But what really sets FTMO apart? In this review, we go over the main features that make them special from other players, discussing props that place it as a favourite among many traders, and some cons you ought to know. From professional traders looking for a new challenge to complete beginners ready to start, this analysis of the pros and cons of FTMO will help you make an informed decision regarding your choice in pursuing this path. So, let’s dive into precisely what it is that FTMO has to offer and if it really is what suits your goals in trading.
Overview of FTMO
FTMO was founded in 2015 as a university project. A few students wanted to make a living by trading. In order to provide tools for traders, education, and generally an environment in which dreams come true, the project aimed at finding successful traders. It has been more than 8 years now, but FTMO’s mission is still the same: to offer quality services for their clients, push them further, and enable them to trade for a living. Their evaluation process consists of the FTMO Challenge and the Verification. Traders who succeed in the evaluation process are offered a position in the FTMO Proprietary Trading firm, where they can manage an account balance of up to $400,000.
Pros of FTMO
- High Funding Potential Up to $200,000: FTMO offers funded accounts ranging from $10,000 to $200,000, with the ability to scale beyond that through their scaling plan. For serious traders, this level of capital access is a major advantage, allowing you to generate significant returns without risking your own money.
- Transparent and Well-Structured Evaluation Process: Unlike many prop firms with vague or constantly changing rules, FTMO’s challenge process is clearly defined. Traders know exactly what metrics they need to hit 10% profit target in Phase 1, 5% in Phase 2, making it straightforward to plan and execute a strategy around the requirements.
- Competitive Profit Split With Scaling Rewards: FTMO starts traders at an 80/20 profit split, which scales up to 90/10 as you grow your account. Combined with monthly payouts and no cap on earnings, this makes FTMO one of the more financially rewarding prop firms for traders who perform consistently.
- Wide Range of Tradeable Instruments: FTMO supports trading across forex pairs, indices, commodities, stocks, and cryptocurrencies. This gives traders the flexibility to apply their strategy across multiple markets and asset classes, rather than being restricted to a single instrument or sector.
- Strong Reputation and Proven Track Record: Founded in 2014, FTMO is one of the oldest and most established prop firms in the industry. With thousands of funded traders globally and a history of consistent payouts, FTMO carries a level of credibility and trust that newer competitors simply cannot match, a critical factor when choosing who to trade with.
Cons of FTMO
- Strict Drawdown Rules Can Disqualify Traders Quickly: FTMO enforces a 5% daily drawdown and 10% maximum drawdown limit. Even a single bad day can breach the daily cap, leading to immediate challenge failure with no grace period; you’ll have to repurchase the evaluation and start over.
- Challenge Fees Are Non-Refundable on Failure: The FTMO Challenge costs between $155–$1,080 depending on account size. Fail at any point, and you lose the fee. While FTMO refunds it on your first payout, many traders fail multiple times before passing, making it an expensive path to funding.
- Profit Split Favours the Firm at Entry Level: New traders start on an 80/20 split; FTMO keeps 20% of your profits. This can scale to 90/10, but many newer prop firms now offer 85–90% from day one, making FTMO less competitive for consistently profitable traders.
- Trading Restrictions Rule Out Certain Strategies: FTMO bans high-frequency trading, latency arbitrage, and certain news trading approaches. If your edge relies on automation, algorithmic scalping, or trading around major news events, your strategy may simply not be compatible with their rules.
- Minimum Trading Day Requirement Adds Pressure: Traders must place trades on at least 4 separate days during the challenge. In slow or unfavourable market conditions, this can push traders into taking setups they otherwise wouldn’t, increasing the risk of hitting a drawdown violation and failing.
FAQs About FTMO Prop Firm
What is the FTMO Challenge?
The FTMO Challenge is the first step in FTMO’s evaluation process, where traders must meet specific profit targets and adhere to risk management rules within a set timeframe to qualify for the Verification phase.
How much does the FTMO Challenge cost?
The cost of the FTMO Challenge varies based on the account size. Fees typically range from $155 to $1,090, depending on the account size you choose (e.g., $10,000 to $200,000 trading accounts).
What is the Verification Phase?
Verification has very similar rules to the FTMO Challenge. The only difference is a lower requirement for the appreciation of notional capital and, therefore, less pressure on the trader. The purpose of the Verification is essentially to verify that the results achieved in the FTMO Challenge were not a mere coincidence and that the client is indeed able to trade successfully while meeting the set rules. In case the client successfully meets the rules set for the Verification, he/she proceeds to the last part and gain access to the so-called FTMO Account.
What support does FTMO offer?
FTMO provides access to educational materials, trading webinars, and dedicated support teams to assist traders throughout the evaluation process and while managing their funded accounts.
