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Alpha Futures, The 5%ers

Alpha Futures vs. The 5%ers: A Detailed Comparison

Dec 08, 2024

Alpha Futures vs. The 5%ers

    Alpha Futures and The 5%ers are two prop trading firms catering to different types of traders with unique evaluation processes, trading rules, and market specializations. This in-depth comparison explores their features, rules, trading platforms, payout systems, and more to help traders determine the best fit for their goals.

    1. Company Overview

    Alpha Futures

    • Founded: 2024
    • Headquarters: London, United Kingdom
    • Specialization: Futures trading
    • Leadership: CEO Ben Chaffee, who also leads Alpha Capital Group, focused on forex trading.
    • Mission: To expand access to futures trading, catering to international markets outside the U.S.

    The 5%ers

    • Founded: 2016
    • Headquarters: Israel
    • Specialization: Forex and CFDs
    • Leadership: Founded by Gil Ben Our and Snir Achiel, experienced traders with a mission to empower global traders.
    • Mission: To offer scalable growth opportunities to traders with diverse programs tailored to different skill levels.

    2. Evaluation Programs

    Alpha Futures

    • Evaluation Type: One-step evaluation.
    • Profit Target: Achieve a 6% profit target during the evaluation.
    • Drawdown Limits:
      • Maximum Drawdown: 4% of the account balance, based on daily balance (not equity highs).
      • Daily Drawdown: None, allowing greater flexibility for traders.
    • Consistency Rule: 50% of profits must come from consistent trading, ensuring steady performance.
    • Minimum Trading Days: None, allowing traders to complete the evaluation at their own pace.
    • Maximum Trading Days: Unlimited.
    • Account Sizes and Fees:
      • $50,000 account: $79/month.
      • $100,000 account: $159/month.
      • $150,000 account: $239/month.

    The 5%ers

    • Evaluation Types:
      • Bootcamp Program:
        • Three-step evaluation, requiring a 6% profit target at each step.
        • Maximum Loss: 5%.
        • Leverage: 1:10.
        • Account Sizes: $5,000 to $250,000.
        • Time to Complete: Unlimited.
      • High Stakes Program:
        • Two-step evaluation:
          • Phase 1: Profit target of 8% with a maximum loss of 10%.
          • Phase 2: Profit target of 5% with a maximum loss of 10%.
        • Leverage: 1:100.
        • Account Sizes: $10,000 to $100,000.
        • Time to Complete: Flexible.
      • Hyper Growth Program:
        • Instant funding without evaluation.
        • Profit Target: 10%.
        • Maximum Loss: 6%.
        • Account Sizes: $10,000 to $40,000.
        • Scaling: Up to $4 million.
    • Profit Split: Starts at 50% and scales up to 100%.

    Key Differences:

    • Alpha Futures has a simpler one-step evaluation process with no time limits but stricter profit and drawdown rules.
    • The 5%ers offer multiple evaluation options, including instant funding, making them more accessible to traders with different goals.

    3. Trading Platforms

    Alpha Futures

    • Proprietary Platform: AlphaTicks
      • Integrated with TradingView for advanced charting and analysis.
      • User-friendly interface, supporting up to 8 chart windows.
      • Built-in technical indicators and drawing tools.
    • Platform Restrictions: Does not allow external platforms like NinjaTrader or MetaTrader.

    The 5%ers

    • Platforms:
      • MetaTrader 5 (MT5): A widely used platform for forex and CFD trading.
      • Match-Trader: Advanced features for high-frequency and professional traders.
      • Proprietary dashboard for account monitoring and performance analytics.

    Key Differences:

    • Alpha Futures’ AlphaTicks is tailored specifically for futures trading, while The 5%ers provide MT5 and Match-Trader, which are preferred for forex and CFD traders.

    4. Tradable Instruments

    Alpha Futures

    • Specialization: Futures trading.
    • Available Instruments:
      • Equity Futures
      • Forex Futures
      • Agricultural Futures
      • Energy Futures
      • Metals Futures
      • Interest Rate Futures

    The 5%ers

    • Specialization: Forex and CFDs.
    • Available Instruments:
      • Forex pairs
      • Indices
      • Commodities
      • Metals
      • Cryptocurrencies
      • Stocks (through a partner platform)

    Key Differences:

    • Alpha Futures is ideal for traders exclusively focused on futures markets, while The 5%ers provide broader access to forex, indices, and stocks, appealing to multi-asset traders.

    5. Profit Splits and Payouts

    Alpha Futures

    • Profit Split: Up to 90%.
    • Payout Frequency: Bi-weekly payouts.
    • Conditions: Traders must meet profit thresholds before requesting withdrawals.

    The 5%ers

    • Profit Split: Ranges from 50% to 100%, depending on performance and the chosen program.
    • Payout Frequency: Flexible, depending on the program.
    • Conditions: No minimum thresholds; payouts are performance-based.

    Key Differences:

    • Alpha Futures’ profit split is fixed at 90%, whereas The 5%ers offer scalability to 100%, providing higher long-term earning potential for consistent traders.

    6. Red Flags and Concerns

    Alpha Futures:

    1. Limited Track Record:
      • As a newly established firm, Alpha Futures lacks an extensive reputation for payouts and transparency.
    2. Platform Limitations:
      • Traders are restricted to using AlphaTicks, which may not suit those accustomed to more widely used platforms.
    3. Subscription Fees:
      • Monthly fees continue even if traders fail the evaluation, adding ongoing costs.
    4. Consistency Rule:
      • The 50% consistency rule may penalize traders who rely on high-profit trades for success.

    The 5%ers:

    1. High Initial Costs:
      • Bootcamp and High Stakes programs can be expensive, especially for smaller accounts.
    2. Scaling Challenges:
      • While scaling opportunities are extensive, meeting the required milestones may be difficult for some traders.
    3. Strict Risk Management Rules:
      • Drawdown limits and leverage constraints may be restrictive for high-risk strategies.

    7. Scaling Opportunities

    Alpha Futures

    • Scaling Plan: Limited details on scaling beyond initial account sizes ($150,000 cap).

    The 5%ers

    • Scaling Plan: Structured growth to $4 million through consistent performance.

    Key Differences:

    • The 5%ers provide a well-defined scaling plan, making them ideal for traders seeking long-term growth.

    Conclusion

    Alpha Futures

    • Best For: Futures traders who value simplicity and want a firm focused solely on their niche.
    • Strengths: Straightforward evaluation, competitive profit split, and no daily drawdown limits.
    • Weaknesses: Limited track record, proprietary platform restrictions, and monthly subscription fees.

    The 5%ers

    • Best For: Multi-asset traders looking for flexible evaluation options, extensive scaling opportunities, and access to forex and CFDs.
    • Strengths: Multiple evaluation paths, high potential profit splits, and a well-established reputation.
    • Weaknesses: Higher costs for advanced programs and stricter drawdown limits.

    Recommendation:
    Choose Alpha Futures if you specialize in futures trading and want a streamlined evaluation process.
    Opt for The 5%ers if you value flexibility, access to multiple asset classes, and long-term scaling potential.