Before you can trade for FTMO, we need to see how you can manage risk. Because of this, we have developed Trading Objectives. There are four basic Trading Objectives you need to know to become an FTMO Trader and trade up to $200,000 on your FTMO Account. The third rule is called Maximum Loss.
The calculation of the Maximum Loss is similar to the Maximum Daily Loss. The only difference is that it’s not limited to one day but the entire duration of the testing period. We have developed this rule to protect our money, and at the same time we want to guide our clients and FTMO Traders to get used to following the rules of money management and risk management.
This rule can also be referred to as the account Stop Loss. The Maximum Loss limit simply states that the equity on your trading account must not drop below 90% of the initial account balance at any given time during the account duration. That means that on the Normal risk account you cannot lose more than 10% of your initial balance.
Please bear in mind that we’re talking about the account equity and just as the value of your closed positions, floating losses or profits are also always included in the calculation. It must also be taken into account that the limit is inclusive of commissions and swaps.
The rule remains the same during all three stages, so with a $100,000 Normal risk account, for example, your equity can never be less than $90,000.
As mentioned previously, for the calculation we use equity, not balance of your account. So even if your balance would be $92,000, but you had a floating loss of $2,001, the limit would be exceeded.
This 10% breathing space gives traders enough freedom to prove that their strategy is suitable to meet the conditions of the Evaluation Process and the FTMO Account. It is a buffer that should keep the trader in the game even if there were some initial losses.
FAQs
In conclusion, FTMO is a reputable proprietary trading firm that pays out profits to its traders as promised. The company has a transparent and reliable payout process, and numerous positive reviews from satisfied traders attest to this.
Why is FTMO banned in India? ›
Due to regulatory developments and business decisions based on risk management considerations, FTMO does not accept clients in India, the Russian Federation, the Republic of Belarus, the Republic of Indonesia, Cuba, Venezuela, Sudan, and South Sudan.
Did FTMO ban US traders? ›
In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.
How much does it cost to join FTMO? ›
FTMO is an international proprietary trading company with minimum deposit (subscription fee) is €155 for $10K accounts with standard profit share is 80/20.
Why is FTMO expensive? ›
The fee covers the costs related to the FTMO Challenge provided by FTMO such as the designing, development, and operation of the FTMO platform (the technical infrastructure behind the provided educational services and applications).
Does FTMO pay monthly? ›
The Profit Split on an FTMO Account is done on a monthly basis by default, with the option to place a payout on-demand after a period of 14 calendar days from the first placed trade on the account.
Is FTMO no longer available in the US? ›
FTMO just banned US citizens: USA update – January 2024: Since the establishment of our company, our goal has been to provide top-quality services for our clients. Unfortunately, at present, we are not able to do that in the United States due to specific conditions in the market segment there.
How many FTMO traders fail? ›
According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.
Are prop firms legal in the US? ›
It is not illegal to operate or trade with a prop firm. However, where most online prop firms come unstuck is in their business practices and terms of service. Some of the largest prop firms that I'm sure you would have heard of have fallen victim to these mistakes over the last few months.
Does FTMO allow US citizens? ›
Please note that FTMO does not provide services to persons in/from (both nationals and residents) Iran, Syria, Myanmar, North Korea and USA, persons listed on sanction lists, persons with criminal records related to financial crime or terrorism, and persons previously banned because of breach of contract.
The name of the company FTMO consists of the first letters of the names of four people (Filip, Tomáš, Marek, Otakar) who worked for the company at the time when the company decided to expand beyond the borders of the Czech Republic.
Why is MT4 banned in the US? ›
The two MetaTrader apps were banned on Apple's App Store in 2022 for their alleged use by fraudsters targeting the US citizens and residents.
How much is a 200k funded account in FTMO? ›
In conclusion, the FTMO 200k account price is $485, which covers the one-time fee for the Challenge and Verification stages. Traders must also deposit a minimum of $5,000 to start trading the $200,000 account.
Does FTMO give you real money? ›
With FTMO, once you get to the FTMO Trader stage you can receive real rewards for your performance. You can withdraw your reward anytime between 14 to 60 days from your first trade on your FTMO Account (Profit Split).
What happens if you lose money on FTMO? ›
When you lose an FTMO challenge, you won't actually be losing something except for the fee amount that you paid for the challenge. However, you won't be able to continue with the challenge and your eligibility would be lost.
How much money do FTMO traders make? ›
In one trading period on FTMO Account, you executed on average 117.9 trades, and we paid you an average of $4,685. However, it's not just about the payouts either. We perceive our project as a support of the whole retail trading industry.
Is FTMO trading worth it? ›
If you then feel confident of passing the Evaluation and you would benefit from more capital, I would certainly recommend taking the FTMO Evaluation Process to become one of their traders! Also BE PATIENT! It may take you years (it takes most years) to become consistently profitable, but it is all worth it.
What is the success rate of FTMO? ›
The FTMO challenge has a reputation for being extremely difficult to pass. Across FTMO's various account levels, it is estimated that only around 10% of traders are able to successfully complete the evaluation and become a funded trader. This means approximately 90% of those who attempt the challenge end up failing.
Is a funded account real money? ›
The Funded Trader challenge and funded accounts are not live trading accounts, they are fully simulated accounts utilizing real market quotes from liquidity providers. Therefore no real money is ever traded as no orders are ever executed in live markets, they are simulated orders in a simulated environment.
