Last updated on January 28th, 2023 at 01:04 pm
FTMO is the leading forex Proprietary Trading Firm in the world. In this article, we are going to explain the reasons why we believe so to help you make the right decision when selecting a good Prop firm. But first, what is the meaning of FTMO in full? It simply means Filip, Tomas, Marek, Otakar. The four words stand for the initial names of the first team members (owners and co-founders) of the popular prop trading company.
Table of Contents
What are Proprietary Trading Firms?
In case you did not know, Proprietary Trading Firms (prop firms) are financial companies looking for talented forex traders who cannot afford reasonable trading capital. The prop trading idea is tailored to asses if a trader has adequate skills to trade with little drawdown and obtain maximum profits.
So, if you believe you have built a solid trading strategy but you don’t have enough trading capital, this article is specifically for you. Cool? Huh!
Benefits of Trading With a Prop Firm
Why should you use Proprietary Trading Firms? Before we proceed further, you need to know the advantages a trader enjoys by partnering with a prop firm. Here is the list:
- You Trade With Enough Capital
Undercapitalization is one of the factors that slow down the success of beginner forex traders. Forex mentors often dispute this statement. They say what matters the most is a trading strategy. But we say that is the biggest lie in the industry.
If you have a reliable strategy that only produces good results when you set a big stop loss, how will you profit from the market? Having a little capital in your trading account denies your trades the opportunity to “breath”. That is why most beginners find it easy to make good profits in demo accounts but blow their accounts as soon as they start trading on a real account.
On that note, get funded by a prop firm and experiment.
- You Maintain Discipline
If you are trading with little capital, emotions are likely to overcome you because you know you can lose the entire account in seconds if there is a slight pips movement against your trades.
- Make the Dream Come True as Soon as Possible
Every trader’s dream is to build generational wealth through forex trading. But that dream is always paralyzed by a lack of proper guidance and enough capital.
With the help of the best forex prop trading firm, you can shorten the duration it takes to start making some good money.
- Get Direct Market Access
Did you know that most retail brokers, especially the smaller ones, do not provide traders with direct access to the forex market? Brokers like FXPesa, FXTM, FXGiants, etc act as a link between a retail trader and the Market Makers.
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Trading with a well-established prop firm like FTMO gives you an opportunity to select your own Market Maker.
- Get the Best Forex Education
Unlike forex mentors and forex brokerage firms, prop firms provide the best trading education. That is true because they strive to offer the best they can to ensure all their traders are profitable. It would be nice if you remember that when a proprietary trader is successful, a prop firm records profits.
One of the many reasons why we recommend FTMO is because they have a team of professional performance coaches who are paid to help traders reduce losses while maximizing profits.
8 Reasons Why FTMO Is the Best Prop Firm for Every Proprietary Trader
Is FTMO the best prop trading firm? There are a lot of FTMO reviews you can read on various websites but most of those reviews are affected by the authors’ intentions to promote their affiliate products. Therefore, you risk getting the wrong information from people who don’t actually use the products they recommend.
Here are our honest reasons why FTMO is the best choice for you if you are looking to grow your forex trading career through a funded account.
1. FTMO Has a Good Reputation
The company has built its image worldwide thereby attracting the biggest number of loyal and active traders compared to any other prop firm.
Even data from Google and other Search Engines confirms that the forex Prop Trading Firm is the most popular amongst top prop firms. If you look at the data in the screenshot below, you can clearly see that the company is receiving an average monthly search between 100,000 to 1,000,000 on Google and other top Search engines.
The reason why the reputation of a prop firm should matter to you as a trader is that you partner with a brand that you can trust.
2. FTMO Makes It Easy for Traders to Pass Their Evaluation Tests
Before you are accepted by the company as one of their traders, you need to pass through two stages: The Challenge and Verification. The profit target for the challenge is 10% of the capital you are given while that of the verification phase is 5%.
When you take the challenge but are not able to meet the target by the 28th or 29th day of trading, you can request an extension in the number of days. You will be awarded 14 more days to help you continue trading and hit the profit target. Isn’t that a good thing?
FTMO is a business just like any other. They want to make a profit but unfortunately, they cannot if their traders are not making profits. That is why they do whatever they can to help skilled traders become successful.
3. No Restrictions on Trading Style
It doesn’t matter what trading strategy or tools you use. You are allowed to use automated Expert Advisers (EAs) or a scalping strategy. In short, the trading style you are using cannot prevent you from being accepted as an FTMO trader.
4. Enjoy the Best Profit Share
Proprietary Trading Firms take a little cut off the profit made by their traders. FTMO pays their clients up to 90% of the profits they make. But most often, the payment is 80% on average. Take a look at the example below to understand the payment criterion better:
If you get a funded account worth $10,000 in the challenge phase, you are expected to make a minimum profit of $1,000 by the end of 30 trading days. Assuming you hit the target successfully on or before the end of the 30 days period, you will be paid $800 on average.
That is not all. In the last stage of evaluation, which is the verification phase, your account is funded with $10,000 in trading capital. This time around, you are expected to hit a target of $500 profit within 60 days. If you hit the target successfully, the prop firm will pay you $400 on average. So, you can basically earn a minimum of $1,200 by passing the FTMO evaluation process.
5. You Only Pay Once for the FTMO Challenge Account
There are no additional or hidden fees you will be required to pay if you can prove that you are a skilled trader. That is unlike most prop firms that charge monthly fees.
Once you pay for the FTMO challenge account, ensure you trade skillfully so you can hit the $1000 profit target on or before the end of the trading period.
If you pass the challenge, you will be given a verification account where you are expected to make at least $500 within 60 days.
If you pass the verification phase, you need to celebrate your achievement. You are now one of the prop firm’s traders. You will be funded for free until you decide to terminate your contract with the company. Isn’t that beautiful?
Why Do Prop Firms Charge Challenge Account/Trader Evaluation Fees?
Prop firms charge fees so traders can take the evaluation process seriously. For instance, the FTMO challenge would not be taken seriously or would not be respected if it was free and accessible to every Tom, Dick, and Harry.
The companies are taking a very big risk by giving complete strangers their money to trade with. Kindly stop reading for a moment and answer these two questions:
(a) Would you blindly give your money to some random people to invest in the forex market just because they tell you they are forex traders? Probably not!
(b). A random person gives you free money and before the day ends, you cash out a salary you have been working for for the last thirty days. An emergency occurs and you lose all the money. Which one hurts the most; losing the money you were given for free or losing the amount you worked for tirelessly?
Prop firms too are interested in working with people who can feel the pain of blowing an account. If you pay for a funded account, you will treat the money as your own and not the company’s money. You will therefore work hard and diligently to protect the funds from being blown.
6. Refund for the Money You Paid for Challenge Account Is Guaranteed
If you pass both the challenge and verification stages successfully, and you are confirmed as an FTMO Trader, you will be refunded the amount of money you paid when applying for a challenge account.
The refund will be deposited into your account when you receive your first profit share. But kindly note that you will not receive a refund if you fail to pass the challenge and verification stage.
7. You Don’t Have to Pay for the Challenge Account if You Don’t Have Trading Skills
FTMO is one of the few prop firms that allows traders to get a free trial challenge account. This type of trading account is beneficial, especially if you want to practice and learn how to use the company’s platform without breaking any rules.
What makes the company stand out among other prop trading firms is that after your 14-day Free Trial ends, you can always start a new free trial.
Other companies such as My Forex Funds will permanently delete or archive your account if it is inactive for a given period. But with FTMO, you don’t lose your whole account due to inactivity.
8. Traders Get Support During Evaluation Phase
Most prop firms do not take it as their responsibility to provide support to new traders. Once they fund your account, they send you the trading account details and wait for you to face challenges before they come in to help. With FTMO, you have access to a trading academy, account Metrix to help you track your account progress, and world-class customer support through live chat.
By the way, you can go to the FTMO’s website right now and ask the customer agent anything to confirm their responsiveness. Don’t forget to come back and finish reading this article because you don’t want to miss the content we have covered below…
Is FTMO a Forex Broker?
No, FTMO is not a forex broker but a prop firm whose focus is to finance talented traders who are skilled enough to pass their evaluation process.
The difference between a forex prop firm and a forex broker is that a prop firm’s objective is to fund skilled traders while a forex broker’s job is to provide a trading platform for buying and selling currency pairs.
Are Prop Firms Such as FTMO Regulated?
No, they are not regulated because they are not brokerage firms or money managers. Additionally, prop firms do not provide trading recommendations to their clients. All they do is assess a trader’s skills and provide them with trading capital.
But do you think prop trading firms should not be regulated just because the services they provide are not listed in most country’s Laws on Capital Market? I don’t know what you think but here at OpWell Forex, we strongly believe prop firms should be regulated to ensure they don’t charge unreasonable fees for evaluating traders.
Another reason why Prop Trading Firms should be regulated is to ensure they do not collude with forex brokers they partner with to manipulate trading platforms in their favour.
Is FTMO a Scam?
From personal experience with the proprietary firm, we believe FTMO is not a scam. You can do your own research by searching “FTMO payout proof” on your browser. If you are not convinced, you can join the prop firm’s unofficial social media groups listed below and interact with other Proprietary Traders who will prove to you further that they are indeed making money from the financial company.
FTMO Social Media Pages
Social media is an important tool that businesses use to reach their customers. Additionally, potential clients check whether businesses have verified social media pages before they make any purchases. In short, social media has become a very important tool used as a metric to discern whether a business is a scam or not.
FTMO has built trust in most of the biggest social media platforms such as Facebook, Twitter, and LinkedIn. Here are the verified profiles you can follow:
Besides the above FTMO’s verified Social Media accounts, there are two unofficial Facebook groups created by some of the prop firm’s top traders to help new traders pass the evaluation test. You can join the groups to read insightful content that will help you pass the challenge and verification phase.
FTMO Challenge Support Group: https://www.facebook.com/groups/799451807219056
FTMO Traders Group: https://www.facebook.com/groups/428107794789114
While unofficial Facebook groups are good for peer-to-peer support, fraudsters normally find their way into the groups and target unsuspecting users. So to be safe, DO NOT inbox any stranger in the group if you need help. If you can’t find a solution in the group, visit FTMO’s verified Facebook page and send them a message with the issues you need help with.
FAQs About FTMO
What Financial Assets Can I Trade at FTMO?
If you are wondering what Financial Assets FTMO allows Proprietary Traders to trade on their platform, here is the list: CFDs such as forex, cryptocurrencies, stocks and indices.
What Is the Best FTMO Alternative?
My Forex Funds is the best FTMO alternative. That is true if you are considering the cost of Prop Trading Accounts when looking for a good prop firm.
My Forex Funds charges $75 for a $10,000 challenge account while FTMO charges EUR 155 for the same account size.
Now, would you rather choose an expensive but good service with an amazing customer experience or a cheaper service with completely the opposite?
Which Payment Method Does FTMO Use?
You can make payments to your FTMO account through Scrill, Nuvei, PayU, and checkout.com. That means you can make payment using any credit card with VISA, American Express, and Mastercard logo because the payment merchants process transactions made through the cards.
You can also make payment through direct bank transfer or Unlimint and CONFIRMO. Note that Unlimint and CONFIRMO process payment through cryptocurrencies. What that means is that FTMO allows deposits through cryptocurrency as well.
For payouts, you can select to receive payment through Skrill, bank transfer or cryptocurrencies.
When Will I Get Paid?
FTMO pays traders an average of 80% profit share on a monthly basis. Before you can be paid, you need to confirm an invoice that the company will generate for you. Once you confirm the invoice, your withdrawal will be processed within 2 days through bank transfer, Skrill, or Cryptocurrency according to your preference.
How Much Trading Capital Can FTMO Prop Firm Give Me?
You can get funded with up to $400,000 initial balance and up to $2,000,000 gradually. But getting that amount of money depends on the three factors listed below:
(a). The initial capital you choose in the FTMO challenge
The amount of capital you will be given after successfully passing the evaluation process is the same as the amount you selected when applying for the FTMO challenge. If you select the $200,000 challenge account, for instance, that is the amount you will get funded with once you are through with the evaluation stage.
FTMO allows purchasing of multiple challenge accounts. So, if you want to get the $400,000 trading capital, you need to purchase two separate challenge accounts worth $200,000 each.
You can get up to $200,000 per account if you pay for a normal challenge account and up to $100,000 if you prefer purchasing an aggressive challenge account. Here is a breakdown of the cost:
|Refundable Fee||Account Balance|
|€ 155||$ 10,000|
|€ 250||$ 25,000|
|€ 345||$ 50,000|
|€ 540||$ 100,000|
|€ 1080||$ 200,000|
|Refundable Fee||Account Balance|
|€ 250||$ 10,000|
|€ 345||$ 25,000|
|€ 540||$ 50,000|
|€ 1080||$ 100,000|
Once you pass the two challenge accounts successfully, FTMO will merge them into one master account.
(b). FTMO Scale up or Scaling Plan
With the FTMO Scaling Plan, you can get up to $2,000,000 if you can prove to the prop firm that you are able to deliver consistent results.
How to Become an FTMO Trader in 10 Simple Steps
The evaluation process for proprietary traders is often rigorous. So before you apply for an FTMO challenge account, you need to ensure that you have a reliable trading strategy. In addition to that, you MUST be really good in forex trading risk management because your success through the evaluation process depends on how well you can minimize losses and maximize profits.
Estimated Time is 90 days
Step 1: Visit FTMO’s Account Registration Page
To get started, you need to go to the FTMO’s account opening page and create an account for free.
Enter Your details then check the first and last little boxes.
Confirm you are not a robot then click “Signup” to submit your details.
Step 2: Set Your Account Password
Check your mailbox and use the link you received to set your password.
Step 3:Use the FTMO Login Form to Access Your Dashboard
Enter your email address and password you just created in the login form. If the details you entered are correct, you will be logged into your dashboard successfully.
Step 4:Start the Challenge
If you are not ready to start trading with the prop firm’s capital, you can try the 14 day free trial without risking anything.
If you are ready, click “Start FTMO Challenge” to accept the challenge and prove your trading skills to the company.
Step 5: Choose Initial Capital and Challenge Account Type
Leave Risk Mode as it is (Normal) unless you are an aggressive trader.
Select account balance depending on how much you are able to pay for the challenge account.
If you are not a swing trader, leave the “Account Type” as it is.
Select the trading platform you like. You can either choose, Metatrader 4, Metatrader5, or cTrader.
Enter your billing information and payment currency.
Read and accept FTMO’S terms and conditions and payment cancellation and refund policy.
Finally, click the “Confirm and Proceed to Payment” button.
Step 6: Finish Making Payment
Tap on your preferred payment method to complete the transaction.
Once you are through with making payment, keep an eye on your mailbox. You will receive the challenge account login credentials as soon as FTMO finishes processing the account.
Step 7: Pass the Challenge
You have 30 days to trade skillfully and pass the challenge. If you can hit the profit target sooner, your account will be upgraded to the verification stage.
Step 8: Pass the Verification
The verification stage is much easier to pass than the challenge. That is because, unlike the challenge stage, you are given 60 days to hit the profit target. Additionally, the profit target in the verification stage is half of that of the challenge stage.
For instance, if you are given a $10,000 challenge account, you are expected to make 10% of the capital(which is $1000) on or before the end of the 30th day. If you pass the challenge and get the verification account, you are expected to make at least 5% of the capital(which is $500) on or before the end of the 60th day. Cool?
Step 9: Provide Your Identification Documents
Once you pass the verification, you are required to upload your National ID, Driving Licence, or Passport. FTMO will review the documents to confirm your identity.
Congratulations! You are now an FTMO trader. What next?
Step 10:Sign a Contract with FTMO Partnered Proprietary Trading Firm
After receiving a confirmation that your identification document is verified, you will receive a contract form that you need to sign and submit.
FTMO company has two different prop firms within itself. one prop firm provides accounts specifically for the evaluation process while another provides trading accounts for traders who have passed the evaluation process.
How to Appear in the Top 10 Positions of FTMO Leaderboard
The main factor that will help you to appear on the leaderboard is proper risk management. If you are poor at managing risk in your trades, it will not be easy for you to feature in the coveted top ten leaderboard positions.
Use a good strategy that enables you to avoid drawdowns that may reduce your equity. Traders are listed on the FTMO leaderboard based on the current equity of all active accounts.
You don’t need to rush into opening a forex prop trading account if you don’t have a trading strategy that provides consistent profit with little drawdown. It is highly recommended that you take your time to learn how to trade the forex market first.
Many people have been signing up for funded accounts but they don’t finish the verification stage in profits. Do you know why? It’s because they ignore the basics and try to jump right into the money.
So, focus on learning how to trade first then open an FTMO account and show them what you got.
Now that you have learned something about the popular Proprietary Trading Firm, do you believe FTMO is the best forex prop trading firm that every trader should use? If you don’t, what are the challenges you faced in the company that really frustrated you? Let’s talk in the comment section.
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