Proprietary trading firms offer traders a chance to work with more significant amounts of funds without risking their own capital. However, prop firms have different funding programs with various rules. The drawdown limitations are the main rule that prop trading firms don’t allow you to break during evaluation.
IMPORTANT NOTICE: Proprietary trading firms use different phrases for the drawdown limitation rules, which means that two prop firms can have the exact same phrase used, but a different meaning for their limitation. For exact explanations of drawdown limitations, you should check out the terms & conditions of each presented proprietary trading firm to get the correct knowledge about their limits that you are not allowed to breach!
You can see which drawdown limitations you should focus on for each proprietary trading firm funding process in the spreadsheet below:
| Proprietary trading firm | 1-phase evaluation drawdown limits | 2-phase evaluation drawdown limits | 3-phase evaluation drawdown limits | Direct funding drawdown limits | Assessment management drawdown limits |
| Alphachain | Weekly risk limit 5%, Max drawdown 5% | ❌ | ❌ | Weekly risk limit 5%, Max drawdown 10% (based on starting balance) | ❌ |
| Audacity Capital | ❌ | ❌ | ❌ | ❌ | Max drawdown 10% |
| Blue Guardian Capital | ❌ | Max daily loss 4%, Max total loss 10% | ❌ | ❌ | ❌ |
| BluFX | ❌ | ❌ | ❌ | Max drawdown 5% | ❌ |
| BuoyTrade | ❌ | ❌ | Max daily loss 5%, Max overall loss 10% | Max overall loss 5% | ❌ |
| City Traders Imperium | Max relative drawdown 5% | ❌ | ❌ | Max absolute drawdown 5% | ❌ |
| Corp Equity Capital | Max daily loss 3%, Max overall loss 12% | Max daily loss 5%, Max overall loss 12% | ❌ | Max overall loss 7% or 12% | ❌ |
| Digital Pit | Max static loss 4% | ❌ | ❌ | ❌ | ❌ |
| E8 Funding | ❌ | Max daily floating loss 5%, Max overall absolute drawdown 8% | ❌ | ❌ | ❌ |
| Fidelcrest | ❌ | Normal accounts: Max daily loss 5%, Max overall loss 10% Aggressive accounts: Max daily loss 10%, Max overall loss 20% | ❌ | ❌ | ❌ |
| Finotive Funding | ❌ | Max daily drawdown 5%, Max overall drawdown 10% | ❌ | ❌ | ❌ |
| FMS Traders | ❌ | Max daily loss 5%, Max overall loss 10% | ❌ | ❌ | ❌ |
| Forex Traders UK | Max absolute drawdown 5% | ❌ | ❌ | Max absolute drawdown 5% | ❌ |
| FTMO | ❌ | Normal accounts: Max daily drawdown 5%. Max overall drawdown 10% Aggressive accounts: Max daily drawdown 10%, Max overall drawdown 20% | ❌ | ❌ | ❌ |
| Funded Academy | Max daily drawdown 4%, Max overall drawdown 5% | Max daily drawdown 5%, Max overall drawdown 10% | ❌ | ❌ | ❌ |
| Funded Trading Plus | Max daily drawdown 2.5%, Max overall drawdown 5% | Max daily drawdown 5%, Max overall drawdown 10% | ❌ | ❌ | ❌ |
| FundYourFX | Weekly loss limit 5%, Maximum loss limit 10% | ❌ | ❌ | ❌ | ❌ |
| Lux Trading Firm | Max overall loss 4% | ❌ | ❌ | ❌ | ❌ |
| Ment Funding | Max daily loss 4%, Max overall drawdown 5% | ❌ | ❌ | ❌ | ❌ |
| My Forex Funds | Max daily drawdown 5%, Max overall drawdown 12% | Max daily drawdown 5%, Max overall drawdown 12% | ❌ | Max overall drawdown 5% or 10% | ❌ |
| Nations Trading | ❌ | Max daily loss 5%, Max overall loss 10% | ❌ | ❌ | ❌ |
| OspreyFX | ❌ | Max daily loss 5%, Max overall loss 12% | ❌ | ❌ | ❌ |
| SurgeTrader | Max daily loss 4%, Max trailing drawdown 5% | ❌ | ❌ | ❌ | ❌ |
| The Funded Trader Program | Max daily loss 6%, Max overall loss 12% | Max daily loss 6%, Max overall loss 12% | ❌ | ❌ | ❌ |
| The5%ers | ❌ | ❌ | ❌ | Max overall loss 4% | ❌ |
| ThePropTrading | ❌ | Max daily loss 5%, Max overall loss 10% | ❌ | ❌ | ❌ |
| Top Tier Trader | ❌ | Max daily loss 5%, Max overall loss 10% | ❌ | ❌ | ❌ |
| TopStep | ❌ | Futures accounts: Max daily and weekly (step2) loss 2%, Max trailing drawdown 3% Forex accounts: Max weekly loss limit 66.6% (step 1) and 33.3% (step 2), Max loss limit 66.6% | ❌ | ❌ | ❌ |
| Traders Central | ❌ | Max daily loss limit 5%, Max overall drawdown limit 10% | ❌ | Max drawdown limit 5% | ❌ |
| True Forex Funds | ❌ | Max daily loss 5%, Max overall loss 10% | ❌ | ❌ | ❌ |
| XL Trade | ❌ | Max drawdown limit 5% | Max drawdown limit 5% | ❌ | ❌ |
IMPORTANT NOTICE: Proprietary trading firms use different phrases for the drawdown limitation rules, which means that two prop firms can have the exact same phrase used, but a different meaning for their limitation. For exact explanations of drawdown limitations, you should check out the terms & conditions of each presented proprietary trading firm to get the correct knowledge about their limits that you are not allowed to breach!
You can check complete reviews for the proprietary trading firms listed above by clicking here.
