What is FTMO funded account (2024)

Are you a trader looking to take your skills to the next level? Have you heard about FTMO funded accounts but are not sure what they are all about? Look no further, as this article will provide you with a comprehensive guide on everything you need to know about FTMO funded accounts.

What is FTMO?

FTMO is a company that provides trading education and funding for traders. It was founded in 2015 by two experienced traders who wanted to help other traders succeed in the financial markets. They offer various educational resources, trading challenges, and funding programs to help traders improve their skills and become successful in trading.

The FTMO Trading Challenge

The FTMO trading challenge is a two-step evaluation process that traders must pass in order to receive funding from FTMO. The first step is the FTMO Challenge, where traders have to trade a demo account and reach certain profit targets within a specified time period. Once they pass the challenge, they move on to the Verification stage, where they have to repeat the same performance on a live account. If they are successful, they will receive funding from FTMO to trade with.

FTMO Funded Account

A FTMO funded account is an account provided by FTMO to traders who have successfully passed the trading challenge and verification stages. Traders are given a capital of up to $100,000 to trade with, and they get to keep 70% of the profits they make. The remaining 30% goes to FTMO as a fee for providing the funding and support.

How Does FTMO Funded Account Work?

Now that we know what FTMO funded account is, let's dive deeper into how it works.

Step 1: Passing the Trading Challenge

The first step to getting a FTMO funded account is to pass the trading challenge. Traders can choose from three different account sizes - $10,000, $25,000, or $50,000. They have to pay a one-time fee for the challenge, which ranges from $155 to $375 depending on the account size. Traders are given 30 days to reach a profit target of 10% for the $10,000 account, 5% for the $25,000 account, and 4% for the $50,000 account.

Step 2: Verification

Once traders have successfully completed the trading challenge, they move on to the verification stage. This is where they have to repeat their performance on a live account with the same profit targets within a specified time period. Traders have to pay a one-time fee for the verification, which ranges from $200 to $500 depending on the account size.

Step 3: Receiving the Funded Account

If traders pass the verification stage, they will receive a FTMO funded account with the chosen account size. The account comes with a maximum drawdown limit, which varies depending on the account size. Traders are allowed to trade any financial instrument and use any trading strategy as long as they stay within the drawdown limit.

Benefits of FTMO Funded Account

Trading with a FTMO funded account comes with many benefits, including:

No Risk of Losing Your Own Capital

One of the biggest advantages of trading with a FTMO funded account is that traders do not have to risk their own capital. This eliminates the fear of losing money and allows traders to focus on their trading strategies without any distractions.

High Profit Potential

With a FTMO funded account, traders have the potential to make high profits. They get to keep 70% of their profits, which can be significant if they are successful in their trading.

Access to Professional Trading Tools and Support

Traders who have a FTMO funded account have access to professional trading tools and support. This includes a risk management tool, a trading journal, and a dedicated account manager who can provide guidance and assistance.

Tips for Passing the FTMO Trading Challenge

Passing the FTMO trading challenge is not an easy task, but it is not impossible either. Here are some tips that can help traders increase their chances of success:

1. Choose the Right Account Size

Traders should choose an account size that they are comfortable with and that suits their trading style. It is better to start with a smaller account size and work your way up to larger ones.

2. Have a Solid Trading Plan

Having a well-defined trading plan is crucial for passing the trading challenge. Traders should have a clear strategy, risk management rules, and money management techniques in place.

3. Practice, Practice, Practice

Practice makes perfect, and this applies to trading as well. Traders should spend enough time practicing on a demo account before attempting the trading challenge. This will help them gain confidence and improve their skills.

FAQs

Q: Is there a time limit for completing the trading challenge and verification?

A: Yes, traders have 30 days to complete the trading challenge and 60 days to complete the verification stage.

Q: Can I withdraw my profits from the funded account?

A: Yes, traders can withdraw their profits at any time, as long as they stay within the drawdown limit.

Q: What happens if I fail the trading challenge or verification?

A: If traders fail the trading challenge, they can retake it after 15 days. If they fail the verification, they can retake it after 30 days.

Q: Are there any restrictions on trading strategies?

A: No, traders are free to use any trading strategy as long as it stays within the drawdown limit.

Q: Can I trade with multiple funded accounts?

A: Yes, traders can have multiple funded accounts as long as they pass the trading challenge and verification for each account.

Conclusion

FTMO funded account is a great opportunity for traders to showcase their skills and receive funding to trade with. It provides traders with many benefits, including no risk of losing their own capital and access to professional trading tools and support. By following the tips mentioned in this article, traders can increase their chances of passing the trading challenge and receiving a FTMO funded account. So, if you are a trader looking to take your trading to the next level, consider giving FTMO funded account a try.

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