FTMO – popular prop trading firm reviewed

FTMO: Tailored Proprietary Trading & Unmatched Support

While not a traditional prop trading firm in the sense of the others on this list, FTMO has gained popularity as a funding platform for Forex traders. Successful traders can manage FTMO’s capital and get a share of the profits.

What is FTMO?

FTMO is an initiative in search of experienced traders to join its ranks. To determine the potential and skill set of a trader, they have instituted a distinctive 2-step Evaluation Process. This process encompasses both the FTMO Challenge and Verification, meticulously designed to identify the innate talents of a trader. Recognizing the intricacies of a trader’s journey, their suite of educational tools, in-depth account analysis, and dedicated performance coaches stand ready to support and guide traders every step of the way.

How to engage in Proprietary Trading with FTMO?

FTMO has designed an innovative 2-step Evaluation Process tailored to identify and nurture exceptional trading acumen. This Evaluation Process incorporates the FTMO Challenge and Verification, both meticulously curated to spotlight promising trading talents.

Upon successfully navigating through the Evaluation Process, traders are presented with the opportunity to manage an FTMO Account, boasting a balance that can reach up to 200,000 USD. While this endeavour might present its set of challenges, they’re committed to aiding you in this journey. Our suite of educational tools, incisive Account Analysis, and dedicated Performance Coaches are at your disposal, ensuring you’re on the right path towards financial autonomy.

A Glimpse into the FTMO Evaluation Process:

1. FTMO Challenge Embarking on the FTMO Challenge marks your initiation into the Evaluation Process. Your expertise and disciplined adherence to Trading Objectives need to shine here, paving the way to the Verification phase.
2. Verification Verification stands as the conclusive stage before one can earn the title of an FTMO Trader. On clearing this segment and having your performance authenticated, you’re extended an invitation to trade via the FTMO Account.
3. FTMO Trader – Capitalizing on Real Opportunities Transitioning into an FTMO Trader empowers you to manage an FTMO Account. Uphold your trading ethos, showcasing consistency, and you stand to retain up to 90% of your accrued profits. Consistent profitability on your FTMO Account unlocks the potential to augment your account as per our Scaling Plan.

Prime Features:

Swing Account

Align your trading aspirations with the ideal FTMO Account. The Swing Account under the FTMO banner offers unparalleled flexibility, devoid of constraints whether you’re retaining positions over weekends or executing trades amidst macroeconomic announcements.

Scaling Plan

FTMO vision is rooted in fostering enduring partnerships. Displaying a consistently profitable streak triggers an enhancement of your FTMO Account’s balance by 25%, realized every 4 months, aligned with the Scaling Plan.

Experience it First-Hand – demo account.

For those on the fence, they’ve devised a no-strings-attached trial. This Free Trial version mirrors the conditions of the FTMO Challenge, ensuring you get a genuine feel of the process.

Payout System

While the foundational payout distribution for FTMO Traders is set at 80:20, our commitment extends beyond this standard. FTMO Traders are vested with the autonomy to request on-demand payouts. Post a brief 14-day window, payouts are processed, and there’s flexibility in nominating your Profit Split Day, adjustable up to thrice. They are unwavering in our pledge to synchronize withdrawals with your convenience. Remarkably, adhering to the tenets of our Scaling Plan not only augments your FTMO Account’s balance by 25% but also escalates the payout ratio to an impressive 90:10!

Top-Tier Trading Platforms with FTMO

FTMO is dedicated to delivering optimal trading environments. Clients have access to premier platforms including MT4, MT5, and cTrader accounts. These are fortified by direct data streams from FTMO elite liquidity providers. Our commitment to authenticity is unwavering, as we endeavour to emulate real market dynamics, offering razor-thin spreads, minimal commissions, and zero markups across demo accounts endowed with virtual capital.

Key Advantages of Partnering with FTMO Trading Firm:

1. Optimal Trading Environment: Experience a comprehensive FTMO Solution offering a diverse array of assets, paired with minimal commissions and competitive spreads.
2. Professional Leverage at 1:100: Harness the power of trader-specific leverage, free from constraints on position size.
3. Transparent Pricing Structure: Pay only a one-time fee with no recurring costs, memberships, or undisclosed charges. Furthermore, the inaugural Profit Split reimburses this fee.
4. Choice of Leading Trading Platforms: Options range from MT4, MT5, to cTrader. The decision is yours!
5. Unbridled Trading Flexibility: Deploy your distinct trading methodology without encumbrances. Utilize EAs, hedging techniques, or adopt a discretionary approach.
6. Diversified Instrument Selection: Dabble in Forex, Commodities, Indices, Crypto, Stocks, and Bonds as per your preference.

How to start trading with FTMO?:

Before embarking on the FTMO Challenge, it’s paramount to understand the intricacies involved.

Upon registration, FTMO extends an opportunity for a Free Trial. Here, you can simulate trading conditions akin to the FTMO Challenge without any charges. The Free Trial not only lets you familiarize yourself with our Trading Applications but also provides a concise analysis of your trading performance.

When you’re prepared to tackle the FTMO Challenge, set up your account via the Client Area.

It’s imperative to note that your Free Trial performance or any other external trading records won’t qualify you for an FTMO Account. The Evaluation Process is meticulously structured to ensure FTMO can confidently gauge your trading acumen, paving the way for you to manage an FTMO Account.

Is FTMO a scam or a serious company?

Founded in 2015, FTMO has made a significant impact in the trading community by providing thousands of traders with FTMO Accounts. With a reputation built on integrity and reliability, they’ve solidified their standing within the industry.

Reputation in any business is paramount, especially in trading. When evaluating the legitimacy of a company, examining online reviews is an effective approach. To gain insights about FTMO, one can peruse reviews on reputable trading review platforms such as Forex Peace Army, TrustPilot, and Forex Factory. Moreover, numerous traders provide firsthand experiences through YouTube videos and shared anecdotes, adding another layer of perspective for potential traders.

Delving deeper into the core of FTMO, the company is on a mission to identify and collaborate with seasoned traders. In order to pinpoint traders who align with their ethos and exhibit exemplary trading skills, they’ve instituted a 2-step Evaluation Process. This process, meticulously crafted, encompasses the FTMO Challenge and the Verification. Its design is meant to unearth and foster trading talent. Recognizing the intricate journey a trader undertakes, FTMO complements its rigorous evaluation with educational applications, in-depth account analysis, and the guidance of performance coaches. This holistic approach ensures traders are well-prepared and supported in their ventures.

Eligibility for Joining FTMO

FTMO welcomes participants from various corners of the globe, maintaining a broad and inclusive approach. A significant criterion for joining is that aspirants must be at least 18 years of age. The foremost attribute FTMO values in its participants is their aptitude for profitable trading, coupled with sound risk management techniques.

It’s imperative to be aware that FTMO refrains from offering its services to individuals residing in or hailing from Iran, Syria, Myanmar, and North Korea. Additionally, services are not extended to individuals in Russia, those on sanction lists, individuals with prior financial or terror-related criminal offenses, and those previously prohibited due to contract violations.

Owing to evolving regulatory landscapes and decisions influenced by risk management assessments, FTMO made the decision to discontinue onboarding new clients from India effective 28 February 2023. Subsequently, by 29 March 2023, all services to Indian residents were halted. It’s crucial to emphasize that these restrictions pertain only to residents within India’s borders and do not extend to Indian citizens residing internationally, provided they can substantiate their overseas residence.

Similarly, as of 12 September 2023, based on regulatory shifts and risk management evaluations, FTMO ceased accepting new clientele from the Indonesia. Again, it’s worth noting that this constraint is solely applicable to residents within the Republic of Indonesia and does not affect Indonesian nationals living overseas who can furnish proof of their foreign address.

Moreover, starting 04 May 2023, following a business determination rooted in operational considerations, FTMO halted the acceptance of new clients from specific US states: Delaware, Louisiana, South Carolina, Montana, and Arkansas. While FTMO Challenges initiated prior to this date and active FTMO Accounts remain unaffected, new orders have been discontinued. As the calendar turned to 04 August 2023, we transitioned to not initiating new agreements and ceased offering subsequent FTMO Accounts to residents of the aforementioned states.

For the most current and detailed participation restrictions associated with FTMO, potential and experienced traders are advised to refer to the official FTMO website.

Should you join FTMO? Elevate Your Trading Journey

The world of trading is complex, and traders often grapple with a myriad of challenges, including:

• Undercapitalization or trading with an insufficient account size.
• Limited growth potential due to account size or other constraints.
• Maintaining consistent discipline in trading strategies.
• Apprehensions about risking personal funds.
• Psychological barriers impacting trading decisions.
• A perceived lack of support and understanding from peers or the community.

Why FTMO Stands Out:?

Amplified Capital

With the renowned FTMO Prop Trading firm, take charge of an FTMO Account boasting an initial balance of up to $400,000. This robust capital infusion can be the game-changer for many experienced traders.

A Supportive Ecosystem

As fellow traders, they at FTMO recognize that successful trading isn’t just about capital. FTMO ensures their traders have optimal conditions by offering:

• Guided Consultations: FTMO Traders can engage with our Performance Coach periodically, entirely free of cost, to refine their strategies and mindset.
• Innovative Tools: Access our avant-garde Trading Applications, designed to augment your trading prowess.
  • Statistical Application – Harness the power of data with the Statistical Application, presenting significant, data-driven insights into market dynamics for strategic decision-making.
  • Mentor Application – Elevate your trading strategy with the Mentor Application, designed to bolster discipline, paving the way for enhanced outcomes.
  • Trading Journal – While recording trading outcomes may not appeal to many, our Trading Journal streamlines this essential task, ensuring effortless documentation.
  • Account MetriX – Navigate your journey towards becoming an FTMO Trader with clarity through our distinctive Account MetriX web platform, a holistic tool for tracking progress.
  • Account Analysis – With the inception of this initiative, it was imperative to provide our traders with an objective assessment of their trading outcomes, ensuring transparent reflections.
  • Performance Coach – Delving into the often overlooked realm of trader psychology, we extend our expertise, offering support to optimize mental resilience and focus in trading.
  • Equity Simulator – Located within your Account MetriX, the Equity Simulator is your tool to enhance risk management, allowing you to gauge potential scenarios based on your existing trading track record.
• In-depth Feedback: Receive comprehensive evaluations of your trading accounts with insights from our seasoned team.

Cultivating Discipline

Trading with the FTMO Account is synonymous with responsible trading. FTMO meticulous oversight ensures you adhere to effective trading practices, promoting sustainable growth. FTMO guidelines are crafted to strike a balance – they’re not overly restrictive but are crucial to avoid pitfalls like over-trading or excessive leveraging.

Flexible Profit Management

The perennial trader’s dilemma: to reinvest or to relish the profits? With FTMO, you get the best of both worlds. Here’s how:

• Generous Profit Sharing: Earn up to 90% of the profits you make, disbursed monthly.
• Consistent Growth: As you demonstrate consistent profitability, we periodically augment the balance of your FTMO Account. This is in line with their Scaling Plan, enabling you to simultaneously grow and profit.

Fee Refund

To top it all, the initial fee you pay them? It’s not a sunk cost. It gets reimbursed to you with your first profit split from the FTMO Account.

Becoming an FTMO Trader: A Step-by-Step Guide

For those looking to join the ranks of experienced traders at FTMO, the journey begins with the structured 2-step Evaluation Process. Here’s a detailed breakdown:

Step 1: FTMO Challenge

• Overview: The FTMO Challenge is a demo trading phase that requires adhering to specific FTMO rules.
• Account Conditions: Participants will enjoy superior account features, leveraging the unique FTMO account solution. This boasts minimal commissions and raw spreads.
• Progression: Successfully meeting all the challenge’s requirements will grant you entry to the next step in the Evaluation Process.

Step 2: Verification

• Purpose: This demo trading phase serves to authenticate your trading performance and consistency.
• Rules: The Verification stage offers more lenient conditions compared to the initial Challenge phase. For an in-depth overview of the stipulations, please watch the Trading Objectives:

1. Minimum Trading Days – The FTMO Challenge Phase

• Duration: A minimum of 4 trading days are required to complete the FTMO Challenge. These days do not need to be consecutive.
• Objective: Adhere to and fulfill the specified Trading Objectives.

2. Minimum Trading Days – The Verification Phase

• Duration: Similarly, the Verification stage demands at least 4 trading days, which also do not need to be sequential.
• Goal: Ensure that you maintain the set Trading Objectives consistently.

Minimum Trading Days – Progression to FTMO Trader

• Once all 4 Trading Objectives are met and your trading activities pass the review, you are eligible to transition to the next phase immediately.
• Timeframe: Taking into account both the FTMO Challenge and Verification phases, dedicated and experienced traders can potentially manage their FTMO Account within a concise period of just 8 trading days.

• Conclusion: Upon successful completion of the Verification stage, and after a thorough review of your trading behavior, you’ll be on the brink of becoming an FTMO Trader.

Finalizing the Contract

Before inking the contract for your FTMO Account, there are a few administrative procedures:

• You’ll be required to submit identification documentation such as a passport, national ID card, or driving license.
• This finalization phase aligns with FTMO’s internal policies, ensuring rigorous identification processes.

Exclusions and Limitations

It’s worth noting that FTMO exercises discernment in their contract approvals:

• They do not extend services to individuals on sanction lists, those with criminal records related to financial crimes or terrorism, individuals under 18 years, company trusts, or those previously disqualified due to a breach of the FTMO Account Agreement.
• Any violations detected post-finalization of the FTMO Account Agreement empower FTMO with the right to nullify the contract.
• Past track records do not guarantee an FTMO Account.

FTMO Profit Withdrawal Guide – How to withdraw the profit?

Navigating the profit withdrawal process at FTMO is straightforward. Below is a comprehensive guide to understanding the nuances of the system, ensuring you maximize your earnings and utilize the available options efficiently.

Monthly Profit Split System

• The Profit Split for the FTMO Account is standardized on a monthly cycle.
• An on-demand payout request can be activated after 14 calendar days from the initiation of the first trade on the account.

Flexible Profit Split Day Options

• If your account is profitable, the Profit Split Day can be adjusted, offering flexibility up to 3 times for every withdrawal.
• Adjustments can be made anytime within a window of 14 to 60 days from the start of trading.
• Without modifications, the Profit Split Day defaults to the final day of the ongoing Reference Period. Once set, this cannot be altered for that cycle.
  • Example: If trading begins on April 1st, the initial Profit Split Day will be available by April 15th. The final option for the Profit Split Day for this period will be May 31st.

Payout Processing and Methods

• Payouts are expedited and processed within 1-2 business days upon validating the invoice.
• Profits can be claimed via:
  • Regular bank wire transfer
  • Skrill
  • Cryptocurrencies
• FTMO does not deduct commissions for withdrawals.

No Minimum Profit for Profit Split

• There’s no requisite minimum* profit for entitlement to up to a 90% Profit Split.
• Profits are split either 80/20 or 90/10 (with the Scale-up plan) and disbursed to traders accordingly.

Benefit from the FTMO Scaling Plan

• Meeting the conditions of the FTMO Scaling Plan offers twofold benefits:
  1. Your FTMO Account balance augments by 25%.
  2. The payout ratio spectacularly shifts to 90/10.

Profit Retention Option

• Traders have the autonomy to reinvest their Profit Split into their account to elevate their balance and trailing drawdown buffer.
• It’s imperative to understand that FTMO invariably extracts its portion from the Profit Split.

Notes:

• Small charges for payout transfers necessitate a closed profit threshold of $20 for bank wire transfers and $50 for cryptocurrency payouts. This is to offset transaction expenses.

Do I have to tax my income? – Understanding Tax Responsibilities with FTMO

Tax Obligations

It’s essential for all traders to be informed and proactive about tax implications:

• The responsibility of reporting and paying taxes falls on the trader.
• The tax amount and method of payment are determined by each individual’s respective country’s laws and regulations.

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Stay Compliant

For a seamless trading experience, we encourage:

• Regularly consulting with a tax professional or advisor, especially if you’re unfamiliar with tax regulations in your country.
• Keeping accurate records of all your trading activities, including profits earned from the FTMO Account. This will make the tax reporting process more straightforward.

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Remember, while FTMO provides experienced traders with the platform and opportunity, it’s crucial to manage personal financial responsibilities diligently.

FTMO Trading Guidelines: Instruments, Strategies & Best Practices

Freedom in Trading Instruments and Strategies

At FTMO, our primary objective is to support traders and not to restrict their unique trading styles. We believe in giving you complete autonomy when it comes to deciding your trading approach. Here are the key points:

• Diverse Trading Instruments: Trade any instrument or asset available on your platform. This includes Forex, Indices, Commodities, Stocks, Crypto, and more.
• No Strategy Limitation: Whether you prefer discretionary trading, hedging, algorithmic trading, or using EAs, you’re free to choose. As long as your trading aligns with real market conditions and can be replicated on our live corporate accounts, there’s no boundary.

Expert Advisors (EA) Considerations

If you’re inclined towards automation and plan on using Expert Advisors (EAs), there are certain factors you need to be aware of:

• Third-Party EAs: If you decide to use a third-party EA, understand that there might be other traders already deploying the same strategy. This may put you at risk of breaching the maximum capital allocation rule.
• Server Limitations: FTMO platform servers can handle 200 orders at a time and up to 2000 positions per day. Additionally, there’s a limitation on accepting server messages, including updates on TP/SL, limit orders, and other order modifications. If your EA results in hyperactivity, FTMO might reach out, asking you to tweak the EA’s logic or modify your strategy parameters.

Trading Best Practices

FTMO is committed to Prop Trading, and we expect our traders to maintain the dignity and respect of the craft:

• Avoid Gambling: Trading is a discipline. We urge you to refrain from practices that are more in line with gambling rather than genuine trading.
• Modus Operandi Concerns: FTMO is watchful of repetitive intentional activities across multiple accounts. If detected, FTMO reserves the right to take necessary actions to mitigate risk. These actions could range from position removal, account rebalancing, leverage reduction, to the complete termination of our association.

In conclusion, at FTMO, they are eager to witness your market prowess and consistent trading performance. They encourage you to trade with genuine intentions and showcase your unique edge in the market.

FTMO alternatives and main competitors:

Proprietary (prop) trading firms trade with their own capital rather than clients’ funds, allowing them to take on more risk and potentially reap greater rewards. Over the years, several prop trading firms have gained prominence due to their performance, innovative strategies, and contribution to the trading community. Some of the most well-known prop trading firms as of my last update in 2022 include:

1. Jane Street – Known for its strong emphasis on technology and quantitative research, this global firm is involved in a wide array of financial products.
2. Optiver – Originating from Amsterdam, Optiver has become a global player in market-making and proprietary trading with a strong emphasis on derivatives.
3. DRW – Based out of Chicago, DRW is a diversified trading firm that trades its own capital across a wide range of assets.
4. Flow Traders – Specializing in exchange-traded products (ETPs), Flow Traders is a leading global technology-enabled liquidity provider.
5. Belvedere Trading – Another Chicago-based firm, Belvedere focuses on equity index and commodity derivatives.
6. IMC Trading – Originating from the Netherlands and with a strong presence in Chicago and Sydney, IMC is involved in market-making and proprietary trading.
7. SIG (Susquehanna International Group) – This global quantitative trading firm is also known for its strong emphasis on poker as a recruiting tool, believing the game sharpens decision-making skills.
8. Maverick Trading – A prop trading firm that allows remote traders and offers education in options and FX trading.
9. Tower Research Capital – A global quantitative trading firm known for its high-frequency trading strategies.
10. Akuna Capital – Founded in 2011, this firm has a strong presence in derivatives trading.
11. T3 Trading Group – Offers opportunities for stock, options, and Forex traders with an emphasis on trader development.

It’s worth noting that the world of prop trading is vast and dynamic, and the prominence of firms can change over time. Additionally, each firm has its own unique culture, trading strategies, and areas of expertise. If you’re considering a career in prop trading or seeking a partnership, thorough research into each firm’s operations and philosophies is essential.