FTMO, established in 2014 and rebranded in 2017, operates as a significant player in proprietary trading, with a global presence in over 180 countries. It provides traders with the opportunity to access substantial capital contingent on successful completion of its evaluation process. In this FTMO review, we will examine the essential aspects of this trading platform, including its trading tools, advantages, and pricing, to facilitate your decision-making regarding its suitability for your trading goals.
FTMO Review
FTMO processes millions of trades monthly, and had paid out $29 million in 2021 with an 8-hour average pay-out processing time. They offer traders the opportunity to trade with capital ranging from $10,000 to $200,000, with leverage up to 1:100, and a profit retention rate of 80-90%. They have paid out over $130 million in profits to traders from over 180 countries. FTMO primarily focuses on Forex trading but also covers other financial markets such as commodities, cryptocurrencies, and indices. Their evaluation process consists of two stages: the FTMO Challenge and the Verification stage, which assess a trader's ability to generate consistent profits while following strict rules and risk management protocols. Successful traders become FTMO funded traders, gaining access to funded accounts ranging from $10,000 to $200,000 (or even $2 million with their scaling plan). Traders are allocated a maximum total of $400,000, allowing, for instance, the possibility of two $200,000 accounts.
Additionally, FTMO provides traders with trading journals and educational resources, and they offer a profit retention rate of 80-90%, while taking on losses. Opening an account requires a one-time fee, starting at €155 for a $10,000 account. However, engaging in their evaluation process without prior trading experience may prove challenging. They do provide a free test version that mirrors the paid evaluation, offering a way for traders to gain experience on the platform.
How FTMO Differs from Other Proprietary Firms?
FTMO offers a two-phase evaluation program that provides traders with two distinct account types: normal and aggressive. The company has been operating since 2015 and is considered a reliable option among proprietary trading firms. In the normal evaluation program, traders go through a two-phase assessment process to qualify for pay-outs. The first phase requires traders to achieve a profit target of 10%, while the second phase lowers this target to 5%. Strict risk management measures are in place, with daily losses limited to 5% and overall losses capped at 10%. Traders must also engage in a minimum of 4 days of trading within each phase before becoming eligible for funding. The normal evaluation program accounts feature a scaling plan, which distinguishes FTMO from other proprietary trading firms, offering moderate profit targets and elevated minimum trading day requirements.
FTMO offers several features, including:
- Account MetriX: This web-based tool tracks progress toward becoming an FTMO Trader, offering an overview of trading objectives and presenting statistical data.
- Account Analysis: This feature provides an analysis of trading results, offering insights into areas for refining trading strategy. It compiles this analysis after completing the Challenge, utilizing all trading data.
- Statistical App: This application employs algorithms to provide insights into market behavior probabilities, assisting traders in making informed decisions to potentially improve profitability.
- Trading Journal: A digital journal for recording trading results, thoughts, and trade-related emotions. It automatically logs trades and facilitates retrospective analysis to enhance future trading performance.
- Mentor App: This application is designed to bolster trader discipline by enforcing predefined rules and risk limits. It is compatible with various trading platforms, including MetaTrader 4, MetaTrader 5, and cTrader.
- Equity Simulator: This tool allows traders to simulate potential equity curve outcomes, offering a better understanding of drawdowns and the randomness in trading strategies.
- Economic Calendar: A resource that provides an overview of scheduled economic events and their potential impact on financial markets. It helps traders stay informed about market-moving news, strategize their trading activities, and anticipate potential market volatility.
What Are the Advantages of Joining FTMO?
FTMO relies on the success of its funded traders, where the company benefits from a share of the traders' profits, creating a mutually beneficial relationship. Advantages of FTMO include:
- Low Refundable Fee: FTMO charges one of the industry's lowest one-time fees, which becomes fully refundable upon successfully passing their evaluation.
- Proven Track Record: FTMO has a solid reputation, having disbursed millions to its funded traders, with over $29 million paid out in 2021.
- Profit Pay-outs: FTMO offers competitive profit pay-outs, with new traders receiving 80% of their profits, potentially increasing to 90% upon achieving their trading goals.
- Diverse Trading Options: FTMO provides a wide range of trading options, including forex, commodities, bonds, stocks, and indices, catering to various trader preferences.
- Advanced Trade-Tracking Software: FTMO invests in cutting-edge trade-tracking software to assist traders in optimizing profits and managing risk effectively.
- Scaling Plan: Skilled traders at FTMO can access up to $2 million in trading capital through its scaling plan.
- Resourceful Community: Due to its extensive usage by traders over the years, FTMO has accumulated a wealth of resources, including valuable tips for successfully completing the FTMO Challenge.
Trading Platform
FTMO accommodates traders by offering support for the three most popular trading solutions: MetaTrader 4, MetaTrader 5, cTrader. These platforms are available for free use, with no additional markup, for all demo trading accounts equipped with virtual funds.
Trading Instruments and Leverage
Regarding trading instruments and leverage, FTMO grants traders the opportunity to engage in various asset classes, including forex pairs, commodities, indices, stocks, bonds, and cryptocurrencies. Under the normal evaluation programs, traders can access a leverage of 1:100, while the aggressive evaluation programs permit a leverage of 1:30.
Pricing
FTMO offers a range of account types, including the 10k, 25k, 50k, 100k, and 200k challenges. Each challenge is associated with a specific risk level, either Normal or Aggressive, except for the 200k challenge, which exclusively offers the Normal risk level. When selecting the appropriate level, it's essential to assess your trading strategies and experience. The Aggressive account permits larger losses but sets higher profit targets. FTMO fees vary, starting at $155 for the 10k Challenge and going up to $1080 for the 200k Challenge.
Trading Objectives
The trading objectives within the FTMO Challenge are contingent on the choice of currency, risk level, and account balance. Your initial step is to determine the preferred risk level. If you opt for the Normal risk level, your maximum daily loss is capped at 5% of the initial account balance. Additionally, the Maximum Loss and overall Profit Target are set at 10% of the initial account balance. In the case of selecting the Aggressive risk level, all values double in magnitude. This implies a maximum daily loss threshold of 10%, with the Maximum Loss and overall Profit Target adjusted to 20% of the initial account balance. Consequently, the Aggressive risk level allows for greater downside flexibility while necessitating a higher profit target.
Customer Support
FTMO offers customer service through various communication channels, including email (support@ftmo.com), live chat, and phone (+442 033 222 983). Their support team is accessible around the clock via email and live chat, with phone support available from 8 am to 5 pm (CEST) during weekdays, from Monday to Friday. They provide assistance in 13 different languages to cater to a diverse audience. FTMO also offers the option for in-person appointments at their office in Prague.
Summary
FTMO has a track record and a variety of trading tools suitable for traders of different skill levels. The evaluation process may be challenging, but it offers potential rewards for those interested in proprietary trading. If you are looking for a platform with competitive profit-sharing options and a supportive trading community, FTMO is worth considering.
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