FTMO – Comprehensive Guide for Traders

FTMO is one of the most popular proprietary trading firms in the world, offering traders the opportunity to manage large amounts of capital after successfully passing their challenge and verification processes. By adhering to strict risk management rules, FTMO provides traders with a chance to prove their skills, earn a share of the profits, and grow their trading careers without risking their personal capital.

In this comprehensive guide, we’ll explore how FTMO works, its challenges, account types, and the benefits it offers for both beginner and experienced traders.

What is FTMO?

FTMO is a proprietary trading firm that allows traders to manage company funds by successfully passing a two-phase evaluation process. Traders who prove their ability to manage risk and maintain consistent profitability are given access to a funded account, where they can trade on behalf of FTMO and keep a portion of the profits.

FTMO is known for its strict risk management rules, which help ensure that traders are disciplined and capable of managing large capital. Traders can choose different account sizes and instruments, including Forex, indices, commodities, and cryptocurrencies, making FTMO a versatile platform for traders with various strategies.

How Does FTMO Work?

FTMO operates by offering traders the chance to earn funding through a two-phase evaluation process: the FTMO Challenge and the Verification phase. Here’s how the process works:

FTMO Challenge

The first phase is the FTMO Challenge, where traders must achieve a specified profit target while adhering to strict risk management rules. The challenge typically lasts 30 days, and traders must meet the following criteria:

• Profit Target: Traders need to reach a profit target of 10% (8% for the Aggressive account).
• Daily Loss Limit: Traders must not lose more than 5% of their account balance in a single day.
• Overall Loss Limit: The maximum allowable loss for the entire challenge period is 10%.

This phase tests the trader’s ability to manage risk, trade consistently, and maintain control over their trading strategy.

Verification Phase

After passing the FTMO Challenge, traders move on to the Verification Phase, which lasts 60 days. During this phase, traders have the same risk management rules, but the profit target is reduced to 5% (or 4% for the Aggressive account). This phase confirms that the trader can maintain profitability and discipline over an extended period.

Funded Account

Once the trader passes both the FTMO Challenge and Verification, they receive access to a funded account. FTMO provides traders with a live account, and traders can start earning real profits with the firm’s capital. FTMO offers funded accounts of up to $200,000, depending on the account chosen.

FTMO Account Types and Pricing

FTMO offers several account types to suit different traders, with varying challenge fees based on the amount of capital the trader wants to manage. Here’s a breakdown of the available account types:

• $10,000 Account
  • Challenge Fee: €155
  • Profit Target (Phase 1): $1,000 (10%)
  • Daily Loss Limit: $500 (5%)
  • Overall Loss Limit: $1,000 (10%)
• $25,000 Account
  • Challenge Fee: €250
  • Profit Target (Phase 1): $2,500 (10%)
  • Daily Loss Limit: $1,250 (5%)
  • Overall Loss Limit: $2,500 (10%)
• $50,000 Account
  • Challenge Fee: €345
  • Profit Target (Phase 1): $5,000 (10%)
  • Daily Loss Limit: $2,500 (5%)
  • Overall Loss Limit: $5,000 (10%)
• $100,000 Account
  • Challenge Fee: €540
  • Profit Target (Phase 1): $10,000 (10%)
  • Daily Loss Limit: $5,000 (5%)
  • Overall Loss Limit: $10,000 (10%)
• $200,000 Account
  • Challenge Fee: €1080
  • Profit Target (Phase 1): $20,000 (10%)
  • Daily Loss Limit: $10,000 (5%)
  • Overall Loss Limit: $20,000 (10%)

Note: Once you pass the FTMO Challenge and Verification, the challenge fee is refunded.

FTMO Profit Split and Payout System

One of the main attractions of FTMO is its profit split system, which allows traders to keep a substantial portion of the profits they earn. Initially, traders keep 80% of their profits, with FTMO taking the remaining 20%. However, for traders who consistently perform well, the profit split can increase to 90%.

• Profit Withdrawal: FTMO allows traders to withdraw profits once a month, or they can request an immediate payout after one full trading month.
• Quick Payouts: FTMO processes payouts quickly, usually within 24-48 hours of the request.

FTMO Trading Instruments and Platforms

FTMO offers a wide range of trading instruments, including:

• Forex (currency pairs)
• Indices (DAX, S&P 500, etc.)
• Commodities (Gold, Oil, etc.)
• Cryptocurrencies (Bitcoin, Ethereum, etc.)

Traders can access these instruments using MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader, some of the most popular trading platforms available. These platforms provide advanced charting tools, technical analysis features, and customizable trading environments to suit any trader’s style.

FTMO Challenge Rules and Risk Management

FTMO’s evaluation process emphasizes risk management, which is a key factor in becoming a successful funded trader. Here are some of the main rules traders must follow during the Challenge and Verification phases:

• Profit Target: Traders must reach a 10% profit target in the Challenge and a 5% profit target in the Verification.
• Daily Loss Limit: Traders are limited to a 5% daily loss to ensure that they don’t take excessive risks.
• Overall Loss Limit: The maximum allowable loss over the entire challenge period is 10%.

FTMO’s risk management rules ensure that traders can trade responsibly with large amounts of capital and that they have the discipline required to manage risk effectively.

Is FTMO Legit?

FTMO is a well-established and highly reputable proprietary trading firm. It has gained widespread trust in the trading community due to its transparent rules, verified payouts, and success stories from traders worldwide.

Why FTMO is Trusted:

• Clear and Transparent Rules: All conditions and expectations are clearly outlined before traders begin the challenge.
• No Hidden Fees: Traders only pay the challenge fee, with no additional costs or hidden charges.
• Refundable Challenge Fee: Once a trader passes the challenge and verification, the initial challenge fee is refunded.
• Verified Payouts: FTMO regularly shares trader testimonials and payout confirmations, building trust with new traders.

FTMO vs Other Proprietary Trading Firms

FTMO is often compared with other proprietary trading firms like MyFundedFX or TopStep, each of which has its own unique advantages and disadvantages. Here’s how FTMO stacks up:

Success Stories and Community Feedback

FTMO has helped thousands of traders achieve success by providing them with the capital and support they need. Here are some success stories from real FTMO traders:

• John, a Forex trader from the UK, passed the FTMO Challenge and now manages a $100,000 account. He consistently uses a swing trading strategy to earn his monthly profits.
• Maria, a crypto trader from Spain, took the FTMO Challenge and passed in just 28 days. She now trades Bitcoin and Ethereum full-time, making use of FTMO’s crypto instruments.

How to Get Started with FTMO

If you’re interested in getting started with FTMO, here’s a step-by-step guide:

1. Register: Sign up on the FTMO website.
2. Select a Challenge Account: Choose the account size that fits your trading style and experience.
3. Complete the FTMO Challenge: Trade according to the profit and risk management rules.
4. Pass Verification: Meet the profit targets in the Verification phase.
5. Trade with a Funded Account: Once you pass both phases, you will receive a funded trading account with FTMO.

FTMO offers a highly reputable and effective proprietary trading platform for traders looking to manage large capital without risking their own money. By adhering to strict risk management rules, traders can access significant funding and retain a large portion of the profits.

Whether you’re just starting out or looking for a new challenge, FTMO provides the tools and capital you need to succeed in the competitive world of Forex and CFD trading.

Ready to take on the FTMO Challenge? Visit the FTMO website today and start your journey to becoming a funded trader!