FTMO is one of the established prop firms and was founded in 2015. It is a well-known brand for its structured evaluation and long track record in history.
In our FTMO review, we will discuss its 1-Step and 2-Step challenges, trading rules, payouts, profit split, trading platforms, pros, cons, and for whom FTMO is suitable.
After going through this all-inclusive FTMO review, we believe you will be able to decide if FTMO is right prop firm for you or not.
FTMO’s Quick Overview
| Feature | FTMO Details |
|---|---|
| Founded | 2015 |
| Headquarters | Prague, Czech Republic |
| Profit Split | Up to 90% |
| Challenge Models | 1-Step & 2-Step |
| Initial Account Size | Up to $200,000 |
| Maximum Allocation | Up to $2 million through scaling |
| Daily Loss Limit | 3% (1-Step) / 5% (2-Step) |
| Maximum Loss | 10% |
| Platforms | MT4, MT5, cTrader, TradingView |
| Crypto | Available; instruments vary by platform/account |
| Reward Cycle | From 14 days, subject to eligibility |
FTMO’s Pros and cons
Pros
- With over 10 years of trust and more than $500 million disbursed, you are engaging with a reliable prop firm.
- Offering up to a 90% profit split, you retain the majority of your earnings, which is among the most favourable rates available.
- The challenge fee is fully refundable upon passing, ensuring that you are not left financially burdened if you succeed.
- The platform supports MT4, MT5, cTrader, and TradingView, enabling you to continue using the platform that aligns with your existing strategy.
- Swing accounts allow for news trading at all times, ensuring that macro and event-driven traders can maintain their essential strategies.
- The Premium Program offers Prime and Supreme Status, rewarding long-term traders with significant benefits as they progress.
Cons
- The challenge fees exceed the average within the industry, indicating that your initial investment is greater than that of most rival firms.
- The best day rule is applicable to the 1-Step, signifying that a single exceptional winning day must not account for more than 50% of the total profit.
- A minimum of 4 trading days is required for 2-step challenges, meaning that you cannot expedite the process; consistent trading activity is essential.
- There are no instant or 3-step challenges available, which implies that traders seeking alternative entry options will have to explore other avenues.
FTMO Challenge Rules
Here’s a rundown of the trading rules and risk management guidelines set by FTMO that every trader should keep in mind before diving into trading with them:
- Profit Target: Traders need to hit the specified profit target for their chosen program while sticking to all the established rules.
- Maximum Daily Loss: Traders must stay within the maximum daily loss limit, which includes both realised and unrealised losses.
- Maximum Loss: Your total account loss should always stay within the overall maximum loss limit set by the firm.
- Trading Days: FTMO doesn’t require a minimum number of trading days for the 1-step standard evaluation, giving you the freedom to complete the evaluation at your own pace.
- Consistency: According to FTMO’s 1-step standard best day rule, no single trading day should account for more than 50% of your total profits, which applies to both evaluation and funded accounts.
- News Trading: Swing accounts can hold positions during news events, but standard accounts aren’t allowed to trade during news once they’re trading on FTMO account.
- Weekend Holding: Funded traders can hold trades over the weekend or during weekdays, unless it is a Standard Account rollover period that lasts more than 2 hours.
- Copy Trading: While copy trading is allowed under certain conditions, you can’t copy trades between unrelated traders or use unauthorised signal services.
FTMO Challenges
FTMO provides the challenges given below to its prop traders:
FTMO Challenge Rules 2-Step Program
| Rule | Step 1: Challenge | Step 2: Verification |
|---|---|---|
| Profit Target | 10% | 5% |
| Daily Loss Limit | 5% | 5% |
| Maximum Loss | 10% | 10% |
| Minimum Trading Days | 4 | 4 |
| Maximum Duration | Unlimited | Unlimited |
| Evaluation Fee | Required | No additional fee |
| Objective | Prove trading ability | Confirm consistency |
Step 1
The Challenge represents the initial phase of the evaluation process.
During the Challenge, it is essential to adhere to a set of rules that demonstrate your trading skills and discipline while striving to meet the objectives.
The FTMO Challenge does not impose any maximum duration. You are free to take as long as necessary without the pressure of a deadline to achieve your goals. Previously, there was a requirement to complete the objectives within a specific timeframe, which often led traders to hastily execute trades that were not advisable. This restriction has now been removed.
The challenge can be completed relatively quickly. You are only required to trade for a minimum of 4 days to advance to the next stage. It is important to note that you must open at least one position each day, resulting in a minimum of four positions opened over four distinct days to successfully progress.
Below are the fundamental rules of the FTMO Challenge (normal risk account):
- Trading period: Unlimited, take as long as you require
- Minimum trading days: 4 days
- Maximum daily loss: 5% of the account
- Maximum loss: 10% of the account
- Profit target: 10% of the account
Step 2
The Verification phase represents the second stage in the FTMO evaluation process, and it is considerably less stringent than the initial stage. If you successfully navigated the first step, you should find this one manageable as well.
The duration for trading and the minimum number of trading days remain unchanged. Therefore, there is no upper limit on the trading period, and you are required to execute trades on at least four distinct days.
The guidelines for completing this step are largely analogous to those of step 1, with the exception of the profit target, which has been reduced by half. Instead of achieving a 10% profit, you are now required to generate a 5% profit on your account.
Below are the rules for this step, applicable to a standard risk account:
- Trading period: Unlimited; you may take as long as necessary to achieve the objectives
- Minimum trading days: 4 days
- Maximum daily loss: 5% of the account
- Maximum loss: 10% of the account
- Profit target: 5% of the account
It is crucial to note that there is no fee required to participate in step 2 of the FTMO challenge.
FTMO Challenge Rules 1-Step Program
| Rule | 1-Step Program |
|---|---|
| Profit Target | 10% |
| Daily Loss Limit | 3% |
| Maximum Loss | 10% |
| Maximum Duration | Unlimited |
| Best Day Rule | ≤ 50% of total profit |
| Verification | Not required |
| Additional Fee After Passing | None |
| Next Stage | FTMO Funded Account |
The 1 Step program offers a quicker evaluation process as it consists of only one phase to complete. Rather than going through a Challenge followed by a Verification, participants only need to undergo a single evaluation before advancing to the funded account.
Similar to the 2-step program, there is no maximum time limit imposed. You are free to take as long as necessary, which is beneficial as it alleviates the pressure to rush trades or force setups.
In the 1 Step challenge, while there is no time constraint, it is generally not feasible to complete it in a single day due to the Best Day Rule. This rule stipulates that “Your most profitable trading day (referred to as the ‘Best Day’) must not exceed 50% of your total profit.”
A significant distinction is that the risk management rules are more stringent compared to the traditional version. The daily loss limit is reduced, necessitating more careful risk management.
Below are the fundamental rules of the FTMO 1 Step program:
- Trading period: Unlimited; take as much time as necessary.
- Maximum daily loss: 3% of the account.
- Maximum loss: 10% of the account.
- Profit target: 10% of the account.
- Consistency rule (Best day rule): Your best day profit must not exceed 50% of your total profit.
It is crucial to comprehend the following details:
The maximum daily loss encompasses both realised losses from closed trades and unrealised losses from open trades. Therefore, if you have incurred losses on closed trades and also possess an open trade that is currently in a drawdown, the total of these losses will be considered in relation to the daily limit.
The best day rule stipulates that one cannot achieve success based solely on a single significant day of profit. For instance, if your most profitable day yields $6,000, your cumulative profit must amount to at least $12,000 to ensure that the $6,000 does not exceed 50% of the total profit.
In contrast to the two-step program, there is no subsequent phase or additional fee required after you successfully pass the evaluation. You make a one-time payment for the single-step assessment, and upon passing, you advance to the next stage.
| Key Factor | 1-Step | 2-Step |
|---|---|---|
| Evaluation Phases | 1 | 2 |
| Profit Target | 10% | 10% → 5% |
| Daily Loss | 3% | 5% |
| Maximum Loss | 10% | 10% |
| Trading Period | Unlimited | Unlimited |
| Time Limit | None | None |
| Best Day Rule | Yes | NA |
| Verification | NA | Yes |
| Speed | Faster | More gradual |
| Best For | Traders wanting a simpler route | Traders comfortable with a two-stage process |
Trading Platforms & Instruments
FTMO offers support for four trading platforms:
| Platform | Best For | Access |
|---|---|---|
| MT4 | Forex & automated trading | Desktop, mobile, web |
| MT5 | Multi-asset trading & EAs | Desktop, mobile, web |
| cTrader | Active & manual traders | Desktop, web, mobile |
| TradingView | Charting & technical analysis | Web, desktop, mobile |
- MT4 (MetaTrader 4), recognised as the traditional standard for forex traders, provides complete EA (Expert Advisor) support. FTMO permits automated trading and the use of EAs across all account types.
- MT5 (MetaTrader 5) offers a wider range of instruments, including stocks and bonds.
- cTrader is favoured by scalpers due to its rapid execution and sophisticated order types. FTMO has introduced cTrader support in recent years to appeal to active traders.
- TradingView allows traders to use its advanced charting tools and technical analysis features while trading through a supported FTMO account.
FTMO Profit Split and Scaling Plan
FTMO stands out in the industry with one of the most attractive profit-sharing models designed to reward traders who consistently perform well.
Initial Profit Split: When traders begin, they enjoy an 80% profit split. This means that while the firm keeps 20%, the trader takes home a solid 80% of the profits generated from their account.
Scaling Plan: For those traders who show real discipline, FTMO offers a scaling plan that can boost their account balance all the way up to $2 million. Plus, the profit splits can even increase to 90%.
Withdrawals: Once traders meet the criteria for payouts, they can easily request a withdrawal. Just make sure to provide all the necessary information to claim your reward, which will typically be processed within 1 to 2 business days.
Payment Frequency: Traders can look forward to a payout every 14 days, as long as they meet FTMO’s eligibility requirements. So, after that initial wait, you can expect to see your earnings rolling in regularly.
| Stage | Profit Split | Account Growth |
|---|---|---|
| Initial Funded Account | 80% | Standard allocation |
| Scaling Plan | Up to 90% | Up to $2 million |
| Payout Frequency | Every 14 days | Subject to eligibility |
| Withdrawal Processing | 1–2 business days | NA |
Payout Process
FTMO provides a clear payout process aimed at consistently rewarding successful traders while offering them flexible withdrawal options. Here are some key points to understand regarding the FTMO payment process:
Minimum Payout: There is no minimum withdrawal amount with FTMO. You can request a payout as long as your account has produced eligible returns.
Payment Schedule: The typical payout cycle is 14 days from the date of your first trade on the FTMO account. Once you qualify for a withdrawal, you may request it after 14 days.
Payment Methods: FTMO accommodates various payout methods, including bank transfer, cryptocurrency, Skrill, Mastercard, and Visa Direct. The available payment methods may differ based on your location.
Withdrawal Timeline: Upon submitting a withdrawal request, FTMO will process your reward within 1 to 2 business days.
User Reviews for FTMO
Frequent positive remarks include: prompt payouts (typically within 1 to 2 days), attentive customer support through live chat, clear challenge guidelines, and the Scaling Plan, which serves as an incentive for long-term funded traders.
Common grievances involve: higher fees compared to newer rivals, restrictive news trading policies (prohibiting trading during high-impact news events), and sporadic account issues due to slippage in volatile market conditions. ,Although FTMO’s closed-equity drawdown calculation alleviates this concern more effectively than real-time equity firms.
FTMO Tools and Features
FTMO offers a two-phase evaluation program that lays out a straightforward path for traders looking to secure funding. Since its inception in 2015, the company has built a solid reputation as a reliable option among proprietary trading firms.
In the standard evaluation program, traders go through a two-phase assessment to become eligible for payouts. In the first phase, traders need to hit a profit target of 10%, while the second phase lowers that target to 5%. They also enforce strict risk management rules, capping daily losses at 5% and total losses at 10%.
Plus, traders must engage in at least 4 trading days during each phase before they can qualify for funding.
FTMO offers several features, including:
Account MetriX: This online tool monitors progress towards becoming an FTMO Trader, providing a summary of trading goals and displaying statistical information.
Account Analysis: This functionality delivers an evaluation of trading outcomes, offering insights into areas that require enhancement in trading strategy. It compiles this evaluation after the challenge is completed, utilising all trading data.
Statistical App: This application employs algorithms to provide traders with insights into potential market behaviour, assisting them in making informed decisions that could result in increased profits.
Trading Journal: A digital platform where traders can document their trading reflections, emotions related to trades, and outcomes.
Mentor App: This application aims to enhance trader discipline by enforcing established rules and risk parameters. It is compatible with multiple trading platforms, including MetaTrader 4, MetaTrader 5, TradingView, and cTrader.
FTMO Academy: An educational resource that offers courses on strategy formulation, trading psychology, technical analysis, and forward testing to enhance trader performance.
Equity Simulator: Traders can utilise this tool to simulate potential outcomes of equity curves. This aids in comprehending drawdowns and the inherent randomness in trading strategies.
Economic Calendar: A tool that outlines forthcoming economic events and their potential impact on financial markets. It assists traders in staying informed about market-affecting news, planning their trades, and predicting market fluctuations.
Is FTMO Legit?
Absolutely, FTMO is widely recognised as one of the most reputable proprietary trading firms in the industry. In a landscape where many prop firms shut down within a year, FTMO has been going strong since 2015, proudly showcasing over a decade of experience.
Millions of traders around the world trust the firm, thanks to its clear regulations, thorough evaluation processes, and reliable payout systems. Reviews of FTMO often highlight a few standout features: the firm has straightforward guidelines and offers attentive customer support.
The firm has a proven track record of payouts, having distributed hundreds of millions of dollars, which really emphasises its credibility and dedication to rewarding qualifying traders based on their performance.
With a strong history of payouts, a solid online reputation, and transparent practices, FTMO stands out as a trustworthy option for traders looking to improve their trading results.
Is FTMO For You?
| Trader Type | Verdict | Why? |
|---|---|---|
| Professional Traders | Excellent Fit | Scaling up to $2M |
| Swing Traders | Good Fit | Swing account offers greater flexibility |
| EA Traders | Good Fit | EAs supported according to the review |
| Forex Traders | Good Fit | Wide selection of currency pairs |
| Beginners | Moderate Fit | Stricter risk rules require discipline |
| News Traders | Poor Fit | Restrictions on standard funded accounts |
| Copy Traders | Poor Fit | Copying other traders is prohibited |
Best For:
- Swing traders: The Swing account allows news trading and holding positions overnight and over the weekend, including after becoming an FTMO Trader.
- Professional traders: The scaling plan offers allocations up to $2 million. Upon reaching $600,000, you achieve Prime Status. Exceptional performers who attain Supreme Status are provided a pathway to Quantlane, which includes institutional-grade conditions and a fixed salary.
- EA traders: Custom-built EAs are fully supported across all programs, with no restrictions on strategies attached.
Not For:
- News traders on standard funded accounts: Traders with Standard accounts have restrictions when they are trading on an FTMO account. However, these restrictions don’t apply during the Evaluation phase.
- Copy traders: Engaging in copying other traders results in immediate termination. However, executing your strategy across your own accounts is permissible, though you are limited to a total of $400,000.
- Beginners: The 1-Step imposes a 3% daily loss limit with an equity-based drawdown and a real-time floating loss count. If you are still managing position sizing, that margin diminishes more quickly than anticipated.
Conclusion
FTMO is a great choice for traders who are looking for an established firm, structured trading rules, long-term scaling opportunities, etc. Its profit split of up to 90% is also an appealing factor for many traders.
However, its higher challenge fees when compared to others, strict trading rules on some account types might make it less appealing for some traders.
Overall, FTMO is best for disciplined traders who have a tested strategy and are comfortable with clearly defined risk limits.