Here is a super exciting topic for all the readers interested in trading. Have you ever heard about the FTMO? If you think you have still not found the perfect firm for your trading business, we urge you to read this FTMO Review article and make sure your world will change for good!
What is FTMO?
FTMO is a project which is on the look for experienced traders. To ensure that a trader has all the qualities the firm looks for, they have developed a 2-step evaluation course. These two steps comprise the FTMO Challenge and the Verification. The System is specifically designed to discover talent within a trader. As we all know, the path of a trader is challenging. Hence, the firm has a strong team and equipment of educational applications, account analysis, and performance coaches to guide the traders. After completing the Challenge successfully, the traders get a placement in the FTMO Proprietary Trading firm. The traders can remotely manage up to 200,000 USD and continuously make the account grow according to our Scaling plan. The FTMO Trader is eligible to keep up to 90% of your profits. The good news is that the firm covers all losses if any.
The technical aspect of FTMO
After a person is selected as an FTMO Trader, he gets a demo account with virtual funds. An FTMO Account is a fully replicated account with accurate market quotes mentioned from liquidity providers. FTMO can copy the trades at its own choice using combined orders thanks to the proprietary risk management algorithm. Traders are entitled to receive up to 90% of profits generated on the FTMO Account.
This System is much more accessible and gives FTMO more freedom and control to actively manage risk. But dear traders, it would help if you were beware of forbidden trading activities. Some trading practices create risk-free, consistent profits or exploit conditions or services. We suggest you refer to the Terms & Conditions of the company for further information on the Forbidden Trading Practices. It is always better to know the ground rules before entering the business.
Who can partner with FTMO?
FTMO invites and accepts traders from all over the world. But the traders from Iran, Syria, and North Korea due to their political backgrounds. All traders should be at least 18 years old to join the firm. If you are an expert and have the know-how to trade profitably and with proper risk management, that is all the firm needs. No other qualifications are required. Sounds pretty interesting.
What is the FTMO challenge?
The famous Challenge is this crucial feature, which stands between you and a $200 000 funded trading account. Most of you already might be curious to know how this works.
The Challenge only has two simple steps to evaluate your ability to trade. The first stage of the process is the Challenge, and in the second stage, you will get verified.
You will have to take the Challenge, and the verification will bring upon a demo account. The applicant receives all the details after purchasing the Challenge by email. Your client portal displays your account statistics, and you can tack all the aspects of the Challenge until you pass or fail.
Suppose you are thinking about why they have implemented this Challenge and why you have to pay for that; here is the reason! If people get the unlimited opportunity for trials, they can easily win the $200 000 trading account by luck even if they fail many times earlier. This Challenge makes sure that the trading money gets awarded to the most profitable trader instead of a person who will waste the company’s money.
What are the rules of the FTMO challenge?
When you decide and sign in to the FTMO to take up the Challenge, you need to consider a few different options as it’s not just a default challenge.
Step 1 – Challenge
FTMO Challenge is the initial step of the Evaluation Process. The traders should get through this for the rest of the procedure.
Before they allow FTMO Accounts connected to the company’s Proprietary Trading firm, they ensure that the selected traders can trade responsibly and manage risk appropriately. The FTMO Challenge stage has sensible rules, where the Profit Target is in balance with the drawdown, allowing the traders to take. The term used for this is “Trading Objectives.”
Note that the traders don’t need to utilize the entire duration mentioned (30 days). When all the Trading Objectives of the Challenge are met, the potential trader can proceed to the Verification phase. The minimum time given to complete the FTMO Challenge is ten trading days.
Step 2 – Verification
The Verification stage is the next and final step of the Evaluation Process of FTMO.
The main reason for having the Verification stage is to test the trading consistency. The company needs to be sure that the trader can trade his System or strategy profitably in the long run while gathering profits and respecting the rules. This stage has much easier Trading Objectives when compared to the FTMO Challenge stage. The profit target will reduce by half, and the trader gets the full 60 calendar days to show their abilities and shine like a star.
Just as in the FTMO Challenge, the trader doesn’t need to utilize the entire duration of 60 days. As soon as the trader completes all Trading Objectives, FTMO will welcome them as the FTMO Traders. No need to wait any longer! Better give it a shot!
How to choose your Challenge.
Here are a few tips for understanding how to select the Challenge.
Remember, the funding can range between $10,000 and $200,000. The $10,000 challenge is much cheaper to try. It is the best for a beginner who wishes to join trading.
Accounts have a Normal or Aggressive option to select. Essentially aggressive account challenges allow the trader to have more drawdown on the account without losing it. This method extends the maximum drawdown from 10% to 20%.
Until August 2020, FTMO partnered with a range of forex brokers like Blueberry Markets. But afterward, the company removed all third-party retail brokers and started offering their own trading solution, directly linking with the traders. It was considerably faster, cheaper, and better than the majority of best choices in the market, as far as brokers are concerned.
- Read More How to Get Started With FTMO
The Challenge for Swing Traders.
Swing trading helps capture short to medium-term gains in a stock or other financial tools over a few days to several weeks. Swing traders mainly depend on technical analysis to look for trading opportunities.
FTMO now has a Swing challenge where the traders are allowed to hold overnight and over the weekend without requesting permission, which used to be the meta. The leverage is put down to a 1:30 ratio, which is still plenty for swing traders. Previously all swing traders had to work with 5%. It is an excellent move for FTMO. Most of the traders use this service.
FTMO is famous for having a 70% profit split since the beginning of the online prop firm industry. Other competitors in the industry have used this as a model to plan their offerings on this number. FTMO is now offering up to 90% profit share for traders, keeping just 10% of the profits ahead of the trading game. The firm also offers a capital scaling program, meaning you can increase the balance of the funded account by 25% once the trader meets the Criteria well.
Do you believe that this is the most significant profit split in the industry, and it is fascinating to see FTMO continually going above and beyond and smashing the boundaries they have set in this space? So, it is worth joining and trying out the scope of potential you have as a trader.
Is FTMO a realistic approach?
Those new to the trading industry get this thought in mind. You must be thinking if this is a legit approach or can this happen. As the profit sharing and the benefits offered sound too interesting, could you ignore it? so let us dig into more details on the matter
The answer to the above concern is Yes. It is legit and realistic. Most people naturally doubt the trading companies like such as most of them are legit and perform fraud. If your consistency is profiting is even and moving, there should not be a doubt that you will fail as a trader. FTMO can make a trader a better forex trader, as they force the traders to be moved by the rules of the account like drawdown etc., which causes them only to take high-quality trades.
The only real disadvantage of the strict rules is that it is impossible to hold traders over the market weekend close unless the traders use the new swing trader challenge . You can grab trades over the weekend market tight During the legal Challenge without any problem. Once the trader gets funded, by Wednesday night, he must write to FTMO asking for permission to hold over the weekend so that the firm can assess the risk and any hedges needed.
Fund transfer and withdrawals.
Now, this is the essential part of our discussion. Almost everyone is interested in knowing how you would receive the funds. Here are some facts that will degenerately help you.
The traders receive the funds through a monthly profit split. They must invoice FTMO and the money credits to the relevant account via regular bank wire transfer or Skrill. The good news is that FTMO charges zero commissions for withdrawals. The traders receive a withdrawal certificate as proof of payment.
The traders can invoice the prop trading firm as a company or individual. But remember to make sure that you manage your earnings in line with your country’s tax regulations. It is essential to keep in mind. For example, if you’re operating from the UK, you will have to pay tax on earnings above £12,500. It is always best to consult a local tax advisor to ensure compliance with the relevant regulations.
Pros and Cons of FTMO
While evaluating the trading firm, knowing its advantages and disadvantages is always better. Below are some of the commonly discussed points about the firm. We hope this is useful for all the new traders in the field.
Pros
Advantages of opening an FTMO account include:
- The trial challenge is free. You can try it first and then decide if you need to continue or not.
- The trader can keep 90% of the profits.
- Customer support is always available with comprehensive descriptions and guidelines.
- The trader constantly invests with FTMO funds, not the per
- Tutorials, webinars, Q&As, and discounts on partners’ educational websites are always available for help.
- If you are a profitable trader, you can increase their capital by 25% every four months with the scaling plan.
Cons
Disadvantages of the prop trading firm’s offering include:
- The traders can only earn when they get to the professional account. Unlike the other competitor firms, FTMO very strictly monitors all procedures.
- Less initial capital volume is involved.
- No holding over the weekend unless the trader gets prior permission.
- Security and reliability
FTMO does not fall into the category of a broker, so it’s unregulated. The company follows a complete two-step evaluation system with a low pass rate. That shows that the procedures are strict. It makes sure that only capable traders can reach professional status. The FTMO also gives the New traders a chance to use the free demo account to polish their skills before paying the FTMO joining fee and entering the Challenge.
FAQs on FTMO
Below are some of the frequently asked questions about the FTMO process. We hope this will help sort out the newly joined traders’ queries.
Can the traders get a second chance for the Challenge?
FTMO allows no exception. If the trader manages not to breach any of the Trading Objectives and the account ends with profit at the end of the trading time period, with all positions closed, the firm will give the trader a new FTMO Challenge free of charge.
Can the trader lose an FTMO account?
The traders will not lose the account, which is excellent news!
How long does a withdrawal take?
One to two business days.
Does FTMO accept Cryptocurrency?
Yes, it does. The firm will also accept wire transfers, debit/credit cards, or Skrill.
What does FTMO stand for?
Fairtrade making organization
Can You hold trades overnight or on weekends with FTMO?
NO, but there is an FTMO Swing account type for that type of trader
Conclusion of FTMO Review
Suppose you are looking for a legitimate opportunity to make money; spot on! Here you are with the best firm. It is purely legit, trustworthy, and strictly monitored, so the credibility is high. If you are a successful and experienced trader, this is the perfect place. But do not worry. If you are new to the trade, you can still make the best out of it with the demo challenge and polish your skills. I hope the information shared is helpful. Do not worry about wasting your time if you have not yet registered yourself and have the passion for starting up as a trader. It is the best chance for you!