FTMO stands out as a highly regarded proprietary trading firm that has captured the attention of numerous experienced traders globally. It’s designed to provide traders with increased capital, reaching up to $400,000, with a leverage of 1:100, allowing them to maximize their trading potential.
A standout feature of FTMO is its profit-sharing model, where traders can retain up to 90% of the profits they generate, a particularly attractive aspect considering the firm has distributed over $130 million in profits across traders in more than 180 countries.
A crucial aspect to know before signing up to FTMO is its emphasis on discipline and rule adherence, which forms the bedrock of its philosophy. The firm believes that trading success hinges on strict discipline and the ability to follow one’s own established rules. FTMO offers a unique environment where traders’ adherence to these principles is monitored, providing valuable feedback and fostering a conscientious trading approach.
In this FTMO review, I will highlight these core elements and dive into the firm’s features, advantages, disadvantages, and associated costs, providing a comprehensive overview for potential traders considering joining the platform.
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What to Know Before Signing up to FTMO
Determining the best prop trading firm for your unique needs is not an easy task. There is a lot to know before signing up to FTMO, or any trading platform for that matter. You should know the benefits, drawbacks, pricing and how they stack up against other prop trading firms. We will get into all of those details, but first let me explain to you exactly what FTMO is.
What is FTMO?
FTMO, founded in 2014 by a group of ambitious day traders in Prague, has evolved into one of the fastest-growing proprietary trading firms. Initially known as Ziskejucet.cz, its core philosophy revolves around strict discipline, rule adherence, and a deep commitment to professional trading. The foundation of FTMO was driven by a common need among traders for increased capital, better discipline, and constructive feedback.
This Czech Republic-based firm stands out by offering funded trading accounts to skilled traders who successfully pass a two-step evaluation process. The evaluation focuses on profitable trading while strictly adhering to the firm’s trading rules. FTMO’s primary focus is on the Forex market, but it also includes trading opportunities in commodities, cryptocurrencies, and indices.
Traders who meet FTMO’s criteria are granted accounts funded up to $400,000, with the potential to scale up to $2 million. The firm operates on a model where traders can keep up to 90% of the profits made, aligning the firm’s success with that of its traders.
FTMO Benefits
The main thing you should know before signing up for FTMO is what they bring to the table, what advantages you will gain from choosing them. Here are the main features I think users will find useful.
- Risk-Free Trading: Traders don’t need to risk their own money since FTMO supplies the trading capital.
- Profit Sharing: Funded traders receive a significant portion of the profits they generate, typically up to 70% or more, with the potential to scale up to 90%.
- Scaling Opportunities: Successful traders have the opportunity to manage increased capital, enhancing their profit potential.
- Comprehensive Trading Tools: This includes the Account MetriX, Account Analysis, Statistical App, Trading Journal, Mentor App, and Equity Simulator, each designed to aid in tracking progress, optimizing strategies, and managing risks effectively.
- Economic Calendar: A tool that keeps traders informed about market-moving news and events, vital for planning and anticipating market shifts.
- Fee Refund: Traders receive a complete refund of their initial fee upon passing the FTMO Challenge, making the evaluation process effectively free once successful.
FTMO Drawbacks
Of course, no platform is perfect. Before you decide to sign up to FTMO, you should be aware of these potential pitfalls:
- Two-Step Evaluation Process: Traders must successfully complete two distinct evaluation stages before accessing funded accounts. This process is more time-consuming compared to some other trading firms, which may be a deterrent for those looking for quicker access to trading capital.
- Limited Investment Options: FTMO’s focus is not on stock or derivative investment, which might not align with the investment strategies of all traders.
- Challenging Profit Targets: The initial 10% profit target in the FTMO Challenge is considered high by some traders. However, it’s worth noting that once this Challenge is passed, the target is reduced to 5% in the verification stage, making the subsequent phase more attainable.
FTMO Pricing
The price is arguably the most important feature, as we sign up for prop trading companies to make money, not spend it. I will give you a brief overview of the costs and rules, but check out my FTMO challenge fees and rules article for a more indepth breakdown.
Normal Risk Level:
- $10,000 account: €155
- $25,000 account: €250
- $50,000 account: €345
- $100,000 account: €540
- $200,000 account: €1,080
Aggressive Risk Level:
- $10,000 account: €250
- $25,000 account: €345
- $50,000 account: €540
- $100,000 account: €1,080
If a trader does not successfully complete the 3-step process, they have the opportunity to try again. The fee paid for the program is refunded once a trader becomes funded with FTMO. This fee structure allows traders to select an account size and risk level that matches their trading approach and risk tolerance.
The FTMO evaluation process, designed to find and nurture skilled traders capable of handling the firm’s capital, consists of two stages: the FTMO Challenge and Verification.
- FTMO Challenge: This initial stage tests a trader’s skills and discipline to meet specific goals. Traders must hit a profit target set by FTMO, which varies based on the chosen account size. They’re required to trade for a minimum of 4 days and adhere to the maximum daily and overall loss limits. Traders can opt for various account sizes, each with a distinct initial fee, profit target, and loss limits, suitable to their trading style and risk tolerance.
- Verification: After passing the FTMO Challenge, traders enter the Verification stage, which aims to confirm their trading skills over a longer period. This stage demands achieving a reduced profit target from FTMO, trading for a minimum of 4 days, and maintaining the set daily and overall loss limits. Verification acts as the final test of a trader’s consistent ability to generate profits.
The process allows traders to select an initial deposit ranging from $10,000 to $200,000, with a corresponding fee. The Challenge requires a 10% profit of the deposit within a maximum of 30 days, trading at least 10 days, with permissible losses up to 10% of the total deposit or 5% daily. In Verification, the profit target is halved, and traders have up to 60 days, easing conditions for more conservative strategies.
If you are looking to save money, you can try the FTMO free trial by clicking the link.
FTMO Alternatives
Before you subscribe to FTMO, you probably should know about the alternatives and the competitive advantages they bring. If you value flexible trading rules and robust risk management tools, The Funded Trader might be for you. They allow a higher maximum trading drawdown and traders can keep up to 80% of their profits. This FTMO vs The Funded Trader article will highlight the differences.
If you are just starting out in prop trading you will appreciate the educational resources and support provided by TopStep. I must note that traders can only trade futures with TopStep, but if you are a futures trader, explore, I recommend exploring this TopStep vs FTMO article to see what it has to offer.
The 5ers is popular with value seeking prop traders because it does not charge subscription fees or evaluation fees. If you are interested in seeing how they compare check out my the 5ers vs FTMO article.
Final Thoughts
In this FTMO review, we’ve explored the key aspects of what to know before signing up to FTMO, a platform that offers traders a structured path to managing substantial capital with its unique evaluation process. The combination of educational support, scaling opportunities, and a generous profit-sharing model makes FTMO an appealing choice for serious traders.
If you’re considering joining FTMO, remember that success requires discipline, adherence to rules, and consistent trading performance. Ready to take the challenge? Click here to begin your journey with FTMO.
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