FTMO Review and Guide (November 2023) - FTMO Reviews: Experience, Cons & Pros, Legal or Scam - Proptradefirm
FTMO is a popular global prop firm that has the best reputation in the industry, good trader support, 70% profit share, a number of top brokers to choose from, simple trading rules and funding up to $300,000 for top traders!
FTMO Rating: 9,6
FTMO is an international proportional trading firm based in the Czech Republic, which operates mainly in the Forex trading sector.
FTMO Trading is a European prop trading company based in Prague, Czech Republic. It was started in 2014 as a project that evolved so much by 2017 that it became an international project. The founders themselves are day traders and wanted to create a platform that focused on risk management as well as disciplined trading.
In search of successful traders, the founders developed a two-step application process.
This way they can more easily distinguish between traders who were just lucky and traders who actually know what they are doing.
Meanwhile, it is possible for traders worldwide to apply to FTMO.
The application process consists of the so-called FTMO Challenge on the one hand and the Verification on the other hand. In this process, the trader is accompanied and supported by their own educational applications, the account analysis, and the performance coach.
If the trader has successfully passed both phases, he receives placement in the FTMO Proprietary Trading Firm. With this, he can remotely manage trading accounts of various sizes. How the process works in detail is explained below.
Work begins with a 30-day trial period. Beginners pay a participation fee based on the required initial capital, buying power, maximum daily loss limit, and target profit. The fee for these accounts is refunded upon the first withdrawal of profits.
Once traders pass the test, they are subjected to the second round of testing to prove that they are consistent and profitable traders. The second round is similar to the simulation test, except that the profit target is reduced by 50% and the trading period is extended to 60 days.
Once a trader reaches the trading goals set in the test, he becomes an FTMO trader. The trader can make real trades with real money and keep 70% of the profits made. There are still certain restrictions in FTMO, such as daily loss, total loss, and minimum trading day limit, but there are no restrictions in terms of profit target.
I would recommend FTMO to anyone who is looking to work with more capital and values the great trading conditions, as well as the great customer service when it comes to receiving payments and their process.
Trading at FTMO is now possible internationally. Therefore, the trader can currently trade in the following currencies: Euro (EUR), US Dollar (USD), British Pound (GBP), Czech Crown (CZK), Canadian Dollar (CAD), Australian Dollar (ADU), and Swiss Franc (CHF). Different account sizes:
With FTMO Trader, the trader basically has the choice between three different account types: the Standard Account, the Swing Account, and the Aggressive Account. These are CFD trading accounts that are traded with leverage. The following sections take a closer look at the different account types.
Each exam has a risk level (normal or aggressive), except for the 200k exam, which only has a normal risk level. Consider your trading strategies and experience when deciding on the level. With an aggressive account, you are allowed higher losses but have higher profit targets.
You can have multiple accounts, but for FTMO, the maximum initial capital allocation is $400k (or $200k for aggressive accounts).
This means you can have two accounts of $200k or four accounts of $100k.
Expansions do not count towards the initial capital allocation. Please note that you must pay for and complete a challenge for each new account. You can combine FTMO accounts as long as they have the same risk and currency configuration by contacting customer support.
All accounts are equipped with unique trading tools and applications such as Account Metrix, Mentor Application, and Equity Simulator. These tools help you monitor and improve your performance and are only available to FTMO traders.
The Standard Account has a leverage of 1:100 and a daily loss limit of up to 5 percent. The trader may not go below this limit. The daily limit resets itself daily at 0 o’clock to 5 percent. In total, the maximum drawdown is 10 percent. This means that the limit may not be undercut at any time on the account.
Furthermore, traders are not allowed to hold positions over the weekend or overnight, and trading during the release of news – as well as two minutes before and after – is also not allowed with the Standard Account. Swing trading is therefore only possible to a limited extent with this account. However, this is what the Swing Account is for.
The Swing Account is similar to the Standard Account. The daily loss limit is also 5 percent and the total drawdown limit is 10 percent. However, the leverage is 1:30 and the restrictions that apply to the Standard Account do not apply to the Swing Account.
Accordingly, traders are allowed to hold positions without any restrictions – even over the weekend and holidays. In addition, they can also trade during high-impact news events without any problems.
The Aggressive Account has the same rules as the Standard Account. Traders are not allowed to hold positions over the weekend and are not allowed to trade during the news. The leverage is also 1:100, but the risk parameters are wider.
The daily drawdown is 10 percent and the total loss limit is 20 percent. This extension of the risk parameters makes the Aggressive Account especially interesting for traders whose strategy shows larger fluctuations.
The following overview compares the different account types:
By successfully completing several qualifications at FTMO, a trader has the possibility to have several accounts. If he wishes, these can be combined into a so-called Master Account, with a maximum amount of 400,000 US dollars.
This works by, for example, the trader passing a $200,000 qualification twice, a $100,000 qualification four times, or any other account combinations up to a total of $400,000.
However, 400,000 US dollars is not the limit of the trading account. With FTMO Trading and the scaling plan, there is no limit upwards. The scaling plan is available for all account types and sizes, and it always runs automatically in the background.
The trader’s performance is evaluated every four months. If he has managed to generate a plus of 10% in four months and has also completed two of four possible profit splits with a plus in this time, his account is automatically increased by 25%. Thus, it is also possible for a successful trader to have an account with a size of 1 million US dollars at some point.
As mentioned above, there is a two-stage, fee-based application process that traders must go through before getting a placement with FTMO. This consists of a challenge and a verification stage. The Challenge is the first step in the process and lasts for 30 trading days. In these, the trader must have traded on at least 10 trading days.
He must also comply with the risk parameters: Daily Loss Limit and Total Drawdown Limit. The risk parameters differ depending on the account type. For the Standard Account as well as the Swing Account, the daily loss limit is 5 percent and the total drawdown limit is 10 percent, while for the Aggressive Account they are twice as high. There are no other restrictions in the application process, which means traders are allowed to hold positions over the weekend and trade during news events.
In addition, the trader must make a profit of 10 or 20 percent (for the Aggressive account) of the account size during this period. Thus, a trader with a 10,000 Euro standard account must make at least 1,000 Euro plus. If the trader successfully completes level 1 30 days ago, he may start with level 2. If the trader has managed to make a plus, but not in the required time, he may repeat the application process again free of charge.
However, if one of the risk parameters (daily loss limit or total loss limit) is violated, the challenge is automatically considered failed, and the trader does not get his fees back. Nevertheless, he can repeat the application as often as he likes, subject to fees.
After the challenge is passed, the verification phase follows. This lasts twice as long as the challenge phase, i.e., 60 trading days. In the second phase, even the profit expectations are reduced to half. Instead of 10 or 20 percent, traders only have to make 5 or 10 percent plus. The challenge is therefore designed to prevent traders from passing the first round through luck alone.
If the trader has also successfully passed the verification phase, he will be hired directly by FTMO as a Funded Trader. For this, only contractual formalities, i.e. the contract as a freelancer must be filled out. Traders can also get help from the support team.
FTMO then provides the trader with outside capital. This is the same amount as the capital with which the trader traded in the Challenge. Nevertheless, trading still takes place on a simulated demo account. FTMO sends through an Expert Advisor the demo trades to a conventional live account. The fees paid by the trader for the application will be returned to him with the first profit split upon successful completion of it.
The following table provides an overview of the requirements for the different account types.
Standard Account and Swing Account:
After successfully passing the application process and as soon as all contractual details have been clarified, you can start trading. In the process, the trader receives a profit split of 80 percent through the profits he makes with the demo account. This means only 20 percent of the profit stays with FTMO.
Compared to other prop trading companies that only offer a profit split of around 50 percent, this percentage is very good.
Moreover, if traders meet the conditions of the scaling plan, they even have a chance to get a profit split of 90 percent. The profit split takes place on a monthly basis, and the trader will also get the initial fees refunded at the end of the first month, provided that he has fulfilled all the conditions. In addition, FTMO has a customer support and allows private traders to trade very large amounts. Undercapitalization is often a disadvantage for private traders.
Last but not least, with FTMO the trader benefits from the fact that he is not responsible for any losses. All losses on the FTMO account are covered by the Proprietary Trading Firm. Thus, the trader literally has nothing to lose.
Both during the application – i.e. during the challenge and verification phase – and with the subsequent FTMO account, traders have the choice between three of the best trading platforms on the market:
MetaTrader is available in two versions. It is one of the most widely used trading platforms in the world and is available at most online brokers. The software is free of charge but can be expanded via a paid add-on package. A number of different chart analysis tools such as indicators are available. A big advantage of MetaTrader is also the high user-friendliness and intuitive handling.
Payment options are Bank Wire Transfer, VISA, MasterCard, PayPal, and Skrill. We note that a popular e-wallet is available, and this is encouraging because standard and legitimate brokers provide deposits and withdrawals via Visa, MasterCard, and wire transfer. Many offer e-wallets such as Skrill, Neteller, UnionPay, FasaPay, etc.
The minimum deposit appears to be the $100,000 mentioned on the site. This figure is higher than the average achievable $100 to $250 among brokers. Withdrawal fees are not stated, and this is undesirable, as we would prefer the broker to mention whether they apply or not.
It is not clear whether the trading is done through a simulated account or a real account.
This information is important for clients to be able to invest the small amount available to them. In this way, they can first see for themselves how the broker works. Then, when they are satisfied with what they see, they can decide when to withdraw their money.
The company offers partner discounts on trading courses and mentoring programs. These discounts range from 15-50% and are a great way for traders to expand their skills.
The benefits of opening an FTMO account include:
The disadvantages of the prop trading company’s offering include:
As a rule, the trader receives a profit split of 80/20, which is executed once a month if a profit has been generated. The trader has the option of a payout on request after 14 calendar days from the start of trading.
The trader can change the profit split day up to three times between 14 days and 60 days after the first placed trade. However, if he does not change it before the end of a one-month period, the profit distribution day is set to the last day of the specified reference period and cannot be changed afterward.
After the confirmation of the invoice, it takes only 1-2 business days to process the payout. The withdrawal can be executed via bank transfer, Skrill or cryptocurrencies and is free of charge. Moreover, traders do not have to make a minimum profit to receive a profit share.
Prop trading is becoming increasingly popular among private investors. This gives them the opportunity to trade with higher sums that are usually available to them. Trading with foreign capitals at FTMO can pay off especially for experienced traders. This is because they receive a profit split of 80 or 90 percent of the profit made, which is a higher percentage than most competitors.
In addition, there is the possibility to manage trading accounts of different sizes and even grow over time. With three different account types, there is something for every trader. Three different trading platforms are available and the trader receives his initial fee back after successfully completing the application process.
Nevertheless, traders should keep in mind that there are also phases without profits, and trading, in general, is a risky business. Moreover, the application process is demanding and therefore suitable only for experienced traders with a profitable strategy.
FTMO is a prop trading company based in Prague. It was founded in 2014 and meanwhile, traders worldwide can apply to get the opportunity to trade with foreign capitals. However, they first have to go through a two-step application process to prove their skills.
The application process at FTMO consists of two stages: firstly, the challenge, and secondly, the verification stage. In both phases, traders have a set period of 30 and 60 days respectively to make a profit in the amount of 10 and 20 percent of the account size. The trader must be active for at least 10 trading days and must not exceed the daily loss limit and the total loss limit.
At FTMO, the trader can choose between three different account types: the Standard Account, the Swing Account, and the Aggressive Account. In addition, he can choose the size of the account with which he trades. Here, amounts between $10,000 and $200,000 are available. With the scaling plan, the trader also has the option to regularly increase the size of his account, provided that all the requirements are met.