Best prop firms with no daily drawdown
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Prop firms with no daily drawdown:
- FundedNext - Beginners-friendly offers (free trial, trade copier software is allowed)
- FTUK - Trading terms suitable for high-risk trading (leverage up to 1:100, fixed drawdown level)
- Goat Funded Trader - A prop trading firm offering simulated capital of up to $400,000 for Forex and CFD trading
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- FTMO - One of the largest prop companies with favorable conditions (profit split up to 90%)
Drawdown rules determine how much a prop trader can lose before an account is breached, but not every firm limits losses in the same way. Some remove the daily loss limit, while others use fixed rather than trailing drawdown. This article compares prop firms with no daily drawdown, explains how daily and trailing limits differ and shows what traders should check when choosing an account.
Risk warning: Proprietary trading involves substantial financial risk. Using firm capital can lead to gains or losses, and failure to meet targets may result in account closure. Over 85% of prop traders do not achieve long-term profitability. Understand the risks and seek professional guidance.
Best prop firms with no daily drawdown
Prop firms with no daily drawdown give traders more flexibility over how losses are distributed between trading sessions. However, the remaining maximum loss rules can differ significantly between firms.
The table below compares the best daily drawdown policy prop trading companies across key account and trading conditions.
| OneUp Trader | MyFundedFutures | Apex Trader Funding | |
|---|---|---|---|
|
Free Evaluation |
No | No | No |
|
Demo |
Yes | No | No |
|
Funding Up To, $ |
250 000 | 600 000 | 2 500 000 |
|
Profit split up to, % |
90 | 90 | 90 |
|
Min Trade Days |
15 | 1 | 7 |
|
Max. Leverage |
1:1 | 1:1 | 1:100 |
|
Open an account |
Go to broker Your capital is at risk. |
Go to broker Your capital is at risk.
|
Study review |
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When comparing the options, pay particular attention to the maximum loss, whether any remaining drawdown is fixed or trailing and whether the same rules apply during the evaluation and funded stages.
What does no daily drawdown mean in prop trading?
Daily drawdown is the maximum amount an account is allowed to lose during a single trading day. Depending on the prop firm, it may be calculated from the starting balance, previous day's balance or equity, and open losses may also count toward the limit.
A prop firm with no daily drawdown removes that separate daily threshold. For example, a trader could potentially lose 3% in one session without violating a 2% daily rule because no such rule exists. The account could still fail if the loss causes it to breach the firm's maximum overall drawdown.
No daily drawdown usually means:
No separate loss ceiling for an individual trading day;
More flexibility in how losses are distributed between trading sessions;
An overall maximum loss rule still applies;
Other risk or consistency requirements may still apply.
No daily drawdown vs. no trailing drawdown
Daily and trailing drawdowns restrict losses differently. A daily drawdown limits how much can be lost during a specified trading day, while a trailing drawdown can move upward as the account balance or equity reaches new highs.
Suppose a $100,000 account has a $5,000 trailing drawdown. If the threshold initially sits at $95,000 and the account rises to $103,000, the permitted loss floor may also move upward, depending on the firm's rules.
| Daily drawdown | Trailing drawdown | Fixed maximum drawdown | |
|---|---|---|---|
| How it works | Limits losses during a trading day | Follows the account upward as it reaches new highs | Sets an overall loss threshold |
| Does the threshold move? | Resets or recalculates according to the firm's rules | Yes, until the trailing mechanism stops | Usually remains fixed |
| Main consideration | One difficult session can cause a breach | Available loss room can change after profits | Failure level is generally easier to track |
A no trailing drawdown prop firm may use a fixed maximum loss instead. Importantly, the two policies are independent: a prop firm without trailing drawdown may still have a daily limit, while a prop firm with no daily drawdown may still use trailing drawdown.
Does a no drawdown prop firm really have no drawdown limit?
Usually, no. The phrase "no drawdown prop firm" commonly refers to a firm that removes a particular type of drawdown rather than an account with no maximum loss rule at all.
Before treating an account as a prop firm with no drawdown, check which restriction has actually been removed:
Daily drawdown. Limits losses during one trading day;
Trailing drawdown. Moves the loss threshold upward as the account grows;
Maximum drawdown. Sets the total loss allowed before the account is breached.
A prop firm no drawdown limit claim should therefore be checked against the actual account rules. The important thing is to understand which loss limits still apply and how they can affect your account.
Why some traders prefer no daily drawdown
Daily drawdown limits help prop firms control risk by preventing one bad trading day from causing a large account loss. They can also discourage funded traders from taking bigger risks after losses in an attempt to recover quickly.
However, daily limits can be restrictive. A trader may have a difficult session or experience short-term market volatility without reaching the account's overall loss limit. This is why some traders prefer prop firms without daily drawdown.
- Pros
- Cons
More flexibility during volatile trading days;
No risk of breaching the account simply because a daily loss limit is reached;
More suitable for strategies with uneven daily results;
More freedom to manage open positions.
One bad trading day can use up a large part of the overall loss limit;
Traders need to set their own daily risk limits;
Other drawdown rules may still apply;
More flexibility can encourage overtrading.
A prop firm without daily drawdown can give traders more freedom, but that freedom requires careful risk management. Without a daily limit set by the firm, traders need to decide for themselves when losses are large enough to stop trading.
Why choose a prop firm without trailing drawdown?
A trailing drawdown can make risk harder to manage because the loss limit may move higher as the account grows. A prop firm without trailing drawdown may use a fixed maximum loss instead, so traders always know how far the account can fall before reaching the limit.
A fixed loss limit can offer:
A clear loss threshold. Traders know the level they need to stay above;
More room after making profits. The loss limit does not automatically move higher with the account;
Easier risk management. Traders can see how much they can still lose before reaching the limit.
However, no trailing drawdown does not automatically make a prop firm better. Daily loss limits, maximum drawdown and other trading rules still matter, so traders should compare the full account conditions before choosing a firm.
How to compare prop firms with no drawdown restrictions
A prop firm with no daily drawdown or no trailing drawdown can still have other loss limits. Before choosing an account, traders should look at the full set of rules rather than focusing on a single restriction.
Key things to compare include:
Maximum loss. Check how much the account can lose in total before it is closed.
Type of drawdown. Find out whether the limit is fixed or moves as the account grows.
Open losses. Check whether losses on positions that are still open count toward the limit.
Reset rules. Check whether loss limits change after profits, payouts or a new trading day.
Evaluation and funded rules. Some firms change their drawdown limits after a trader passes the challenge.
Other requirements. Compare profit targets, consistency rules, leverage, fees and payout conditions.
A prop firm with fewer drawdown restrictions is not necessarily the better choice. Clear rules, reasonable loss limits and trading conditions that suit the trader's strategy are just as important.
How to avoid large drawdowns: 7 tips for prop traders
A prop firm no daily drawdown policy gives traders more freedom, but it also means they need to decide when to stop trading. A few simple risk rules can help prevent a bad trading day from turning into a much larger loss.
Set your own daily loss limit. Decide how much you are willing to lose in one day and stop trading when you reach that amount.
Limit risk on each trade. Avoid putting too much of the account at risk on a single position.
Watch similar trades. Several positions in related markets can move against you at the same time and increase your total loss.
Account for open losses. Some prop firms include losses on open positions when calculating drawdown.
Do not increase risk after losing. Taking larger positions to recover losses quickly can make the drawdown worse.
Know how your drawdown works. Check whether the firm uses balance or equity and whether the loss limit is fixed or trailing.
Review your results. A trading journal can help identify strategies or habits that regularly lead to larger losses.
Common mistakes to avoid
Even with no daily drawdown limit, poor risk management can quickly push an account toward its maximum loss. Some mistakes are particularly dangerous because they increase the amount at risk just when a trader is already losing.
| Mistake | Why it can increase losses |
|---|---|
| Increasing position size after a loss | Putting more money at risk to recover previous losses can make the next loss much larger |
| Adding to losing positions | Continuing to add to a trade as the market moves against it can quickly increase the total loss |
| Revenge trading | Taking more trades after a loss can lead to rushed decisions and excessive risk |
| Using too much leverage | A relatively small market move can cause a large account loss |
A prop firm with no daily drawdown gives traders more room to manage a difficult session, but that flexibility should not be used to take more risk. A series of poorly managed trades can still use up the available drawdown quickly.
Set a personal daily loss limit
I recommend setting a personal daily loss limit even when the prop firm does not require one. The absence of an enforced threshold gives you flexibility, but it also removes a risk control that would otherwise stop trading after a particularly poor session.
I would also avoid using the firm's maximum drawdown as your personal loss target. Leaving a cushion between your own risk limit and the firm's breach level gives positions more room for normal fluctuations and reduces the chance that one unexpected move ends the account.
Position size and combined exposure across open trades should reflect that personal limit. The goal is to use the flexibility of a no daily drawdown account without allowing one trading session to consume a disproportionate share of the total loss allowance.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
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Trader testimonials and reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
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Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
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Challenges and evaluation process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
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Profit split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
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Trading conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
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Platform and technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
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Education and support. Quality and availability of training materials, webinars, and one-on-one coaching.
Conclusion
Choosing a prop firm with no daily drawdown can empower skilled traders by granting greater flexibility to manage losses across trading sessions, but it also demands strong personal discipline. For example, firms like OneUp Trader and Apex Trader Funding remove daily loss limits yet still enforce overall maximum loss rules, meaning traders must self-impose daily risk thresholds to avoid depleting their accounts too quickly. While the absence of a daily cap can benefit those whose strategies result in volatile daily returns, it can also tempt traders into overtrading or risky behavior without firm-set guardrails. Ultimately, thriving in a no daily drawdown environment comes down to proactive risk management and resisting the urge to let one bad day dictate your trading fate.
FAQs
What key factors should traders evaluate when comparing prop firms with no daily drawdown?
How do fixed and trailing drawdown mechanisms affect trading flexibility in prop firm accounts?
Can open losses on current trades impact drawdown calculations at prop firms without daily drawdown limits?
What risk management approaches are recommended for handling prop firm accounts without enforced daily drawdown?
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Team that worked on the article
Aleksandra Chaikina has been a contributor to Traders Union since 2021. With over 15 years of experience in copywriting and more than 5 years focused on financial content, she specializes in producing detailed guides, analytics, and comparative reviews across various sectors, including cryptocurrencies, Forex, investment strategies, and financial technologies.
Ciaran Ryan is a veteran financial journalist based in South Africa, where he covers cryptocurrency, mining, stock markets, and governance for Moneyweb. He also hosts the weekly Moneyweb Crypto Podcast.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.
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