FTMO Review

FTMO is a popular proprietary trading firm that offers aspiring traders the opportunity to trade with substantial capital by passing their evaluation process. In this review, we’ll dive into whether FTMO is worth it, the features that make it stand out in the world of prop trading, including their evaluation challenges, risk management rules, profit splits, and overall user experience.

Whether you're a seasoned trader looking to scale your trading career or a beginner exploring new opportunities, FTMO provides a unique platform that could help elevate your trading journey.

Pros and Cons

Safety

FTMO is not inherently unsafe, but its unregulated status does introduce risks. The reputation of this platform among Forex traders is mixed and, at times, negative. When investing in the Forex market, it is essential to ensure that the platform you choose to trade on is legitimate and not a scam.

FTMO is a company that generates considerable interest among Forex traders, as it offers a so-called "challenge" to obtain a funded trading account, but only 12% of traders who take the exam pass it, while the remaining 88% will lose the initial fee they paid to register and end up contributing to FTMO's fund.

Although you can trade with significant leverage, it is important that you carefully consider the company's policies, as they may suspend your account. The test is difficult, and we would only recommend it if you have extensive trading knowledge.

An unregulated company can act freely with your money, as it is not overseen by regulatory bodies that enforce accountability. Regulation provides assurance about the security of investors' funds and without it, there is no guarantee that your money is being handled safely or ethically.

Tradable Instruments

​FTMO offers a diverse range of tradable instruments across various asset classes, providing traders with ample opportunities to implement their strategies. The available instruments include:​

• Forex (Currency Pairs): Engage in trading major, minor, and exotic currency pairs, allowing for a wide array of trading opportunities.​

👉 Read here for more information on the best UK forex brokers.

• Indices: Trade on global stock indices, offering exposure to a broad segment of the market.​

• Commodities: Access markets for commodities such as gold, silver, oil, and others, enabling diversification of trading portfolios.​

• Stocks: Participate in trading individual stocks from various markets, providing opportunities to capitalise on company-specific movements.​

• Cryptocurrencies: Trade popular cryptocurrencies like Bitcoin, Ethereum, and others, catering to the growing interest in digital assets.​

These instruments are available on trading platforms such as MetaTrader 4, MetaTrader 5, DXtrade, and cTrader.

To view specific instrument details, including contract sizes, trading hours, and other specifications, traders can access the 'Market Watch' section within their trading platform. It's advised to familiarise yourself with the characteristics and conditions of each instrument to align trading strategies effectively. ​

👉 For more information on trading platforms such as MetaTrader 5, read our article about which brokers are the best to use with MetaTrader 5.

Account Types

FTMO Account

It is the most basic way to have an account once you have passed the FTMO Challenge and restricts the user to have a limited number of transactions, which helps to limit their risk. The FTMO account also features a built-in stop-loss function. This function protects the user's investment from losses.

However, the major limitations of this account are the following:

• Does not allow trading in the night market and weekends (except cryptocurrencies)
• Does not allow trading during important news (supposedly to avoid chaos for newly approved novices)
• And be very careful, because it operates with a barbaric financial leverage of 1:100

FTMO Aggressive Account

The main difference here is the loss limits and profit target, which are double for the Aggressive account type. Thus, while the normal risk type requires us to achieve a 10% profit to pass the FTMO Challenge, it increases to 20% for the Aggressive risk setting

FTMO Swing Account

The differences with the previous account lie in the following.

• The first one (Acount Aggressive) cannot keep positions open overnight - except cryptocurrencies - or over the weekend, while the swing account can.

• Additionally, the swing account can trade with news during special events, while the other is allowed to do so. And the “leverage,” that is, the level of permitted leverage, is different as can be seen in the following chart.

Precisely for this dual reason, it can be an interesting type of account for traders who need to carry out more long-term operations, which can include both fundamental analysts and technicians with longer time periods.

Commissions and Fees

​FTMO operates with a transparent fee structure, primarily involving a one-time payment for the FTMO Challenge, which encompasses both the Challenge and Verification stages. This fee is designed to cover the costs associated with developing and maintaining the FTMO platform, as well as providing various educational tools and services.

It is also important to note that there are no additional or recurring fees; the initial payment is all-encompassing. Moreover, this fee is reimbursed upon successfully passing the Evaluation Process and making your first reward withdrawal from your FTMO Account. ​

Regarding trading commissions, FTMO offers competitive rates:

• Indices, Crypto, and Futures CFDs: FTMO covers the trading commissions for these instruments, meaning traders incur no additional costs when trading them. ​

• Currency Pairs: Commissions are set at $3 per lot traded. ​

• Equity CFDs: Commissions are calculated at 0.0040% per lot. ​

• Metal CFDs (e.g., XAG, XAU, XPT, XPD): Commissions are set at 0.0010% per lot. ​

When withdrawing rewards FTMO also does not impose extra commissions. Withdrawals can be made via bank wire transfer, Skrill, or cryptocurrencies, with processing times typically within 1-2 business days upon invoice confirmation.

However, due to transaction fees, a minimum closed profit of $20 is required for bank wire withdrawals, and $50 for cryptocurrency withdrawals, to cover the cost of the transaction. ​

In summary, FTMO maintains a straightforward and trader-friendly fee structure, focusing on transparency and minimising costs for traders.

Deposits and Withdrawals

FTMO operates as a proprietary trading firm, providing traders with simulated funds to trade without requiring personal capital deposits. This approach allows traders to participate in the FTMO Challenge and Verification processes using demo funds provided by FTMO, ensuring that no personal funds are at risk. ​

Deposit Requirements:

• No Personal Deposits: Traders do not need to deposit personal funds to participate in FTMO's evaluation processes. FTMO supplies simulated funds for trading, eliminating the need for minimum deposit amounts. ​

Withdrawal Requirements:

• Minimum Closed Profit for Withdrawals: To initiate a withdrawal via bank wire transfer, FTMO requires a minimum closed profit of $20. This threshold helps cover transaction costs associated with processing the withdrawal. ​

To conclude, FTMO does not impose minimum deposit requirements, as traders utilise simulated funds provided by the firm. For withdrawals, again, a minimum closed profit of $20 is necessary to cover transaction fees, ensuring that the withdrawal process is efficient and cost-effective for both FTMO and the trader.​

Trading Platforms

FTMO offers a selection of trading platforms to accommodate various trader preferences and strategies, making it one of the best trading platforms for those seeking flexibility and functionality. These platforms include:

• MetaTrader 4 (MT4): A widely used platform known for its user-friendly interface and extensive community support, making it suitable for both novice and experienced traders.

• MetaTrader 5 (MT5): As an advanced successor to MT4, MT5 offers additional features such as market depth, more order types, and enhanced charting capabilities. FTMO caters to traders who seek a more sophisticated platform with improved functionality.

• cTrader: A modern platform providing advanced charting tools and fast execution, appealing to traders who prefer a sleek interface and comprehensive trading solutions.

• DXtrade: A cloud-based platform accessible via web browsers and mobile devices, offering a sleek and intuitive user interface with fast execution and real-time analysis, suitable for both new and seasoned traders.

What is the FTMO Challenge?

The FTMO Challenge is the first step in the evaluation process for traders who wish to join FTMO and receive a funded trading account. It is designed to assess a trader's skills, discipline, and risk management abilities.

Here’s an introduction to the FTMO Challenge:

Step 1: FTMO Challenge

• Sign up and pay the fee: Register and select your desired account size (e.g., £10,000, £20,000, £30,000, £70,000).
• Trading objectives:
  • Profit Target: Achieve 10% profit within 30 days.
  • Risk Management:
    • Daily loss limit: 5%
    • Overall drawdown: 10%
  • Minimum Trading Days: Trade for at least 10 days during the 30-day period.

Step 2: FTMO Evaluation

• Verification: Once you pass the challenge, you move to the Verification Stage.
• Profit Target: Achieve 5% profit within 60 days while maintaining the same risk limits.
• This stage is easier than the challenge, but you still need to follow the same trading rules.

Step 3: FTMO Trader

• Funded Account: If you successfully pass both the Challenge and Verification, you’ll receive a funded trading account.
• You can start trading with FTMO’s capital and keep up to 90% of the profits you make.

What are their trading objectives?

​FTMO's trading objectives are designed to evaluate a trader's ability to manage risk effectively and achieve consistent profitability. These objectives are integral to the FTMO Challenge and Verification stages, ensuring that only disciplined and skilled traders progress to manage FTMO's capital. ​

Key Trading Objectives:

1. Profit Target: Demonstrate the ability to grow the trading account by achieving a specified profit within a set timeframe. ​
2. Risk Management:
   • Maximum Daily Loss: Limit the maximum allowable loss in a single day to a predefined percentage of the account balance.​
   • Maximum Loss: Ensure that the total loss does not exceed a certain percentage of the account balance over the entire evaluation period.​
3. Minimum Trading Days: Engage in a minimum number of trading days during the evaluation period to demonstrate consistent trading behavior. ​

Upon successful completion of these objectives during the Challenge and Verification phases, traders are granted an FTMO Account, where they continue to adhere to these risk management rules, except for the profit target. ​

These structured objectives aim to cultivate healthy trading habits and ensure that traders can manage risk effectively, aligning with FTMO's commitment to fostering responsible trading practices.

Reviews

FTMO offers a compelling opportunity for experienced traders to manage substantial capital and share in the profits without risking their own funds. With access to a wide range of assets, multiple trading platforms, and the potential to earn up to 90% of the profits, it stands out as an appealing option for skilled traders.

Additionally, FTMO continuously enjoys a strong reputation, with both Trustpilot and Google Play ranking it highly based on a large number of user reviews, which further reinforces its credibility.

However, the evaluation process can be challenging, requiring traders to adhere to strict risk management rules and profit targets. FTMO is also unregulated, which may be a concern for some traders who prefer the safety of a regulated environment.

In summary, FTMO is a great platform for disciplined traders who are confident in their strategies and looking for the opportunity to scale their trading. While it offers significant advantages, it's important to weigh the challenges and the lack of regulation before committing.

FAQs

What is FTMO?

FTMO is a specialised platform for professional traders that funds accounts for forex, crypto, and futures. The amounts range from 10,000 USD to 200,000 USD depending on the account being operated.

The requirements to participate in the FTMO challenge are to have consistent trading experience and pass a difficult test to access, so it is worth noting that if you are not an expert trader, this platform is not for you.

Based in the Czech Republic, they claim to have more than 6 million open trades each month, process payments every 8 hours on average, paid 23 million to their traders in 2021, and are present in more than 180 countries.

What is their customer service like?

FTMO's primary contact method is through their support email: [email protected]. They do not publicly list a direct telephone number for customer service, but they offer live chat on their website for real-time assistance.

You can reach them through the contact section on their website for further inquiries. They also offer a comprehensive FAQ section to assist with common questions.

How does FTMO work?

The FTMO account is connected to a Private Capital Trading Firm account, where profits are generated. This offer to trade for the Private Capital Trading Firm is made to clients who successfully pass the Evaluation Process.

Traders are offered a position in the FTMO Proprietary Trading Firm, where they can remotely manage up to 400,000 USD of the company's capital.

Both in the FTMO Challenge and in the Verification, trading during news is allowed without any restriction. This is not the case once these stages are passed, and doing so is penalized with account cancellation. The same applies if positions are not closed overnight.