FTMO Review and Analysis
Overview
FTMO is the latest in a burgeoning series of scouting programs. Propriety trading firms or “prop firms” put traders to the test (for a fee) through evaluations and challenges. The lucky few who pass are then funded with capital, and successful trades are split down a percentage with the broker. As scouting firms go, FTMO is an excellent all-rounder. Alongside a decent 80% payout for successful traders, FTMO equips users with webinars, workshops, and coaching.
The FTMO has a visually stunning interface and makes bold claims to be the “best proprietary trading firm you can find.” Does the package live up to the wrapping paper? Let’s unpack the details of this popular scouting program and assess whether it provides enough bang for your buck.
FTMO: What’s it all about?
The idea behind using prop trading is to maximize your leverage with minimal capital. For a sign-up fee (€155), you can then test your trading skills. If your mettle passes the test, you can begin trading with up to 100k in your account. Trading proprietary firms differ in the deals they cut with their winning traders. FTMO scores highly on this metric, with a base payout of 80% and up to 90% on profits over 25% ROI.
FTMO began operations in 2017 and won the Deloitte Technology Fast 50 award for the last three years. Prague-born engineer Otakar Suffner is the CEO and founder of FTMO. His trading background began with Forex, but he moved to CFDs and futures to gain access to more “freedom with your position sizing.” Enter the CFD Challenge, where if you play your trading cards right, you could be trading with 400,000 euros in your account.
Funded Accounts
What are funded accounts?
Scouting firms such as FTMO use inbuilt “challenges” to scout for expert traders. For a small sign-up fee, traders can test their abilities through a number of tests. The small percentage who pass the evaluation are then funded and can begin trading in partnership with the scouting site. The firm in question will assume the risk of losses but will share the rewards with the trader. Scouting firms are not to be confused with depository prop firms (also known as first loss or broker-dealers) or traditional prop firms. These latter companies use more formal arrangements, hiring traders on a long-term or spot basis instead of via challenges.
Scouting firms have been accelerating in popularity over recent years because of their accessibility. Retail traders held back by their lack of funds can vastly increase their leverage once they have proved themselves. The firms vary in features (evaluation fees, trading capital, educational resources), and this is how we will assess FTMO. How does it compare to other scouting firms?
Challenge Overview
FTMO Challenge review
Overall, the FTMO Challenge blows many competitors out of the water. You will find only the disgruntled traders who failed the challenge are likely to complain – the lucky few can trade with up to $400,000 and walk away with up to 90% of the profits. This generous profit split is one of the highest in the industry. Consistently successful traders may also find their available leverage increasing up to a total of $2 million. Best of all, profits are shared but FTMO will take the hit of all losses.
The FTMO Challenge opens doors to more than just forex, traders who pass can then access futures, metals, and equities. This trading flexibility adds significant shine to the FTMO Challenge. The feedback features are another impressive add-on; FTMO Challenge traders are helped along the way by real-time advice and tracked trading to help improve their performances.
The targets are built on a sliding scale which is trader-friendly. In the first phase of the FTMO Challenge, there is a 10% profit target. In Step 2 of the Challenge however, this is halved to 5%. Finally, the fact that FTMO reimburses the sign-up fee to the traders who pass the challenge is a generous gesture (not replicated by all prop firms).
Pros and Cons
Let’s talk about the good stuff…
As we can see, FTMO is a much-lauded platform and one of the leaders of the niche prop trading industry. Let’s cover the advantages and benefits of using this trading site before moving on to any chinks in the armor.
- Evaluation fee: FTMO charges a one-time fee only. This is in positive contrast to other firms which may have recurring charges or fees for their traders. The sign-up fee is reimbursed with the first profit split for those traders who pass the FMTO Challenge and begin trading with leverage.
- Opportunity: Another win for FTMO is that even if you don’t make it through the challenge, you can try again for free! (Provided you did not violate any of the rules the first time around).
- Trading Conditions: FTMO has generous conditions for its traders when we break down the numbers. They provide leverage up to 100:1, alongside a decent ratio of 1:1 of losses vs. profit). There is no limit on lot size (the volume traded) or restrictions on trading style.
- Support: FTMO offers customer support in 15 languages and an in-depth breakdown of each account.
- Challenge duration: Each trader has 30 days to complete the initial FTMO Challenge (details differ for the 2nd round).
- Flexibility: FTMO allows overnight weekend positions but no weekend positions.
- Reward ratio: Successful traders share profits with FTMO with an 80% base and 90% on gains above 25% return on investment.
- Extra features: FTMO comes out favorably on this assessment, offering its traders informational webinars, tutorials, and even coaching from mentors. Moreover, FTMO allows access to other platforms such as cTrader and MT5.
...and the bad
"Not all that glisters is gold," however. FTMO may have a decent package, but it is not perfect. The evaluation fee will set any trader back, and trading is heavily limited during news announcements. The “daily limit” is, as a matter of fact, two limits; one on the day and the other for each trade (regardless of time). This subtlety (alluded to in the small print) does have an impact when it comes to specific strategies, such as profitable swing trading. Users have also complained about the platform freezing and a lack of customer support.
Evaluation Metrics
Overall metrics
To truly evaluate what FTMO brings to the trading table, we decided to score each aspect of the FTMO Challenge individually.
- Challenge difficulty: The FTMO Challenge is not a piece of cake, but for a good reason. The idea behind prop firms is to headhunt expert traders. To get the most out of FTMO and begin trading with undreamed leverage, you need to be able to offer value to the company in return.
- Customer support: This is a rather marmite issue. On the one hand, the in-depth reports and performance coaches offered to traders provide excellent support. However, there have been complaints of disgruntled users finding it hard to get a response from FTMO, so for this, we scored them at a 5.
- Fee: The FTMO Challenge is neither free nor cheap; however, nor is it the most expensive of the prop firm challenges by a long way. Moreover, FTMO is one of the rarer scout trading sites that offers a refundable fee.
- Payout scheme: FTMO scores highly on this metric as their payout is generous compared to some rival prop trading sites.
Meet the CEO
Otakar Suffner is the CEO of FTMO, who was born and raised in Prague. He believes you don’t need a university education to be a good trader or businessman, although it certainly helps. This was due to having a smaller account since his options were minimal then.
As a co-founder of FTMO, a dynamic and ambitious company, Otakar and his team actively seek out and financially support trading talent in financial markets. Prior to launching FTMO, Otakar dedicated three years to full-time trading before deciding to fully commit to the project.
In his approach to trading, Otakar is highly analytical and data-driven, placing great emphasis on statistics. He leans towards probability-based strategies, leveraging numbers to develop unique and innovative trading ideas.
Frequently Asked Questions (FAQs):
What is FTMO?
FTMO is what is known as a “proprietary trading firm.” Also known as prop firms, these sites offer traders the opportunity of trading with enormous leverage (up to $2 million in the case of FTMO) for a share of the profits. First off, interested traders need to pass the “FTMO Challenge” which they can enter for a one-off fee. Successful applicants can then join the trading scheme and begin leveraged trades, keeping up to 90% of profits and safe in the knowledge that FTMO will accept the losses.
Is FTMO a scam?
FTMO is definitely not a scam. They are a legitimate company with a strong presence of social proof through customer testimonials, comments, and reviews making its product reliable for potential successful traders. As proprietary trading firms go, FTMO is an excellent all-rounder. Alongside a decent 80% payout for successful traders, FTMO equips users with webinars, workshops, and coaching. They are worth the try.
Who is the CEO of FTMO?
Otakar Ĺ uffner is the co-founder and CEO of the FTMO prop-trading platform. Prior to launching FTMO, Otakar dedicated three years to full-time trading before deciding to fully commit to the project.
Where is FTMO based?
The FTMO headquarters are located in Prague, the capital of the Czech Republic. The FTMO team can be contacted via an online form, telephone, or an in-person visit (if organized in advance).
Who can do the FTMO Challenge?
The FTMO Challenge is open to any traders worldwide. The only prerequisite is that the applicant is at least 18 years old. No advanced qualifications are needed. That said, the prop firm also recommends that only traders with adequate experience, knowledge, and risk management techniques attempt the challenge.
Find out how FTMO compares to other leading and popular cryptocurrency prop firms through direct comparison reports.
FMTO, worth a punt?
In resumen, FTMO has an impressive offering. Traders wishing to up the stakes and open greater positions than they would ordinarily be able to afford to have the chance of proving themselves through the 2-step evaluation. The lucky few who make it through are then accepted onto the FTMO Proprietary Trading firm. Through their placement, traders can access up to USD 400k, keeping 90% of the profits and leaving the losses to be borne by FTMO. There are downsides and bear in mind that only the minority walk away with significant gains. As prop challenges go, however, FTMO is a sensible choice.
Why did FTMO stop in India? Can we still use FTMO in India?
FTMO ceased accepting new clients in India and stopped providing services to clients in India due to regulatory developments and business decisions based on risk management considerations. This decision was implemented on 28th February 2023, and services were completely discontinued for residents in India by 29th March 2023. It's important to note that this limitation only applies to residents in India and not to Indian citizens residing abroad who can provide proof of address.
Which platforms can I use for trading?
You can trade your FTMO Challenge, Verification and FTMO Account on the most popular retail platforms – MetaTrader 4, MetaTrader 5 or cTrader. Due to regulatory reasons, US citizens/permanent residents are not able to select the cTrader platform.
Can I use FTMO in the US?
Effective 04 May 2023, due to business decisions based on operational considerations, FTMO stops accepting new clients in the US states of Delaware, Louisiana, South Carolina, Montana, and Arkansas. FTMO Challenges started before this date and active FTMO Accounts are not affected by this decision, however, new orders are not available.
Additionally, due to regulatory reasons, US citizens/permanent residents are not able to select the cTrader platform.
I am going to join a Forex-funded account challenge primarily thinking FTMO. Are there any other suggestions?
Based on our review and ratings,
FunderPro is the best alternative Prop firm to FTMO for January 2025.
How trusted is FTMO?
The trusted source of information on fintech matters SBO, gave FTMO a 3.88/ 5.00 rating based on analysing 20+ criteria and testing. FTMO is currently in 8th place in this ranking. FunderPro is currently rank as the number one.
What is the FTMO fee?
The FTMO Challenge with an initial capital EUR 10k balance costs €155;
25k balance for €250;
50k balance for €345;
100k balance for €540;
200k balance for €1080; Scaling plan up to $2 million.
What is the profit split for FTMO?
FTMO will pay out up to 90% profit share on a monthly basis. Periodically, the firm will allocate more balance into your FTMO Account if you consistently profit.
What is FTMO evaluation process?
“FTMO Challenge,” a two-step evaluation
How do I become an FTMO Trader?
10% for Step 1 and 2 in Normal Mode.
20% for Step 1 and 10% for Step 2 in Aggressive Mode.
What is an acceptable max drawdown for FTMO?
Normal Mode:
5% Maximum daily loss.
10% Maximum loss.
Aggressive Mode:
10% Maximum daily loss.
20% Maximum loss. Maximum Drawdown is the Distance between the highest and lowest points (maximum and minimum peak).
What is FTMO Trading Duration / Time restriction?
The FTMO Challenge has No time limits.
What is FTMO leverage?
The leverage offered is up to 1:100 (Forex) and can be lowered upon request.
cannot be increased. The swing account type has leverage of 1:30 (Forex).
What financial instruments can be traded at FTMO?
Forex, Indices, Commodities, Cryptocurrencies and Stocks.
Can I trade news at FTMO?
Yes in FTMO Challenge and Verification. After passing the Evaluation Process there are restrictions (except for Swing accounts).
Can I hold trades overnight or over the weekend?
Yes in FTMO Challenge and Verification. After passing the Evaluation Process there are restrictions (except for Swing accounts).
