Scalping and Intraday Trading
Both firms allow scalping but impose strict definitions to prevent High-Frequency Trading (HFT).
- Instant Funding: Permits scalping but prohibits HFT, defined as trades held under 60 seconds or an excessive number of trades per hour. Using cTrader or MetaTrader 5 provides the technical depth scalpers need, though they must watch the "Smart Drawdown" in certain accounts, which can move upward and lock.
- Velotrade: Allows ordinary scalping but strictly bans tick scalping and latency exploitation. Traders are limited to the DXtrade platform. A major advantage for scalpers here is the static drawdown, which does not trail profit, allowing more breathing room for multiple small positions without the "floor" rising.
News Trading
The approach to high-impact events differs significantly between the two, especially regarding funded stages.
- Instant Funding: In evaluation phases, news trading is generally free. However, on most funded accounts, traders must either purchase a "Major News Trading" add-on or adhere to an 8-minute restriction window (4 minutes before and after). Violations lead to profit deductions or account breaches after the third strike.
- Velotrade: Macro news trading is permitted without specific time-window bans. However, for those trading single stocks, positions must be closed 24 hours before and after earnings or ex-dividend events. This makes Velotrade more flexible for Forex news traders but more restrictive for equity traders.
Automated Trading (EA) and API
Traders using bots will find two very different environments.
- Instant Funding: Fully supports EAs on MetaTrader 5 and other platforms. It is the better choice for those using standard commercial bots bought from marketplaces, as no special bridges are required.
- Velotrade: While it allows self-built and commercial bots, it offers something rare: REST and WebSocket API access included without extra fees. However, because they only use DXtrade, MetaTrader-based EAs will require a technical bridge or adaptation. Private or bespoke signal services are prohibited.
Copy Trading and Hedging
These strategies are governed by ownership and account-sync rules.
- Instant Funding: Allows copy trading and hedging. It is more permissive for those wanting to sync trades from external sources or between different firms.
- Velotrade: Copy trading is only permitted between accounts owned by the same trader. Cross-firm or cross-platform hedging is strictly prohibited. If you hedge between two different firms, Velotrade considers it a violation that can lead to permanent closure.
Swing Trading and Weekend Holding
Holding positions over the weekend depends on the specific account type and assets.
- Instant Funding: Most accounts (Pro, Lite, One-Phase) require a paid add-on to hold positions over the weekend. Some specific accounts like IF Micro or IF1 allow it by default. The "IF Evolve" model is the most restrictive, automatically closing all positions daily at 17:00 EST.
- Velotrade: Weekend holding is allowed for Forex by default. For single stocks, there may be specific instrument-based bans or size limits. Traders must pay an overnight funding fee of 0.05% of the notional value, which applies even on weekends for most assets.
If you trade like this
- If you use MetaTrader 5 and commercial EAs: Instant Funding is the right choice due to its platform support and straightforward EA rules.
- If you trade Stocks and ETFs with an API: Velotrade is superior, as it offers these assets and free API access, which Instant Funding lacks.
- If you want a Static Drawdown that doesn't move: Velotrade offers static drawdown on all accounts, whereas Instant Funding often uses trailing or "Smart" drawdowns.
- If you want the lowest entry cost: Instant Funding wins with its $2,000 accounts starting at $25.
Frequently asked questions
Which firm is cheaper for a $5,000 1-step challenge, Instant Funding or Velotrade?
Instant Funding is more expensive for this specific size, with its "One-Phase Lite" $5k account priced at $119, while Velotrade offers its "PRO 1-Step" $5k account for just $40. However, Instant Funding offers a "Starter" $5k account (Instant Funding) for $38, but it has a much lower profit split of 70% compared to Velotrade's 80%.
Which firm has a more trader-friendly drawdown, Instant Funding or Velotrade?
Velotrade is generally more friendly for risk management because it uses a static drawdown that stays fixed at the starting balance's floor. Instant Funding uses several complex models, including "Smart Drawdown" (which moves up to -5% and then locks) and "Trailing Drawdown" (which follows the balance/equity), making it easier to lose the account during a retracement compared to Velotrade.
Who provides faster payouts and lower minimums, Instant Funding or Velotrade?
Instant Funding offers much faster and more accessible payouts, with a minimum withdrawal of only $25 and "On-Demand" options for many account types. Velotrade requires a minimum of $100 and only allows the first payout after 14 days and a set number of profitable days. Additionally, Velotrade limits the first two payouts to 20 times the challenge fee paid.
Which firm allows more flexibility for news trading, Instant Funding or Velotrade?
Velotrade is more flexible for macro news traders as it does not impose the 8-minute restriction window found in Instant Funding's funded accounts. On Instant Funding, unless you pay for an add-on, you are prohibited from trading 4 minutes before and after major news, whereas Velotrade allows macro news trading freely, only restricting equity traders during earnings reports.





















