FTMO was founded in the Czech Republic in 2014 as a global proprietary trading firm. Following traders’ successful completion of a two-step testing process, the site accepts them into its fold and sends $400,000 to their account. In order to increase the deposit, FTMO keeps track of transactions. At the beginning of actual trading, there is a payment of 80%. Only those FTMO Traders who have reached Scaling Plan are eligible for the 90% Profit Split. The business operates under the supervision of the regional regulator and complies fully with European financial regulations. FTMO is a dummy firm for traders that offers challenging testing environments, generous conditions, and a stepping stone to genuine trading.
What is FTMO?
FTMO is searching for seasoned traders. They created a 2-step review process to determine whether a trader possesses all the attributes that they look for. The FTMO Challenge and the Verification are the two steps in this process. The course is especially designed to help traders find their hidden talents. The FTMO instructional programmes, account analysis, and performance coach are available to help traders through the difficult route of trading.
Traders are offered a position in the FTMO Proprietary Trading firm after successfully completing the course, where they can remotely manage up to 400,000 USD and constantly develop the account in accordance with the prop firms Scaling Plan. You have the right to keep up to 90% of the profits you make as an FTMO Trader. Any losses are fully covered by the company.
A traditional selection of trading instruments is available from FTMO, including cryptocurrency, stock assets, and currency pairs. MetaTrader4, MetaTrader 5, and cTrader are trading platforms. Trading conditions on a practise account and a live account are identical.
How does FTMO work?
FTMO is a managing prop company that operates on the same tenets as a proprietary trading firm. A prospective trader must pass a two-stage active trading test in order to be given money under management. The maximum permissible daily loss, overall loss, and target profit level are all specified at each step. Although the terms of the prop firm are generally dependable, they can nevertheless be challenging to understand. No matter whatever testing package is selected, the restrictions are 10% of the overall loss. Other prop businesses’ permitted drawdowns range from 15% to 20%.
Although the test period has tight standards, FTMO has a comparatively modest test fee that starts at €155. In contrast, the admission price for completing the test ranges from €400 to €500 in the majority of businesses in this area. The accessibility of common MT4/MT5 platforms is another benefit. While FTMO uses common platforms, the majority of other prop firms use their own or customised versions. This enables you to use any personalised advisers and indicators that you have previously refined in the MetaTrader tester.
For people who have previously used a demo account and are skilled at managing risk, testing conditions are favourable. However, the company’s platform itself is another place to get experience. The test is available in a free version that exactly matches the premium test.
How to become an FTMO trader?
The journey to becoming an FTMO trader and earning a funded account with real money consists of the following 2 steps:
The trader chooses the initial deposit amount at this point, which might range from 10,000 to 200,000 US dollars. The test charge, correspondingly, will be €155 for a deposit of $10,000 USD. The cost increases with the amount of the deposit. Targeting a 10% return on the initial investment is required. This return must be received in no more than 30 days when trading for at least 10 days. The entire 30 days do not have to be spent trading. Losses that are permitted are limited to 10% of the total deposit or 5% every day.
The trader now has up to 60 days to achieve the minimum daily and total drawdown requirements, but the target profit requirements are scaled back by a factor of two. Conditions are streamlined to support more cautious tactics.
Testing is compensated and is influenced by a number of variables, including the initial deposit size and the selected account type (normal trading vs. aggressive). You only need to pay the charge once, thus there is no need to do so in the second stage. If the test is successful, the trader will receive actual money under control in the amount of $400,000. The test must be retaken in the event of a violation. There is no cap on the number of “retakes,” but there are no discounts.
The FTMO business has both a swing account and a normal account. The basic account is different in that there are limitations on fundamental trading. On the regular account, there are two different approach types: conventional and aggressive (high risk) trading. The target profit is likewise increased to 20% in the aggressive type, but there is a bigger permissible loss of up to 20%. The cost of the budget package itself is €155 with a deposit of $10,000 for a moderate risk, and the deposit charge is €250 for an aggressive strategy.
The initial actual managed deposit amount after completing the test is $400 000 USD with the need of 80% of the trader’s earnings. The business and investors each receive 20% of the profit. The scaling programme then begins. Every four months, the maximum amount of money under control may be increased. The deposit amount is increased by $100,000 USD if a trader has increased the deposit by at least 10% during this time (20% for an account with aggressive trading). The highest permitted limit is USD 2 million for aggressive trading accounts and USD 2 million for accounts with moderate risk. Scaling also boosts the trader’s reward by up to 90% of the profit.
To use FTMO as a funded trader, you must pay a charge. Your first profit split from your funded trading account will include the cost you paid if you are successful in becoming a funded trader.
You can start a new challenge if you don’t complete the three steps, but you’ll have to pay the price once more. The chosen risk level and the chosen trading account balance are two factors that affect the charge structure.
You always make payments in the local currency. If you are in the United States, for instance, you pay in USD. You pay in euros if you are an EU citizen, etc.
Conclusion: is the FTMO funded trading account challenge worth it?
For forex traders, FTMO is a top-notch proprietary trading company. The FTMO Challenge guidelines and Verification procedure are transparent and well-documented. The provided trading tools are well-liked by traders, and the cost is fair.
For successful forex traders, FTMO offers a funded account with a payment of 80%–90% of their profits in an effort to identify trading abilities.
For undercapitalized traders who desire to trade large accounts without putting their own money at risk, taking part in the FTMO Challenge is very beneficial. While achieving the goals demands talent, ability, and dedication, it is also incredibly advantageous in the event of success because the FTMO Challenge entry fees are reimbursed with the first profit share. Therefore, profitable trading results in a funded account with no risk capital.
With 44 tradeable currency pairs, forex is FTMO’s clear area of strength and concentration. Additionally, FTMO is special and a wise choice due to its ability to trade cryptocurrency CFDs.
- charge any additional or hidden fees
- Trading of prop firms capital without the risk
- Profit split where traders receive between 80% and 90% of profits
- The fee is refundable once a trader passes the evaluation process and make money with the funded account
- Transparent pricing, rules and account types
- Good choice of forex currency pairs
- Flexible account types
- Popular MT4, MT5, and Ctrader platforms
- andidates can choose a demo deposit from 10 thousand to 200 thousand US dollars. There are tariff plans that span from standard to aggressive trading
- Flexible leverage available
- Limited asset classes to trade
- Can be overwhelming to new traders
- Must meet strict criteria to qualify
- The allowable maximum loss is 10% of the deposit amount
- The target profit is 10%, for which 1 month is provided
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.