For
- The 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 deadline to complete phases
- 80% initial profit split, scaling to 90%
- Scaling plan reaches a US$ 2M account
- Acquired OANDA in Dec 2025 — a US route via NFA
Against
- Strict drawdown rules (3% daily on the 1-Step)
- No trading in a ±2 minute window around high-impact news (except Swing)
- Fees above the sector average
- A broader "discretion clause" than competitors
- Anti-aggregated-risk rules catch unprepared traders
- It's estimated that <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 must 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 while respecting risk limits, and gain access to a funded account with US$ 10k to 200k of simulated capital, receiving 80-90% of the profits.
An important technical detail: even on the "funded" account, you trade in a simulated environment — FTMO mirrors your performance with its own capital. For you, in practice, it makes zero difference; the payout money is real.
021-Step vs 2-Step — which to choose
FTMO 1-Step Challenge
A single evaluation. 10% profit target, with a 3% daily drawdown and a 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 80% profit split, scaling to 90% via the Scaling Plan. There's a Swing variant available (overnight positions allowed, news trading allowed).
Direct recommendation: the 1-Step is for those with a consistent strategy who want a 90% split from the start. The 2-Step is more "forgiving" on the daily drawdown (5% vs 3%) and unlocks Swing — better for those who trade position trading or around news.
03The rules that most often eliminate traders
You're not eliminated for losing a trade. You're eliminated for breaking the risk rule. The three that most often catch unprepared traders:
- Daily drawdown: 3% (1-Step) or 5% (2-Step) of the initial balance. Resets at 00:00 CE(S)T. Touching it once — over. No retry.
- Total drawdown: 10%. On the 1-Step it's trailing (rises as you profit). On the 2-Step it's static (doesn't rise).
- News trading: prohibited ±2 minutes around high-impact news (except Swing). Catching this by accident becomes an invalidation.
What nobody tells you: FTMO's "discretion clause" is broader than competitors'. Recently they began invalidating accounts for "one-sided betting" (trading in only one direction) and aggregated risk (several correlated trades as if they were 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. That means anyone who passes and withdraws once pays zero, in practice. Those who don't pass lose the fee. It's the business model's filter.
05The strong point: payout
This is the area where FTMO stands out. A 14-day payout cycle. An average processing time 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's no documented pattern of unjustified withdrawal blocking — the biggest complaint that appears is about timing (wishing it were faster), not about denial.
06Is FTMO for you?
It makes sense if…
- You have a tested, consistent strategy (min. 6 months)
- You can trade while respecting strict risk rules
- You have limited capital but good technique
- You want to scale capital without using your own money
- You know and respect daily drawdown
Think twice if…
- You're starting out — go to a broker demo first
- Your strategy depends on enduring 8-10% drawdown
- You trade a lot around news (go straight to Swing)
- You can't "stop for the day" after a loss
- You run an EA with multiple correlated positions
07The truth about the "pass rate"
FTMO doesn't officially publish the pass rate. 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 isn't a problem of FTMO's honesty — it's a problem of real market skill. Most retail traders lose money without a drawdown rule; imposing an institutional bar reveals the filter.
If you pass and trade well, it's an excellent model. If you're still learning, spending €299 on a Challenge before you have consistency is converting money into an "expensive lesson." A broker demo is free and teaches the same thing.
08Frequently asked questions
Is FTMO legal?
Yes. Like most prop firms, it operates under company law rather than a single financial regulator, but it operates legally. Payouts are real and may be taxable as foreign income (consult a tax professional in your jurisdiction).
Can I use an EA on FTMO?
Yes, with care. EAs are allowed, but FTMO monitors patterns — pure HFT bots or those opening multiple correlated trades can be invalidated by the aggregated-risk clause. A conservative swing or trend-following EA is safe.
Does the payout really come? How fast?
Yes. Standard: 14 days between payouts, processed in ~8 hours (clearing). 2026 reviews confirm consistency. There's no documented pattern of blocking.
1-Step or 2-Step?
1-Step for those who are confident and want a 90% profit split from the start. 2-Step for those who trade position/swing or prefer a looser 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 treasury. For you, in practice, nothing changes. 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 Challenges →