complete an evaluation. There are no minimum trading days for their "Core" plans, meaning you could pass in a single day if you hit your target.
- Instant Funding offers "Unlimited" trading days on most accounts. For their standard challenges, you only need to trade for a minimum of 3 days.
If you are in a hurry, IQ Capital’s "Rapid" plan and Instant Funding’s "Instant" accounts allow you to skip the evaluation phase entirely and start earning from day one, though these accounts have smaller profit shares or higher prices.
Where beginners fail
The most common trap for new traders is the consistency rule. This rule ensures your success isn't just a lucky "one-shot" trade. It requires your profits to be spread out across multiple days.
- In IQ Capital, your best trading day cannot represent more than 30% of your total profit once you are funded. They also have a "15-second rule": at least half of your trades must last longer than 15 seconds.
- In Instant Funding, the best-day limit varies between 15% and 40% depending on the account type.
Beginners also fail by not understanding the inactivity rule. IQ Capital will close your account if you don't place a trade for 8 days. Instant Funding is much more generous, giving you 60 days of inactivity before closure.
What happens if you make it
Once you pass, you receive a profit split, which is your share of the gains.
- IQ Capital pays out 80% to 90% of profits. You can request a payout every 10 active sessions. They offer a 48-hour processing guarantee.
- Instant Funding usually offers an 80% split, which can scale up to 90%. Payouts can be "On-Demand" for some accounts or every 7 to 14 days for others.
Regarding platforms—the software you use to place trades—IQ Capital offers MetaTrader 5, TradingView, and Volumetrica. Instant Funding provides more variety with MetaTrader 5, cTrader, DXTrade, and MatchTrader.
If it is your first time
If you are looking for the cheapest possible way to practice, IQ Capital’s $9 Welcome Offer is unbeatable. It allows you to feel the pressure of a real evaluation for the price of a coffee.
However, for a serious first attempt at getting funded, Instant Funding is likely better. Their "Smart Drawdown" is more forgiving for beginners because it eventually stops moving, and their 60-day inactivity rule provides a much more relaxed environment than IQ Capital’s 8-day limit.
Frequently asked questions
Which firm is cheaper to start a $50,000 challenge, IQ Capital or Instant Funding?
IQ Capital is significantly cheaper for a first attempt due to its $9 "Welcome Offer" for a $50,000 account. In comparison, a $50,000 "One-Phase Pro" challenge at Instant Funding costs $369, and their "Evolve" $50,000 account costs $99. Even when considering IQ Capital's activation fee of $129, the total cost for the Welcome account remains lower.
Which firm has a more beginner-friendly drawdown, IQ Capital or Instant Funding?
Instant Funding is more beginner-friendly because of its "Smart Drawdown" which locks at a fixed level once you reach a certain profit. IQ Capital uses a "Trailing EOD" drawdown that constantly moves up with your account's peak end-of-day balance. This means in IQ Capital, you can never "bank" your safety margin, whereas in Instant Funding, you eventually reach a point where the drawdown stops rising.
Between IQ Capital and Instant Funding, which one allows more time to pass the evaluation?
Instant Funding offers more time as most of its accounts have "Unlimited" trading days, meaning you can take months or even years to reach your goal. IQ Capital limits the evaluation period to 90 days. While 90 days is usually enough for most traders, Instant Funding removes the time pressure entirely, which is often a major cause of failure for beginners.
Which firm offers more trading platforms, IQ Capital or Instant Funding?
Instant Funding offers a wider variety of platforms, including MetaTrader 5, cTrader, DXTrade, and MatchTrader. IQ Capital focuses on a different selection, offering MetaTrader 5, TradingView, and Volumetrica. If you prefer modern interfaces like cTrader or MatchTrader, Instant Funding is the better choice, while IQ Capital is better for those who specifically want to trade directly from TradingView.
