Funding Pips vs True Forex Funds

Comparison Overview

When it comes to prop trading firms, both Funding Pips and True Forex Funds stand out for their commitment to enabling traders to access significant capital. With robust prop trading offerings, the two firms present a compelling competitive landscape for retail traders seeking funding and growth. This review will provide a detailed comparison by considering the pros and cons, rules, financial operations, account sizes, tradeable instruments, and incorporation dates for each firm.

Firm 1: Funding Pips

Funding Pips enters the arena with the allure of industry-leading low evaluation fees, a feature that's highly attractive to new traders. A high Trustpilot rating echoes the firm's credibility and trader satisfaction. The firm goes big in terms of capital allocation, offering up to $2 million with competitive leverage, which is particularly advantageous for seasoned traders who can manage substantial positions. A standout feature is the flexibility in trading—allowing for indefinite trading durations, no minimum days before payouts, and enticing scaling plans that cater to aggressive growth strategies. On the profit-sharing front, Funding Pips is quite generous, with 80% to 90% profits shared with traders, and the convenience of weekly payouts positions it well for those looking to earn regular income. However, the absence of Live Chat Support may frustrate traders who seek quick resolutions to their queries, and the enforced stop-loss rule, although a prudent risk management measure, might limit some trading styles.

Firm 2: True Forex Funds

True Forex Funds approaches the prop trading space with a more standardized view. The Trustpilot rating closely trails that of Funding Pips, suggesting a high level of trader satisfaction. Three separate two-step evaluation programs offer flexibility, while unlimited evaluation retries display a commitment to trader development. True Forex Funds’ leverage echoes the industry standard offered by its competitor, yet it differs when it comes to profit share—capping at a static 80%. The firm’s green light for overnight, weekend, and news trading is a boon for traders who relish these times of potential high volatility. Costs, however, present a barrier to some traders, with comparatively high evaluation account prices and commission costs that may eat into profits. Additionally, a strict maximum daily equity-based drawdown rule emphasizes the firm’s cautious stance on risk.

Comparison of Trading Conditions and Rules

Both firms enforce similar overarching rules—a maximum daily loss, profit target, and restrictions on third-party copy trading and EAs, which serve to protect the firms' interests while aligning traders with risk-managed approaches. Hedging and Martingale strategies are notably prohibited by Funding Pips, reflecting a cautious approach to commonly contentious trading strategies.

Financial Operations

Financial transactions for both firms are modern and inclusive, with crypto and credit/debit card options for deposits. True Forex Funds offers a more diverse range of withdrawal methods, including bank wire transfers, suggesting an advantage for those seeking traditional banking methods.

Account Sizes and Currencies

While Funding Pips has specified account sizes in USD only, ranging from $5,000 to $200,000, True Forex Funds displays greater currency flexibility by offering accounts in EUR, GBP, and USD. The multi-currency option caters to a wider international audience.

Tradeable Instruments and Incorporation

Both firms offer a similar range of instruments, encompassing commodities, crypto, forex, indices, and metals, which provides traders with ample markets to engage with. Funding Pips is relatively newer in the market, having been incorporated in August 2022, whereas True Forex Funds has been around since October 2021. This might influence a trader’s choice, as experience and track record in the industry can be a determining factor.

Final Thoughts

In conclusion, both Funding Pips and True Forex Funds present viable opportunities for retail traders to amplify their trading capabilities. Funding Pips shines with lower evaluation fees and flexible profit-sharing, while True Forex Funds offers structure with its evaluation programs and broader withdrawal options. Trader preference will ultimately depend on individual trading styles, risk tolerance, and desired financial operations. Each firm brings a unique set of advantages to the table, and traders are encouraged to weigh these features against their personal objectives before making a decision.