My Next Trading Challenge – And My Issue with FTMO (2024)

I have recently passed and received myfirst funded accountwith Prop Firm FTMO, and am in the process of taking on my next trading challenge for another $130,000 of funding. Instead of taking my challenge with FTMO, I have decided to partner with another prop form, Lark Funding. Lark Funding is a new prop firm on the scene, and today we will cover why I decided not to go for another FTMO challenge, and the issues I have with FTMO.

What is Lark Funding?

Lark Fundingis another new proprietary trading firm on the scene. I have covered exactly what a prop firm in another blog, but essentially its the best way for a trader to make a significant income off their trading once they are consistently profitable.

All prop firms will have a trading challenge which traders will need to pass in order to gain access into their funding. Lark Funding has a one phase challenge, whereasFTMOis a two phase. In the trading challenge, the trader is required to make a 10% return on their account. There is a 4% daily drawdown allowed, and a 5% maximum drawdown allowed. Once funded, Lark offers a 75% split to traders on profits, which is actually lower than FTMO. The split isn’t the real reason why I decided to take the challenge with Lark.

My Next Trading Challenge – And My Issue with FTMO (1)

The real reason behind my decision to take Lark Fundings challenge is the time limit. As a result of there being no time limit on how long you need to pass the challenge, whereas the first stage, which is the more difficult for FTMO, is 30 days. I personally, if I am trading to my standard risk parameters, would very very rarely return 10% in a month. 99% of tradings would not be able to sustainably return 10% on an account. Therefore, what most traders, including myself, would need to do is to break your rules when it comes to risk manegement. I typically risk 1-2% per trade, whereas on my challenge, I was risking 2-2.5% per trade. This is not ideal. I am an advocate for always following your rules. Howevever, its difficult to be able to follow your risk management rules and return 10% in a month.

Lark Funding’s process is alot more sustainable, as there is no time restriction for you to return 10%. If you can return 10%, without a drawdown of 5%, you are a pretty decent trader. I don’t think that the challenge process with FTMO is sustainable as it forces traders to potentially break their rules and trade with more risk than they should be. I have covered this before in anotherblogwith my thoughts on the FTMO process.

Drawdown is Coming

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns. This is one of the main reasons why I decided to not go back to back with another FTMO challenge.

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I had my best ever trading month inAugust, and some of the reason of how I passed my challenge first attempt is due to luck. But I know that after a fantastic trading month, I am bound to have a period of drawdown coming soon. I know that the probability of me passing another FTMO challenge, due to the time limit in place, would be very low. This is the main reason why I decided to go with Lark Funding. The no time limit allows me a bit more time to be able to potentially get through my drawdown, as variance will come into play after a long winning streak. My goal is to be trading around $200,000 in funded accounts by the end of the year, and going with Lark will assist me in acheiving this.

My Next Trading Challenge – And My Issue with FTMO (5)

The cons of Lark Funding

Now there are going to be parts of the process where FTMO is significantly better than Lark in. This is the reason why they are the largest funder of Forex Prop Traders. There are 3 main cons when it comes to Lark Funding;

1. Profit Split

The profit split for lark is 75% – 25%, compared to 80% – 20% with FTMO. This means that the trader takes a little less of their profits than what we do with FTMO.

2. Cost

The major difference is the cost of the challenge. If we compare the cost of a $50,000 account across both, the challenge fee is about $50 more in Lark than FTMO. On top of this, with FTMO, once you receive a profit from your funded account after passing the second phase, the fee charged for the challenge is refundable. With Lark Funding, instead of being refundable, they give you a free attempt for another funding account. I do like the idea of giving the successful trader the free attempt of another account, however understand that as a new business they would rely more on the challenge fees to fund their business than FTMO would.

3. Time Constraints

The major reason behind why I decided to take a Lark Funding Challenge was the timing constraints of FTMO. Because I have had such a great run I am expecting a drawdown to come soon, and theres no point throwing money away with FTMO. I personally think putting a timing constraint on a challenge will make a trader gamble, more than sustainably manage their money. This is why I believe in Larks funding process, and recommend any trader looking to take a challenge to partner with Lark first.

My Next Trading Challenge – And My Issue with FTMO (6)
My Next Trading Challenge – And My Issue with FTMO (2024)


How many people fail FTMO challenge? ›

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.

Why did FTMO ban US clients? ›

FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.

How many times can I retake FTMO challenge? ›

You can retake your Free Trial as many times as you want to make sure you are fully prepared for an FTMO Challenge.

Can I restart my FTMO challenge? ›

Many traders are unaware of this option. But it's important to know that you can get a free retake for the FTMO challenge. So, if your trading challenge is about to finish, and if you haven't hit the profit target, don't rush it. Close all your positions and ask for a new challenge.

What is the biggest FTMO payout? ›

Dariusz from the USA exceeded everyone's expectations and made his dreams come true. As our FTMO Trader with a maximum allocation, he beat the previous record payout of $500,180 thanks to his profit of $1,206,225, the biggest payout in the industry!

Can you get banned from FTMO? ›

Besides the standard eligibility conditions, you should not have any past or prevailing conflict of interest with FTMO, or engagement in the Forbidden Trading Practices, as laid out in the Terms & Conditions (clause 5.4).

Who is better than FTMO? ›

Yes, there are many sites offering similar services to FTMO. These include FunderPro, the5ers and many more. If you are looking for an alternative to FTMO, FunderPro is currently rank as the number one on the list of top Forex Prop Firms.

Which countries are not allowed to join FTMO? ›

Due to business decisions based on risk management considerations, FTMO does not provide services to clients in Afghanistan, Antarctica, Antigua and Barbuda, the Republic of Belarus, Belize, Bhutan, Bouvet Island, Burundi, Cape Verde, Central African Republic, Chad, Cook Islands, Comoros, Republic of the Congo, Cuba, ...

Does FTMO actually work? ›

The company has been in the industry for several years and has built a solid reputation for paying out profits to its traders promptly. Moreover, FTMO has a dedicated support team that is available to assist traders with any issues or concerns they may have regarding payouts.

Which prop firm is the best? ›

The most popular prop trading firms and funded programmes
  • Axi Select.
  • FTMO.
  • The Forex Funder.
  • E8 Markets.
  • True Forex Funds.
  • The 5%ers.
  • Funded Next.

What does FTMO stand for? ›

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. Three of them are currently represented by the company's top management.

What is the max loss on FTMO? ›

At FTMO, we understand that market conditions might vary and that's why we offer our traders a generous 10% Maximum Loss buffer and 5% Maximum Daily Loss. These conditions are in a ratio of 1:1 (loss to profit), which is the top industry standard.

Is FTMO no longer taking US customers? ›

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.

Do FTMO challenges expire? ›

There is no time limit within which you need to pass the Profit Target, the Trading Period is indefinite. As soon as all the Trading Objectives of your FTMO Challenge are met and your results are reviewed, you can proceed to the Verification phase.

Does FTMO give free retry? ›

The 30 or 60 calendar days to complete the Evaluation Process are gone. Free repeats and 14-day extensions are also no longer needed because traders trying an FTMO Challenge and a Verification don't have to watch whether they can make 10% in 30 days or 5% in 60 days. An error occurred.

What percentage of people pass prop firm challenges? ›

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

What is the risk percentage for FTMO? ›

How much should we be risking per one trade? In most textbooks and online education programs, we can learn that we should not be risking more than 2% per one trade. Although the answer to this is more complicated, let's start by saying that 2% risk per trade is a good base to start with.

What is the maximum loss in FTMO? ›

At FTMO, we understand that market conditions might vary and that's why we offer our traders a generous 10% Maximum Loss buffer and 5% Maximum Daily Loss. These conditions are in a ratio of 1:1 (loss to profit), which is the top industry standard.

What is the failure rate of Forex traders? ›

Trading the financial markets is notoriously difficult and many wonder what percentage of forex traders fail. Using official data from 32 ESMA regulated brokers, my research shows that an average of 72.2% of forex traders lose money.

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