Prop firm FUNDEDNEXT or FTMO

Trading Discussion Prop Firms
22

The problem is that you are comparing MFF to FTMO, MFF was just a start off highlighting the scam/ponzi schemes, this has shaken the industry and regulators or companies that issue licenses started to act.

This led to US regulators to force MetaQuotes to cut off the fishy/non transparent prop firms. Because they didn’t have any direct power over them BUT they had power over MQ, so the indirect regulation is already happening by US government through an extended hand - MetaQuotes.

If metaquotes wouldn’t be forced by FED, they would never cut off literally dozens of millions from one day to another in 10 companies by removing their licenses from a sketch companies.

However after MFF, everything is way more watched over, way more checked, way more strict, and yet - FTMO and fundednext are still here, operating on all platforms including MT5. Before the MFF event nobody cared.

I am not saying that those companies are white than white, I am saying that there is already some degree of regulation even if it’s not direct one, this regulation already submerged 10 companies within 30 days, companies with millions of revenue per month so they couldn’t even bribe anyone - and that’s for me is a regulation, you can call it however you want, but it’s some degree of regulation if there is ANY entity, that is able to shutdown your operations and shutdown your revenue because you don’t follow the rules.

There are still 6-7 companies that are not even slightly affected by this, they didn’t have any issues, and yet still operating. And let me tell you - I believe when this purge and “regulations” started, those biggest companies were FIRST what were most likely checked. As a result of that, few biggest companies were cut off from license and some don’t.

Do you have any other logical explanation why funded engineer, funded trader had issues while FTMO and fundednext don’t ? Or you think they just ignore them? I am pretty sure that were some findings that we don’t see that led MetaQuotes to put a hand on some firms and some were just left alone, and this was not influenced by money as all mentioned companies have enough money to bribe them out …

What I wanted to say by this is - that I will rather trust a companies today that have MetaQuotes license that is indirectly regulated by US government, than other companies … and I don’t really care whether it’s fundednext or FTMO or any other firm.

1 Like
23

Ok, thanks for explaining your perspective, which I now understand a lot more clearly.

Let’s hope you’re right, then?

Do you think the futures prop firms whose funded traders get verifiably live, real futures accounts are a safer overall bet for customers, at the moment?

The regulators seem very pro-futures and anti-CFD’s, don’t they?

24

Actually this is a very interesting question but really hard to answer :slight_smile: Probably an answer worth a million dollars.

Let me tell you why

Let’s take a full ponzi scenario first:

  1. You have income only from the sold challenges
  2. You are loosing money when traders are earning money, so there is a risk that some crazy trader will make $80k profit in a month on 100k account and you need to pay it from your pocket.
  3. over > 80% are loosing money on the market, so theoretically and mathematically this is a SAFEST business model for a long run in terms of the cashflow (while the riskiest of the shutdown)

Now let’s take a full real funded accounts (whether stocks/futures or forex)

  1. You have some income from the sold challenges
  2. You are earning money when traders are earning money, but LOOSING money when they are loosing as you essentially are providing a margin to traders. Since > 80% traders are loosing money, your cashflow is actually even more in a risk. As you could really fast sweep off all company assets by allowing random/lucky traders to trade your full money
  3. You are the most safe when it comes to regulators but on other hand MOST risky to run out of money and reject payouts.

Now let’s take a mixed scenario (to be honest, that’s what I think is the best)

  1. You take some amount of money from challenges
  2. You analyse the funded accounts proactively and you let on real market only really the best of the best (so reducing 80% percentage to like 30%). Then you earning money when SOME traders are earning money, but reducing the blowing up your assets
  3. You sometimes earn money from the best traders
  4. You sometimes loose money from bad traders
  5. You are more or less fine with regulators

So I wouldn’t say that giving ranodm people for $100 - $20,000 real money, on a real accounts is the safer overall bet … it’s definitely less prone to scam, but I think such companies will run to a cashflow issues pretty soon.

1 Like
25

People who have already passed your evaluation, with its really low pass-rate, are surely far from “random”?

This is (presumably - they don‘t say?) something very close to what FTMO do?

But 5%ers apparently don’t?

Which is interesting?

26

Well, there are bots that you can just attach to charts and pass challenge in 1 hour :slight_smile: Without any prior knowledge of trading.

Also there are people that are passing challenges for a fee like in a factory … they pass your challenge in a record time and then they give you credentials for funded. So yes I would still assume that big portion of the passed traders are random.

Yes, I think FTMO is very close to that, but we will never know the answer, neither with 5%ers.