FTMO Prop Firm Review

FTMO Overview

FTMO is a modern prop trading firm that has been operating since 2015 from its headquarters in Prague, Czech Republic. The firm provides traders with access to simulated capital through a structured evaluation process, after which successful traders can earn performance-based rewards on funded accounts. FTMO has built one of the largest trader communities in the prop firm industry, serving over 4.5 million customers across more than 140 countries and reporting over $650 million paid in rewards worldwide.

FTMO offers two distinct evaluation paths: the FTMO Challenge 2-Step and the FTMO Challenge 1-Step. Both paths lead to a simulated funded account, but they differ in structure, risk parameters, and profit split terms. Traders can choose from five account sizes ranging from $10,000 to $200,000 in simulated capital. The firm supports MetaTrader 4, MetaTrader 5, and cTrader platforms, giving traders flexibility in how they execute their strategies.

The most important thing traders should understand before joining FTMO is that all trading occurs in a simulated demo environment that mirrors real market conditions, including spreads, swaps, commissions, and trading hours. While the capital is simulated, the rewards are real. FTMO's rules are strict and consistently enforced, so traders who treat the evaluation as a disciplined risk management exercise rather than a gamble have the best chance of success.

Key Facts

• ●Founded: 2015
• ●Headquarters: Prague, Czech Republic
• ●Markets: Forex, indices, commodities, metals, cryptocurrencies, equities
• ●Platforms: MetaTrader 4, MetaTrader 5, cTrader
• ●Evaluation models: 1-Step and 2-Step
• ●Profit split: 80% base for 2-Step, 90% for 1-Step and scaled 2-Step accounts
• ●Maximum funding: $200,000 initial; up to $2,000,000 via Scaling Plan
• ●Profit target: 10% (Phase 1) and 5% (Phase 2) for 2-Step; 10% for 1-Step
• ●Daily loss limit: 5% of initial capital (2-Step); 3% of initial capital (1-Step)
• ●Maximum drawdown: 10% of initial capital (static for 2-Step; end-of-day trailing for 1-Step)
• ●Minimum trading days: 4 per phase (2-Step); none (1-Step)
• ●Payout frequency: On-demand after 14-day eligibility
• ●Scaling: 25% balance increase every 4 months
• ●News trading: Allowed during evaluation; restricted on funded Standard accounts; unrestricted on Swing accounts
• ●EA trading: Permitted on all account types
• ●Copy trading: Copying your own strategy is allowed; copying from another FTMO trader is prohibited

Trading Programs and Account Types

FTMO Challenge: 2-Step

The FTMO Challenge 2-Step is the firm's traditional evaluation program. It consists of two phases: the FTMO Challenge and the Verification. In Phase 1, traders must achieve a 10% profit target while respecting a 5% maximum daily loss and a 10% maximum loss limit. The daily loss limit is calculated based on the account balance recorded at midnight CE(S)T each day, minus 5% of the initial simulated capital. The maximum loss is static, meaning it is fixed at 90% of the initial capital and does not trail upward.

In Phase 2, the Verification, traders must achieve a 5% profit target while maintaining the same 5% daily loss and 10% maximum loss rules. Both phases require a minimum of 4 trading days, defined as any day during which at least one position is opened. There is no maximum time limit to complete either phase.

Once both phases are passed, traders receive an FTMO Account with an 80% profit split. The initial challenge fee is refunded with the first reward withdrawal.

FTMO Challenge: 1-Step

The FTMO Challenge 1-Step condenses the evaluation into a single phase. Traders must achieve a 10% profit target while respecting a 3% maximum daily loss and a 10% maximum loss limit. The maximum loss for the 1-Step program is an end-of-day trailing limit, meaning it is recalculated daily at midnight CE(S)T based on the highest account balance achieved on any preceding day, minus 10% of the initial capital. The limit can only increase, never decrease.

There is no minimum trading days requirement for the 1-Step challenge. However, the Best Day Rule applies: no single trading day can account for more than 50% of the total positive days' profit. This means traders must distribute profits across multiple days to pass. The 1-Step program offers a 90% profit split from the first reward, but the challenge fee is not refunded.

Account Types: Standard and Swing

For the 2-Step challenge, traders can choose between Standard and Swing account types. The Standard account offers leverage up to 1:100 but imposes restrictions on news trading and overnight or weekend holding once funded. The Swing account offers leverage up to 1:30 but removes all news trading and overnight/weekend holding restrictions, making it suitable for swing and position traders.

The 1-Step challenge is available only as a Standard account type. Swing accounts are not offered for the 1-Step evaluation.

Trading Rules and Risk Management

Drawdown Rules

The drawdown structure differs between the two evaluation paths. For the 2-Step program, the maximum loss is static at 10% of the initial simulated capital. If a trader starts with a $100,000 account, the equity cannot drop below $90,000 at any point during the Challenge, Verification, or funded account phases.

For the 1-Step program, the maximum loss is an end-of-day trailing limit. On Day 1, the limit is $90,000 on a $100,000 account. If the account balance reaches $104,000 by midnight CE(S)T on Day 1, the limit for Day 2 becomes $94,000. The limit resets to 90% of the initial capital when a reward is withdrawn and a new FTMO Account is provided.

Daily Loss Rules

For the 2-Step program, the daily loss limit is 5% of the initial simulated capital. On a $100,000 account, the equity cannot drop more than $5,000 below the previous day's closing balance. The limit is recalculated daily at midnight CE(S)T.

For the 1-Step program, the daily loss limit is 3% of the initial simulated capital. On a $100,000 account, the equity cannot drop below $97,000 on Day 1. The limit is also recalculated daily at midnight CE(S)T based on the current day's opening balance.

Both daily loss calculations include open positions, swaps, and commissions. Floating losses count toward the limit.

Profit Split and Payouts

How Payouts Work

FTMO offers an 80% profit split for traders who qualify through the 2-Step evaluation, which can increase to 90% through the Scaling Plan or Premium Programme. Traders who qualify through the 1-Step evaluation receive a 90% profit split from the beginning.

The first reward can be requested after a minimum of 14 calendar days from the first trade on the funded account, provided all positions and pending orders are closed. After the first payout, traders can request rewards on-demand. FTMO processes approved payouts within 1 to 2 business days.

Available payout methods include bank wire transfer, instant card transfers via Visa Direct and Mastercard Send (up to $20,000 per transaction), Skrill (up to $3,000), and cryptocurrency. The minimum closed profit required is $20 for bank wire and card transfers, and $50 for cryptocurrency withdrawals. FTMO does not charge withdrawal fees on its side, though banks or blockchain networks may apply their own fees.

For the 2-Step program, the initial challenge fee is fully refunded with the first reward withdrawal. The 1-Step program does not include a fee refund.

Trading Platforms and Markets

FTMO supports three major trading platforms: MetaTrader 4, MetaTrader 5, and cTrader. Traders can select the platform that best fits their strategy and tooling preferences. All platforms provide access to the same simulated market environment.

Platform and Execution Considerations

FTMO's simulated trading environment replicates real market conditions, including trading fees, swaps, spreads, and trading hours. The firm does not publicly disclose its specific liquidity providers or broker partners, but the execution environment is designed to mirror CFD broker conditions. Traders should expect standard retail spreads and commission structures.

The available instruments include approximately 166 total trading products: 43 forex pairs, 14 indices, 11 energy and soft commodities, 9 metals, 30 cryptocurrencies, and equities. Only instruments actually offered by FTMO should be traded, and traders should verify the exact symbol availability on their chosen platform.

News Trading, EA and Copy Trading Rules

FTMO allows Expert Advisors and automated trading strategies on all account types and platforms. No pre-approval or source code submission is required. However, EAs must trade like normal market participants. FTMO explicitly prohibits latency arbitrage, tick scalping, high-frequency trading, and any strategy that exploits platform pricing errors or data feed delays.

Copy trading is permitted when traders copy their own strategy into their FTMO account. Copying trades from another FTMO trader or sharing signals between FTMO participants is prohibited. The firm cross-references accounts and flags identical Magic Numbers or coordinated trading patterns.

News trading is unrestricted during both the 1-Step and 2-Step evaluation phases, regardless of account type. Once funded, Standard accounts are subject to a 2-minute restriction before and after high-impact news releases. Swing accounts have no news trading restrictions at any stage.

Hedging within a single account is allowed, but multi-account hedging across connected accounts is prohibited. Account sharing is strictly forbidden, and traders must not allow third parties to access or trade on their accounts.

Who Is This Prop Firm Best For?

FTMO is best suited for disciplined traders who have a proven, repeatable strategy and can adhere to strict risk management rules. The firm's static drawdown on the 2-Step program and its end-of-day trailing drawdown on the 1-Step program both reward consistent, controlled trading rather than aggressive gambling.

Day traders and scalpers may prefer the Standard account with its 1:100 leverage, provided they can manage the news and weekend restrictions once funded. Swing traders and position traders are better served by the Swing account type, which removes those restrictions at the cost of lower leverage.

Beginner traders can benefit from FTMO's Free Trial, which allows them to practice with reduced targets before committing to a paid challenge. However, the strict rule enforcement means that traders without solid risk management skills are likely to breach limits quickly.

Algorithmic traders are welcome, but they must ensure their EAs do not trigger FTMO's forbidden practices detection. News traders should select the Swing account type if they intend to trade around economic releases on funded accounts.

Pros and Cons

Pros

• ●One of the longest operating histories in the prop firm industry, founded in 2015
• ●Transparent and publicly available trading rules with detailed numerical examples
• ●No time limit on evaluation phases, allowing traders to progress at their own pace
• ●Multiple platform support including MT4, MT5, and cTrader
• ●Two evaluation paths (1-Step and 2-Step) to match different trading styles
• ●Swing account type available for traders who hold positions overnight and through weekends
• ●Scaling Plan allows account growth up to $2,000,000 for consistent performers
• ●Challenge fee refunded with first payout on the 2-Step program
• ●Free Trial available for practice before purchasing a challenge
• ●Strong trader community with Discord, Academy, and educational resources

Cons

• ●Relatively high challenge fees compared to newer prop firms
• ●Strict daily loss limits (5% on 2-Step, 3% on 1-Step) that can be breached quickly
• ●Standard account restrictions on news trading and weekend holding once funded
• ●1-Step program does not offer a Swing account type
• ●1-Step program does not refund the challenge fee
• ●Best Day Rule on 1-Step can extend evaluation time for traders with concentrated profits
• ●Premium Programme and highest profit splits require months of consistent performance
• ●No publicly disclosed information about specific liquidity providers or broker partners

Prop Firms Insider Verdict

FTMO remains one of the most established and transparent prop firms in the industry. Its primary strengths are its long track record since 2015, clear and detailed rule documentation, consistent payout processing, and robust trader support infrastructure. The firm offers genuine flexibility through its two evaluation paths, multiple platforms, and Swing account option.

The main weaknesses are the relatively high entry fees and the strict risk rules that can terminate an account quickly if a trader loses discipline. The biggest rule traders should understand is the difference between the static drawdown on the 2-Step program and the end-of-day trailing drawdown on the 1-Step program. A trader who builds a large unrealized profit on the 1-Step program must be aware that the trailing drawdown moves upward with each new high, potentially leaving less room for normal market pullbacks.

Traders who should consider FTMO are those with a tested, disciplined strategy who value stability and transparency over the lowest possible challenge price. Traders who should be cautious are those who rely on high-risk, high-reward approaches, who need to hold positions through news events on Standard accounts, or who are not yet consistently profitable on their own.

Based on available evidence, FTMO appears highly transparent. Its rules are published in detail, its terms and conditions are accessible, and its payout history is publicly claimed and widely reported by its trader community.

Final Rating

Prop Firms Insider Rating: 4.3 / 5

The 4.3 rating reflects FTMO's strong transparency, long operational history, multiple platform and evaluation options, and reliable payout structure. The deduction from a perfect score comes from the relatively high fees, strict rule enforcement that can feel unforgiving, and the lack of a fee refund on the 1-Step program.

Trust Score

Trust Score: 8.7 / 10

The 8.7 score is based on FTMO's founding in 2015, publicly available and detailed trading rules, clear terms and conditions, reported payout history of over $650 million, strong Trustpilot ratings, and extensive operational transparency. The score is not higher because, like all prop firms in this model, FTMO operates on simulated capital rather than live broker accounts, and specific liquidity provider or broker partner information is not publicly disclosed.

Frequently Asked Questions

Is FTMO a good prop firm?

FTMO is widely regarded as one of the more established prop firms due to its long operating history since 2015, detailed public rules, and reported payout track record. Whether it is a good fit depends on whether a trader's style aligns with FTMO's strict risk management requirements.

What is the profit split at FTMO?

FTMO offers an 80% profit split for traders who pass the 2-Step evaluation, which can increase to 90% through the Scaling Plan or Premium Programme. Traders who pass the 1-Step evaluation receive a 90% profit split from their first reward.

How does FTMO drawdown work?

For the 2-Step program, FTMO uses a static 10% maximum drawdown based on the initial account balance. For the 1-Step program, FTMO uses an end-of-day trailing 10% drawdown that is recalculated daily at midnight CE(S)T based on the highest balance achieved.

Does FTMO allow news trading?

News trading is allowed without restriction during both evaluation phases. On funded Standard accounts, traders cannot open or close positions within 2 minutes before or after high-impact news releases. Swing accounts have no news trading restrictions.

Does FTMO allow EAs?

Yes, FTMO permits Expert Advisors and automated trading strategies on MT4, MT5, and cTrader. No pre-approval is required, but EAs must not engage in prohibited practices such as latency arbitrage, tick scalping, or high-frequency trading.

How do payouts work at FTMO?

Traders can request their first reward after 14 calendar days from their first trade on the funded account. Subsequent payouts are on-demand. Processing takes 1 to 2 business days. Methods include bank wire, instant card transfer, Skrill, and cryptocurrency.

What trading platforms does FTMO use?

FTMO supports MetaTrader 4, MetaTrader 5, and cTrader. Traders can choose their preferred platform when setting up their challenge.

What causes a trading account breach at FTMO?

An account is breached when equity drops below the maximum daily loss limit or the maximum loss limit. Other causes include violating forbidden trading practices, account sharing, multi-account hedging, or circumventing the Best Day Rule.