Looking to kick-start your funded trading journey? Several trading evaluation firms offer funding opportunities to talented traders. But to become a funded trader, you must first pass an evaluation challenge. In this guide, we’ll compare the FTMO Challenge and Rocket 21’s Standard Challenge. Evaluation firms set these challenges to select traders who can perform well under pressure and in different simulated market conditions. Before you start a challenge, though, it’s important to determine which one is bests for you. Specifically, we’ll look at each firm’s $10,000 challenge.

FTMO Standard Challenge

FTMO is considered to be among the best evaluation firms for a funded trader. It offers simulated challenge accounts ranging from $10,000 to $200,000 in virtual funds. This means you can purchase a challenge to manage that amount of simulated capital per their virtual trading rules.
Become a funded trader with FTMO
To purchase an FTMO Challenge, you must first register in the client area. The registration is free and only takes a couple of clicks. Next, you’ll customize the challenge. Pick your virtual trading currency, risk level (normal or aggressive), simulated account type (regular or swing), and the preferred virtual trading platform (MT4, MT5, CTrader, DXTrader). Then, you can choose the amount of simulated capital you’d like to trade. It’s important to note that FTMO Challenges are conducted in simulated trading conditions. This means you’ll be trading in a virtual simulation mode, not the real market.

Challenge Rules

For Step 1 of the $10,000 FTMO Challenge, you have unlimited simulated trading days. You must trade a minimum of four days, although they don’t have to be back-to-back. FTMO will allow you a maximum virtual daily drawdown of $500 in virtual funds on a $10,000 Challenge, which means your simulated account capital shouldn’t fall below this amount. The total simulated loss for the $10,000 Challenge is $1,000 in virtual funds. Next comes the verification step. Here, the payout target lowers to 5%, which makes the objectives a bit easier. This step is all about testing your consistency. The verification stage is free, so you don’t need to pay anything to start this Challenge. Once you’ve made it past the challenge and verification, you’re eligible to become an FTMO funded trader. The firm will check your account to verify that your trades align with simulated market conditions and their trading rules. It will then award you with a virtual funded demo account. As long as you adhere to the drawdown rules, funded traders don’t have to stress about payout targets. What’s more, you can pocket 80% of the payout split as a funded trader. It goes up to 90% with a scaling plant.

FTMO Challenge Pros

  • 5% daily balance-based drawdown and a 10% maximum drawdown
  • Lower payout target of 5% in the verification stage
  • 80% payout split
  • Claim your first payout 30 days after your first trade as a funded trader
  • A payout on-demand option is also available for faster payouts
  • Withdrawal options include cryptocurrency and direct bank deposits

FTMO Challenge Cons

  • The FTMO challenge is pricier than Rocket 21’s challenge. The $10,000 FTMO Challenge costs $172 (at the time of publishing), compared to $139 for the same challenge with Rocket 21 (even less with our regular discount offers).
  • FTMO is a luxury platform and might not be the best option for beginners.
  • FTMO’s payout target in Step 1 is 10%, unlike Rocket 21’s 8%.

Rocket 21 Challenge Standard Challenge

Rocket 21 also conducts its funded trader Challenges in a demo mode. We simulate the real market via latency and static slippage associated with the size of your virtual order. And like FTMO, our Challenge is also broken into two steps: the Challenge stage and the Verification stage. Let’s look at the rules for both these steps plus our pros and cons.
Become a funded trader with Rocket21

Challenge Rules

In our Standard Challenge, you can choose simulated trading capital between $5,000 and $300,000 in virtual funds. For this comparison, we’ll look at the $10,000 Standard Challenge. You can trade unlimited calendar days in both stages but must commit to a minimum of five trading days. The payout target in Step 1 is set at 8%. The maximum virtual daily drawdown allowed is 5% of your simulated trading account, and the maximum overall drawdown is 10%. We also offer Challenge leverage of 1:100. Leverage allows you to increase the size of your trade by this much amount, but this can amplify both wins and losses. Leverage is risky, so we always advise our traders to use low leverage, especially as they get started. Another thing that sets us apart is that we allow simulated news trading. If you closely monitor economic reports and announcements, you’ll be able to take advantage of this feature. Upon completing Step 1, we’ll refund your challenge fees. Step 2 is the verification stage and is free of charge. Trading objectives stay the same except for the payout target, which is reduced to 5%. For the $10,000 simulated account, you’ll need to hit a $500 virtual funds payout. Our team will then review your account. If everything checks out, you’ll become Rocket 21’s latest virtual funded trader. At this stage, there are no payout targets. As our funded trader, you’re eligible to receive an 85% payout split (90% with scaling).

Rocket 21 Challenge Pros

  • A lower simulated payout target than the FTMO Challenge (8% vs. 10%)
  • We review and approve payouts within three business days
  • We allow simulated news trading
  • 85% payout split

Rocket 21 Challenge Cons

  • Your first payout can only be processed after 30 days from the first trade.
  • Your simulated trading account will be put in demo mode while we process the payout.
  • If you fall below our set risk management parameters, we may revoke your funded trading account.

Become a Simulated Funded Trader With Rocket 21 Challenge

Compared to the FTMO Challenge, Rocket 21’s $10,000 Standard Challenge is more affordable. You’ll also find regular discounts and promotions on our website and Discord group. Rocket 21 is a secure evaluation trading firm with a 4+ rating on TrustPilot. Anyone can become a funded trader with us and manage thousands of dollars in virtual capital. Join Rocket 21’s Challenge today to start your journey as a simulated funded trader.