Advertising Disclosure
Updated:
Leverage: 1:100
Regulation: Prague, Czech Republic
Min. Deposit: €155
HQ: Prague, Czech Republic
Platforms: MT4, MT5, cTrader, DXtrade
Found in: 2015
FTMO is one of the most rapidly expanding Proprietary trading firms in recent years. Their unique approach to supporting aspiring traders has garnered attention in the financial markets. With a diverse range of tradeable assets, including Forex, cryptocurrencies, commodities, indices, and stocks, FTMO attracts traders from various backgrounds.
Founded in 2015 in the Czech Republic, FTMO has solidified its position as a global leader in the proprietary trading industry. Their rigorous two-phase evaluation guarantees that only traders with exceptional skill and discipline access their extensive funding reserves. Successful candidates are entrusted with up to $400,000 to trade, reflecting FTMO’s strong confidence in their traders’ expertise.
| FTMO Advantages | FTMO Disadvantages |
|---|---|
| Lower Profit Target | No Proper Overseeing |
| Good Pricing | It is hard to become Funded Trader |
| Great variety of Balances with Low Registration Fees | Limited Instrument Range |
| Profit Share from Challenge | No Guaranteed Income |
| Good range of Trading Platforms including cTrader, MT4, MT5 | |
| Refundable Fee once you become Funded Trader | |
| Scaling Plan for Succesful Traders | |
| Educational Resources |
FTMO is registered in the Czech Republic and, while it does not hold any licensing because it does not offer brokerage services, it is generally regarded as relatively secure due to its operation within an EU nation where financial activities are managed with greater precision. Another important aspect is that they have been operating in the financial markets for several years and have gained a reputation within the trading community.
In general, when compared to Forex Brokers, Proprietary Trading firms typically do not operate under a Forex Broker license. Consequently, they tend to have less regulatory oversight and are not subject to supervision by industry regulators like FCA. This means they do not offer the same level of safety assurance since the responsibility for managing the entire operation and providing funds for trading activities lies with the company itself. Therefore, it is crucial to comprehend all the associated risks
There’s no concrete evidence to categorically label FTMO as a scam. Many traders have used FTMO’s services and have shared various experiences, both positive and negative. Always conduct your own up-to-date research to make informed decisions. However, it’s important to note that Proprietary Trading Firms, in general, have limited regulatory oversight from financial authorities, making it challenging to definitively classify them as scams or legitimate entities.
Before allocating a funded account to traders, FTMO seeks to evaluate their risk management proficiency. This is the rationale behind developing trading objectives for the two stages of the FTMO evaluation process. These objectives serve as indicators of a trader’s discipline, dedication, and responsibility in trading activities. The evaluation process is divided into two critical steps: the FTMO Challenge and the Verification.
Before getting started with FTMO traders need to pass the evaluation process by choosing the Account Balance from which they would like to start, based on the Account Balance size the conditions are slightly different. The evaluation process is simple involving two steps — Challenge and Verification — after which the traders that successfully passed the evaluation are eligible to become an FTMO trader.
Moreover, FTMO completely removed the Profit Target requirement for traders to give them the freedom to trade with peace of mind. Also, FTMO requires a registration fee for the challenge which also varies depending on the account balance, however, the firm immediately offers a refund upon becoming an FTMO trader.
| Fees | FTMO | FundedNext | The Funded Trader |
|---|---|---|---|
| Minimum Account Size | 10,000 | $6,000 | $50,000 |
| Fee | €155 | $59 | $289 |
| Maximum Account Size | $200,000 | $200,000 | $400,000 |
| Fee | €1 080 | $999 | $1,869 |
| Reset or Test Retake | Yes | Yes | Yes |
| Is Fee Refundable? | Yes | Yes | Yes |
In the FTMO Challenge, traders aim for a profit target of 10%, with an aggressive option of 20%, of the initial balance. Meanwhile, during the Verification stage, the profit target is reduced to 5%, or 10% for those choosing the aggressive approach. Hence, the Verification’s profit objective is essentially half that of the FTMO Challenge, despite the trading period being twice as long.
FTMO provides traders with a 10% Maximum Loss buffer and a 5% Maximum Daily Loss, maintaining a 1:1 ratio of loss to profit, aligning with the industry’s top standards. The primary goal is to collaborate with traders who bring a wealth of experience to the platform.
A common regulation in proprietary trading evaluations is the necessity for traders to turn a profit within a specified number of days or trading periods. Specifically, at FTMO, traders are required to trade profitably for a minimum of 4 days across all account sizes.
See the detailed table with FTMO Trading Objectives:
FTMO offers a 14-day free trial with adjusted trading objectives. After the trial period ends, traders receive a summary analysis of their account performance. We find this feature adds an advantage to the firm, as not many proprietary trading firms provide a Free Trial, setting it apart as an added value to potential clients.
Upon becoming an FTMO Trader, traders earn access to some of the best trading conditions available. FTMO eliminated the Profit Target to alleviate the pressure of reaching specific goals, allowing traders to trade more freely. The key Trading Objectives to adhere to are the drawdown limits, including the Maximum Daily Loss and Maximum Loss, as these are crucial for sustainable trading.
Traders are not required to achieve a minimum profit to be eligible for a Profit Split; it just has to be sufficient to cover transaction fees. Traders can withdraw 80% of whatever profit they generate.
The FTMO Swing Account is designed with the flexibility that swing traders require, imposing no limitations on trading during news events or on holding positions overnight or over the weekend, even beyond 2 hours of market closing. This setup is ideal for traders who maintain their positions over extended durations, allowing their strategies to unfold over time.
From our comprehensive research, we’ve found that payouts are typically processed within a span of 1-2 business days following the validation of the invoice. Challenges can be paid through various convenient payment methods, and these transactions will incur no additional processing fees. Also, for regulatory reasons, bank transfers for payments or payouts are not available for residents of Venezuela, Cuba, Sudan, and Ukraine.
Profits can be received via regular bank wire transfers, credit/debit cards, Skrill, or cryptocurrencies. FTMO does not impose any commissions on withdrawals.
When evaluating Account Conditions, it’s crucial to carefully assess whether the prop firm offers a variety of account preferences, as well as the applicable Platforms, Instruments, and Trading Costs. Analyzing the Leverage levels and Trading conditions provided is also vital, as some prop firms may impose restrictions on certain strategies and disallow specific practices in funded accounts, leading to potential account losses. To recover the account, re-passing the test might be necessary. A detailed breakdown is provided below:
FTMO provides a select but comprehensive suite of trading instruments that aligns with the offerings of many forex brokers. Traders have access to a diverse array of markets, encompassing Forex pairs, global Indices, various Commodities, and Cryptocurrencies, catering to different trading preferences and strategies.
We also assess the trading costs, such as commissions and spreads. FTMO applies a commission fee — for standard forex lots, this is set at $3. For indices and other financial instruments, the charges are minimal, amounting to mere fractions of a cent. In terms of spreads, FTMO boasts competitive rates. Detailed examples of their spreads can be found in the snapshot provided below:
FTMO provides a consistent leverage of up to 1:100 across all trading instruments within the account. This level of leverage remains accessible throughout the entire trading journey, from the Challenge phase to the point where you qualify as a funded trader.
Trading the FTMO challenge, the Verification, and the FTMO account can be done on some of the most popular retail platforms like cTrader, DXtrade, MetaTrader 4, or MetaTrader 5. Traders are free to select the platforms that suit them.
Based on our findings, FTMO doesn’t put any restriction on trading styles, As long as trading is legitimate (in line with proper risk management), conforms to the real market conditions, and does not resemble forbidden practices,
Our review reveals that, in the past year, FTMO has released over 226 discount codes, with 122 of those offered in the last six months alone. The top discount available as of today reaches up to 25% off.
Upon reviewing FTMO’s features, it emerges as a compelling choice for traders seeking funding. The firm distinguishes itself with a competitive suite of services, including access to multiple platforms like cTrader for an enhanced trading experience, as well as the advantage of a Free Trial, allowing traders to engage with lower risk. Nevertheless, those interested in Futures Trading may need to explore other proprietary firms, as FTMO does not provide this option.
Despite FTMO’s advantages, traders should compare offerings from various Proprietary Trading Firms, as some may offer better terms or more suitable options for those wanting a wider range of instruments or different platforms than MetaTrader. To aid in making a more informed decision, review the provided list and comparison table of FTMO and its competitors.
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