Trading Costs: Spreads and Commissions
When comparing FTMO and The Funded Trader (Royale).</br>
FTMO: Offers a single account type with a fixed 30% profit split. Spreads are generally competitive, but commissions apply. It's important to note that FTMO does not offer raw spreads like some other brokers. </br>
Royale: Offers a wider range of account types, including options with zero commission and tighter spreads. This can be a significant advantage for high-frequency traders or those who are very sensitive to trading costs.
Leverage and Trading Conditions
FTMO: Standard leverage of 1:100 is offered. While this is sufficient for many traders, it may be limiting for those who prefer higher leverage to manage their risk or open larger positions. </br>
Royale: Offers leverage up to 1:500. This superior leverage allows traders to control larger positions with a smaller amount of capital, which can be beneficial for scaling strategies or managing risk more effectively.
Platform Availability
FTMO: Primarily uses MetaTrader 4 (MT4). While MT4 is a popular and robust platform, some traders may prefer the flexibility of other options. </br>
Royale: Offers a choice of trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. This versatility caters to a broader range of trader preferences and strategies.
Evaluation Process and Fees
FTMO: Employs a two-phase evaluation process. The fee for the evaluation is proportional to the capital you wish to trade. If you fail, the fee is forfeited. </br>
Royale: Offers a simpler one-phase evaluation. The fee is generally lower than FTMO's, and importantly, it is refundable upon passing the challenge. This makes the entry barrier lower and less risky.
Profit Splits and Payouts
FTMO: Offers a 30% profit split for all traders, which is on the lower end compared to industry standards. </br>
Royale: Offers profit splits starting from 80% and going up to 90%. This significantly higher profit share means traders keep a much larger portion of their trading profits.
Scaling and Consistency Rules
FTMO: Has strict daily and drawdown limits, which are standard in the prop trading industry. </br>
Royale: Also enforces drawdown limits. Their consistency rules are generally seen as more trader-friendly, allowing for more flexibility in strategy implementation.
Broker and Execution
FTMO: Uses liquidity providers that are well-regulated. </br>
Royale: Trades are executed via Vantage, a reputable and regulated broker known for its raw spreads starting from 0.0 pips, 1:500 leverage, and true ECN execution. This offers a significant advantage in terms of execution speed and cost-efficiency. You can find out more and sign up here: https://vigco.co/la-com-inv/QQwXS85l
Conclusion: FTMO vs Royale Funded UK
When deciding between FTMO and Royale for UK traders, Royale generally presents a more compelling offer. The key advantages include:
* Lower Costs: Refundable fees and potentially tighter spreads/lower commissions.
* Higher Profit Splits: Up to 90% profit share.
* Greater Flexibility: Higher leverage and multiple platform choices.
* Streamlined Process: A one-phase evaluation is often preferred.
While FTMO is a well-established name, Royale's client-centric approach, superior financial terms, and execution through Vantage make it the preferred choice for many UK-based aspiring and professional traders.
FAQs
Q1: Which platform is better for scalping, FTMO or Royale?
A: For scalpers, Royale is often the better choice due to its raw spreads, lower commission options, and higher leverage. Faster execution via Vantage also contributes to a better scalping experience.
Q2: Can I use Expert Advisors (EAs) with FTMO and Royale?
A: Yes, both FTMO and Royale permit the use of Expert Advisors, provided they adhere to the firm's trading rules and don't engage in prohibited strategies like arbitrage or martingale.
Q3: What are the minimum profit targets for FTMO and Royale?
A: FTMO typically has a 10% profit target for phase 1 and 8% for phase 2. Royale's profit target is generally lower, often around 8-10% in their single-phase challenge, making it more achievable.