Which Prop Firm is the Cheapest in 2026?

The Real Cost of a "Cheap" Prop Firm Challenge

I'm going to tell you something unpopular: the cheapest prop firm challenge is often the most expensive in the long run.

Here's why. A $99 challenge with an 8% profit target and 4% max drawdown has maybe a 3% pass rate. A $300 challenge with a 10% target and 10% drawdown has maybe a 12% pass rate. Do the math:

• Cheap challenge: 33 attempts to expect 1 pass = $3,267 average cost to get funded
• Standard challenge: 8 attempts to expect 1 pass = $2,400 average cost to get funded

The "expensive" challenge costs less in real terms because you're more likely to pass.

This doesn't mean you should ignore price—it means you should evaluate cost-per-likely-funded-account, not just the sticker price. That's what this guide actually does.

How We're Calculating "Cheap"

To make fair comparisons, we need a consistent framework. Here's how to think about prop firm costs:

The Metrics That Matter

1. Challenge Fee – What you pay upfront

2. Challenge Difficulty – Affects your probability of passing (and therefore expected total spend)

3. Cost Per Dollar of Funded Capital – A $500 fee for a $200K account is cheaper than a $200 fee for a $25K account

4. Fee Recovery – Does the firm refund your fee on first payout? This changes net cost dramatically.

5. Hidden Costs – Monthly fees, platform costs, data fees, payout charges

The Formula

True cost = (Challenge fee × Expected attempts to pass) - Fee refund + Hidden costs

A $300 challenge with 15% pass rate and fee refund has a true cost of:

($300 × 6.7 attempts) - $300 refund = $1,710 expected cost to funded

A $150 challenge with 5% pass rate and no refund:

($150 × 20 attempts) - $0 = $3,000 expected cost to funded

The "cheap" challenge costs almost double. Let's apply this framework to actual firms.

The Actual Price Comparison (January 2025)

Here's what firms charge for equivalent $100K funded accounts:

Initial observation: FTMO is nearly 2x the price of budget options. But FTMO has a longer track record and higher payout reliability. Is that worth $300? For many traders, yes.

Deep Dive: What You Get at Each Price Point

Budget Tier ($250-350): FundedNext & MyFundedFX

FundedNext ($299 for $100K)

FundedNext has aggressively competed on price while maintaining reasonable terms.

What you get:

• Two-phase challenge (8% / 5% targets)
• 10% max drawdown, 5% daily
• 15% profit share during challenge phase (unique perk)
• Fee refund with first payout
• Up to 90% profit split when funded

The value proposition: If you're confident you'll pass, FundedNext is genuinely good value. The challenge-phase profit share is essentially free money if you're going to pass anyway. For a $100K account, making 8% in Phase 1 ($8,000) gets you $1,200 just for passing—that almost covers 4x your challenge fee.

The concerns:

• Rapid growth has led to customer support complaints
• Some traders report inconsistent rule enforcement
• Newer than FTMO with less track record

Best for: Confident traders who want low entry cost and don't need the security premium of established firms.

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MyFundedFX ($299 for $100K)

MyFundedFX competes in the budget space with straightforward terms.

What you get:

• Two-phase challenge (8% / 5% targets)
• 8% max drawdown (tighter than competitors)
• No time limit on phases
• Fee refund with first payout
• 80% profit split

The trade-off: The 8% max drawdown vs. industry-standard 10% makes MyFundedFX challenges meaningfully harder. You're paying less upfront but accepting higher failure probability.

The math: If the tighter drawdown reduces your pass rate from 12% to 8%, your expected cost to get funded goes from ~$2,500 to ~$3,750. The "cheap" challenge becomes more expensive.

Best for: Disciplined traders with tight risk management who rarely approach drawdown limits anyway. If you never use more than 5% drawdown, the 8% limit doesn't hurt you.

Mid Tier ($350-450): The5ers & Traders Yard

The5ers ($375 for $100K standard evaluation)

The5ers is complicated because they offer so many different programs at different price points.

Standard evaluation:

• $375 for $100K challenge
• 6% Phase 1, 4% Phase 2 targets (lower than competitors)
• Drawdown rules vary by program
• Profit splits vary dramatically: 50% on some programs, up to 100% on others

Budget option (Bootcamp):

• Starts around $95 for smaller accounts
• Lower profit split (50-60%)
• Path to scale up with performance

The complexity: The5ers' pricing isn't straightforward. A $375 challenge with 50% profit split is effectively more expensive than a $500 challenge with 90% profit split once you're profitable.

Example: On a $100K account, making $5,000/month profit:

• 50% split = $2,500/month to you
• 90% split = $4,500/month to you
• Difference = $2,000/month

The "cheap" challenge costs you $2,000 every month in lower profit share. After 2 months, you've lost more than the price difference on challenge fees.

Best for: Traders who want optionality. If you're unsure what program fits, The5ers has something for almost every situation—but read terms carefully.

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Traders Yard ($399 for $100K)

Traders Yard sits in the middle of the price range with a focus on long-term value.

What you get:

• Two-phase evaluation (8% / 5% targets)
• 10% max drawdown, 5% daily
• No time limit on phases
• Fee refund with first payout
• 80% starting, scaling to 90%
• Account scaling to $2M+ based on performance

The value angle: Traders Yard's pricing looks mid-range, but the scaling program changes the math. Most firms charge for each account size increase. Traders Yard scales your account based on performance—no additional challenge fees.

Long-term cost comparison:

• Standard firm: $100K challenge ($400) → $200K challenge ($700) → $400K challenge ($1,200) = $2,300 to reach $400K
• Traders Yard: $100K challenge ($400) → scale to $200K (free) → scale to $400K (free) = $400 to reach $400K

For traders planning to grow their accounts, the upfront price is almost irrelevant compared to scaling costs.

Best for: Traders who view prop trading as a career path, not a one-time cash grab. If you plan to trade funded accounts for years, scaling economics matter more than initial pricing.

Premium Tier ($500+): FTMO

FTMO (~$590 for $100K)

FTMO is the most expensive major prop firm. They've maintained premium pricing because they can.

What you get:

• Two-phase challenge (10% / 5% targets)
• 10% max drawdown, 5% daily
• 30-day Phase 1, 60-day Phase 2 (extendable)
• Fee refund with first payout
• Up to 90% profit split
• 10+ years in business

Why people pay the premium:

• Payout certainty: FTMO has paid hundreds of millions to traders. No "will they pay?" anxiety.
• Track record: They've survived industry shakeouts that killed competitors.
• Brand value: "FTMO funded trader" carries weight in the trading community.
• Consistency: Rules don't randomly change. What you sign up for is what you get.

The premium cost in context: $200 extra per challenge is ~5% of one month's profit on a $100K account trading reasonably. If that $200 buys peace of mind that you'll actually get paid, it's arguably cheap insurance.

Best for: Risk-averse traders who want the safest option, traders building a public track record, and anyone who's been burned by sketchy firms before.

The Hidden Costs Nobody Talks About

Challenge fees are obvious. These costs aren't:

Platform and Data Fees

Some firms charge:

• Monthly platform fees: $20-100/month on top of challenge fees
• Data feed costs: $10-50/month for real-time quotes
• Reset fees: $50-200 to restart a failed challenge

A "cheap" $200 challenge with $50/month platform fee and $100 reset fee becomes more expensive fast. Always check the full cost structure.

Payout Fees

Getting your money out costs money:

• Bank wire fees: $20-50 per withdrawal
• Cryptocurrency fees: Usually lower but vary by network
• Minimum withdrawal amounts: Can't withdraw $200 profit if minimum is $500
• Processing time costs: Money sitting with the firm is money not in your account

Opportunity Costs

Time has value:

• Slow challenges: Minimum trading days extend your time to funded
• Verification delays: Some firms take weeks to verify accounts
• Payout delays: "Bi-weekly payouts" that take 10 days to process

A firm that gets you funded and paid 2 weeks faster than a competitor has value—especially if you're trading successfully.

The Reset Trap

Many "cheap" firms offer discounted resets instead of full new challenges. Sounds good, right?

The problem: reset pricing encourages bad behavior. Instead of properly preparing for a challenge, traders rush in thinking "it's only $80 to reset." Six resets later, they've spent $480 on what could have been two proper attempts with better preparation.

Better approach: Treat every challenge as if there's no reset option. Prepare properly. Cheap resets are a psychological trap, not a feature.

Value Analysis: What's Actually Worth the Money?

Let's calculate actual value, not just price:

Scenario 1: New Trader Testing the Waters

Situation: First prop firm attempt, limited budget, testing if you can trade funded rules.

Best value: The5ers Bootcamp (~$95) or smallest FundedNext challenge

Reasoning: You're probably going to fail your first challenge. Everyone does. Pay the minimum to learn what funded trading actually feels like. Don't waste $500 on FTMO when you don't know if you can follow rules yet.

Scenario 2: Proven Strategy, Need Capital

Situation: Consistently profitable on demo for 6+ months, clear strategy, just need account size.

Best value: FundedNext or Traders Yard

Reasoning: If you're confident you'll pass, minimize upfront cost and maximize profit split. FundedNext's challenge-phase profit share adds value. Traders Yard's scaling program adds long-term value. FTMO's premium isn't necessary if you're not worried about passing.

Scenario 3: Full-Time Prop Trader Career

Situation: This is your job. You plan to scale to maximum capital and trade for years.

Best value: Traders Yard or FTMO

Reasoning: Upfront challenge cost is irrelevant compared to years of profit splits and scaling potential. Traders Yard's free scaling saves thousands over time. FTMO's reliability means you're not worrying about firm stability—you're just trading.

Scenario 4: Maximum Capital, Minimum Risk

Situation: Want the largest funded account possible with the highest confidence of getting paid.

Best value: FTMO

Reasoning: This is exactly what the premium buys. FTMO's $400K challenge costs more, but you know they'll pay. At $400K funded capital, even a few hundred dollars of premium is negligible.

The Price Optimization Strategy

Regardless of which firm you choose, here's how to minimize actual costs:

1. Never Pay Full Price

Every firm runs promotions constantly:

• Black Friday: 30-50% off
• New Year: 20-40% off
• Monthly promotions: 10-25% off
• Affiliate codes: 5-15% additional

A $400 challenge during a 40% promotion = $240. Stack a 10% affiliate code = $216. That's almost half price.

2. Start Smaller Than You Think

Most traders should start with $25K-$50K accounts, not $100K+:

• Lower challenge fees
• Less psychological pressure
• Room to scale up once profitable
• Better risk/reward on learning curve

A $50K challenge at half the price, passed and scaled to $100K, beats a failed $100K challenge every time.

3. Factor in Pass Rate

A 10% more expensive challenge with 50% higher pass rate is cheaper in expected value. Do the math for your specific situation.

4. Consider Scaling Economics

If your goal is a $200K+ account, calculate total cost to get there, not just initial challenge cost:

Firm A: $300 × 3 challenges to reach $200K = $900
Firm B: $400 × 1 challenge + free scaling = $400

Firm B is cheaper despite higher initial price.

The Complete Cost Comparison

The Bottom Line

Stop optimizing for the lowest challenge fee. Optimize for the lowest cost to get and stay funded profitably. That calculation includes pass probability, profit split, scaling costs, and firm reliability—not just what you pay on day one.

The "cheapest" prop firm is the one that gets you funded and pays you consistently. Everything else is marketing.

Frequently Asked Questions

Why is FTMO so much more expensive than other firms?

FTMO charges premium pricing because they can—brand recognition, track record, and payout reliability justify higher prices for many traders. They've also been operating longer and likely have higher operational costs (compliance, support, infrastructure). Whether the premium is "worth it" depends on how much you value certainty over cost savings.

Should I buy the largest account I can afford?

No. Start smaller than you think you need. The psychological pressure of trading larger accounts causes many traders to fail who would have passed smaller challenges. Begin with $25K-$50K, prove you can handle funded rules, then scale up. The cost savings from starting smaller usually outweigh any "efficiency" from starting big.

Are challenge fee refunds actually paid out?

At reputable firms (FTMO, Traders Yard, FundedNext, etc.), yes—fee refunds are standard and reliably paid with your first profit withdrawal. Some smaller firms have been inconsistent. Verify the refund policy in writing before purchasing, and check recent reviews to confirm the firm is actually honoring refunds.

How often do prop firms run discounts?

Constantly. Most firms have some promotion running at any given time—usually 10-25% off. Major discounts (30-50%) happen during Black Friday, New Year, and occasionally random flash sales. If you're not in a rush, waiting 2-4 weeks for a good promotion is almost always worth it. Sign up for email lists to get notified.

Is it worth paying for resets instead of new challenges?

Usually not. Reset pricing (typically 20-40% of full challenge) encourages rushing into attempts without proper preparation. Psychologically, "cheap" resets make failure feel acceptable, which leads to more failure. If you failed a challenge, take time to analyze why before attempting again—whether through reset or new purchase. The goal is passing, not accumulating failed attempts cheaply.