Hong Kong, August 3, 2026
Report compares the publicly available rules of six firms and examines industry data on how often funded traders reach a payout.
Velotrade Re Limited ("Velotrade") today announced the publication of its 2026 Prop Firm Transparency Report, a comparative review of the publicly available rulebooks of six proprietary trading firms: Topstep, FTMO, FundingPips, Blue Guardian, HyroTrader and Velotrade. The report compiles rules disclosed on each firm's own website, help-center and frequently asked questions pages, and sets them alongside published industry data on how many funded traders reach a payout.
According to the report, the terms that most often determine whether a funded trader receives a payout are frequently located in evaluation guides and help-center pages rather than on headline pricing pages, and account closures are more often associated with specific rulebook provisions than with trading losses.
"Could a trader read our rules once, in one sitting, and know every way their account could end? If the answer is no, the rulebook is not finished. Most of this industry has treated that as a marketing problem. We think it is the entire product," said Gianluca Pizzituti, Chief Executive Officer of Velotrade.
Industry data cited in the report
The report cites third-party data on trader outcomes. Data from prop firm technology provider FPFX Tech, reported exclusively by Finance Magnates in September 2024, covered more than 300,000 accounts belonging to approximately 100,000 traders across ten firms. According to that data, as attributed to FPFX Tech chief executive Justin Hertzberg, approximately 14% of traders passed a challenge and obtained a funded account, and of those approximately 45% received a payout, equivalent to approximately 7% of all traders, with the average payout reported at approximately 4% of the account size. An analysis published by hoc-trade in July 2026, drawing on more than 500,000 analysed accounts, reports a widely cited industry breakdown attributing approximately 71% of first-phase challenge failures to daily drawdown breaches rather than to missed profit targets. The report additionally states that consistency rules, where applied, can reduce the profit attributable to a single strong trading day by 33% to 50%, and that four of the six firms reviewed apply such a rule.
Drawdown models compared
The report describes two categories of maximum-loss limit. A fixed drawdown is calculated from the starting balance and does not change; the report gives the example of a $100,000 account with a 10% limit failing at $90,000. A trailing drawdown rises with equity and does not fall back. Using a modelled scenario, the report illustrates that an identical intraday pullback can leave an account within its limit under a fixed model while breaching it under a trailing model. It states that FTMO discloses a maximum loss set at 10% of the starting balance, and that Topstep discloses a trailing limit that rises with the end-of-day balance and locks at the starting figure.
Consistency rules
The report describes a consistency rule as a provision limiting the share of total profit that may derive from any single trading session. It states that Topstep, FundingPips, Blue Guardian and HyroTrader each apply a version of such a rule, at the evaluation stage or in connection with a payout tier, and that FTMO discloses a 50% "Best Day" rule on its 1-Step product within its help-center material. The report states that Velotrade does not apply a consistency rule at any stage, according to Velotrade's published rules.
Per-trade risk provisions
The report identifies a category of rule it describes as a maximum-risk-per-trade provision, which it says caps the permitted loss on an individual position or trade idea measured on unrealized, or floating, profit and loss, separately from an advertised daily loss limit. The report characterizes such provisions as capable of closing an account on a position that has not been realized at a loss, and notes three features: that they are measured on unrealized loss; that they may apply only after the funded stage; and that they may aggregate re-entries in the same direction.
On the basis of each firm's published materials, the report states that Blue Guardian discloses a "Guardian Shield" that force-closes trades at approximately 1% to 2% unrealized depending on account type, with a first breach reducing the profit split and a second closing the account; that FundingPips discloses a "Risk Per Trade Idea" rule at the funded stage that aggregates re-entries; that HyroTrader requires a stop-loss within five minutes of each trade; and that Velotrade does not publish a secondary per-trade or per-idea cap beneath its daily limit. The report characterizes these as legitimate risk-management provisions and says its observation concerns where they are disclosed.
Comparison of published rules
The report's full rulebook comparison sets the six firms against the provisions it identifies as most often determining a payout. Velotrade stated that, because it both published the report and is included in the comparison, the Velotrade row reflects the position of a market participant rather than an independent assessment, and that traders should verify current terms directly with each firm. A firm-by-firm summary follows.
1. FTMO
Drawdown model: Fixed, from initial balance (10%)
Floating P&L counted: Yes, loss line includes unrealized P&L
Consistency rule: Best day threshold on some account types
Position risk rule: No secondary per-trade cap on standard accounts
News trading: Unrestricted in evaluation; short window around targeted releases once funded
Weekend holding: Allowed in evaluation; funded Standard must close before the weekend; Swing exempt
Rules change: Yes, news and weekend rules tighten at the funded Standard stage
Where the detail lives: Trading objectives pages, FAQ
2. Topstep
Drawdown model: Trailing, end of day, locks at starting balance
Floating P&L counted: Yes, realized and unrealized P&L
Consistency rule: Best day threshold in evaluation; separate threshold on payout
Position risk rule: No formal per-trade cap; full size into major news is a listed risk
News trading: No fixed blackout window; maximum size into major news flagged
Weekend holding: Not permitted at any stage; day-trading program with a fixed daily loss
Rules change: Consistency requirement and payout path differ once funded
Where the detail lives: Help center articles
3. FundingPips
Drawdown model: Varies by product; most models fixed, one product trails 5% from peak equity
Floating P&L counted: Yes, on the daily loss limit across models
Consistency rule: Consistency score gates the higher on-demand payout tier
Position risk rule: "Risk Per Trade Idea" cap, funded stage only, aggregates re-entries
News trading: Unrestricted in evaluation; funded accounts restricted near high-impact news
Weekend holding: Allowed in evaluation; funded accounts under a temporary restriction
Rules change: Yes; per-trade cap and news and weekend rules activate once funded
Where the detail lives: Rules pages and payout terms
4. Blue Guardian
Drawdown model: Daily loss limit plus trailing mechanics, varies by product
Floating P&L counted: Yes, uses balance or equity, whichever is higher
Consistency rule: Applies during evaluation; varies by product
Position risk rule: "Guardian Shield" near 2% unrealized; first trigger cuts split, second closes
News trading: Broadly permitted in evaluation; short restricted window
Weekend holding: Generally permitted, subject to plan rules
Rules change: Yes; the floating loss shield and news restriction are documented
Where the detail lives: Blog and rules documentation
5. HyroTrader
Drawdown model: Varies by plan; optional upgrade converts trailing daily
Floating P&L counted: Yes, daily drawdown monitored in real time
Consistency rule: Applies during evaluation only; drops away once funded
Position risk rule: Mandatory stop-loss within 5 minutes of every trade, monitored live
News trading: Holding through news permitted; news-only strategies restricted
Weekend holding: Permitted at every stage, reflecting 24/7 crypto markets
Rules change: Yes; the consistency requirement applies only during evaluation
Where the detail lives: Terms and FAQ
6. Velotrade
Drawdown model: Fixed, disclosed from initial balance
Floating P&L counted: No secondary floating loss cap published
Consistency rule: None at any stage, per published rules
Position risk rule: None published beneath the daily limit
News trading: Permitted at every stage, per published rules
Weekend holding: Permitted at every stage, per published rules
Rules change: No; rules stated as consistent from purchase
Where the detail lives: Single published rules page
Source: each firm's own published rules pages, help-center articles and FAQs, as reviewed by the report and captured July 2026. "Varies by product" indicates that the answer differs across a firm's account types. Terms change frequently; readers should confirm current conditions directly with each firm.
Market context referenced in the report
The report cites an increase in monthly search volume for the term "prop firm" from approximately 880 in early 2020 to approximately 49,500 in 2025. It also references publicly reported firm closures following the withdrawal by MetaQuotes of MT4 and MT5 licenses from certain firms serving United States clients in February 2024, recording that The Funded Trader acknowledged more than $2 million in denied payouts; that True Forex Funds closed citing insolvency, with approximately 300 traders reported as owed $1.2 million; and that SurgeTrader ceased operations, with its chief executive reported as acknowledging that approximately 10% of payout obligations were unpaid.
Regulatory context referenced in the report
The report states that the United States Commodity Futures Trading Commission is expected to open a public consultation on 1 August 2026, closing 30 November 2026, concerning whether evaluation fees constitute commodity-pool participation interests, a classification it says could bring certain evaluation-based United States futures firms within CFTC and National Futures Association registration requirements. It further states that the United Kingdom Financial Conduct Authority and the European Securities and Markets Authority have reiterated requirements for risk warnings and accurate performance representations in retail marketing, and that authorities in Europe, Australia and North America are considering the treatment of evaluation-fee models. The report notes these matters are not settled and that certain authorities have indicated the sector is not an immediate priority.
Conclusion of the report
The report concludes that the proprietary trading model is workable and that its observations concern disclosure at the point of sale rather than the model itself, and states that a comparison of rulebooks warrants attention comparable to that given to profit-split comparisons.
About Velotrade
Velotrade Re Limited is a proprietary trading firm that offers funded trading evaluations across crypto, forex, stocks, indices and commodities, using a single published rulebook and a fixed drawdown model. Velotrade Re Limited is incorporated and registered in Hong Kong. According to the company, its founding team has operated a licensed invoice-finance business since 2016. All trading services are provided in a simulated environment using demonstration accounts with simulated funds.
Media Contact:
Velotrade Press Office, press@velotrade.com
The full 2026 Prop Firm Transparency Report is available on Velotrade's website, at the Reports section (velotrade.com/reports/prop-firm-transparency).