As firms majorly involved in Forex trading, both Audacity Capital and FTMO have made a big name for themselves. After this, Audacity Capital has looked to branch out into allowing its traders to trade indices and commodities also.
Having been a platform that only had the option for instant funding, they have now started what is aptly called the Ability Challenge which allows you to prove yourself to the firm in a two-part evaluation challenge and then get access to a funding account.
Passing this challenge leads to a higher profit split compared to the instant funding option.
The above information and more can make it difficult to figure out which platform would be the best fit for you.
This article takes you through the other pros and cons of both platforms to guide you in making a better decision based on your trading needs.
Audacity Capital vs FTMO: Trading Instruments
FTMO allows traders to trade and make money using bonds, cryptocurrencies, stocks, indices, forex pairs, and commodities.
Audacity Capital is a prop firm that exclusively trades forex pairs for the first three stages of their funded trading accounts. After the third stage, you can trade indices and commodities as well.
With the newly started Ability Challenge, you can trade certain commodities and indices in addition to the already included forex pairs. These are GER30, US30, US500, and NAS100.
Audacity Capital vs FTMO: Account Types & Maximum Account Size
Audacity Capital has two different types of accounts for all traders to choose between. You either choose the Funded Trading Program which requires you to go through an interview process and once that is successful, pay the joining fee of £298 and a £99 monthly fee thereafter.
The other type of account is the Ability Challenge which has a two-step evaluation process that needs a trader to prove themselves before starting on a live trading account and the fees start at £149 for a $15,000 trading balance.
With the Ability Challenge at Audacity Capital, you can have a maximum account size of $120,000 whereas the funded trading account starts all traders with a $15,000 account after you pay the fees. This account can go up to $480,000 with their scaling plan.
FTMO only has one type of account which is the two-phase evaluation challenge that has two different types of accounts that correlate to your trading strategy of choice.
The Normal Challenge will cost you €540 and the Aggressive Challenge costs €1,080 for the same $100,000 in trading balance.
Once you pass this challenge without violating any of the rules, you are given the choice between a Normal funded account or a Swing account.
The Swing account has fewer rules regarding whether you can hold your positions overnight, over the weekend, or during the news. This kind of account obviously is advantageous to traders who are comfortable with the swing style of trading.
With FTMO, your maximum account size starts at a $200,000 trading balance but has a hard cap of $400,000 in spite of their scaling plan and how well you do in the program.
Audacity Capital vs FTMO: 100k Account Challenge, Prices & Period
With the Ability Challenge at Audacity, you can get access to a trading account with $120,000 in trading capital if you pay the refundable fee of £629. This fee is refunded along with your first profit withdrawal once you pass the two phases of Audacity’s challenge.
Phase 1 is called the Challenge stage and has a time limit of 30 days in which you must achieve the profit target of 10%. Phase 2 is the Verification stage which gives you 60 days to get to your 10% profit target. Once you pass Phase 2, you are given access to a live trading account with the balance you paid for.
FTMO gives you access to a $100,000 trading account once you pass their two-phase challenge, where the phases are named similarly to Audacity’s.
Phase 1 is the FTMO Challenge, and Phase 2 is the Verification. It costs €540 for the Normal challenge and €1,080 for the Aggressive variant.
Phase 1 lasts for 30 days and you get 60 days to complete Phase 2 at FTMO just like at Audacity but the profit target is 10% for step 1 and is reduced to 5% for step 2.
Audacity Capital vs FTMO: 100k Account: Challenge Rules
The Challenge that Audacity Capital lays in front of you is called the Ability Challenge and the rules dictate that there needs to be a minimum of 7 trading days in each of the two challenge phases, or once you get a funded live account.
You have 30 days to reach your profit target in the first stage, 60 days in the verification or second stage, and 30 days once you get access to the live account. You are allowed a maximum daily and absolute drawdown of 7.5% and 15% in Phase 1, 5% and 10% in Phase 2, and 5% and 10% on the Live Account.
FTMO’s Normal challenge rules state that you have 30 days to pass the first stage with a minimum of 10 trading days to get to your 10% profit target, and 60 days to pass the second stage with the same number of minimum trading days, the same profit target, but only a 5% profit target. The maximum daily loss and the absolute losses are 5% and 10% respectively.
The Aggressive challenge’s rules have the same number of days to pass the first and second stages and the same number of minimum trading days.
The maximum daily and absolute losses are raised to 10% and 20% respectively, whereas the profit targets are 10% in phase 1, and 20% in phase 2.
Audacity Capital vs FTMO: Profit Sharing Ratio
At Audacity Capital, the profit-sharing ratio is constant at 50/50 for the Funded Trader Program and does not change regardless of your growth at the firm. This equal profit sharing helps the trading platform to pay itself for the risk it takes by funding traders after an interview.
Audacity does have a new Ability Challenge which raises this profit-sharing ratio to 75% in your favour once you get through the two-step evaluation process.
FTMO’s profit sharing ratio starts with 80% of the profits being credited to your account but this ratio can be further increased to 90% in your favour if you play your cards right, and don’t break any of the trading rules.
Audacity Capital vs FTMO: Scaling Plan
Audacity Capital’s scaling plan is only applicable to its funded trading account that you can use once you pass the two-phase Funded Trader Challenge.
They will double the balance of your account every time you reach the profit target of 10%. You just have to send an email to their support address or go to withdrawal.audacitycapital.co.uk and fill out their withdrawal form.
FTMO’s scaling plan increases your balance by 25% every four months for each time you get to your 10% profit target with a hard cap of $400,000. One rule of the scaling plan is that you should have processed and achieved at least two payouts in this time.
Allowed Leverage & Max Daily Drawdown & Total Drawdown
Audacity Capital has an Ability Challenge that allows for maximum leverage of 100x, a maximum daily drawdown of 7.5% in the Challenge stage, 5% in the Verification stage, and 5% once you have a live trading account.
For the maximum absolute drawdown, you can go up to 15% in the Challenge, 10% in the Verification, and 5% with the live trading account.
For the funded trading account, there is only a maximum drawdown of 10% and no daily maximum drawdown. The drawdown is fixed as per your initial trading balance and not trailing. The leverage you are allowed to use with this account is 1:5.
FTMO has a Normal account with a leverage of 100x, a daily drawdown of 5%, and a maximum drawdown of 10% of the initial balance. With the Aggressive account, you have the same maximum leverage of 100x, a daily loss allowance of 10%, and a total drawdown of 20%.
The drawdown is calculated according to your loss at the end of the trading day and is the sum of the positions closed on the day and the positions still open once the trading day has ended.
Audacity Capital vs FTMO: Trading Hours
The trading hours at Audacity Capital will allow you to keep your positions open overnight but need you to close them by 6 pm GMT on a Friday if you are a part of the Funded Trader Program.
In case you would like to keep your position open over the weekend though, you can fill out a form by 5 pm GMT on Friday, and then Audacity’s risk management team will take a call on an individual basis if the position can stay open. If they decide otherwise, they will close the position for you.
During the Ability Challenge’s two phases, you can trade during the news, and hold positions overnight or over the weekend.
Once you get access to the live trading account, the rules are similar to the funded account above where you must close your positions by 6 pm GMT on Friday or put in a written request to the risk management team if you want to hold it over the weekend.
FTMO allows you to hold your trading positions over the weekend, overnight, or during the release of macroeconomic news when you are in the process of completing the two-phase challenge and hold an account in either a Challenge phase or the Verification phase.
On getting a funded account bypassing the challenge, your first order of business is to decide whether you want a regular FTMO-funded account or an FTMO Account Swing variant.
With the regular funded account, you will need to be flat going into the weekend, or if the rollover time is longer than a couple of hours.
With the FTMO Account Swing on the other hand you do not need to close your trades overnight, over the weekend, or even during news events. These are the perks that attract seasoned swing traders, or new traders looking to use the swing trading strategy in their trades.
Supported Payout/Payment methods
With Audacity Capital’s Funded Trading Challenge, you can withdraw profits as soon as you earn the 10% profit target. Send them an email at email@example.com, and they will not only send you your profits but also double your trading balance.
As part of their Ability Challenge, your profits are paid out on a monthly basis.
FTMO pays you out on the day of your choosing which is also called the Profit Split Day. This ensures that you get your money on the day that is most convenient for you. Also, bear in mind that you will only get your profits once your funded trading account is more than 14 days old.
Audacity Capital vs FTMO: Allowed EAs & Rules
The Ability Challenge, the Funded Trading Challenge, or the funded trading account on Audacity Capital all allow the use of EAs.
FTMO allows its traders to use discretionary bots or Expert Advice (EA) to implement your trading strategies or make trades for you.
Audacity Capital vs FTMO: Trading Platforms
Audacity Capital uses Meta Trader 4 exclusively for both their Funded Trading Challenge and their Ability Challenge
FTMO is not as restrictive when it comes to trading platforms and allows you to use either Meta Trader 4, Meta Trader 5, or cTrader depending on which one you are more comfortable with.
Audacity Capital takes the cake when it comes to the platform as well as trading fees which are significantly low. They also use institutional liquidity providers in place of retail brokers which provides an extra sense of security to the platform.
But FTMO has the upper hand in terms of a wider variety of trading platforms, trading instruments, and allowing you to keep more of your profits as compared to Audacity.
With this information at hand and a better understanding of your trading style, you are now well-equipped to take a decision on which proprietary trading firm you will choose to trade with.