Understanding the TopTier Trader rules is the first step for many retail traders aiming to secure a funded account. Now operating as TX3 Funding, this proprietary trading firm requires traders to pass a structured evaluation process by hitting specific profit targets while managing drawdowns under its updated policies.
At H2T Funding, we provide independent analysis to help you navigate these requirements. This guide breaks down everything you need to succeed without risking your own capital.
Key Takeaways:
- TopTier Trader is now officially TX3 Funding, but all active accounts and challenge rules remain unchanged.
- Traders must pass a two-step process, typically requiring a 10% profit target in Phase 1 and 5% in Phase 2.
- The firm strictly enforces a 5% maximum daily loss and a 10% overall trailing drawdown.
- Standard evaluation phases require a minimum of 3 trading days, though zero minimum trading days are available through custom add-ons. You can trade forex, crypto, indices, and commodities.
- You keep 100% of your first $10,000 in profits, followed by an 80% to 90% payout split.
1. What are the core TopTier Trader rules?
The core TopTier Trader rules require passing an evaluation by hitting a 10% profit goal while strictly maintaining a 5% daily loss limit and a 10% maximum trailing drawdown. These guidelines ensure traders prove their consistency before accessing live capital. Let’s explore the specific parameters you must follow.
1.1. Profit targets & evaluation phase
During the evaluation phase, you must meet specific performance criteria to prove your skills. For the popular two-step programs, the profit target is generally 10% for the first step and 5% for the second.
If you choose the 1-Phase challenge, you only need to reach a total 10% gain. Hitting these milestones shows you can generate consistent returns without taking reckless gambles.
1.2. Drawdown rules: Daily and Max EOD Trailing Drawdown
Protecting capital is the most critical part of risk management. You must strictly respect the drawdown rules, which dictate how much your account balance can drop before you fail.
| Rule Type | Limit | Consequence |
|---|---|---|
| Daily Loss Limit | 5% | Soft Breach: Account is temporarily locked until the next trading day. |
| Max EOD Trailing Drawdown | 10% | Hard Breach: Account is permanently disabled. |
More importantly, the 10% maximum loss is calculated based on your highest end-of-day balance, not intraday fluctuations. Once your accumulated profits reach a specific threshold, the trailing drawdown stops moving and permanently locks at your Initial Balance plus $100.
1.3. Time limits & minimum trading days
You never have to rush your trades because there is no maximum time limit to complete the challenge. You can trade entirely at your own pace.
While standard accounts require a minimum of 3 trading days, certain custom add-ons allow for zero minimum trading days. This flexibility lets you pass as soon as you hit your goals.
1.4. Real vs. simulated capital and inactivity rules
Traders must understand the true nature of their funded status and the hidden rules that govern it. All TX3 Funding Forex accounts, including funded accounts, are demo accounts that use virtual funds executing in simulated market conditions. For Futures, traders start in a Simulated Funded Stage and may only be invited to a Live Funded Account after demonstrating long-term profitability.
Additionally, you must be aware of the strict inactivity rules depending on your market:
- Forex Accounts: Automatically disabled and considered failed after 30 days of inactivity.
- Futures Accounts: You must execute at least one trade every 7 days to keep both Sim Funded and Live Funded accounts active.
Staying active not only prevents unnecessary account closure but also demonstrates the consistent trading habits expected by the firm.
2. TopTier Trader challenge rules: Starter vs. Pro Plans
The plans differ mainly in their trading conditions, including contract limits and drawdown rules. Choosing the right option depends on your experience level and how much flexibility you need. Understanding the TopTier Trader challenge rules helps you pick the perfect fit.
2.1. The Starter Plan (1-Phase & 2-Phase)
This option is great for beginners looking to secure trading capital with structured guidelines. It features strict daily loss limits to help you build discipline.
Depending on the account sizes you choose, ranging from $50,000 to $150,000, your contract limits will vary. For example, a $100,000 account allows a maximum of 6 E-mini or 60 Micro contracts. You can also mix these contracts using a 1:10 ratio.
2.2. The Pro Plan
Designed for those with more trading experience, this tier offers greater freedom by removing the daily loss limit entirely. It also provides higher contract limits to maximize your potential.
A $100,000 Pro account allows up to 10 E-mini or 100 Micro contracts. However, the profit targets are slightly higher, and the maximum trailing drawdown is tighter. You must manage your exposure carefully to avoid breaching the limits.
Whether you prefer the structured safety of the Starter tier or the flexibility of the Pro tier, both paths offer a clear route to funding. Selecting the plan that matches your strategy is crucial for long-term success.
3. TopTier Trader trading rules & guidelines
These trading guidelines define exactly what strategies and assets you can use to ensure a fair market environment. You have the freedom to trade multiple markets, but you must avoid manipulative practices. Let’s review what is permitted and what will get your account flagged.
3.1. Permitted trading styles & asset classes
The firm provides excellent market access, supporting various trading styles and allowing you to trade multiple asset classes to diversify your portfolio. Available instruments include futures, forex trading pairs, major stock indices, and popular cryptocurrencies.
You can also trade commodities like oil and natural gas, along with precious metals. This wide selection ensures you can always find active markets that fit your personal strategy.
3.2. News trading & weekend holding
Executing trades during major macroeconomic releases is strictly regulated to prevent unfair advantages. However, you can bypass these restrictions by purchasing the News Trading Add-on. This allows you to hold and execute positions during high-impact red folder events.
Similarly, keeping trades open over the weekend is permitted by default on 1-Phase and Flex accounts. If you use a Pro account, you must buy the Weekend Trading Add-on to prevent automatic closures on Friday afternoons.
3.3. Prohibited strategies (What to avoid)
To maintain integrity within proprietary trading, the firm strictly bans manipulative tactics. Maintaining strict trading discipline is mandatory, and violating these restrictions will result in immediate account termination. You must avoid the following:
- Tick Scalping: Closing trades for tiny gains within seconds.
- High-Frequency Trading (HFT): Executing an unnaturally high volume of trades in short periods.
- Latency Arbitrage: Exploiting system or data feed delays.
- Grid Trading: Hedging opposite positions across multiple accounts.
- Martingale Strategies: Doubling position sizes after a loss due to its reckless nature.
Sticking to clean, manual trading strategies ensures your account remains in good standing and guarantees a smooth payout process.
4. TopTier Trader payout rules & profit distribution
The TopTier Trader payout rules are designed to be simple, rewarding you on a recurring schedule once all trading objectives are met. Payouts are processed quickly through the trader dashboard, ensuring you get your earnings without unnecessary delays. Let’s look at how the profit sharing and specific conditions work.
4.1. Profit splits & first payout
The profit split is one of the most attractive features, as you keep 100% of your first $10,000 in earnings. After you reach this initial milestone, the profit distribution permanently shifts to an 80% to 90% share in your favor.
When you request a TopTier Trader payout from your funded account, it is typically processed within 1 to 3 business days. You can receive your money via RiseWorks or directly through cryptocurrency.
4.2. The Top Tier Trader consistency rule explained
The Top Tier Trader consistency rule is a key guideline for Starter accounts in the simulated funded stage. It states that your profits from a single trading day cannot exceed 40% of your total profits.
This rule encourages sustainable, long-term performance rather than relying on one lucky trade. Importantly, this calculation resets after every payout, applying only to newly generated profits.
4.3. Buffer zones for pro accounts
Pro accounts operate with a profit buffer to protect the account from market swings and ensure its longevity. This means you cannot withdraw your entire profit balance at once.
Instead, you are allowed to withdraw up to 60% of the profits that fall within the designated buffer zone. The remaining funds act as a cushion, allowing you to manage risk without putting your account in jeopardy.
Understanding these payout conditions is vital for a smooth withdrawal process. By balancing profit targets with the consistency and buffer requirements, you can access your earnings reliably and maintain a healthy funded account.
5. Top Tier Trader FAQ
Payouts are processed for traders who meet all evaluation and consistency requirements. You can receive your profits through two primary methods. The first is RiseWorks, a popular payment processor for traders. The second is directly through cryptocurrency, specifically USDT on the ERC-20 network.
Yes, TopTier Trader welcomes clients from the United States. However, there is a key restriction to note. The RiseWorks payment platform is unavailable in certain states, including Iowa, Louisiana, and Minnesota. If you reside in one of these areas, you must select the cryptocurrency payout option.
No, their trading platforms do not support the use of Expert Advisors or any automated trading bots. The firm enforces this policy to maintain a fair and equal trading environment for all participants. This ensures success is based on manual trading skill, not automated systems.
Violating a drawdown rule has different consequences depending on the type of breach. If you exceed the daily loss limit, it is a soft breach, and your account will be temporarily disabled until the next trading day. However, if you hit the maximum trailing drawdown limit, it is a hard breach, resulting in the permanent closure of your account.
TopTier Trader, now operating as TX3 Funding, is an established evaluation firm in the proprietary trading industry. Their business model is transparent: they earn from evaluation fees and a share of profits from funded traders, offering simulated capital to those who pass their risk criteria. While some online discussions may raise doubts, they operate with clear rules under their new infrastructure.
The 3-5-7 rule is a risk management framework that is highly effective for passing prop firm challenges. It is not a specific company rule, but a professional guideline: 3%: Never risk more than 3% of your capital on a single trade. 5%: Keep your total risk across all open positions under 5%. 7%: Aim for a profit target of at least 7% to maintain a healthy risk-reward ratio.
The 90-90-90 rule is a famous industry warning stating that 90% of new traders lose 90% of their capital within the first 90 days. This highlights the importance of discipline when trading for a prop firm. The goal is to prove you can manage risk consistently, not to get rich quickly.
6. Conclusion
Ultimately, the TopTier Trader rules create a clear framework, not a barrier. Passing the challenge unlocks a funded account with a clear scaling plan for growth. Success hinges on consistently applying a robust strategy that thrives within these limits.
To develop that winning edge, explore the expert guides in our Prop Firm & Trading Strategies category at H2T Funding. We provide the in-depth analysis and actionable tips you need to pass your challenge and get funded.
