Detailed Review of The5ers Prop Firm

The5ers has established itself as one of the premier proprietary trading firms in the industry, offering traders the opportunity to manage capital up to $4 million.

Founded in 2016 and headquartered in Tel Aviv, Israel, The5ers has built a reputation for transparency, reliability, and trader-focused policies that make it particularly attractive to Kenyan traders seeking funded trading opportunities.

Company Overview

Background and History

The5ers was founded with a mission to democratize access to trading capital and provide talented traders with the resources they need to succeed. The firm has grown from a small startup to managing over $50 million in trader payouts, establishing itself as a trusted name in the prop trading industry.

Key Milestones:

  • 2016: Company founded in Tel Aviv
  • 2018: Launched first funding programs
  • 2020: Introduced scaling program
  • 2022: Reached $50M+ in trader payouts
  • 2024: Expanded to 50,000+ registered traders

Business Philosophy

The5ers operates on the principle that talented traders should have access to significant capital regardless of their personal financial situation. The firm’s approach focuses on:

  • Trader Development: Comprehensive educational resources
  • Risk Management: Strict but fair risk parameters
  • Community Building: Active Discord community
  • Transparency: Clear rules and fee structures
  • Innovation: Continuous program improvements

Funding Programs Analysis

Hyper Growth Challenge ($4M Program)

The flagship Hyper Growth Challenge represents The5ers’ most ambitious offering, allowing successful traders to scale up to $4 million in trading capital.

Program Structure:

  • Initial Capital: $20,000 - $100,000
  • Scaling Potential: Up to $4,000,000
  • Challenge Fee: $540 (refundable)
  • Profit Target: 6% (Challenge) + 5% (Verification)
  • Max Drawdown: 4%
  • Profit Split: 50% → 60% → 80% (based on account size)

Scaling Mechanism: The unique scaling system allows traders to increase their account size based on performance:

  1. Phase 1: $20K - $25K (50% profit split)
  2. Phase 2: $25K - $100K (60% profit split)
  3. Phase 3: $100K+ (80% profit split)
  4. Maximum: $4M (80% profit split)

High Stakes Challenge ($1.28M Program)

Designed for experienced traders who want substantial capital without the full scaling journey.

Program Features:

  • Starting Capital: $100,000
  • Maximum Scale: $1,280,000
  • Challenge Fee: $345 (refundable)
  • Target Audience: Professional traders
  • Fast Track: Quicker path to large capital

Bootcamp Program ($20K Entry)

Perfect for Kenyan traders new to prop trading or those wanting to test the platform.

Beginner-Friendly Features:

  • Low Entry Cost: $49 challenge fee
  • Manageable Size: $20,000 starting capital
  • Learning Focus: Emphasis on education
  • Risk Management: Lower pressure environment

Trading Conditions Deep Dive

Platform and Technology

MetaTrader Integration:

  • MT4 & MT5: Full platform support
  • Custom Indicators: Allowed and encouraged
  • Expert Advisors: Fully permitted
  • Mobile Trading: Complete mobile access

Technical Specifications:

  • Execution: Market execution model
  • Spreads: Competitive institutional spreads
  • Latency: Low-latency servers
  • Uptime: 99.9% server reliability

Instrument Coverage

Forex Pairs (28 Major and Minor):

  • Major pairs: EUR/USD, GBP/USD, USD/JPY, etc.
  • Minor pairs: EUR/GBP, AUD/CAD, NZD/JPY, etc.
  • Exotic pairs: Limited selection

Indices (12 Global Indices):

  • US30, NAS100, SPX500
  • UK100, GER30, FRA40
  • AUS200, JPN225, HK50

Commodities (8 Major Commodities):

  • Gold (XAUUSD), Silver (XAGUSD)
  • Oil (WTI, Brent)
  • Natural Gas, Copper

Cryptocurrencies (5 Major Cryptos):

  • Bitcoin, Ethereum, Litecoin
  • Ripple, Bitcoin Cash

Trading Rules and Restrictions

Allowed Trading Styles:

  • ✅ Scalping: No restrictions
  • ✅ News Trading: Fully permitted
  • ✅ Weekend Holding: Positions can be held
  • ✅ Hedging: Direct and indirect hedging allowed
  • ✅ Expert Advisors: All EAs permitted

Risk Management Requirements:

  • Maximum Risk: 5% per trade
  • Daily Loss Limit: 4% of account balance
  • Total Loss Limit: 4% of initial balance
  • Consistency Rule: No single day > 50% of total profit

Kenya-Specific Analysis of The5ers Prop Firm

Accessibility for Kenyan Traders

Regulatory Compliance: The5ers accepts Kenyan traders without additional restrictions, making it one of the most accessible prop firms for East African traders.

Payment Methods for Kenyans:

  • Skrill: Widely used in Kenya
  • PayPal: Available for Kenyan accounts
  • Wise (formerly TransferWise): Excellent rates
  • Bank Transfer: Direct to Kenyan banks
  • Cryptocurrency: Bitcoin and Ethereum options

Time Zone Considerations

Trading Hours Alignment:

  • Kenyan Time (EAT): UTC+3
  • Market Hours:
    • London: 10:00 AM - 7:00 PM EAT
    • New York: 3:00 PM - 12:00 AM EAT
    • Asian Markets: 2:00 AM - 11:00 AM EAT

Optimal Trading Windows:

  • Morning Session: 10:00 AM - 12:00 PM (London Open)
  • Afternoon Session: 3:00 PM - 7:00 PM (NY-London Overlap)
  • Evening Session: 8:00 PM - 11:00 PM (NY Session)

Internet and Technology Requirements

Minimum Requirements:

  • Internet Speed: 5 Mbps download, 1 Mbps upload
  • Latency: <100ms to trading servers
  • Reliability: 99% uptime recommended
  • Backup: Mobile data backup recommended

Recommended Setup:

  • Fiber Connection: 25+ Mbps
  • VPS: Recommended for EA trading
  • UPS: Uninterrupted power supply
  • Multiple Connections: Redundancy planning

Risk Management Framework

Drawdown Rules Explained

Daily Drawdown (4%):

  • Calculated from daily starting balance
  • Includes floating and closed losses
  • Resets at 5 PM EST daily
  • Violation results in immediate failure

Maximum Drawdown (4%):

  • Calculated from initial account balance
  • Includes all losses since account start
  • Never resets during challenge/verification
  • Violation results in immediate failure

Practical Example:

Account Balance: $100,000
Daily Drawdown Limit: $4,000
Maximum Drawdown Limit: $4,000

Day 1: Start $100,000, can lose max $4,000
Day 2: Start $102,000 (if profitable), can lose max $4,080
Maximum loss from initial: Always $4,000

Consistency Rule Impact

The 50% Rule: No single trading day can contribute more than 50% of the total profit target.

Strategic Implications:

  • Encourages consistent daily performance
  • Prevents “lottery ticket” trading
  • Promotes sustainable trading habits
  • Requires careful profit management

Kenyan Trader Considerations:

  • Plan trading sessions across multiple days
  • Avoid over-trading on profitable days
  • Focus on consistent small wins
  • Maintain detailed trading records

Payout Structure and Reliability

Profit Split Evolution

Tier-Based System:

  1. Starter (Up to $25K): 50% trader, 50% firm
  2. Intermediate ($25K-$100K): 60% trader, 40% firm
  3. Advanced ($100K+): 80% trader, 20% firm

Scaling Benefits:

  • Automatic tier upgrades based on account size
  • No additional fees for scaling
  • Retroactive profit split improvements
  • Clear progression pathway

Payout Process

Bi-Weekly Schedule:

  • Payouts processed every two weeks
  • Minimum payout: $50
  • No maximum payout limits
  • Multiple withdrawal methods

Processing Times:

  • Skrill/PayPal: 1-2 business days
  • Bank Transfer: 3-5 business days
  • Wise: 1-3 business days
  • Cryptocurrency: Same day

Payout Reliability Analysis

Track Record:

  • Total Payouts: $50M+ distributed
  • Average Processing Time: 2-3 days
  • Success Rate: 99.8% successful payouts
  • Dispute Resolution: <24 hours average

Kenyan Trader Testimonials:

  • “Received my first payout in 2 days via Skrill” - John M., Nairobi
  • “Consistent bi-weekly payments for 8 months” - Sarah K., Mombasa
  • “No issues with international transfers” - David O., Kisumu

Educational Resources and Support

The5ers Academy

Comprehensive Curriculum:

  • Beginner Modules: Trading basics, platform training
  • Intermediate Courses: Risk management, strategy development
  • Advanced Training: Psychology, advanced techniques
  • Kenyan Focus: Local market insights, regulatory guidance

Learning Formats:

  • Video Tutorials: 100+ hours of content
  • Live Webinars: Weekly educational sessions
  • Written Guides: Downloadable PDFs
  • Interactive Quizzes: Knowledge testing

Community and Mentorship

Discord Community:

  • Active Members: 15,000+ traders
  • Kenyan Channel: Dedicated East Africa discussion
  • Mentorship Program: Experienced trader guidance
  • Daily Analysis: Market insights and trade ideas

Success Stories from Kenya:

  • James Mwangi: Scaled to $500K in 8 months
  • Grace Wanjiku: Consistent $2K monthly payouts
  • Peter Ochieng: From $20K to $200K in 6 months

Technology and Innovation

Platform Integration

MetaTrader Optimization:

  • Custom indicators provided
  • Risk management tools
  • Performance analytics
  • Mobile app compatibility

Proprietary Tools:

  • Risk Calculator: Position sizing tool
  • Performance Dashboard: Detailed analytics
  • Community Feed: Social trading insights
  • Educational Portal: Integrated learning

Future Developments

Roadmap 2025:

  • Mobile App: Native iOS/Android app
  • API Access: Algorithmic trading support
  • Additional Instruments: Stocks and bonds
  • Enhanced Analytics: AI-powered insights

Competitive Analysis

Comparison with Major Competitors

vs. FTMO:

  • ✅ Higher scaling potential ($4M vs $2M)
  • ✅ No time limits (vs 30-day challenges)
  • ✅ Better profit splits at scale (80% vs 70%)
  • ❌ Higher challenge fees
  • ❌ Stricter consistency rule

vs. MyForexFunds:

  • ✅ More transparent fee structure
  • ✅ Better educational resources
  • ✅ Stronger community support
  • ❌ Lower maximum leverage
  • ❌ Fewer cryptocurrency options

vs. Apex Trader Funding:

  • ✅ Forex focus vs futures focus
  • ✅ Better for international traders
  • ✅ More flexible trading rules
  • ❌ Higher entry costs
  • ❌ Longer payout processing

Unique Competitive Advantages

Market Differentiators:

  1. Unlimited Time Challenges: No pressure trading
  2. Scaling to $4M: Industry-leading capital access
  3. Strong Educational Focus: Comprehensive learning resources
  4. Transparent Operations: Clear rules and fee structures
  5. Community-Driven: Active trader support network

Success Strategies for Kenyan Traders

Optimal Trading Approach

Recommended Strategy:

  1. Start with Bootcamp: Learn the system with low risk
  2. Focus on Consistency: Build steady performance record
  3. Manage Risk Carefully: Never exceed 2% risk per trade
  4. Use London Session: Align with high-volatility periods
  5. Scale Gradually: Don’t rush the scaling process

Common Pitfalls to Avoid

Frequent Mistakes:

  • Over-leveraging: Using maximum position sizes
  • Revenge Trading: Trying to recover losses quickly
  • Ignoring Consistency Rule: Focusing on single big wins
  • Poor Time Management: Trading during low-volatility periods
  • Inadequate Preparation: Not utilizing educational resources

Local Considerations

Kenyan Market Factors:

  • Power Outages: Use UPS systems
  • Internet Stability: Have backup connections
  • Time Zone Management: Plan trading sessions carefully
  • Currency Considerations: Factor in USD/KES exchange rates
  • Tax Implications: Consult local tax advisors

Costs and Fee Analysis

Total Cost Breakdown

Bootcamp Program ($20K):

  • Challenge Fee: $49
  • Potential Earnings: $1,000+ monthly
  • ROI Timeline: 1-2 months
  • Risk Level: Low

High Stakes Program ($100K):

  • Challenge Fee: $345
  • Potential Earnings: $5,000+ monthly
  • ROI Timeline: 2-3 months
  • Risk Level: Moderate

Hyper Growth Program ($4M):

  • Challenge Fee: $540
  • Potential Earnings: $20,000+ monthly
  • ROI Timeline: 3-4 months
  • Risk Level: High

Hidden Costs Analysis

Additional Expenses:

  • VPS Hosting: $20-50/month (optional)
  • Premium Tools: $50-100/month (optional)
  • Education: Free with The5ers
  • Platform Fees: None
  • Data Feeds: Included

Total Monthly Operating Cost:

  • Minimum: $0 (using home internet)
  • Recommended: $50-100 (with VPS and tools)
  • Professional: $100-200 (full setup)

Regulatory and Compliance

Israeli Regulation:

  • Licensed by Israeli Securities Authority
  • Compliant with local financial regulations
  • Regular audits and reporting
  • Investor protection measures

International Compliance:

  • GDPR compliant for EU traders
  • Anti-money laundering procedures
  • Know Your Customer (KYC) requirements
  • International banking standards

Regulatory Status:

  • No specific restrictions for Kenyan traders
  • Considered international investment activity
  • Subject to Kenyan tax regulations
  • Recommended to consult local advisors

Tax Implications:

  • Profits may be subject to Kenyan income tax
  • Consult with qualified tax professional
  • Keep detailed trading records
  • Consider tax-efficient withdrawal strategies

Risk Assessment

Firm-Level Risks

Business Risks:

  • Regulatory Changes: Potential impact on operations
  • Market Conditions: Extreme volatility effects
  • Competition: Increasing market competition
  • Technology: Platform reliability dependencies

Mitigation Factors:

  • Strong financial backing
  • Diversified revenue streams
  • Experienced management team
  • Robust risk management systems

Trader-Level Risks

Performance Risks:

  • Challenge Failure: Loss of challenge fee
  • Drawdown Violations: Account termination
  • Consistency Issues: Profit target difficulties
  • Market Volatility: Unexpected price movements

Risk Management:

  • Conservative position sizing
  • Diversified trading approach
  • Continuous education and improvement
  • Regular performance review

Future Outlook

Prop Trading Evolution:

  • Increasing competition among firms
  • Better terms and conditions for traders
  • Technology advancement integration
  • Regulatory framework development

The5ers Positioning:

  • Strong market position
  • Continuous innovation focus
  • Trader-centric approach
  • Sustainable growth strategy

Expansion Plans

2024 Roadmap:

  • Geographic Expansion: New market entry
  • Product Development: Additional instruments
  • Technology Enhancement: Platform improvements
  • Educational Growth: Expanded learning resources

Conclusion

The5ers stands out as an exceptional choice for Kenyan traders seeking funded trading opportunities. The firm’s combination of generous scaling potential, flexible trading conditions, reliable payouts, and strong educational support makes it particularly suitable for serious traders looking to build a sustainable prop trading career.

Key Strengths:

  • Industry-leading scaling up to $4M
  • No time pressure on challenges
  • Excellent payout reliability
  • Comprehensive educational resources
  • Active and supportive community
  • Transparent fee structure

Considerations:

  • Higher challenge fees for larger accounts
  • Strict consistency rule requirements
  • Limited customer support hours
  • Requires disciplined risk management

Recommendation: The5ers is highly recommended for intermediate to advanced Kenyan traders who can demonstrate consistent profitability and disciplined risk management. The firm’s scaling potential and educational focus make it an excellent long-term partner for serious prop traders.

Getting Started:

  1. Begin with Bootcamp: Test the platform with minimal risk
  2. Complete Education: Utilize all available learning resources
  3. Practice Discipline: Focus on consistency over large profits
  4. Scale Gradually: Build account size systematically
  5. Engage Community: Learn from experienced traders

For Kenyan traders ready to take their trading to the next level, The5ers offers one of the most comprehensive and trader-friendly prop trading experiences available in the market today.