FundingPips vs. The5ers: Rules, Rewards, and Profit Splits Compared

Most beginners gravitate towards the popular ones while choosing prop firms. While it is true that the most reputable prop firms are reputable for a reason, they end up missing one or the other aspect. In 2026, choosing the right prop firm goes much beyond just a name.

FundingPips and The5ers are two of the most talked-about prop firms in 2026 but they are built on completely different philosophies.

FundingPips, founded in 2022 and headquartered in Dubai, has quickly positioned itself as one of the most flexible and trader-centric prop firms in the industry, surpassing $250 million in trader payouts in just a few years.

The5ers, founded in 2016 and based in Israel, takes a more conservative approach built around structured scaling, disciplined progression, and long-term account growth up to $4 million.

So which one is right for you? This comparison breaks down challenge models, drawdown rules, profit splits, payout systems, and scaling potential so you can make an informed decision based on how you actually trade.

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Core Structure of FundingPips and The5ers

This table outlines the foundations of both FundingPips and The5ers to help traders see each firm's global position.

Challenge Models Structure

Both FundingPips and The5ers offer multiple challenge models to ensure easy resource access for their global trader community. In this regard, both firms share some similarities. 

Just like FundingPips offers a balanced and flexible trading approach, The5ers also offers 3 different challenge types, each for specific trader types. Let’s look at the table below to see what models they are offering. 

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Drawdowns and Profit Targets 

Before you decide upon any challenge model, it is important to see the challenge drawdown and profit splits. This helps traders align the prop firms with their individual trading style, risk appetite, and long-term goals, resulting in a better trading experience and growth.

FundingPips

FundingPips has different drawdown and reward conditions for each challenge type. For instance:

• FundingPips step 1 and 2 require traders to trade within a 3-5% daily drawdown and a 6-10% maximum drawdown limit. 

• In step 1, traders need to achieve a 10% profit target. 

• In step 2, traders need to achieve an 8% profit target in phase 1 and a 5% profit target in phase 2.  

• FundingPips 2-step pro and FundingPips Zero have a 3% daily drawdown and a 6% overall loss limit. 

• For FundingPips 2-step pro, traders need to earn a 6% profit target, while FundingPips Zero requires no profit targets to complete the challenge. 

The5ers

The5ers follows a strict and structured set of prerequisites for each account type necessary for challenge clearance. For instance:

• The hyper-growth plan has a 3% daily and 6% maximum drawdown limit. The profit target is 10% to pass the challenge. 

• The Highstakes plan has a 5% daily and a 10% maximum loss limit in both phase 1 and phase 2 of the challenge. But the profit target in phase 1 is 10% while in phase 2, it is 5%.

• The bootcamp plan type has a 5% drawdown limit across all three phases of the challenge. Also, the profit target is 6% for each phase. 

Trading Rules: Restrictions vs. Flexibility

Not all prop firms allow traders to use those all strategies. However, both FundingPips and The5ers allow many trading strategies to accommodate different trader profiles. For instance, FundingPips allows:

• Scalping

• Weekend and overnight holding

• News trading (based on program rules and restricted practices)

In comparison, The5ers allows:

• News trading (slightly restricted in the High Stakes program as traders are not allowed to execute new orders immediately before or during high-impact news)

• Weekend and overnight holding

• Manual scalping is allowed only

• Self-customized EAs are allowed (third-party EAs or copy trading EAs are restricted)

On the restrictions side, FundingPips prohibits high-frequency trading, latency arbitrage, and toxic order flow strategies. The5ers similarly restricts third-party EAs, copy trading from external sources, grid trading, and hedging across accounts. Both firms monitor trading behavior closely and reserve the right to flag accounts showing patterns inconsistent with genuine trading. Both firms allow traders to trade with these trading strategies. But some strategies are restricted to avoid high-frequency practices. It is upon the trader to act responsibly and avoid those trading practices, as that could lead to an account breach. 

Profit Splits and Scaling Potential in FundingPips and The5ers

How much profit splits a prop firm offers, and its overall scaling growth plan are some of the most descriptive features of any prop firm. Luckily, FundingPips and The5ers offer lucrative splits:

• With FundingPips, traders can get 60-100% profit splits provided traders meet all the mentioned prerequisites.

• At The5ers, the profit splits start at 50% and can go up to 100%. But these numbers are strictly performance-based. 

As mentioned, these firms provide traders with rewarding profit splits in return for their performance. Similarly, their scaling potential is equally rewarding and competitive. For example:

• At FundingPips, traders can grow their accounts up to $2 million in a simple and balanced manner. 

• At The5ers, traders can scale up to $4 million. In the Bootcamp plan, traders can scale their account on every 5% target. For Highstakes, they can scale their account on every 10% target. But for Hypergrowth, the account size increases 2x after traders achieve each milestone. 

Platform Variety and Customer Support

Access to advanced platforms can make or break a trader’s trading game, as the platforms are crucial for a smooth trading experience. Both firms offer multiple trading platforms. With FundingPips, traders get the following:

• Match-Trader

• MT5

• cTrader

While The5ers offers:

• MT5

• cTrader

While FundingPips offers better platform variety over The5ers, both firms offer MT5 to help traders trade with advanced systems comfortably. 

Additionally, both firms offer active customer support designed to cater to their global customers. For instance, FundingPips provides 24/7 multilingual customer support. But it doesn’t end there. They also provide a personal dashboard for traders. If traders need to seek help from fellow traders, they can join the FundingPips Discord community to seek help and learn from other traders’ experiences. 

Comparatively, The5ers also offers 24/7 customer support to ensure traders can get help anytime they want. Along with this, traders can seek email assistance during office hours and also join the Discord community to connect with other traders. However, the FundingPips Discord community is accessible to all traders. But The5ers Discord community is only available for traders who have paid for challenge. 

Payout Systems: Frequency, Speed, and Access to Profits

A prop firm needs to ensure prompt payouts to its customers. If there are any unnecessary delays, the whole trading experience can become very unpleasant for the traders. But the good news is that both FundingPips and The5ers offer timely, easy-to-access payouts. 

The best part about FundingPips’ payout system is that it has more than $240 million in payouts thanks to its zero-payout-denial policy. However, The5ers doesn’t mention a cumulative payout figure on their official platform, but they are also known to offer fast and reliable payouts. FundingPips excels in fast payouts, as the processing is usually instant, and max takes one business day. 

Which Prop Firm Offers Better Rules Transparency and Trading Experience?

When deciding on a prop firm, traders should always consider the rules and transparency it provides to avoid any surprises or inconvenience later. This ensures that the traders know what they are signing up for. 

FundingPips provides clear rules and trading guidelines on its official platform to avoid ambiguity. Traders can find everything from profit splits and drawdowns to scaling plans on the firm’s platform. 

Similarly, The5ers also ensures that traders are aware of all the necessary rules and trading guidelines, including scaling plans, drawdown limits, profit splits, and other information. Knowing the necessary information prepares traders for a pleasant trading experience. 

Apart from transparency, both prop firms are designed to suit all trader types. Traders who want a balanced and flexible trading experience and stable growth can join FundingPips. But if a trader is looking for aggressive growth and a higher scaling plan, The5ers could be the right choice.

On TrustPilot, different traders have given their reviews to help you understand which prop firm could be better for you. 

While The5ers holds a slightly higher rating, FundingPips' review count is more than double — reflecting its faster growth and larger active trader base. 

Final Thoughts

The prop trading market is filled with countless options. But not all prop firms could be trusted. However, some of the leading names, such as FundingPips and The5ers, have earned their credibility through their dedication to customers. 

Both are great in so many ways, but they differ in philosophy. If you want a flexible trading experience and long-term growth, then FundingPips is your best option. But if you're looking for an aggressive trading experience, consider The5ers as the best option. Regardless of your trading level, always do your due diligence before choosing a prop firm. Make sure you consider a prop firm that aligns with your trading style, time commitment, risk appetite, and trading strategy. 

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