FTMO Review - Test Of The Prop Trading Firm | FTMO Challenge (2024)

Which trader wouldn’t like to earn and make profits without using his own money? We bet not one trader would want to let go of this opportunity. FTMO is a prop trading firm that offers a similar offer to traders. A prop trading firm like FTMO allows traders to become funded traders.

The prop trading firm gives an easy way out to traders for this. They only have to pass the FTMO challenge. You might wonder what the FTMO challenge hype is all about. Here are all FTMO facts that a trader would want to know.

What is FTMO? – The prop firm presented

FTMO is a prop trading firm that allows traders to join its trading platform as funded traders. This platform is not new. FTMO has been serving hundreds of clients since its conception. However, its services got extended only in 2020. Since then, FTMO has funded hundreds and millions of traders and allowed them to earn a substantial part of the profit.

FTMO allows traders to get as much as 400 hundred thousand dollars in the live trading account with the platform. However, there is a condition- the challenge.

What makes FTMO famous among traders is its ability to offer them the best deals. In addition, traders who make profits on FTMO trading can withdraw up to 80-90% of their profits. And all this comes to a trader without implementing the use of his own money.

The concept of prop trading firms is new for many traders. Here is the prop trading firm’s concept for the traders who wish to know.

How does a prop trading firm work?

If you trade forex or any other financial asset, you might use a trading account with one of the brokers. The brokers that allow you to trade ask you to fund your trading account to allow you to open your positions.

However, that is not a prop trading firm’s way of working. The prop trading firm, also called a proprietary trading firm, funds a trader’s trading account with funds. So, instead of using his money, a trader uses the amount funded into his trading account by a prop trading firm.

Trading on a platform offered by the prop trading firm allows traders and the firm to witness several benefits. These benefits make traders want to take on challenges such as the FTMO challenge.

• Prop trading firms allow traders to earn money without investing their savings.
• Traders can improvise their trading skills and risk management with the help of the platform offered by the prop trading firms.
• These firms make more profit than they usually can with the help of several experienced traders.
• The brokers can only earn commissions as their profit. However, a prop trading firm gets to share a stipulated profit percentage with the trader. Thus, it earns more than the normal trading platforms.
• Prop trading is an amazing platform for traders because they can enjoy accessing all leading trading tools and technical trading indicators. On a platform such as FTMO, traders can enjoy all leading underlying assets that allow them to make profitable trades.

Offers of FTMO

FTMO allows traders to become partners by taking on the FTMO challenge. Here, they can become funded traders and use the trading firm’s live trading account to trade financial assets.

What is the FTMO challenge?

The FTMO challenge is a challenge that allows traders to join the prop trading firm FTMO’s trading platform. This platform offers traders an unbeatable trading opportunity.

However, to become eligible for the FTMO challenge, traders must prove they are excellent risk managers. After all, a prop trading firm chooses only those traders who excel at risk management. Besides, traders should also be able to manage their funds well.

A brief FTMO challenge review will allow you to get in-depth information about it before you sign up for the challenge.

• The FTMO trading challenge involves two tests a trader must pass to become a funded trader.
• Step 1 of the challenge requires traders to pass the trading challenge that lasts thirty days.
• During these 30 days, the prop trading firms test a trader’s patience, discipline, trading, and risk management skills.
• After Step 1, the trader moves on to step 2. It is the verification process. This process is the eventual process that judge’s any trader’s trading skills and whether he deserves a funded trading account.
• The verification stage also does a trader’s verification. Finally, they get the offer to become FTMO funded.

Let us review the two steps in the FTMO challenge more thoroughly.

Step 1: The FTMO challenge

Any trader desirous of becoming a funded trader can join the FTMO challenge without a second thought. The FTMO challenge is available for signup for the official website of the prop trading firm.

To become an FTMO-funded trader, a trader must follow the rules and regulations that FTMO stipulates.

Here is how the FTMO challenge works:

• When a trader signs up for the FTMO challenge, he must choose a profit target and the risk level. Once the trader begins the challenge, it will last for 30 days.
• In these 30 days, a trader has to try to achieve his profit target.
• However, it is crucial that the trader also meets the risk level he chose. For example, every trade you place while taking the FTMO challenge should have a required amount of risk attached.
• The FTMO challenge does not require a trader to place consecutive trades for 30 days. If they achieve their profit targets within a shorter duration, they would still be able to move on to the next verification step.
• However, the minimum number of days for a trader should place trades in the first step of the challenge is 10 days. So, even if you achieve your profit target within 8 days while meeting the risk level, you still have to trade for two pending days.
• During these two days, you can place trades with minimal risk, so your profit target stays unaffected.

Once you comply with the FTMO challenge’s trading conditions and meet your objectives, you become eligible to move to the verification part.

However, the FTMO challenge fee might be different for different traders. It depends upon the type of trading risk and the profit target you choose. However, whatever fee you pay here to get yourself enrolled in the challenge, FTMO pays it back with your first profit.

Once a trader has proven himself worthy of being a funded trader, he can move on to the next step of verification.

Step 2: Verification

A trader undertaking the FTMO challenge must verify himself to become a funded trader. Step 1 in the challenge allows traders a time of 30 days to complete the profit-earning target.

However, the verification stage allows traders a time of 60 days. So, the traders who reach this stage get double the time as before to prove their worth to the prop trading firm.

Besides proving their identity and verifying themselves, traders have to trade for 60 days in this step. However, the rules for the verification part stay the same as the challenge. Therefore, if a trader can fulfill his trading objectives within less time, he can move on to the final step of accepting the offer.

Traders can still complete their trading objectives and achieve their profits within less time. But again, a trader would have to place trades for 10 minimum days while also undertaking the risk to meet the challenge’s terms and conditions.

For verification, FTMO does not charge anything. Traders only have to pay a fee once when they sign up for the FTMO challenge.

Step 3: Accept the offer to become a funded trader

A trader who passes the trading challenge with flying colors receives an offer from FTMO to become a funded trader. The FTMO challenge is about proving that a trader is worthy of getting funds to trade. He ensures he displays his maximum caliber while placing trades through the FTMO challenge.

Once a trader places trades with maximum profits, he passes the challenge. However, a trader must also make sure that he manages risk well. The FTMO challenge has very strict conditions for meeting the risk level that traders have chosen for themselves.

FTMO will allow you to without 80% of the profit on every trade you place. Thus, traders and the prop trading firm share their profits in the ratio of 8:2. Besides, the firm processes your withdrawal requests within as low as 8 hours.

There is also a scaling plan offered by FTMO that allows traders to withdraw profit up to 90%. However, there are conditions to it.

Free FTMO challenge

Traders who fail to achieve their profit targets on the FTMO challenge have an opportunity to undertake the challenge again. However, it happens when you do not make tremendous losses. Your daily losses should stay within a set limit. If that happens and you still fail the challenge, FTMO might send you an offer to join the challenge again.

A trader would not have to pay the FTMO challenge fee this time. The subsequent challenge gets covered under the fee that the trader previously paid.

Cost and fees

Before taking on the FTMO challenge, it is important to know the cost and fees involved. However, traders can easily sign up for the FTMO challenge because they can easily avail of it at a reasonable fee. For instance, you can choose a trading challenge that fits your budget and risk and matches your trading skills.

The trading challenge, thus, has its fee dependent on two factors:

• The risk that the trader is willing to undertake.
• The account balance that a trader chooses to trade.

To pay the FTMO trading fee, a trader can use his local currency.

If you choose the normal risk levels, your FTMO challenge fee will look like this:

On the contrary, the FTMO challenge fee will be below for traders who choose a higher risk level:

Supported trading platforms

Another thing that makes FTMO great for traders is its supported trading platforms. These platforms make trading appealing for traders. All the trading platforms are lucrative and offer traders a chance to maximize their earnings.

The platforms that FTMO supports include:

• Metatrader 4
• MetaTrader 5
• cTrader

Traders can use these platforms and access them easily from the FTMO dashboard. Once they pass the challenge, they can also sign up for a free trial of these trading platforms.

These trading platforms lead in offering traders the best trading tools. Traders on FTMO can access all the leading trading indicators and develop their own.

Supported assets and markets

As a prop trading firm, FTMO allows traders to access all the leading markets. Once you become a funded trader on FTMO, you can access all the greatest trading assets with a reputation for being profitable. For instance, you can access all leading stocks, forex, and commodities.

Once you choose the assets and your profit targets, you can achieve them using the trading account of FTMO.

Leverage

The leverage that FTMO offers is even more attractive for traders. They get a leverage of 1:100.

Is FTMO a broker?

To clarify, FTMO is not a broker. Instead, it is a prop trading firm. The basic difference between a prop trading firm, FTMO, and brokers is that FTMO shares a profit percentage with the traders. Conversely, brokers take away a certain percentage of commission from traders. Thus, the two parties differ in their sources of income.

Trading costs

There are no trading costs for trading on FTMO. The only cost a trader has to pay is for the FTMO challenge. A trader must pay a certain fee to the prop trading firm to undertake the trading challenge. However, the challenge fees get reverted to traders when they become funded.

After they earn their first profit, they get their trading fee back from the prop trading firm. So, a successful trader does not have to pay anything to trade on FTMO.

Payout systems

The payout systems of FTMO are fast. As a trader submits a request for the FTMO withdrawal, the prop trading firm processes it within 8 hours.

Traders can receive their funds through:

• Bank transfers
• Electronic wallets
• Card

Support for customers

The customer support of FTMO is ready to help traders when they encounter any trouble while trading. Traders can reach out to FTMO customer support through live chat, email, or phone calls in 13 languages. Besides, the customer support team delivers quick responses to traders.

If the issue is grave, traders can also visit the FTMO office.

How can I get my FTMO funded?

You can get your FTMO funded by passing the FTMO challenge. Then, you would have to pass the verification stage and finally become a funded trader.

How much money can you make with FTMO?

Traders can make as much money with FTMO as their trading discipline and talent permit. Thus, you can earn a lot of money once you pass the FTMO challenge successfully.

How much does the FTMO challenge cost?

The cost of the FTMO challenge depends upon the trading risk and the profit target you choose.

Conclusion – FTMO is a great prop trading firm

So, a prop trading firm like FTMO has revolutionized the world of trading. Now, traders can get rich without worrying about investing their own money. They only need to pass the FTMO challenge and get on the roadway to become rich.

Frequently asked questions (FAQs) about FTMO: