In recent years, proprietary trading firms have surged in popularity, providing traders with the opportunity to scale their trading efforts without risking significant personal capital. One such firm that stands out in the crowded market is FTMO. Known for its structured evaluation process and generous profit splits, FTMO has garnered a strong following in the trading community. This review by The Finance Post will provide an in-depth analysis of FTMO’s offerings and whether it delivers on its promises.
What is FTMO?
FTMO is a proprietary trading firm founded in 2014. Its primary goal is to fund traders who demonstrate skill and consistency through its rigorous evaluation program. Traders who successfully pass the FTMO Challenge and the subsequent Verification phase are granted access to a funded account, allowing them to trade with significant capital without risking their own money.
While FTMO may not hold any major regulatory licenses, it has gained the trust of thousands of traders worldwide due to its transparency, reliable payouts, and comprehensive support system.
How FTMO Works
FTMO operates on a straightforward premise: traders must prove their skills before they are entrusted with the firm’s capital. Unlike traditional brokers, where traders risk their own money, FTMO fronts the capital after traders complete a two-step evaluation process. This allows traders to access capital up to $400,000, depending on the account type they qualify for.
Step 1: FTMO Challenge
The first step in the evaluation process is the FTMO Challenge, where traders must meet specific trading objectives within a 30-day period. Traders are required to achieve a 10% profit target while adhering to strict risk management rules, including a maximum daily loss of 5% and an overall maximum loss of 10%.
The challenge ensures that traders demonstrate not only profitability but also sound risk management. It’s important to note that traders must use the capital responsibly and follow the outlined rules, or they risk failing the challenge.
Step 2: Verification
Once the FTMO Challenge is successfully completed, traders move on to the Verification phase. This second step allows traders 60 days to achieve a reduced profit target of 5%, with the same risk management rules in place. This phase is designed to confirm that traders can consistently follow their trading plan over a longer period.
Upon passing the Verification phase, traders are funded with a live trading account, and from here, they can start earning a significant profit split.
Profit Splits and Scaling Plan
One of FTMO’s biggest attractions is its generous profit split, which begins at 80% for the trader and can increase to 90% as traders grow and perform consistently. This is a highly competitive rate within the proprietary trading industry, allowing traders to maximize their earnings.
FTMO also offers a scaling plan for traders who demonstrate long-term profitability. The scaling plan allows traders to increase their account size over time, offering the potential to manage even more capital and earn larger profits.
Trading Instruments and Platforms
FTMO provides access to a wide range of trading instruments, including:
- Forex (major, minor, and exotic pairs)
- Commodities (gold, silver, oil)
- Indices (US30, NAS100, GER30, and more)
- Cryptocurrencies (Bitcoin, Ethereum, Litecoin)
- Stocks (various blue-chip and tech stocks)
The firm’s flexibility in allowing traders to access multiple asset classes means they can diversify their strategies and maximize opportunities across markets.
Additionally, FTMO offers traders the choice of several industry-leading trading platforms:
- MetaTrader 4 (MT4)
- MetaTrader 5 (MT5)
- cTrader
These platforms are well-known for their advanced charting tools, ease of use, and reliability, making them ideal for both beginners and experienced traders.
Fees and Commissions
While FTMO does not charge any commissions on trades, traders must pay an upfront fee to participate in the FTMO Challenge. The fee varies depending on the account size traders are aiming for. For instance, the fee for the smallest account ($10,000) may be significantly lower than the fee for the largest account ($400,000).
It’s important to note that this fee is refundable if traders pass both the FTMO Challenge and Verification phase, making it a low-risk investment for those confident in their trading abilities.
Customer Support and Educational Resources
FTMO’s customer support is one of the best in the industry. Traders can reach the support team via email, phone, or live chat, and they are known for their quick response times and helpfulness. Whether you need assistance with setting up your account, navigating the platform, or understanding the rules of the challenge, FTMO’s team is readily available to provide guidance.
Moreover, FTMO offers a suite of educational resources to help traders improve their skills. These resources include:
- Psychological support: FTMO provides trading psychology sessions to help traders manage their emotions and remain disciplined, which is critical for success in the markets.
- Trading analytics: Traders can use FTMO’s analytics tools to review their performance, analyze their trades, and identify areas for improvement.
- Trading journals: FTMO encourages traders to maintain a journal to track their trades and refine their strategies.
These resources, combined with a supportive community of traders, make FTMO more than just a proprietary trading firm—it’s a platform for growth and development.
Final Thoughts: Is FTMO Worth It?
FTMO has quickly risen to the top of the proprietary trading industry due to its fair evaluation process, generous profit split, and comprehensive support system. The firm’s commitment to helping traders succeed—through psychological coaching, advanced trading platforms, and performance analysis tools—sets it apart from its competitors.
While the evaluation process may be daunting for beginners, experienced traders with a solid strategy will likely find FTMO to be a valuable partner in scaling their trading operations. The opportunity to access capital up to $400,000, combined with a 90% profit split, makes FTMO one of the best options available for serious traders looking to take their trading to the next level.
At The Finance Post, we highly recommend FTMO for traders who are confident in their abilities and are ready to meet the challenge head-on. With its solid reputation, strong community support, and trader-friendly terms, FTMO is a top choice for those looking to break into the world of proprietary trading.