Funded Academy vs True Forex Funds

Funded Academy Overview

Funded Academy emerges as a formidable prop trading firm, offering real accounts with the potential for traders to manage up to $1,000,000 in genuine capital. With its attractive offer of bi-weekly payouts and an impressive profit share ranging from 70% to 90%, the firm positions itself favorably amongst those aiming for high-frequency trading payouts. The leverage provided for Standard challenge accounts stands at 1:100, a middle ground that appeals to traders seeking to amplify their positions while not being overly exposed. One unique aspect of Funded Academy is the permission for overnight positions and news trading, granting traders the flexibility to take advantage of various market conditions without stringent restrictions. Additional exclusive benefits are available for those engaging in the Extended challenge accounts, although these specifics were not provided in the context. Despite its offerings, certain cons of Funded Academy were not disclosed, leaving potential traders without critical information that might influence their decision-making process.

True Forex Funds at a Glance

True Forex Funds takes on the trading scene with a solid Trustpilot rating of 4.6/5, suggesting a good level of trader satisfaction. The firm offers traders three two-step evaluation programs, which, while demanding, provide unlimited retries. The 80% profit share is also a compelling feature, ensuring that traders receive a substantial portion of the profits earned. Another advantage is the firm’s flexibility, offering a leverage of 1:100, akin to that of Funded Academy, and allowing for a flexible trading style conducive to a wide range of trading strategies. The ability to hold positions overnight and during weekends, as well as executing trades during news releases, adds to the firm's trader-friendly approach. However, True Forex Funds comes with its drawbacks, such as relatively high evaluation account prices and a maximum daily drawdown limit of 5% based on equity, which may deter those with aggressive trading styles. Furthermore, the high commission costs could eat into profits, potentially affecting the bottom line for active traders.

Trading Conditions and Rules

Both firms enforce rules regarding maximum daily losses and overall losses, have profit targets, require stop-loss usage, and have stipulations around third-party copy trading and EA risks, which are common standards in the industry to manage risks effectively. However, Funded Academy also stipulates a lot size limit and prohibits weekend holding, imposing slightly more constraints on trading freedom.

Payments and Financial Practicalities

In the realm of deposits and withdrawals, both Funded Academy and True Forex Funds accept cryptocurrencies and credit/debit card transactions. However, Firm 1 is limited to crypto withdrawals, potentially causing inconvenience for traders who prefer more traditional withdrawal methods. On the other hand, True Forex Funds offers additional options, including bank wire transfers and Deel, thereby catering to a broader range of trader preferences.

Account Offerings and Currencies

Funded Academy provides a diverse array of account sizes, ranging from $10,000 to $1,000,000, enabling traders of different investment scales to find a suitable match. All accounts are denominated in USD, which might appeal to those preferring to trade in a singular currency. Conversely, True Forex Funds offers accounts in EUR, GBP, and USD, accommodating traders who wish to manage funds in different fiat currencies, thereby broadening its accessibility to an international audience.

Available Instruments for Trading

As for tradable instruments, both prop firms cover a comprehensive spectrum of markets. Funded Academy offers trading in crypto, forex, indices, metals, and stocks, presenting a wide array of opportunities for diversification. True Forex Funds aligns closely with its competitor but also includes commodities, which could tip the scale for traders interested in that particular market segment.

Company Foundations and Track Record

Funded Academy has been incorporated since July 2021, giving it a slight time advantage over True Forex Funds, which commenced operations in October 2021. This could have implications for perceived experience and establishment within the industry; however, both firms are relatively new, and their long-term reputations are yet to be solidified.

Final Thoughts

Both Funded Academy and True Forex Funds present compelling offerings to the retail trader market. The choice between the two might ultimately come down to specific trader preferences such as the importance of trading instrument variety, account currency options, cost considerations, or the degree of trading flexibility required. It is essential for potential clients to weigh these aspects critically against their trading strategies and risk tolerance before committing to a partnership with either firm.