FTMO is a prop firm founded in 2014 in Prague, Czech Republic . From its inception, FTMO aimed to provide traders with the opportunity to manage large amounts of capital while adhering to strict risk management rules. At that time, prop firms were mainly focused on floor traders, but FTMO innovated by offering a fully online model . This allowed traders from all over the world to participate in their funding program via challenges . This model opened the door to many traders who did not have the capital to start trading professionally but had promising skills.
FTMO’s history is marked by its ability to grow and adapt to the needs of an ever-changing market. Initially focused on Forex, the company quickly expanded its offering to other asset classes, including indices, commodities, and more recently, cryptocurrencies . In just a few years, FTMO has become one of the most popular and respected prop firms, attracting thousands of traders from different backgrounds. Today, it is present in over 180 countries and has enabled many traders to realize their dream of running a funded trading account.
FTMO has also stood out for its transparent and ethical approach to financing. Unlike some prop firms that impose restrictive or opaque conditions, FTMO has always made it a point of honor to offer clear conditions, with constant support to traders at every step of the process.
The Advantages of the FTMO Prop Firm
FTMO’s success is based on several key factors that make it a leading prop firm for traders around the world.
- A model accessible to all : FTMO offers a clear structure where any trader, beginner or experienced, can register for its challenge and have the opportunity to prove their skills. It is not necessary to have large capital to start.
- Two-stage challenge : The two-stage challenge model is designed to test traders’ skills while giving them a real chance to succeed. This selection process is transparent and rigorous, but the conditions remain accessible to those who adhere to strict risk management.
- Diversity of Financial Instruments : FTMO offers a wide range of financial assets, including Forex, stock indices, commodities, and cryptocurrencies. This allows traders from various backgrounds to adopt the strategies they are most comfortable with.
- Advantageous conditions for traders : Once the challenge is successfully completed, traders benefit from a very attractive profit sharing. FTMO allows traders to keep up to 90% of their profits, which is one of the best ratios in the industry.
- Support and training tools : FTMO doesn’t just evaluate traders. The firm also offers a comprehensive set of tools to help traders improve their performance. This includes detailed trading performance analyses, regular reports, and personalized suggestions for optimizing strategies.
- Funded Capital Flexibility : Funded accounts range from $10,000 to $200,000, depending on the trader’s level of success. This flexibility allows traders to start with a modest amount of capital and progress to larger amounts as they gain experience and improve their results.
The FTMO Challenge: A Two-Phase Process
The FTMO selection process is based on a two-phase challenge , designed to test traders’ skills in realistic market conditions.
1. Phase 1: The FTMO Prop Firm Challenge
The first phase of the process is called the FTMO Challenge . It consists of assessing the trader’s ability to generate profits while respecting rigorous risk management. Here are the main criteria of this phase:
- Profit Target : The trader must achieve a profit target of 10% (5% for aggressive accounts) over a period of 30 calendar days.
- Daily Loss Limit : The trader should not lose more than 5% of the total account capital in one day.
- Maximum Loss Limit : The maximum loss allowed over the entire duration of the challenge is 10% of the initial capital.
These strict rules ensure that the trader properly manages risk, an essential element in professional trading.
2. Phase 2: Verification of the FTMO prop firm
Once the first phase is completed, the trader moves on to the verification phase . This phase has similar objectives to the first, but with slightly more relaxed conditions:
- Reduced Profit Target : The profit target is lowered to 5%, and the period to achieve it is extended to 60 days.
- Loss Limits : The same daily (5%) and maximum (10%) loss limits remain in effect.
The verification phase aims to confirm the trader’s ability to maintain consistent performance while adhering to strict risk management over an extended period.
Reminder on the FTMO prop firm
FTMO is today an essential reference in the world of prop firms, thanks to its innovative, transparent and trader-centric approach. With its two-phase challenge, FTMO offers traders from all over the world a unique opportunity to prove their skills while accessing significant trading capital. Its advantages, reputation and commitment to the continuous improvement of traders make FTMO one of the best options for those who wish to take a step forward in their trading career.
