Alright, so let’s talk about FTMO properly — like we’re sitting and discussing prop firms honestly, not some paid promotion type review.
They’re one of the oldest and most trusted prop firms in the industry. And in prop space, longevity matters. Many firms came and disappeared. FTMO didn’t.
FTMO is one of the most well-known proprietary trading firms in the world. Founded in 2015 and headquartered in Prague, Czech Republic, FTMO offers traders the opportunity to manage large funded accounts after passing a structured evaluation process.
Unlike traditional brokers, FTMO does not charge commissions for access to markets. Instead, traders pay a one-time evaluation fee to attempt their
FTMO Overview at a Glance
CEO/Founders
Otakar Suffner
Broker
institutional liquidity provider
Date Created
Jan2015
Years in Operation
10
Platforms
cTrader
DXTrade
MT4
MT5
Payment Methods
Apple Pay
Bank Transfer
Credit or Debit Card
Crypto
Google Pay
nuvei
PayPal
skrill
Payout Methods
Bank Transfer
Crypto
Mastercard
Skrill
Visa Direct
Who Should Trade With FTMO?
FTMO is suitable for traders who:
- Have already forward-tested their strategy
- Understand their average drawdown
- Can realistically generate 8–12% returns without excessive risk
- If you are still experimenting with entries and exits, passing any of FTMO’s models will be difficult.
- Traders Who Keep Risk Per Trade Around 1%
FTMO’s structure makes aggressive risk difficult to sustain. The most compatible traders are those who:
- Risk 0.5%–1% per trade
- Use fixed position sizing
- Do not increase lot size impulsively
- Think in terms of percentage returns, not quick gains
Even the 1-Step model requires consistency. Overexposure can still end the challenge quickly.
Trader Compatibility Table
| Trader Type | Compatibility | Reason |
|---|---|---|
| Low-Risk Intraday Trader | Very High | Small position sizing (≈0.5–1% risk) aligns well with the 5% daily loss limit. |
| Swing Trader | High | Works well, especially with the Two-Step Swing model which allows weekend holding and news trading. |
| System / Algorithmic Trader | High | Consistent position sizing and rule-based trading fit FTMO’s structured risk model. |
| Position Trader (Multi-Day Holds) | Medium–High | Suitable if using the Swing model; standard challenges restrict weekend holding. |
| Scalper (High Frequency) | Medium | Allowed, but frequent trades can quickly accumulate losses toward the daily limit. |
| High-Risk Momentum Trader | Low | Large position sizes increase the probability of breaching the 5% daily loss. |
| Martingale / Grid Trader | Very Low | Position scaling after losses conflicts with the fixed drawdown structure. |
| News Event Trader | Low–Medium | Restricted during evaluation unless using the Swing model. |
| Single Big Trade Strategy | Very Low | One-Step accounts have a 50% consistency rule, preventing one-day profit concentration. |
| 1% Risk Per Trade Strategy | Very High | Structurally compatible with FTMO’s drawdown limits and long-term account survival. |
Who Should Avoid FTMO
While FTMO is one of the most structured prop firms in the industry, its rule framework does not suit every trading style.
| Trader Type | Why FTMO May Not Be Suitable |
|---|---|
| Martingale or Grid Strategy Traders | The static 10% drawdown makes recovery-based strategies extremely risky. Position sizes that increase after losses can quickly breach the overall loss limit. |
| News Traders | Standard FTMO challenges restrict trading during major high-impact economic news events during evaluation (except the Swing model). |
| High-Risk Traders | The 5% daily loss limit leaves little room for aggressive position sizing or large single-day drawdowns. |
| Traders Risking More Than 1% Per Trade | FTMO warns against excessive risk concentration. Repeatedly risking more than 1% can trigger warnings and may affect payout eligibility if the trading behavior is considered inconsistent. |
Evaluations Offered By FTMO
FTMO currently offers three evaluation models:
- Two-Step Challenge
- Two-Step Swing Challenge
- One-Step Challenge
Each model is designed to test profitability under strict risk management rules. The structure differs, but the objective remains the same: demonstrate consistent performance without breaching drawdown limits.
Two-Step Challenge (Standard Model)
This is FTMO’s traditional evaluation structure.
Phase 1 – Challenge You must:
Reach the profit target, Stay within maximum daily loss ,Stay within maximum overall loss, Meet minimum trading day requirements
Phase 2 – Verification
Lower profit target than Phase 1, Same risk limits. Confirms your performance is repeatable
After successfully completing both phases, you receive a funded account.
This model is suited for traders who prefer a staged validation process before funding.
Two-Step Swing Challenge
The structure is identical to the standard Two-Step model, but with greater flexibility for holding positions.
Key difference:
- You can hold trades overnight
- You can hold positions over weekends
- You can trade through major news releases
Risk limits and profit targets remain structured. This model is better suited for:
- Swing traders
- Higher timeframe traders
- Traders whose setups require multi-day exposure
If your strategy depends on holding positions beyond intraday sessions, this version is more appropriate.
The New 1-Step Challenge
Recently, they launched a 1-Step Challenge with a 50% consistency rule.
The One-Step model compresses evaluation into a single phase.
You must:
- Reach the defined profit target
- Respect maximum daily loss
- Respect maximum overall loss
- Meet minimum trading days
There is no separate verification phase.
However, the One-Step model includes a consistency safeguard, often referred to as a “best day” rule. This prevents a large portion of your total profit from coming from a single trading day. In simple terms, you cannot pass purely from one oversized win — performance must be distributed more evenly.
This model is suited for:
- Traders who want faster progression
- Traders confident in steady performance
- Traders who can produce controlled returns without relying on one large trade
- Profit Targets & Time Limits
The profit target structure across all evaluation models offered by FTMO is straightforward, but the way it is achieved differs depending on the challenge type.
FTMO no longer imposes a strict 30-day maximum deadline. The constraint comes from drawdown rules and minimum activity requirements.
- You can’t pass the challenge with one lucky trade.
- Your profits need to be distributed properly.
- No “all-in and pray” style trading.
FTMO Account Rules Breakdown
The evaluation framework at FTMO is built around capital preservation, not just profitability. The interaction between daily loss, overall loss, consistency requirements, and practical risk sizing determines whether a trader passes — or breaches.
FTMO Leverage and Commissions
| Asset Class | Contract Size | Margin | Leverage | Swing Leverage | Commission |
|---|---|---|---|---|---|
| Forex | 100,000 | 1% | 1:100 | 1:30 | $5 / lot* |
| Metals (XAUUSD, XAGUSD) | 100 | 2% | 1:50 | 1:15 | 0.0014% / volume |
| Indices | 1 | 2% | 1:50 | 1:15 | 0* |
| Cryptocurrencies | 1 | 30% | 1:3.33 | 1:1 | 0.065% / volume |
| Stocks | 1 | 30% | 1:3.33 | 1:1 | 0.004% / volume |
As you can see forex and metals have a higher leverage and rest have lower, for crypto it has almost no leverage, Also for the swing account leverage for metals and forex comes down even further.
The Famous 1% Risk Rule
Although FTMO does not technically enforce a fixed per-trade risk limit in its written objectives, the firm explicitly warns traders against risking more than 1% of the account on a single trade.
This guidance exists because the FTMO risk framework is built around a 5% maximum daily loss and 10% maximum overall loss. Exceeding 1% risk per trade quickly increases the probability of breaching these limits.
Example on a $100,000 account
-
Daily loss limit: $5,000
| Risk per Trade | Losing Trades to Reach Daily Limit |
|---|---|
| 2% risk ($2,000) | 3 losses → 6% drawdown → breach |
| 1% risk ($1,000) | 5 losses → 5% drawdown → limit reached |
| 0.5% risk ($500) | 10 losses → still within controlled risk |
FTMO has also stated that excessive risk concentration or gambling-style trading behavior can result in warnings, and in some cases profit payouts may be denied if the trading activity is deemed inconsistent with responsible risk management.
For this reason, most traders who successfully operate FTMO accounts typically keep their risk per trade around 0.5%–1%.
Profit Targets by Challenge Type
| Challenge Type | Phase 1 Target | Phase 2 Target |
|---|---|---|
| Two-Step | 10% | 5% |
| Two-Step Swing | 10% | 5% |
| One-Step | 10% | Not Applicable |
Maximum Daily Loss
| Stage | Daily Loss Limit |
|---|---|
| Phase 1 (Challenge) | 5% |
| Phase 2 (Verification) | 5% |
| Funded Account | 5% |
Technical Structure:
- Calculated from the initial account balance.
- Includes both closed losses and floating losses.
- Breach at any moment = automatic failure.
- Resets at midnight platform time.
Maximum Overall Loss
| Stage | Maximum Overall Loss |
|---|---|
| Phase 1 | 10% |
| Phase 2 | 10% |
| Funded Account | 10% |
Weekend Holding Rules
Standard Two-Step & One-Step (Evaluation): Positions must be closed before weekend market close.
Two-Step Swing: Weekend holding is allowed.
FTMO Pricing Structure (Without Hype)
Here’s a clear, current breakdown of how FTMO structures its pricing, refunds, and retry conditions. This section focuses only on factual pricing mechanics, not opinions.
Account Sizes & Entry Fees
FTMO lets you choose from a range of simulated account sizes when you start a challenge. The entry fee depends on the size and the type of evaluation product (1-Step or 2-Step).
Typical account sizes available:
| Account Size | Common Entry Fee (Approx) |
|---|---|
| $10,000 | Approx €155–€250 |
| $25,000 | Approx €250–€295 |
| $50,000 | Approx €345–€407 |
| $100,000 | Approx €637 |
| $200,000 | Approx €1,080–€1,274 |
These prices may vary slightly depending on currency and temporary promotions. The fee is one-time only — no recurring subscription fees.
Refund Policy
The way FTMO handles refunds depends on the challenge product you choose:
| Challenge Type | Refund Policy |
|---|---|
| Two-Step Challenge | Fee is refunded on your first profitable payout after passing both phases. |
| One-Step Challenge | Fee is not refunded after passing the evaluation. |
Key points:
-
Refund only happens after you reach your first profit split payout on a funded account (for Two-Step).
-
If you fail the challenge or the One-Step evaluation, the entry fee is not refunded.
-
There are no hidden or recurring fees — what you pay up front is it.
Free Retry Conditions
FTMO does not officially offer standard “free retries” in the traditional sense. However:
| Feature | Availability |
|---|---|
| Free Trial Demo | Yes — FTMO offers a free trial version to test the platform and objectives before paying. |
| Free retry after failure | No standard free retry — failing the challenge means you may need to repurchase the challenge to try again unless you use a Free Trial first. |
Free Trial specifics:
-
The Free Trial lets you practice on a demo account with similar rules.
-
Minimum trading days and profit targets are reduced for the trial period.
You can delete and restart a new Free Trial if needed, but you cannot carry trial progress into a paid challenge
FTMO Payout System
This section breaks down how traders are paid at FTMO, covering profit distribution and how the scaling plan can increase both your payout and account size. The goal here is clarity and usefulness — no hype, just facts you can use when deciding whether to trade FTMO.
Profit Split
FTMO’s profit split determines how trading profits on a funded account are shared between you and the firm.
| Model | Profit Split Before Scaling | Profit Split After Scaling |
|---|---|---|
| Two-Step Challenge Funded Account | 80% you / 20% FTMO | Up to 90% you / 10% FTMO |
| One-Step Challenge Funded Account | 90% you / 10% FTMO | 90% you / 10% FTMO |
Key points:
-
On a funded account earned through the Two-Step Challenge, you start with an 80% profit share.
-
On a funded account earned through the One-Step Challenge, you start at 90% profit share from the beginning.
-
All payout splits apply to closed trade profits — floating P&L doesn’t count until realized.
-
Profit withdrawals can usually be requested once your funded account shows a positive closed P&L and you meet FTMO’s payout conditions (e.g., no open positions).
Scaling Plan
FTMO’s Scaling Plan lets profitable traders grow both their profit share and account size over time.
| Requirement | Details |
|---|---|
| Minimum Time Period | 4-month cycle |
| Profit Requirement | At least 10% net profit in the 4-month window |
| Positive Balance at Scale-Up | Must be in profit when scaling |
| Reward Withdrawals Completed | At least 2 rewards processed |
When a trader meets these criteria:
-
The account balance increases by 25% increments (up to the maximum allowed).
-
The standard profit split improves to 90%.
-
You can scale repeatedly as long as the criteria are met each period.
Example Progression:
If you start with a $100,000 funded account:
-
4 months of ≥10% net profit → new balance approx. $125,000
-
Profit share increases to 90%
-
Repeat the process to scale further (up to account limits)
This makes FTMO attractive not just for getting funded, but for growing your funded capital over time — essentially aligning your success with long-term compounding.
Trading conditions at FTMO are generally stable and consistent with what most professional traders expect from a prop firm environment.
-
Spreads: Typically competitive across major forex pairs and indices.
-
Execution: Order execution is generally stable with minimal platform instability reported.
-
Scalping: Possible, but the environment is not specifically optimized for ultra-short-term scalping strategies.
Because spread behavior and execution quality can vary depending on market conditions and trading style, FTMO provides a 14-day Free Trial account. This allows traders to test spreads, slippage, and execution conditions in real time before purchasing a challenge.
For traders who rely heavily on tight spreads or fast execution, using the free trial is the most reliable way to evaluate whether the trading conditions match their strategy.
Pricing – Fair?
Pricing isn’t the cheapest, but you’re paying for reputation, stability, and structure.
My Honest Take
If you have a real strategy and respect risk management, FTMO makes sense — especially the Swing account.
Final Verdict
FTMO is structured, stable, and credible. In prop trading, credibility matters more than hype.
- Truth Score
- Offers
- Announcements
Truth Score
Offers and Discounts
Frequently Asked Questions
Does FTMO use static or trailing drawdown?
FTMO uses a static drawdown model.
The 10% maximum loss is calculated from the initial balance and does not trail upward as profits increase.
This means early drawdowns permanently reduce your margin for error.
Can floating profit increase my maximum loss buffer?
No.
The maximum overall loss remains fixed relative to the starting balance. Floating or closed profits do not expand the 10% limit during evaluation.
Can I pass the One-Step Challenge in 4 days?
Yes — but only if:
- You meet the 10% profit target
- You trade on at least 4 separate days
- No single day accounts for more than 50% of total profit
Even if you hit 10% quickly, the 50% consistency rule still applies.
What happens if I hit 10% but violate the 50% consistency rule?
You do not pass.
If more than 50% of your total profit comes from one trading day in the One-Step model, the account will not qualify — even if the profit target is reached.
Can I hold trades overnight in the standard Two-Step or One-Step model?
Yes, overnight holding is allowed.
However, weekend holding and trading during restricted high-impact news windows are not permitted unless you choose the Swing model.
Is there a maximum lot size restriction?
There is no explicit maximum lot size rule.
However:
- Exceeding reasonable risk parameters (e.g., risking significantly above 1% per trade) can result in rule breach.
- In funded accounts, inconsistent risk behavior may impact payout approval.
Risk sizing is not formally capped — but structurally constrained by the 5% daily loss limit.
Can I hedge or use multiple positions simultaneously?
Yes.
FTMO allows multiple positions and hedging strategies as long as:
- Total exposure does not breach daily or overall loss limits.
- Trading behavior remains compliant with account objectives.
Does FTMO monitor trading style consistency after funding?
Yes.
Even on funded accounts:
- Rule compliance remains mandatory.
- Breaching loss limits results in account termination.
- Excessive risk concentration may impact reward eligibility.
The funded account is not a “free-trade” account — the same 5% and 10% limits apply.
Can I withdraw profit if I’m near the 10% overall drawdown limit?
You can withdraw realized profit as long as:
- You are in net positive closed profit.
- You have not breached any rule.
- The withdrawal does not push the account below the maximum loss threshold.
Withdrawals do not reset drawdown limits.
Is FTMO suitable for high-frequency scalping?
Technically allowed.
Structurally difficult.
High-frequency scalping increases:
- Daily drawdown volatility
- Probability of breaching 5% daily cap
- Risk of inconsistency under the 50% rule (One-Step)
Lower-risk, structured intraday or swing approaches align better with the rule framework.
Can I combine multiple FTMO accounts to increase capital?
Yes, but:
- Each account is evaluated independently.
- Drawdown rules apply per account.
- Scaling limits apply to total capital allocation caps.
Is the One-Step easier than the Two-Step?
Not necessarily.
Two-Step:
- Requires two phases (10% + 5%)
- No 50% daily consistency cap
One-Step:
- Single 10% phase
- 50% profit concentration rule applies
FTMO vs The 5ers Which Is Better
Well it depends on the plan you choose and what you trade, for example for metals FTMO is better for other purposes 5ers maybe better
Common Reasons Traders Fail FTMO
Even experienced traders fail the FTMO evaluation because they underestimate how strict the rules and risk limits are. Some of the most common reasons include:
1. Not Reading the Rules Properly
Many traders start trading without fully understanding the evaluation conditions. Violating basic rules such as maximum loss limits or minimum trading days can quickly result in a failed challenge.
2. News Trading on the Wrong Account Type
FTMO has specific restrictions around trading during major news events depending on the account type. Traders who ignore these restrictions often end up violating the rules unintentionally.
3. Risking Too Much on a Single Trade
One of the biggest mistakes is over-risking. Placing large trades that risk too much of the account balance can quickly trigger the daily loss or maximum loss limits.
Best Strategy to Pass FTMO
Passing the FTMO challenge usually requires discipline and consistency rather than aggressive trading.
1. Trade Slowly and Focus on Consistency
Trying to hit the profit target quickly often leads to unnecessary risk. A steady approach with consistent profits tends to work better.
2. Avoid Chasing Big Profits
Large wins may help reach the target faster, but they are often not sustainable. FTMO evaluations are designed to reward traders who show controlled and repeatable performance.
3. Choose the Right Account Size
Selecting an account size that matches your risk tolerance and trading style is important. A challenge that is too large may tempt traders to take excessive risk, while a manageable size allows for better discipline.
Simple takeaway:
Traders who manage risk carefully, stay patient, and follow the rules strictly usually have a much higher chance of passing the FTMO challenge.
