Pros
- Largest prop firm in the world · 3.5 million clients
- Payout processed in ~8 hours (audited average)
- Challenge fee refunded on the first payout
- No maximum time limit to complete the phases
- 80% initial profit split, scaling to 90%
- Scaling plan reaches a US$ 2M account
- Acquired OANDA in Dec 2025 — US route via the NFA
Cons
- Strict drawdown rules (3% daily on the 1-Step)
- No trading within ±2 minutes of high-impact news (except Swing)
- Fees above the industry average
- "Discretionary clause" broader than competitors'
- Anti-aggregated-risk rules catch traders off guard
- Estimated <10% of traders pass both phases
01What FTMO is (no mystery)
A prop firm (proprietary trading firm) is a company that gives you capital to trade, but first you have to pass a simulated evaluation. FTMO, founded in Prague in 2015, is the largest in the sector — 3.5 million clients, published cumulative payouts, and the market standard for strict rules. You pay a Challenge fee (€79 to €1,080), prove you can trade within the risk limits, and get access to a funded account with US$ 10k to 200k of simulated capital, keeping 80-90% of the profits.
Important technical detail: even on the "funded" account you trade in a simulated environment — FTMO mirrors your performance with its own capital. In practice it makes zero difference to you; the payout money is real.
021-Step vs 2-Step — which to choose
FTMO 1-Step Challenge
A single evaluation. 10% profit target, with 3% daily drawdown and 10% end-of-day trailing drawdown. Minimum 4 trading days. Pays a 90% profit split from the first payout.
FTMO 2-Step Challenge
Two phases. Phase 1 (Challenge): 10% target, 5% daily / 10% total drawdown, min. 4 days. Phase 2 (Verification): 5% target, same rules. Initial profit split 80%, scaling to 90% via the Scaling Plan. It offers a Swing variant (overnight positions allowed, news trading allowed).
Straight recommendation: 1-Step is for traders with a consistent strategy who want a 90% split from day one. 2-Step is more forgiving on daily drawdown (5% vs 3%) and unlocks Swing — better if you do position trading or trade around news.
03The rules that knock out the most traders
You are not eliminated for losing a trade. You are eliminated for breaking the risk limits. The three that catch people off guard the most:
- Daily drawdown: 3% (1-Step) or 5% (2-Step) of the starting balance. Resets at 00:00 CE(S)T. Touch it once — it's over. No retry.
- Total drawdown: 10%. On the 1-Step it is trailing (it rises as you profit). On the 2-Step it is static (it does not rise).
- News trading: banned within ±2 minutes of high-impact news (except Swing). Slipping up on this turns into invalidation.
What nobody tells you: FTMO's "discretionary clause" is broader than its competitors'. They recently started invalidating accounts for "one-sided betting" (trading in one direction only) and aggregated risk (several correlated positions treated as one). If you run a bot that opens multiple correlated positions, read the rulebook.
04Fees and financial structure
| Account size | 1-Step | 2-Step |
|---|---|---|
| US$ 10k | €79 | €89 |
| US$ 25k | €189 | €199 |
| US$ 50k | €299 | €289 |
| US$ 100k | €549 | €499 |
| US$ 200k | €999 | €1.080 |
The fee is refunded on the first payout from the funded account. Which means anyone who passes and withdraws once pays nothing, in practice. Anyone who does not pass loses the fee. That is the filter the business model runs on.
05The strong point: payouts
This is where FTMO pulls away. 14-day payout cycle. Average processing of 8 hours between request and clearing. Verified trader reviews in 2026 report payments cleared in 4 days or less. Volume: FTMO regularly publishes the cumulative totals paid. There is no documented pattern of unjustified withdrawal blocking — the biggest complaint that shows up is about timing (thinking it could be faster), not about denial.
06Is FTMO for you?
It makes sense if…
- You have a tested, consistent strategy (min. 6 months)
- You can trade within strict risk rules
- You have limited capital but good technique
- You want to scale capital without using your own money
- You understand and respect daily drawdown
Think twice if…
- You are just starting out — go to a broker demo first
- Your strategy depends on riding out 8-10% drawdown
- You trade heavily around news (go straight to Swing)
- You can't "call it a day" after a loss
- You run an EA with multiple correlated positions
07The truth about the "pass rate"
FTMO does not officially publish how many people pass. Independent estimates (audited by third-party reviews) suggest that fewer than 10% of traders complete both phases and keep the funded account for more than 3 months. That is not a problem with FTMO's honesty — it is a problem of real skill in the market. Most retail traders lose money without any drawdown rule; imposing an institutional limit simply makes the filter visible.
If you pass and trade well, it is an excellent model. If you are still learning, spending €299 on a Challenge before you have consistency is turning money into an "expensive lesson". A broker demo is free and teaches the same thing.
08Frequently asked questions
Is FTMO legal in Brazil?
Yes. It is not regulated by Brazil's securities regulator, the CVM — as no foreign prop firm is — but it operates legally. The payouts are real and can be declared as capital gains in foreign currency (check with an accountant).
Can I use an EA on FTMO?
Yes, with care. EAs are allowed, but FTMO monitors patterns — pure HFT bots, or bots that open several correlated positions, can be invalidated under the aggregated risk clause. A conservative swing or trend-following EA is safe.
Does the payout really come through? How long does it take?
Yes. Standard: 14 days between payouts, processed in ~8 hours (clearing). 2026 reviews confirm the consistency. There is no documented pattern of blocking.
1-Step or 2-Step?
1-Step if you are confident and want a 90% profit split from the start. 2-Step if you trade position/swing or prefer a roomier daily drawdown (5% vs 3%). A beginner should start with neither — get consistency on demo first.
Is the money real?
The capital traded is simulated, but the cash payouts are real — they come from FTMO's own funds. In practice nothing changes for you. The profit lands in your account.
Confident in your strategy?
See the available Challenges. If you don't have 6+ months of tested strategy, do a demo first.
See FTMO's Challenges →