Understanding the Core ConceptBefore comparing the two, it’s crucial to understand what prop trading firms aim to achieve. These firms invest in skilled traders by providing them access to capital in exchange for a share of the profits. This model allows traders to focus on performance rather than worrying about risking their own money.While both FundedFirm and FundedNext fall under this model, the key difference lies in how they evaluate traders, structure their profit-sharing models, and create a supportive ecosystem for consistent performance.

Evaluation Process and Challenge PhasesFundedNext offers traders multiple evaluation models — typically one-phase and two-phase challenges.These challenges test a trader’s consistency and ability to manage risk under specific rules. Although the system rewards disciplined trading, it often pressures traders with fixed time limits and profit targets.