The FTMO proprietary trading firm is a leader in the prop trading space — and for good reason. It has a reputation for finding and creating some of the most talented prop traders. If you want to become a member, read our FTMO review for a full breakdown of everything this firm has to offer.
FTMO is a proprietary trading firm that allows its investors to trade with a variety of trading instruments, like forex, stocks, cryptocurrency, bonds, and more.
One of the major draws to this firm is a very competitive profit split (up to 90/10), which has attracted top-tier investors and forex traders from all over.
But is being an FTMO trader really worth it？
Check out our FTMO trading review to find out.
Lets start by answering what is FTMO.
FTMO Review: Overview
Founded in 2014 by owner Otakar Suffner, FTMO is a prop trading firm based in the Czech Republic, specifically the Czech capital of Prague.
Its primary goal is to identify and support profitable traders through training and funded accounts.
Unlike many prop firms out there, FTMO gives investors the freedom to trade a variety of instruments on its list of approved trading platforms, including:
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Forex
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Indices
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Commodities
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Stocks
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Crypto
So whether you are a forex trader or prefer the stock market, theres a place for you here.
It‘s this freedom and the firm’s rigorous entrance and mentor programs that have earned it such high accolades.
The FTMO company has grown exponentially since its international launch, winning several plaudits within the financial world, including the Deloitte Rising Star award in 2019 and 2020.
How Does FTMO Work？
FTMO works as a proprietary trading firm that facilitates forex market investments and helps new traders and established ones optimize their trading strategies.
Users can trade forex, stocks, crypto, and more by using these platforms:
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cTrader
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Meta Trader 4 (MT4)
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Meta Trader 5 (MT5)
cTrader can be downloaded using a mobile app via Google Store or Apple Play Store, while the MT4 and MT5 platforms are available to download using desktop computers.
FTMO provides up to $2 million of trading capital to traders that can pass its FTMO Challenge and Verification.
The firm goes out of its way to find profitable traders and supports them with a suite of trading tools and mentoring to help them improve their performance in the financial markets.
It has a two-step Evaluation Course that verifies the qualifications and skills of a prospective forex trader or investor.
Successful traders can then invest professionally with FTMOs prop trading firm through funded accounts.
FTMO Funded Accounts
After passing the two-step Evaluation Course, FTMO traders can remotely manage up to $2 million with a leverage of up to 1:100.
But the most you can start with is $200,000 — you need to scale your selected account to $2 million (more on that later).
Technically, users trade on a demo account, even after passing the Evaluation Course.
Each FTMO account is connected to the prop trading firms live trading account with real capital.
Account types are broken down into two risk levels: normal and aggressive.
Additionally, there are FTMO accounts for swing traders where you are allowed to hold trades overnight and throughout the weekend without requiring permission.
The leverage drops to 1:30.
If you want to hold a position over the weekend on a standard FTMO account, youll need to get clearance from the firm.
Can You Hedge on FTMO？
As FTMO states, “Your trading style is completely up to you. We have no reasons for limiting or restricting your trading strategy, whether its discretionary trading, hedging, algorithmic trading, EAs, etc.”
This means that hedging is on the table.
Many prop firms are very restrictive when it comes to what and how you can trade, so this is certainly a plus in FTMOs favor.
How Does FTMO Make Money？
FTMO generates the cash flow, and if you generate profits, the firm keeps 10% or 20% of the earnings.
The profit split depends on the account that you have with FTMO.
The fee you pay to take the Evaluation Course is refunded upon successful completion, so they only keep it if you do not pass.
Who Can Join FTMO？
FTMO is open to traders who can pass its rigorous evaluation process.
There are no country restrictions, meaning anyone from anywhere can use the service.
The program is broken up into two steps, the FTMO Challenge and Verification.
In total, the process can take up to 90 days (more if you qualify for an extension).
The FTMO Challenge has a 30-day trading period (10-day minimum), and Verification is within a 60-day trading period (also a 10-minimum).
So if you know your stuff, you might be able to knock out the Evaluation Course within a month.
If you want to make sure you are prepared, you can use the FTMO free trial that you get after signing up.
Free FTMO Trial
Upon signing up, you are provided with a free 14-day trial challenge to familiarize yourself with FTMO.
This is a great way to test yourself and see where you stand as a trader.
The free trial is optional.
What Happens if I Pass The FTMO Free Trial？
If you pass the FTMO free trial, it means that you could have a better shot at passing the FTMO Challenge.
This doesnt help you get your foot in the door sooner — rather it is a testing ground for you to gauge your preparedness.
The FTMO Challenge
To start the FTMO Challenge, you need to pay a fee that depends on your chosen capital level and risk.
It is a one-off fee that‘s reimbursed once you’ve scored your first profit.
The challenge is taken on the demo account, with the details emailed to each interested trader after purchasing a challenge.
Accounts are broken down into $10k, $25K, $50K, $100K, and $200K challenges.
The purpose of the challenge is to establish if you can make trades that reliably result in profits.
Trading Objectives
Each account type comes with its own set of rules, or Trading Objectives, which you must follow to receive a funded account.
These Trading Objectives must be passed within the given trading period, maximum daily loss, profit target, etc.
The profit target ranges between 10% and 20%, depending on your account and risk level.
If a trader reaches the profit target before the maximum trading period, then they can move on to the next step.
What If You Miss the Profit Target？
If traders miss the profit target but dont violate the Trading Objectives or break any rules, they can try the challenge for a second time, free of charge.
Some conditions allow you to get a 14-day extension on the FTMO Challenge or Verification.
Is FTMO Legit？
Yes, FTMO is a legitimate prop firm with a strong reputation.
In fact, its not a stretch to say that this is perhaps one of the highest rated prop firms out there — by a wide margin.
Also, the firm goes well out of its way to verify investments, including alerting its users of potential scam attempts.
FTMO doesnt accept deposits from its clients and warns of various fake accounts on social media.
Is FTMO a Hedge Fund？
FTMO is not a hedge fund.
FTMO operates solely as a proprietary trading firm.
Is FTMO Regulated？
FTMO is not a broker, and because of this, its unregulated.
This is the norm for prop trading firms.
What Broker Does FTMO Use？
In 2021, FTMO removed all third-party brokers from the platform and began providing its own trading solution.
Before transitioning to its own solution, some of FTMOs supported brokers were CMC Markets, Blueberry Markets, GBE Brokers, and more.
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