What you are signing up for
A prop firm evaluation is a skills test where you pay a fee to prove you can trade responsibly. If you pass, the firm lets you trade with their capital and you keep a share of the profits.
- The5ers offers very low entry points, such as the $20,000 Bootcamp for just $22.
- Velotrade starts their smallest $5,000 "PRO" accounts at $40.
- Neither firm has a free trial, though Velotrade offers a "read-only" guest access to see their prices.
- The5ers includes a fee refund for their High Stakes program once you pass, while Velotrade generally does not offer refunds.
How hard each one is
Dificulty is measured by the profit target, which is the amount of money you must earn to pass, and the drawdown, which is the maximum amount you are allowed to lose before your account is closed.
- The5ers usually sets a profit target between 8% and 10%. Their drawdown is "balance-based," meaning the loss limit is calculated from your starting balance and is easier for beginners to track.
- Velotrade also requires a 10% profit target. However, they use a "static drawdown," which means your loss floor is fixed at a certain price level and does not move even if you make a lot of profit.
- The5ers has a daily loss limit of 3% to 5% depending on the plan.
- Velotrade has a daily loss limit of 3% to 5% that recalculates every day based on your balance or equity (your balance plus or minus open trades), whichever is higher.
How long it takes
Both firms have removed the maximum trading days, meaning you can take as much time as you need to reach the target without feeling rushed.
- To pass at The5ers, you need at least 3 profitable days where you earn at least 0.5% of the balance.
- At Velotrade, you need 5 "qualifying days." A day only counts if you achieve a net profit of at least 0.8% of your starting balance.
- The5ers offers 1-step, 2-step, and even 3-step evaluations (Bootcamp).
- Velotrade offers 1-step and 2-step evaluations.
Where beginners fail
Most beginners fail because they violate risk rules or consistency rules, which are requirements to ensure your trading results are not just lucky "one-shot" gambles.
- The5ers uses a 50% consistency rule in their "Summer" plans. This means no single trade can account for more than half of your total profit.
- Velotrade does not have a consistency cap on winning days, but they strictly forbid "Martingale," which is the risky strategy of doubling your trade size after a loss to try and break even.
- The5ers is more restrictive with news trading in their High Stakes program, forbidding opening or closing trades 2 minutes before and after major economic announcements.
- Velotrade allows macro news trading but requires you to close stock positions during earnings reports.
What happens if you make it
If you pass the test, you become a "funded trader" and can start requesting payouts, which are your share of the profits.
- The5ers gives you between 50% and 80% of the profits initially, but this can grow to 100% as you scale up your account.
- Velotrade offers a higher starting split of 80%, and you can pay an extra fee at the start to increase this to 90%.
- For withdrawals, The5ers makes you wait 14 days for the first one, then you can withdraw every 2 weeks. They charge a 3.5% fee on most withdrawals.
- Velotrade also requires a 14-day wait for the first payout, but then allows weekly withdrawals. They only pay in Crypto (USDC or USDT) and do not charge a percentage fee, only a small network cost.
If it is your first time
For a beginner, The5ers is the better recommendation. Their Bootcamp program allows you to practice in a live-market environment for a very low cost ($22), and their "balance-based" drawdown is much simpler to understand for someone who has never managed a risk floor before. Additionally, The5ers offers MetaTrader 5 and TradingView, which are the most popular and well-documented platforms for learning, whereas Velotrade limits you to DXtrade.
Frequently asked questions
Which firm is cheaper to start a $5,000 challenge, The5ers or Velotrade?
The5ers is slightly cheaper for this size. Their $5,000 High Stakes New challenge costs $35, while the $5,000 PRO 1-Step challenge at Velotrade costs $40. If you choose the 2-step version at Velotrade, the price rises to $54.
Between The5ers and Velotrade, which one offers more trading platforms?
The5ers offers much more variety, allowing you to use MetaTrader 5, cTrader, or TradingView. Velotrade is limited to a single platform called DXtrade, which might be less familiar to those just starting out.
Does The5ers or Velotrade require more days of trading to get the first payout?
Velotrade is more demanding for the first payout because it requires 5 "qualifying days" where you must earn at least 0.8% profit each day. The5ers only requires 3 profitable days with a lower threshold of 0.5% profit to pass their evaluation.
Which firm offers a fee refund after passing, The5ers or Velotrade?
The5ers offers a full fee refund for their High Stakes program once you pass the evaluation and reach the funded stage. Velotrade does not offer a standard fee refund in their terms, stating that once you place your first trade, the fee is generally non-refundable.
