FTMO was founded in the Czech Republic in 2014 as an international proprietary trading firm. After a trader joins the platform and passes a two-stage testing programme, FTMO deposits $400,000 into the trader’s account. To increase savings, FTMO keeps track of all the transactions. With the first phase of live trading, you get paid 80%, and each successive stage pays 90%. The firm is regulated locally and operates in compliance with European financial law.
FTMO is a private trading firm with funded trading accounts that are growing at the fastest rate. Funded traders will take home as much as 90 per cent of the overall profits. Forex, cryptocurrencies, commodities, indexes, and stocks are all examples of tradable assets.
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Trading Objectives
The FTMO Challenge’s trading goals can vary with the participant’s currency selection, risk tolerance, and starting capital. It would be best if you determined your comfort with risk before proceeding. If you set your investment profile to Normal, you can lose up to 5% of your account balance per trading day. Ten per cent of the starting amount is the limit for losses and gains.
Assuming you went with the most dangerous mode, Aggressive, everything would increase by 100 per cent. To clarify, your daily loss restriction is 10%, and your Maximum Loss and overall Profit Target are set at 20% of your starting value. An enormous net profit must be generated to compensate for the more significant potential losses associated with the higher level of risk.
In conclusion, the challenge fee, daily loss cap, maximum loss, maximum loss cap, and profit target are all defined by the chosen trading objectives.
FTMO Proprietary Trading Firm
If a trader passes FTMO’s assessment, they will be given a real trading account with real money. For American global traders, the contracting entity is FTMO Trader US s.r.o.; for international traders, it is FTMO Trading Global s.r.o.
That’s a simple answer because traders only have to deal with one company from the beginning of the FTMO Challenge through the Verification process and into a fully funded trading account. Visit the Trader Unions website linked to find out everything about what is a prop trading, its benefits and drawback, how to get started as a prop trader and much more.
Benefits of FTMO
- Trading with the capital of prop businesses without the fear of having your savings wiped out
- Profit distribution in which traders receive between 80 and 90 per cent of total profits.
- When a trader successfully completes the evaluation process and begins making money with the funded account, the cost will be refunded.
- A significant number of conventional currencies and virtual currencies are open for trading.
- High levels of visibility concerning price, governing principles, and account kinds
Drawbacks of FTMO
- Inappropriate for use in the trading of futures and equities
- Even if you complete the FTMO Challenge and become a fully paid trader, you will still be required to use the demo account that FTMO provides for all traders. Because of this, your trades may only occur on the market.
- The two-step evaluation process consists of various obstacles and phases that, in the opinion of many forex traders, are time-consuming and laborious.
- In the first stage of the FTMO evaluation, the profit target is set at an aggressive 10%; however, by the time we come to the second verification level, it has been reduced to 5%.
Verdict
FTMO is interested in finding people who have a flair for trading. Thus they offer successful forex traders the opportunity to have their trading accounts funded, with a payout of 80–90% of the profits made by the sponsored trader.
Participating in the FTMO Challenge benefits undercapitalized traders who want to trade large accounts without risking their own money. This type of trader should consider signing up for the competition. Although achieving the goals requires talent, skills, and self-discipline, participating in the FTMO Challenge can be highly beneficial if accomplished. The participation fees are refunded with the first profit split if the challenge is successful. That means profitable trading will eventually result in an account with no risk capital attached.
