FTMO CHALLENGE: I'LL TELL YOU HOW IT WORKS; THE GOOD AND THE BAD

Have you ever heard of funded accounts? Do you know what they are? Would you like to trade without risking your own money?

In this article, we introduce you to FTMO , the funding account company that will allow you to invest with borrowed capital.

What is FTMO?

FTMO is a funded account company that initially started with Forex trading. In other words, a company that allows traders to trade derivatives on all types of assetswithout risking their own capital.

How is this possible? Simply put, a funded account is a model in which an entity provides capital to a trader to operate in the market. However, this is subject to certain conditions and established rules, such as demonstrating their trading skills by passing rigorous assessments. In return, the profits generated are divided between the trader and the funding company according to a pre-agreed percentage.

That said, their main proposal is to offer operators an opportunity to trade with other people's funds , through a 2-step evaluation process

1. FTMO Challenge
2. Verification 

We will reflect on both of these issues throughout this review. 

In any case, FTMO has established itself as one of the best funding account options, as evidenced by the following figures: 

• Payments to traders: +167M
• Countries with traders operating: +180, practically worldwide. 
• Number of open transactions per month: +16M 
• Average payment processing time: 8h

These numbers reflect FTMO's global presence and its commitment to traders in terms of payments and support.

General features: FTMO in less than 1 minute

Before proceeding with the review, let's briefly see how the funded account broker is defined. 

Next, we will detail how to start trading on an FTMO funding account , in order to eventually earn real money.

As we have discussed, in order to access these large amounts of other people's capital, we must first demonstrate our knowledge of good traders through a selection process that consists of two tests: FTMO Challenge and verification. 

 So, let's see what each thing is in the following table

FTMO Challenge

The FTMO Challenge is the first challenge we must overcome in our journey towards funding account trading. 

The money will be virtual, so we won't have to worry about it at any point, and we can choose how much demo money we start trading with, and what level of risk. 
In this example, I'll choose $100,000, as shown below.

Let's look at each feature: 

• Trading Period (Unlimited): FTMO does not impose a time limit for achieving the goals set in the FTMO Challenge. This allows traders to operate calmly and without unnecessary pressure, focusing on their trading performance.
  
• Minimum days (4 days): The trader is required to trade for at least 4 days during the FTMO Challenge. These days can be separated from each other - they do not need to be consecutive. A trading day is considered to be one in which at least one position has been opened.
  
• Maximum daily loss (5%) : During the FTMO Challenge, as a trader, you cannot lose more than 5% of the capital you started the session with. In our case, since it was $100k, you cannot have losses exceeding $500 in a single day. Be very careful, this means that if you lose 7% at the start of the session and then recover 9% , unfortunately, that recovery will not be taken into account, as your account will be liquidated for having lost more than 5%, and you will not have completed the FTMO Challenge.
  
  
  
• Maximum Total Loss (10%): The total loss limit allowed during the FTMO Challenge is 10%. In other words, for a $100,000 account, it cannot end up with a minimum of $90,000—which is $10,000 in losses.
  
  The same applies here: if at any point during your 4-day trial period you drop to $87k, only to recover to $95k, having lost that total 10% over a few minutes—or hours—you will not have passed the challenge.
  
• Profit target (10%): To become a trader on FTMO, you must complete your trial period with a minimum profit target of 10% on your initial capital. In our case, this is $110,000. Of course, all positions must be closed by the end of the FTMO Challenge.
  
• Test cost (€155): The FTMO Challenge costs €155. It's important to note that this amount is refundable if you become an FTMO Trader.
  
  This will be the only real money the aspiring trader risks. 

These are the parameters, in the first instance, designed to evaluate the skill, discipline, and risk management capacity of traders before offering them an FTMO-funded account.

Verification

But with that difficult access, there is still a second test , lasting another four days. 

Essentially it's the same thing, to go through that tough test again to prove that the first time it wasn't luck, but rather a strategy was applied, which in essence will be applied again.

That's why the risk conditions are the same as in the FTMO Challenge, but theprofit limit is halved. After all, if you've applied the same strategy and are able to manage risk in the same way, there's no need to meet the same profit targets again.  

However, to be clear, the profit limit is now 5%. Furthermore, in this second challenge, there is no additional exam fee; the €155 fee was already paid in the first challenge. 

FTMO trader

Finally, if you have managed to pass the two tough tests (which we have discussed), you can become an trader FTMO, with the benefits and responsibilities that this entails: 

• Standard bonus: You'll receive 80% of the trading profits you generate, which isn't bad at all. But it's not the maximum limit. 

• Advanced trader: If you demonstrate consistency and long-term profitability, your remuneration will be increased (from the initial 80%) by 25% every four months, potentially reaching a maximum of 90%.

Types of funded accounts in FTMO

At this point, we'll assume you've already passed the two difficult tests I've been talking about in this post. Therefore, you're now an FTMO. 

So, what alternatives do you have when it comes to trading? 

Swing Account

The Swing Account FTMO is a very interesting option for traders who are going to start trading as FTMO investors, as it is specifically adapted to traders who prefer to keep positions open for longer periods.

Key features of the Swing Account FTMO

• No restrictions on holding open positions: allows traders to hold their positions open without limitations, such as weekend periods or macroeconomic news days, despite the high volatility that may be generated. 
• Medium and long-term trading: While day trading involves opening and closing positions within a single trading day, swing trading involves holding positions for several days or even weeks. 
• Remuneration: 80:20 in favor of the trader. That is, they will receive 80% of the profits generated. Payments will be made starting on the 14th day after the request is submitted. 

Scaling Plan

However, for traders who demonstrate their skill in trading operations over time, as well as their loyalty to trading with FTMO, the funding platformhas a plan to progressively reward the best and most loyal traders. 

Therefore, the scaling plan FTMO is a program to increase the profitability of FTMO's top traders, which meets the following characteristics: 

• Eligibility: To be eligible for a capital increase, a trader must earn at least a 10% return over four consecutive monthly cycles. This equates to an average return of at least 2.5% per month.
  
• Scaling cap: Capital increases are capped at $2 million per trader. For aggressive accounts, the limit is $1 million.
  
• Profit sharing: Traders on the scaling plan will receive an increased profit sharing ratio of 90:10.
  
• Additional conditions: It is essential that the trader processes at least 2 profit splits within the 4-month period and that the account balance is in profit at the time of the capital increase.

FTMO Free Trial (or demo account)

The Free Trial FTMO is a scaled-down version of the FTMO Challenge designed to help traders familiarize themselves with the FTMO. Its main purpose is to allow new traders to practice their trading skills and assess whether they can follow and adhere to FTMO's trading rules. In other words, it's 's standard demo account FTMO.

Let's look at some considerations: 

• Successful results: If a trader is successful in the "Free Trial", this indicates that they have a good chance of also succeeding in the FTMO Challenge, but it does not guarantee anything.
  
• It does not exempt you from the FTMO Challenge: It is important to note that achieving good results in the "Free Trial" does not automatically guarantee an FTMO Account. Traders must still complete the full Assessment Process to become FTMO Traders.
  
• Limitations: Due to the popularity of "Free Trials", FTMO limits traders to one Free Trial license at a time. 

What is FTMO's aggressive plan?

So far, in everything we've seen about FTMO, whether it's the access tests or the different accounts it has, we've taken into account that everything was done according to the normal risk plan. 

However, there is a second aggressive risk option, where everything works exactly the same, except that these two particularities occur during the FTMO Challenge: 

• Double Risk: Allows you to double the risk of your trades. That is, if the maximum daily loss was 5% and the total loss was 10%, they are now 10% and 20% respectively. 

• Double profit target: And identically, during the first part of the test, a 10% profit was required during the 4-day period; now, a 20% profit must be achieved.

The reason this alternative plan allows for double the risks and forces you to achieve the profit targetis that to reach such figures you will have to intensively abuse leverage, and of course, that requires more room for maneuver -in losses-, but a higher profit target. 

FTMO Trading Platforms

FTMO offers integration with some of the most popular and recognized trading platforms in the industry. These include: MetaTrader4, MetaTrader 5, and cTrader.

MetaTrader 4 is one of the most popular and widely used trading platforms in the world. It is known for its user-friendly interface, technical analysis tools , and ability to support automated trading algorithms called Expert Advisors (EAs).

Among its main features we highlight advanced charts, multiple timeframes, backtesting capabilities, and a large community that offers custom indicators and EAs.

MT5 (MetaTrader 5):

It is the successor to MT4 and offers more features and functionalities. Although similar to MT4 in terms of appearance, MT5 offers more timeframes, more order types, and an integrated economic calendar.

For more information on these last two, I'll leave you with our next article: Metatrader 4 / 5 – opinions and review

cTrader (trading center):

cTrader is a modern trading platform known for its intuitive and transparent interface. It is especially popular among traders who prefer ECN trading.

Among its main features we highlight its clean and modern user interface, Level II Pricing, and advanced automation capabilities with cAlgo.

In addition, FTMO also offers mobile apps that allow traders to monitor and manage their accounts from mobile devices. These apps typically offer most of the features of the desktop versions but are optimized for smaller screens and trading on the go.

FTMO Customer Support

Finally, regarding customer service, according to their website, it doesn't seem too bad. Let's take a look.

However, 's Customer Support FTMO seems to place great importance on communication with its traders, considering it essential.

 Their main goal is not only to assist traders during the process of becoming an FTMO Trader, but also to provide ongoing support after this process. 

To ensure effective and accessible communication, FTMO offers multiple communication channels, including:

• Email and live chat: 24/7
• Telephone service: Business hours from 09:00 – 17:00 (Prague time).

In addition, to serve a global customer base, the support team is trained to communicate in 16 different languages.

FTMO Reviews

FTMO: Topstep Experience's Opinion – Best Funding Account?

Okay, so as we've been explaining the idea of ​​trading with other people's money thanks to FTMO, it seems appealing, right? The truth is, like everything in life, there are nuances to consider.

To begin, let's address the downside: its regulation, or rather, the lack thereof. FTMO is not regulated, or at least not by any recognized bodies. This may be a point of concern for many, and rightly so. However, the lack of regulation doesn't necessarily mean a company is unreliable; after all, remember that the maximum capital you'll risk in the FTMO Challenge is €155. 

And that's precisely what I wanted to continue with. While it may seem like a very logical and coherent process, the FTMO are no walk in the park. In fact, they're quite challenging. Only 12% of applicants manage to pass the FTMO Challenge. That speaks volumes about the rigor and skill level required.

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However, one might think that's what they're really looking for, right? Traders up to the challenge. In any case, keep in mind that most eventually fail, so if you decide to get involved, be prepared for any scenario. 

On the positive side, one of the most attractive aspects of FTMO is the opportunity to trade with borrowed capital. Of course, you'll have to pass some rigorous tests, but the peace of mind that comes with trading with someone else's money comes with a great deal of responsibility for your strategy.

And most importantly, FTMO. With 80% of profits to be distributed to the trader, it's certainly a very attractive agreement. What's more, it doesn't end there; the fact that this compensation can reach up to 90% demonstrates FTMO's commitment to seeking and maintaining value. 

In summary, FTMO is a worthwhile funding account as it offers a good opportunity for traders with a proven and established trading strategy.

And precisely to overcome its challenging selection process, and access the benefits of operating with borrowed capital, it is necessary to have a prior background; market knowledge, training, and above all, a back-tested strategy for the scenario in which you are going to operate.

Norberto Viale( Trader and founder of Topstep Experience )

My name is Norberto. I've been investing and trading for over a decade. I'm also the author of the Topstep Experience trading course. If you want to learn how to invest and have any questions, feel free to contact me.

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