No. Companies like Topstep and Tradeday have a totally different business model from companies like 5%ers and FTMO. It equates to the difference between CFDs and futures, as explained above.
5%ers and FTMO are not really funding anyone, and not pretending to. They’re counterparties.
I’ve recommended Topstep and Tradeday to people who know what I do for a living, and have asked me because they have some trading skills but no capital. These are companies that actually fund people (verifiably so) on an exchange. Their incentive is verifiably for those funded traders to make profits, of which they take a share, and to continue to do so. But even these firms, I’m sure, make much more money in fees than from their profit-shares.
Trading is like driving a car: everyone thinks their skills are “above average”.
When they lose, either they were unlucky, or it was someone else’s fault.
They think lack of funding is the reason they can’t win.
And they’ll pay to try again, if they can afford to.
The countless “scammy” firms exist only because and while people pay them.