What is FTMO? The No-Fluff 2025 Guide for Traders Who Want Funding
If you have been hanging around trading forums or watching trading content lately, you have probably heard the name FTMO pop up like it is the secret VIP club of traders. In some ways, it really is. But before you start imagining yourself in Prague at their headquarters, let’s break down exactly what FTMO is, how it works, and whether it is worth your time.
FTMO in a Nutshell
FTMO is a prop firm that was founded in 2015 in Prague. Instead of risking your own capital, you trade their money once you pass their evaluation process. You do not need to work in a physical trading office. You can trade from anywhere you like, whether it is a café, your living room, or a beach resort, as long as you have an internet connection.
The key here is the “prove yourself first” model. You go through two stages: the FTMO Challenge and the Verification. Pass both and you become an FTMO Trader with access to a funded account where you can keep up to 90 percent of your profits.
How FTMO Works: The Three-Step Path to Funding
FTMO works like a talent scout for traders. They are not interested in your resume or dress code. They only care about whether you can grow an account while following risk rules.
- The FTMO Challenge
- You have 30 days to hit a 10 percent profit target
- You must follow daily and overall drawdown limits
- No leaving huge overnight positions open hoping for luck
- The Verification Stage
- You have 60 days to hit a smaller 5 percent profit target
- This stage proves your results were not just luck
- Shows that you can repeat success consistently
- FTMO Trader Status
- You receive funding with company capital
- You keep up to 90 percent of the profits
- FTMO covers losses so your personal capital stays safe
Why FTMO Appeals to Beginners
Most trading beginners hesitate because they fear losing their own savings. FTMO solves this by covering the capital risk. You only pay a one-time challenge fee, and they refund it if you pass.
You can choose your starting level. The smallest account is $10,000 and the largest is $200,000. The fee ranges from €155 for the smallest account to €1,080 for the largest.
Trading is done on platforms like MT4, MT5, cTrader, and DXtrade. This means you can trade on software you already know without learning a new system when you should be focusing on market entries and exits.
FTMO’s Risk Rules (and Why They Are Useful)
FTMO has two important risk rules.
The first is the maximum daily loss, which caps how much you can lose in a single day. If you go over this limit, your evaluation ends.
The second is the overall drawdown limit, which caps the total loss you can take from your starting balance.
While some traders see these as restrictions, experienced traders see them as a form of protection. They prevent one bad day from turning into a disaster.
What You Get Beyond Funding
FTMO does more than simply give you capital once you pass the test. They support traders with performance analytics, live webinars, and written guides. The analytics break down your trading habits so you can see where you are strong and where you can improve. The webinars cover strategies, psychology, and market analysis, while the written guides offer practical lessons on risk management and technical trading.
The Pros and the Cons
The Pros:
- You can keep up to 90 percent of profits
- You risk none of your own money beyond the fee
- Strong education and analytics support
- Flexible account sizes and trading platforms
The Cons:
- The evaluation is challenging
- The fee is not refunded if you fail
- The time limits can cause pressure and overtrading if you are not careful
How FTMO Compares to Other Prop Firms
Some prop firms give instant funding but with low profit splits and unclear rules. FTMO takes a stricter approach by testing you first, but once you pass you get generous payouts and clear guidelines. This makes it more attractive for serious traders looking for stability and transparency.
Legitimacy Check – Is FTMO the Real Deal?
Yes. FTMO has been in business since 2015 and has strong ratings on Trustpilot. They have a reputation for paying on time and for running a fair program.
How to Start Your FTMO Journey
Starting is simple. You choose your account size, pay the challenge fee, and start the evaluation. Pass both stages and you receive your funded account. Withdrawals for funded traders are quick and often arrive within a few business days.
Success with FTMO is not about a magic strategy. It is about consistency, patience, and discipline.
Final Verdict
FTMO is for traders who want to trade professionally without risking large amounts of personal capital. The evaluation is tough, but the reward of trading serious capital and keeping most of the profits makes it worth the effort. If you treat it as a long-term opportunity rather than a quick money grab, FTMO can be an excellent partner.
FTMO is a good selection for new traders who grasp trading and risk control basics. The service includes learning aids, tools along with a system to help traders gain self-control. The FTMO Challenge may pose problems for those without much experience, so newcomers ought to use demo accounts for practice before trying the test.
FTMO doesn’t make traders put funds into an account. Traders instead pay a Challenge fee once. It differs based on the chosen account amount. To illustrate the cost related to a $10,000 account amounts to €155, as the fee for an account of $100,000 totals €540. This fee is given back if a trader passes the test.
Completion calls for self-control, a firm plan along with good risk control. Many traders don’t pass because of trading too much, taking large risks or not knowing the FTMO rules. To improve chances of success, traders ought to use demo accounts, use a set plan, keep to risk rules along with avoid trading out of emotion.
If a trader does not complete the FTMO Challenge, they don’t get an account that is funded. The Challenge cost is not given back. FTMO has a free repeat attempt if the trader follows all rules yet doesn’t meet the profit goal. A trader who doesn’t meet the requirements for a free repeat can buy a new Challenge for another try.
