FTMO Review 2023: Regulations, Platforms and Instruments

Proprietary trading, often referred to as prop trading, presents a compelling opportunity for experienced investors to engage in the financial markets using significant capital while minimizing risk. In this review, we delve into FTMO, a prominent player in the forex prop trading landscape that welcomed over 6,000 new members in 2020. Our comprehensive examination covers various aspects, including account types, leverage, FTMO Challenge rules, and more.

Understanding FTMO

Founded in 2017 by owner Otakar Suffner, FTMO's primary mission is to provide funded trading accounts to promising traders. Headquartered in Prague, Czech Republic, FTMO has rapidly expanded its operations and received recognition through awards like the Deloitte Rising Star award in both 2019 and 2020. The firm has earned a stellar reputation, boasting highly sophisticated trading apps and top-notch customer support services.

Trading Opportunities with FTMO

FTMO offers a diverse array of trading instruments encompassing forex, commodities, indices, cryptocurrencies, stocks, and bonds, along with multiple trading platforms such as MetaTrader 4, MetaTrader 5, and cTrader. Traders can commence their journey with capital amounts reaching up to $200,000, and upon successful verification, they have the potential to retain up to 80% of their profits. FTMO's most substantial single payout to date exceeds $40,000.

How It Works

FTMO assesses the skills and qualifications of prospective traders through a meticulous two-step evaluation process: the FTMO Challenge and the Verification phase. After successfully completing these stages, traders gain access to professional trading accounts. They can then remotely manage up to $400,000 with leverage of up to 1:100, allowing them to scale their accounts.

Fee Structure

FTMO employs a straightforward fee structure calculated based on your capital level and chosen risk scheme. This fee is reimbursed with your first payout, and there are no recurring monthly charges. The company accepts various payment methods, including bank wire transfers, debit/credit cards, and Skrill. FTMO's inclusive policy welcomes traders from around the world, regardless of their location or nationality.

Account Options

FTMO offers account types categorized into 10k, 25k, 50k, 100k, and 200k challenges, each with a risk level option (Normal or Aggressive). When selecting the appropriate level, traders should consider their trading strategies and experience. The Aggressive account allows for larger losses but comes with higher profit targets. Pricing for FTMO accounts ranges from €155 for the 10k Challenge to €1080 for the 200k Challenge. Challenges can be undertaken in various currencies, with the 100k Challenge, for instance, offering different currency equivalents.

Account Features

All FTMO accounts provide leverage up to 1:100 and access to over 100 currency pairs, cryptocurrencies like Bitcoin and Ripple, stocks, bonds, indices, and commodities such as gold. FTMO traders have access to unique trading tools and applications like the Account Metrix, Mentor Application, and Equity Simulator, designed to enhance performance and exclusive to FTMO users.

Trading Conditions and Rules

FTMO boasts flexible trading conditions, including no limits on lot sizes, compatibility with common trading tools like stop losses and candlestick charts, and the freedom to employ various trading strategies, including scalping, hedging, or EAs. Traders should be aware of the two-hour rule, which restricts holding positions over weekends and extended market breaks. Certain macroeconomic events are also restricted for trading, and traders should consult FTMO's economic calendar and use time zone converters as needed.

Withdrawals and Taxation

Profits earned through FTMO are distributed via a monthly profit-sharing model. Users must submit invoices to FTMO, and funds are transferred through bank wire transfers or Skrill, with no commissions imposed on withdrawals. Traders should manage their earnings in compliance with their respective country's tax regulations, seeking guidance from local tax advisors if necessary.

Security and Regulation

FTMO is not a broker and operates without regulatory oversight. However, the company maintains a strict two-step evaluation process with a relatively low pass rate, ensuring that only capable traders progress to professional status. New traders can use the free demo account to refine their skills before committing to the FTMO joining fee and embarking on the Challenge.

Customer Support

FTMO prides itself on its customer support services, available in 13 languages. Support is accessible 24/7 via email and live chat, with phone support available from 8 am to 5 pm (CEST) on weekdays. Additionally, in-person appointments can be arranged at FTMO's Prague office for further assistance.

Additional Resources

Beyond trading, FTMO offers an online shop featuring trading-themed merchandise, including t-shirts, hats, and posters. Traders can also explore FTMO Challenge reviews on YouTube to gain further insights into the company's offerings.

Advantages of Trading with FTMO:

1. Free Trial Challenge: FTMO offers a risk-free trial challenge, allowing you to showcase your trading skills without any initial financial commitment.
2. Retain 70% of Profits: As a successful FTMO trader, you get to keep a significant portion of your profits – an impressive 70%.
3. Comprehensive Customer Support: FTMO prides itself on its responsive and comprehensive customer support, ensuring you have assistance whenever you need it.
4. Trading with FTMO Funds: With FTMO, you're trading with their funds, not your own, reducing your personal financial exposure.
5. Educational Resources: Gain access to a wealth of educational resources, including tutorials, Q&A sessions, webinars, and discounts on educational websites from FTMO's partners.
6. Scaling Plan: Profitable traders can take advantage of the scaling plan, allowing them to increase their capital by 25% every four months.

Disadvantages of FTMO:

1. Earnings Only at Professional Account Level: Unlike some competitors like The5%ers, you can only start earning once you reach the professional account level, which may require time and effort.
2. Limited Initial Capital: FTMO provides less initial capital compared to competitors like Fidelcrest, potentially limiting your trading capacity.
3. Thorough Evaluation Process: FTMO's evaluation process is rigorous and consists of two steps, which may be more demanding compared to other prop trading firms.
4. No Weekend Holding: FTMO enforces a no-holding-over-the-weekend policy, which can affect certain trading strategies and require careful planning around market hours.

In summary, FTMO presents a compelling opportunity for experienced traders to engage in proprietary trading with substantial capital and reduced risk, backed by a robust evaluation process and comprehensive support. As with any financial endeavor, prospective traders should carefully assess their own skills and goals before considering participation in the FTMO Challenge.

Broker Details

Disclaimer: - We at forexoverflow do not endorse neither refer anyone to trading broker websites. The information is for educational purpose and source of information is from the broker website.