How you lose the account
At PipFarm, account loss is heavily tied to operational limits beyond just drawdown. You lose the account if you breach the Max Risk limit (2% on most accounts), if you are inactive for 28 days (closing at least one trade), or if you fail to maintain a Consistency Score (typically ≤40% or ≤50% depending on the plan). For Standard funded accounts, PipFarm uses a "Pip Protector" system where reaching the risk limit triggers strikes; the third strike results in account termination.
The5ers focuses account loss on drawdown breaches and specific strategy violations. In the Bootcamp program, failing to place a stop-loss within three minutes or risking more than 2% in a single position results in a violation. In the High Stakes program, trading news (opening/closing orders 2 minutes before/after) doesn't lose the account immediately but results in profit deductions, which can push you closer to the drawdown limit. Inactivity at The5ers is set at 30 days.
Maximum drawdown
PipFarm employs a variety of drawdown types, which increases the risk of confusion. Their "Standard 1-stage" uses either an 8% Balance Trailing or a 6% Static Max Loss. Their "One Step Light" uses a 3-4% End-of-Day (EOD) trailing loss. The most dangerous is the Equity Trailing (available on Instant accounts), as it follows your open profits in real-time.
Numerical Example PipFarm: On a $100,000 Standard account with 8% Balance Trailing, your initial floor is $92,000. If your balance grows to $105,000 and you have no open trades, your new drawdown floor permanently moves up to $97,000 ($105,000 - 8%). Even if your balance drops back to $100,000, your floor stays at $97,000, leaving you with only a 3% actual cushion.
The5ers uses a Balance-based drawdown, which is generally more favorable for the trader as it does not move up with open equity, only with closed balance or during scaling. High Stakes accounts offer an 8% to 10% Max Drawdown.
Numerical Example The5ers: On a $100,000 High Stakes New account with 8% Max Drawdown, your floor is fixed at $92,000. If you have an open trade that reaches $110,000 in equity but you don't close it, your floor remains at $92,000. You only lose the account if your balance (or equity in some specific modes like Summer Plan) hits that $92,000 mark.
Daily drawdown
PipFarm sets a 3% daily loss limit for Standard challenges, calculated from the higher of the previous day's balance or equity at the End-of-Day reference. Notably, the "One Step Light" plan has no daily loss limit, which shifts all risk to the maximum drawdown.
The5ers applies a 3% to 5% daily drawdown depending on the program. It is calculated based on the EOD high-water mark (the highest balance or equity recorded at the end of the day). In the Bootcamp program, reaching the 3% limit results in a "daily pause," allowing you to continue the next day, whereas in the Summer Plan, hitting the limit terminates the account.
Rules beyond drawdown
PipFarm has a strict "Max Risk" rule of 2%. If your open positions at any moment exceed a 2% risk based on the initial balance, the Pip Protector closes them. On One Step Light accounts, reaching this limit is an immediate breach. They also use a Consistency Score; if a single day's profit accounts for more than 40-50% of your total profit, you cannot request a payout.
The5ers' Bootcamp requires a mandatory Stop Loss on every trade within 3 minutes of opening. High Stakes prohibits news trading 2 minutes before and after high-impact releases. Additionally, The5ers has specific "winning day" requirements: High Stakes requires 3 days with at least +0.5% profit to pass the evaluation.
Risk that comes from the setup
PipFarm limits traders to cTrader. While cTrader is known for precision, the lack of platform diversity is a risk for those used to MetaTrader's interface or specific EAs. PipFarm allows EAs but forbids those purchased from marketplaces (like MQL5), forcing you to use your own strategies.
The5ers offers MetaTrader 5, cTrader, and TradingView. This variety reduces the risk of execution errors caused by platform unfamiliarity. However, they have a strict policy against "bracket trading" during news and prohibit using EAs without owning the source code.
What is at stake and what you recover
The cost of failure is the initial fee. At PipFarm, a $100,000 "One Step Light" costs $550. You do not get a refund unless you pay for the "Challenge Fee Refund" add-on (+10% of the price). A major risk at PipFarm is the payout hard cap: you can never withdraw more than $5,000 per payout, regardless of your account size or profit.
At The5ers, a $100,000 "High Stakes New" costs $405, making it cheaper than PipFarm's equivalent. The5ers includes a full refund after passing the High Stakes evaluation. Withdrawal limits are also present but varied: High Stakes $100K has a $4,000 payout cap per cycle. The5ers charges a 3.5% fee on withdrawals via Rise or Crypto, while PipFarm offers free withdrawals for amounts over $500 via Rise but charges for smaller amounts or crypto ($2.50).
Frequently asked questions
Which firm is cheaper for a $100,000 account, PipFarm or The5ers?
The5ers is significantly cheaper for this size. A $100,000 High Stakes New account at The5ers costs $405, while the same size for a One Step Light at PipFarm costs $550. Even PipFarm's Standard Classic 1-Stage is more expensive at $490. Furthermore, The5ers provides a full fee refund upon passing the evaluation, while PipFarm requires you to pay an extra 10% at checkout to be eligible for a refund.
Between PipFarm and The5ers, which one has stricter withdrawal limits?
PipFarm has a stricter absolute limit. PipFarm imposes a "hard cap" of $5,000 per payout across all accounts, meaning even if you have a $150,000 account and make $20,000 in profit, you can only withdraw $5,000 at a time. The5ers also uses caps, such as the $4,000 limit per cycle for the $100K High Stakes account, but their scaling plan allows these limits to grow as the account balance increases.
Which firm offers a more trader-friendly drawdown calculation, PipFarm or The5ers?
The5ers is generally more trader-friendly because it uses balance-based drawdown for its main programs. PipFarm uses trailing drawdown models (Balance Trailing or EOD Trailing) on many of its plans, which move the loss limit upward as you make profits, effectively "locking in" the risk floor. The5ers' floor stays static relative to the starting balance or the scaled balance, providing more room for equity fluctuations.
Can I use automated trading (EAs) on both PipFarm and The5ers?
Yes, but with different risks. PipFarm allows EAs on all accounts but strictly prohibits bots purchased from public marketplaces like MQL5; you must use your own strategy. The5ers allows EAs but requires you to own the source code and prohibits using them for specific strategies like "rollover night scalping." Both firms prohibit High-Frequency Trading (HFT) and latency arbitrage.
