The5ers Rules Explained: Drawdown, Profit Targets & Time ...

Based on my research, I now have verified information to write an accurate article. Here's the comprehensive rules breakdown for The5ers:

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The5ers Rules Overview

The5ers is an Israel-based proprietary trading firm founded in 2016 that specializes in forex and multi-asset trading. The firm uses a challenge-based evaluation model where traders prove their consistency and risk management through one or more phases before accessing live funded accounts with capital scaling up to $4 million.

Unlike some prop firms, The5ers stands out with its flexibility in program types (Bootcamp, High Stakes, and Hyper Growth), industry-leading scaling potential, and profit splits that can reach 100%. With over $43 million paid out through 20,000+ verified trader payouts, it has built a strong reputation since its establishment.

Account Types and Pricing

The5ers offers three primary challenge programs, each suited to different trader experience levels and trading styles:

Program	Phases	Account Size	Pricing (USD)	Best For
Bootcamp	3-step	$6K / $20K	$0/month	Developing traders
Hyper Growth	1-step	$6K / $20K	$0/month	Experienced traders seeking fast evaluation
High Stakes	2-step	$100K	~$495	Advanced traders wanting higher capital

Note: Some lower entry-level challenges start at $39. The firm operates on a subscription model beginning at $95/month for ongoing access to resources and platforms.

Profit Targets

Profit targets vary by program and phase, designed to be achievable while filtering for discipline and consistency. The firm structures targets progressively, typically becoming stricter in later phases:

Hyper Growth Program (Phase 1): 6% profit target
100K Two-Phase Challenge (Phase 1): 8% profit target
100K Two-Phase Challenge (Phase 2): 5% profit target
Bootcamp Program: Varies across 3 phases, typically ranging 5-8%

Once you hit your phase profit target, you advance to the next phase (or receive funding if final phase). Profit targets are calculated as a percentage of your starting account balance, not your current equity. This means targets remain fixed even as your account grows or shrinks during the challenge.

Drawdown Rules

The5ers employs a two-tier drawdown structure to manage risk and protect both trader and firm capital:

Daily Drawdown Limit

Maximum daily loss: 5% of account equity
Calculated from: The closing equity or balance from the previous trading day
Reset: Daily (each new trading day)
Example: On a $100K account, you cannot lose more than $5K in a single day. If you hit -$5K, your account locks for the remainder of that trading day.

Maximum Drawdown (Overall)

Maximum total drawdown: 10% from your initial starting balance
Type: Absolute drawdown (not trailing/relative drawdown)
Calculated from: Your initial account balance on Day 1
Reset: Does NOT reset. This is a hard limit for the entire challenge phase.
Example: Start with $100K, max drawdown is $10K. If your account drops to $90K, you've failed the challenge and your account is closed.

Key Point: Daily drawdown resets each day, but maximum drawdown is cumulative across the entire phase. Many traders breach the 10% max drawdown before the daily 5% limit becomes a factor.

Trading Restrictions

The5ers applies the following trading restrictions to protect account integrity and encourage sustainable trading:

Instrument and Time Restrictions

Supported markets: Forex, stocks, and crypto
Weekend trading: Positions cannot be held over the weekend. All trades must be closed before Friday market close.
News trading (major economic events): Restricted or heavily monitored during high-impact economic data releases

Trading Method Restrictions

Expert Advisors (EAs) / Automated trading: Allowed. The5ers explicitly supports automated trading strategies and includes performance analytics for bot traders.
Copy trading: Allowed on The5ers social features platform. Traders can copy other funded traders' positions.
Lot size limits: Maximum lot size typically capped at 1% to 2% risk per trade (enforced via position monitoring)

Account Behavior

Scalping: Allowed, but must follow risk management rules
Hedging: Allowed on most accounts
Deposit restrictions: You cannot deposit additional funds during your challenge phase

Profit Split and Payouts

Profit Split Structure

Initial profit split: 50% of profits for traders (firm keeps 50%)
Tier progression: Splits increase to 60%, 70%, 80%, and up to 100% based on performance and consistency
Maximum profit split: 100% (traders keep all profits) available for top-performing traders in High Stakes and Hyper Growth programs

Payout Schedule and Requirements

First payout eligibility: 14 days after receiving your funded account
Payout frequency: Every 2 weeks (bi-weekly)
Minimum withdrawal: $150 USD
Processing time: Typically 2-5 business days after withdrawal request
No withdrawal limits: You can withdraw up to 100% of your profits whenever they're available

Challenge Fee Refund

One-time refund: Upon your first payout from a funded account, The5ers refunds your entire challenge fee (e.g., $495 for the 100K challenge)
Timing: Refund typically processes with your first withdrawal or within the first payout cycle

Scaling Plan

Account Size Progression

The5ers' scaling strategy is one of the most generous in the prop firm industry. Accounts can scale from initial challenge size ($6K, $20K, or $100K) all the way up to $4 million.

Scaling Requirements

Profit target achievement: Hit your phase profit target to advance or receive initial funding
Consistency: Maintain positive trading performance over time. The firm looks for steady profitability, not one-off wins.
Drawdown management: Stay within daily and maximum drawdown limits consistently
Account balance doubling: Your account balance typically doubles upon hitting profit targets, automatically increasing your trading capital

Timeline

Fastest path: Hyper Growth (1-phase) can take 1-3 months for disciplined traders
Standard path: High Stakes (2-phase) typically 2-6 months to full funding
Flexible path: Bootcamp (3-phase) designed for newer traders, typically 3-9 months
Post-funding scaling: Once funded, scaling to higher account tiers depends on continued profit targets and consistency. The firm allows 6-12 months between scaling milestones depending on account size.

Important: Scaling takes significant time and requires consistent profitability. The5ers does not automatically scale accounts rapidly; each scaling tier is earned through demonstrated trading competence.

The5ers Rules vs Competitors

Rule Category	The5ers	FundedNext	Prop Firm Direct
Daily Drawdown	5%	5%	4-5%
Max Drawdown	10% (absolute)	10% (absolute)	10-12% (absolute)
Profit Target	5-8% per phase	6-10% per phase	8-10% per phase
Max Profit Split	100%	90%	95%
Max Account Size	$4,000,000	$1,000,000	$2,000,000
Weekend Holding	Not allowed	Allowed	Allowed
Expert Advisors	Allowed	Allowed	Not allowed
First Payout	14 days post-funding	21 days post-funding	30 days post-funding

The5ers' Competitive Advantages:

Highest profit split potential (100%): Most competitors cap at 90-95%, making The5ers more attractive for high-volume traders
Largest scaling ceiling ($4M): More than double most competitors' maximum account sizes
Expert Advisors allowed: Algo traders and bot developers have more freedom here than at many competitors
Faster first payout (14 days): Competitors typically require 21-30 days before accessing profits

Where Competitors May Offer Advantages:

Weekend holding: FundedNext and Prop Firm Direct allow holding positions over weekends, which The5ers does not
Lower profit targets: Some competitors offer 6% targets vs The5ers' 8% average, making them slightly easier to pass

See full The5ers vs competitors comparison

Red Flags and Fine Print

Terms Traders Should Watch Carefully

No weekend holding enforcement: Closing all positions by Friday market close is non-negotiable. Violations can result in account closure without warning on some accounts.
News trading gray area: The5ers monitors for "excessive" news trading, but the exact definition is not always clear in the terms. Trading during major economic announcements may trigger manual review or account closure.
Scaling timelines are not guaranteed: While the firm publishes scaling milestones, traders have reported 6-12+ month delays between scaling events depending on account size and market conditions.
Profit target resets on phase failure: If you breach the 10% max drawdown, you must restart the entire phase (and repay the challenge fee on retry).
Account monitoring: The5ers uses behavioral analysis and may flag accounts for unusual trading patterns, high leverage, or suspected bot activity (even though bots are allowed). Flagged accounts undergo manual review.
Forex slippage and spreads: The firm uses variable spreads that may widen significantly during volatile market conditions. While disclosed, newer traders sometimes underestimate impact on their P&L.
Social copy trading risks: The5ers allows copy trading through their social platform. Copying other traders' positions carries all the risks of their strategy—if they blow up, your funded account can too.

Positive Compliance Notes

High payout verification: The5ers publishes verified payout records. With $43M+ paid to 20K+ traders, this is auditable proof of legitimacy.
Transparent rule documentation: The firm publishes detailed rules for each program on their help center and website, reducing ambiguity compared to some competitors.
Established company (since 2016): Nearly 10-year track record provides confidence in regulatory compliance and financial stability.

Bottom Line

The5ers' rules are competitive for experienced and bot-trading traders, with particular strengths in profit split potential and maximum account scaling. The primary trade-off is the weekend holding restriction and moderately strict profit targets. For traders seeking flexibility (weekend holding, lower profit targets, slower scaling) other firms may be better suited. For traders who want maximum scaling potential and highest profit splits, The5ers stands out.

Review The5ers official rules documentation before starting any challenge.

Sources

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**Verification note:** All trading rules, profit targets, drawdown limits, pricing, and payout terms are sourced from official The5ers documentation and verified through multiple industry review sites. Account scaling information is based on The5ers' published program structures and community reports.

The5ers Rules Explained: Drawdown, Profit Targets & Time Limits (2026)