The5ers Prop Firm Review: Pros, Cons, and How It Compares

Prop trading firms have become an attractive option for traders who want access to substantial capital without risking their own funds. One firm that has been making waves in the industry since its founding in 2016 is The5ers, based in Israel.

In this article, we’ll take a closer look at The5ers’ offerings, examine its unique features, and see how it stacks up against other prop firms in the market. Plus, we’ll discuss three key rules for protecting your funded account with The5ers – some of which might surprise you!

The5ers Funding Programs Review

The company provides three main funding programs, each tailored to different trader needs:

1. High Stakes (2-phase) – Offers account sizes from $5,000 to $100,000.
2. Bootcamp (3-phase) – Offers account sizes from $20,000 to $250,000.
3. Hyper Growth (1-phase) – Offers account sizes from $10,000 to $40,000.

The most popular option – The 2-phase 100K challenge – is priced at $495, which is considered standard for most prop firms. The firm requires traders to achieve a 8% profit target in the first stage and a 5% in the second. Traders have unlimited trading days to complete each phase, with a minimum of three trading days.

The risk management rules include a maximum daily loss of 5% and a total drawdown limit of 10%. In terms of leverage, traders can access 1:100 on FX. After passing the challenge, profits are split 80/20 and can scale to 100/0, with fixed monthly payouts. Payouts can be requested anytime, with the first available 14 days after receiving a funded account and subsequent payouts every two weeks, resetting the payout cycle with each new account scaled.

What Sets The5ers Apart?

The5ers stands out in several ways, especially regarding competitive trading costs, payout structures, and unique growth incentives:

Low Trading Costs: The5ers offers some of the lowest spreads on major pairs, like EUR/USD and GBP/USD, ranging from 0.2 to 0.9 pips, with a $4 round-trip commission per standard lot.

Fixed Monthly Payouts for High-Stakes Accounts: Traders managing $350,000 accounts receive a $4,000 monthly payout, which increases to $10,000 if they grow their balance to $500,000. This feature offers reliable income, which is rare in prop trading.

100% Profit Split Potential: For top-performing traders, the profit split can increase to a full 100%, allowing them to retain all their earnings under certain conditions.

Hub Credits and Incentives: The5ers awards Hub Credits for milestone achievements, which can be redeemed for additional challenges. They also offer an affordable entry-level challenge priced at $39, with a $95 reward for passing the first stage of the 100K challenge.

Educational Resources: Beyond funding, The5ers provides extensive educational resources, trading ideas, tools, and beginner classes, making it a well-rounded hub for both trading and personal development.

Comparing The5ers to Other Prop Firms

Let’s see how The5ers fares when compared to two other popular prop firms: E8 Markets and IC Funded. Starting with challenge difficulty, The5ers’ two-phase challenge scored 4.18 out of 5, making it slightly more challenging than E8 Markets, which scored 4.05, and IC Funded, which came in at 3.7. This suggests that while The5ers may offer a tougher experience, IC Funded might feel a bit easier to tackle.

Next, when looking at challenge fees, both The5ers and IC Funded received a score of 4.1, indicating they’re fairly budget-friendly options compared to E8 Markets, which scored only 2.2. This lower rating means E8 Markets is notably more expensive.

In terms of commission and spread, The5ers and IC Funded both earned a “Super” rating, reflecting some of the best trading costs available. By contrast, E8 Markets received an “Average” rating, suggesting its fees may cut into profits a bit more than its competitors.

Regarding scaling plans, which are crucial if you aim to grow your account over time, both The5ers and E8 Markets scored highly, showing strong options for scaling up. IC Funded, however, scored poorly in this area, making it less ideal for traders focused on growth.

Finally, in the overall rating, which factors in all these considerations—from fees to scaling options—The5ers came out on top with a 4.7 out of 5. E8 Markets followed with a score of 4.53, and IC Funded was close behind at 4.07. In this comparison, The5ers emerges as a standout firm, offering a balanced mix of challenge, reasonable fees, strong trading conditions, and solid growth potential.

3 Key Rules for Maintaining Your Funded Account at The5ers

To keep your funded account in good standing with The5ers, remember these essential rules:

Three Profitable Trading Days Requirement: The 3 required trading days aren’t just about activity; they actually need to be profitable. According to The5ers’ rule, a trading day counts as profitable if closed positions result in a positive profit of at least 0.5% of the initial balance. To calculate this, The5ers uses the following formula: Minimum (Midnight Balance, Midnight Equity) – Previous Day Balance. So, simply for 3 days isn’t enough; each of those days needs to hit that minimum profit level.

News Event Restrictions (High Stakes Program): While traders can hold open trades during high-impact news events, The5ers restricts new orders from 2 minutes before until 2 minutes after the event. This rule helps manage risk during potentially volatile market moments.

Mandatory Stop-Losses (Bootcamp Program): Bootcamp traders must use a stop-loss (SL) for every trade, with no position risking more than 2% of the account balance. Accumulating five violations of this rule results in automatic termination of the account.

Traders Reviews of The5ers

The5ers boasts a high TrustPilot rating of 4.9 out of 5, with over 8,000 reviews and a remarkable 92% of them being 5-star. The firm’s reliability, competitive spreads, and educational resources earn high marks from traders, along with the supportive customer service and smooth, transparent withdrawal processes. Negative reviews are few, comprising only 2% of total feedback, further affirming The5ers as a top choice among prop firms.

Final Thoughts

The5ers positions itself strongly in the prop trading landscape, offering competitive trading conditions, a supportive environment for growth, and a clear commitment to trader success. Whether you’re new to prop trading or an experienced trader, The5ers offers options, support, and incentives that make it an excellent choice for scaling your trading career.

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