Are you a trader looking to scale your trading capital without risking your own money? If so, you may have heard of FTMO. But is it worth the hype? In this detailed FTMO review, we’ll dive deep into what FTMO is, how it works, and whether it’s a good fit for traders in 2024. We’ll cover everything you need to know, using simple language, so you can make an informed decision.
FTMO Overview
FTMO is a proprietary trading firm (prop firm) that offers traders the chance to trade with significant capital in exchange for a share of the profits. Instead of using your own funds, FTMO provides you with access to their capital once you pass their evaluation process. If you perform well, you can earn up to 90% of the profits, while FTMO keeps a small percentage as a fee.
The company’s main goal is to fund skilled traders. If you’re successful in their evaluation, you get access to up to $400,000 in trading capital. This can be a huge advantage for traders who are profitable but don’t have the large funds necessary to scale up their trading.
How Does FTMO Work?
FTMO works straightforwardly. The process consists of two main steps:
- FTMO Challenge
The first step is to pass the FTMO Challenge. This is a 30-day evaluation period where you have to meet certain targets. You’ll need to achieve a specific profit target (usually 10%) without breaking risk rules, such as the maximum daily loss and overall drawdown limits. - Verification Phase
After passing the Challenge, you move to the Verification phase. This is a bit easier, with a lower profit target (typically 5%) and the same risk management rules. You have 60 days to complete this phase. If successful, you’re offered a funded account to trade real money. - Funded Account
Once you pass both steps, you get an FTMO Funded Account. You’ll trade using FTMO’s capital, and any profits you make are shared between you and FTMO. You can earn up to 90% of the profits, which is a generous split compared to other prop firms.
FTMO’s Trading Rules
FTMO has clear rules that traders must follow. These rules are designed to protect the firm’s capital, but they also ensure that traders maintain discipline. Some of the key rules include:
- Maximum Daily Loss: You cannot lose more than 5% of the account in a single day.
- Overall Maximum Loss: You cannot lose more than 10% of the total account balance.
- Profit Target: In the Challenge, you must make 10% profit, while in Verification, the target is 5%.
- Trading Days: You need to trade for at least 10 days during each phase.
Breaking any of these rules will result in failing the challenge, and you’ll need to pay to start over.
FTMO Fees
FTMO is not free, but the fees are reasonable compared to the potential rewards. The fee depends on the size of the account you want to trade. For example, the cost of the FTMO Challenge for a $100,000 account is around €540 (about $600). If you pass the Challenge and Verification, this fee is refunded with your first profit split.
There are no monthly fees after you get funded, and the firm only makes money when you’re profitable. This creates a win-win situation, as FTMO has a vested interest in your success.
Is FTMO Legit?
One of the most important questions traders ask is whether FTMO is legitimate. FTMO has built a solid reputation in the trading community. It was founded in 2014 and has funded thousands of traders globally. The company is transparent about its processes, fees, and rules, and they consistently pay out traders who earn profits.
Moreover, FTMO offers excellent customer support and provides traders with tools like a performance coach and a free trial to help them improve. These features help build trust among traders.
FTMO Pros and Cons
| Pros | Cons |
|---|---|
| Up to 90% profit share | Strict daily loss limit (5%) |
| No risk to personal capital | Challenge fee can be expensive if you fail |
| Access to large accounts (up to $400,000) | Must follow strict trading rules |
| Refundable Challenge fee after first profit | No live chat customer service |
| Established and trusted prop firm | Can be challenging for aggressive traders |
| Excellent support tools and resources | Requires good risk management skills |
Pros:
- High Profit Split: Up to 90% profit share, which is one of the best in the industry.
- No Risk to Your Own Capital: You trade with FTMO’s money, not yours.
- Large Account Sizes: Access to accounts up to $400,000.
- Refundable Fee: The Challenge fee is refunded after you pass and make your first profit.
- Good Reputation: FTMO is well-established and trusted in the trading community.
Cons:
- Strict Risk Rules: The 5% daily loss limit can be challenging, especially for aggressive traders.
- Challenge Cost: Although the fee is refundable, it can be expensive to repeat if you fail.
- No Direct Customer Service Chat: Some traders may prefer live chat support instead of email.
FTMO vs Other Prop Firms
How does FTMO compare to other proprietary trading firms? While there are many prop firms available, FTMO stands out for several reasons:
- Generous Profit Share: Many firms offer only 50-70% profit splits, whereas FTMO offers up to 90%.
- Refundable Fees: Some firms charge ongoing monthly fees, but FTMO’s fees are one-time and refundable.
- Global Reach: FTMO works with traders from all over the world and offers multilingual support.
Other firms may have different rules, lower fees, or smaller account sizes, but FTMO remains a popular choice for its transparency and potential for high earnings.
Is FTMO Right for You?
FTMO can be an excellent choice for experienced traders who want to scale up without risking their own money. However, it’s important to have a solid trading strategy in place and good risk management skills, as FTMO’s rules are strict.
If you’re a beginner, it might be better to start with a demo account or smaller challenges before diving into the FTMO Challenge. But for those who are confident in their trading abilities, FTMO offers a unique opportunity to trade with significant capital.
Conclusion
In conclusion, FTMO is a legitimate and respected prop firm that offers traders the chance to trade with large amounts of capital. With its high-profit splits, transparent rules, and support for traders, it’s a top choice for many in the trading community.
However, FTMO is not for everyone. It requires discipline and a solid trading strategy. If you’re up for the challenge and willing to follow the rules, FTMO could be your gateway to scaling your trading career.
Key Takeaways:
- FTMO offers up to $400,000 in capital for traders.
- Traders can earn up to 90% of the profits.
- You must pass a two-phase evaluation process.
- Strict risk management rules apply.
- FTMO is a trusted and well-established firm in the industry.
If you’re serious about trading and want to take your skills to the next level, FTMO is worth considering.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.
