WHAT IS FTMO?
FTMO is a financial technology firm that was founded in Prague, Czech Republic in the year 2014, and they provide one of the most successful funded trading programs in the market. FTMO was born out of a combination of trading systems and various ideas about risk and money management. The idea behind creating FTMO is that professionalism in trading can be attained as long as people are well-disciplined in observing specific rules they set for themselves. Invariably, through the maintenance of rigorous self-discipline, a trader that is a member of this firm can get to a point where discreet supervision of other traders and team spirit forms a solid foundation for meticulous and successful trading.
An opportunity for traders
FTMO provides traders with capital for trading by examining their performance in real-time simulated accounts. This performance-based examination becomes the blueprint that the firm uses to select the traders that will have access to an account with capital that can be used for trading forex and other assets in the financial markets. Therefore, clients of this firm do not have to worry about how to get funds for trading as long as they pass the FTMO challenge.
How FTMO helps Traders enhance their skills?
FTMO believes that there is a need for better feedback, discipline, and more capital to give traders a better chance of succeeding in the financial markets. This is why people registered as traders on the website of this firm are given tools that allow them to effectively study the markets, available products, and trading system, while at the same time imbibing the right mindset. This will help the traders to create a reliable strategy that fits their specific financial personalities and goals. As a proprietary asset investment and funding firm that is interested in helping traders, there is a membership program that the firm makes available such that traders who are initially confused can gradually grow in confidence and start to become profitable.
an all in one solution
This is why the company is constantly ensuring to enhance the tools and applications used for coaching and feedback to bring about improved results. There is also an emphasis on professional support, personal approach, and transparency so that traders have a clear idea of what the company is trying to help them achieve. The company is also trying to create a global platform in which there will be a unique group of retail traders using the firm’s capital for various forms of trading while there will also be room for investors to invest in a portfolio of traders that interest them.
FTMO gives retail traders the chance to have access to the trading evaluation process which can make these traders eligible to have an FTMO account to manage that is connected to the firm. The company is working alongside various institutional liquidity providers to provide traders with excellent trading conditions and spreads that will adequately simulate market conditions in real-time. There is a very low cost involved as well as truly raw spreads with consistently low commissions. This ensures that traders are given the most excellent trading conditions on the market.
FTMO also supports trading platforms like MT4, MT5, and cTrader which are all tools that the traders can use to exercise more control over their trades. There is also the availability of customer support which traders can reach out to whenever they are experiencing problems or they have any inquiries.
WHAT ARE THE FTMO OFFERS FOR FOREX TRADERS?
Forex traders are a group of retail traders that FTMO gives extra focus on by providing a two-step evaluation course that traders can go through to showcase their trading talents. The evaluation course is designed in such a way that traders can display their trading skills and expertise. Once a trader successfully completes the evaluation course, such a trader is given a placement at the FTMO Proprietary trading firm where the trader has access to an FTMO account with a balance of up to $400,000 which can be managed remotely.
The evaluation course can be difficult but the firm provides adequate account analysis, educational tools, and performance coaches that will help the traders to achieve the intended goals and targets. There are two stages involved in the evaluation course namely FTMO Challenge and Verification.
What are the steps of the FTMO Evaluation?
The FTMO Challenge:
The FTMO Challenge requires a trader to show their trading skills and discipline in achieving the trading objectives set by the firm. The trading objectives allow the firm to check the risk management level of a trader as well as the level of discipline and expertise. Traders are free to choose their trading style with no limit on the position size they trade. In this first step of the evaluation course, the trading period is thirty days with a minimum of ten trading days. The acceptable maximum daily loss is $500 while the total acceptable maximum loss is $1000. The profit target is $1000 while the refundable fee is $135.
The Verification is the second stage that makes the trader eligible to become an FTMO trader. But this stage cannot be gotten to without completing the FTMO challenge which is why a trader needs to be focused and diligent when undergoing the evaluation course so that the necessary targets can be achieved.
How to Get Funded account At FTMO?
Once a trader completes the two steps of the evaluation course, then such a trader becomes eligible to own an FTMO trading account. Once the trader can trade consistently and smartly, they are eligible to receive 90% of their profits. Also, consistently generating profits on the assigned FTMO account gives the trader a chance to receive more capital from the firm. If the trader is vacillating about whether to take on the evaluation course, there is the option of a free trial account. This provides traders with an opportunity to try the process for free to get an idea of what to expect in the FTMO challenge since the free trial is a shortened version of the challenge with similar trading conditions.
WHAT ARE THE RULES IN FTMO?
This section will be examining some of the intricacies of the FTMO funded training program that traders need to pay attention to so that they can achieve the best of results without violating any rules laid down by the company.
The FTMO Challenge
As earlier mentioned, this is the first step in the evaluation course that traders need to complete to move on to the next stage. The company is trying to ascertain the level of responsibility and risk management of traders. In this step, the major rule is for the trader to meet the profit target which has been set in such a way that it is balanced with the drawdown that the company allows the trader to take.
The minimum number of days to complete the FTMO trading challenge is 10 trading days while the maximum is 30 days. Also, the trader does not need to exhaust the entire 30 days before completing the challenge. Therefore, if a trader should complete the challenge in less than 30 days, such a trader can proceed immediately to the verification stage.
This is the second stage and this is designed to ascertain the trading consistency of a trader. The company wants to verify if a trader can trade profitably in the long run without violating or breaching any rule.
The profit target here is half of that of the first step and 60 trading days are available to the trader to display the consistency that the company is looking for.
Trading the News
While undergoing the two steps evaluation course, traders are free to trade during news releases without restrictions. However, once traders complete the evaluation course, they have to be careful about trading the news as the market could suddenly swing against them. So, the restrictions are only set in when a trader has access to an FTMO funded account that is being used for trading.
Is there a need to close positions overnight?
As long as the trader is still trying to pass the FTMO Challenge or the Verification, then they are allowed to maintain open positions overnight and even over the weekend. However, once they become a full-fledged FTMO trader, it is a different story entirely. The company requires its traders to close their positions just before the close of the markets for the weekend. Traders are expected to respect and adhere to the market timings. The only exception is for traders with an account type like the FTMO Account Swing in which it is acceptable to hold open trading positions over weekends.
What trading strategies are allowed?
As long as a trading strategy is legal, the company has no preference or restrictions on the type of strategy that traders have to use. The major goal of the firm is to aid traders in their quest to make steady profits from the financial markets and as long as the trading strategy employed by the trader adheres to real market conditions and the trades can be replicated on the live corporate accounts of the company, then nothing prevents the trader from using such strategies. Here, traders need to note that FTMO platform servers have a limit of 200 orders at a time to go along with 2000 maximum positions per day.
What is the legal relationship between the FTMO company and a trader during the period of account management?
The relationship is based on the contract agreement that the company provides for the trader to sign after completion of the FTMO Challenge and Verification. It is a legally binding document that both parties must respect and adhere to.
How does account management work?
Once a client gets certified as an FTMO trader, such a client will be given a demo account with virtual funds. An FTMO Account is an account that is fully simulated but contains real market quotes from liquidity providers. The trades made by the trader are then copied by the company through the use of aggregated orders made possible by the company’s proprietary risk management algorithm. This way, the company has more freedom in actively managing risk and clients can get up to 90% of the profits generated on an FTMO account.
Which platforms can be used for trading during the Evaluation Course?
Trading for the FTMO challenge and Verification can be done on some of the most popular retail platforms like cTrader, MetaTrader 4, or MetaTrader 5.
Is it possible to change the trading platform during the Evaluation Course?
Yes, it is very possible to change the current trading platform that the trader is using but it has to be done after completing one of the steps in the evaluation course. It cannot be done while a trade is in progress.
What is the Profit split at FTMO?
When it comes to payout, the default ratio is 80:20 but that is not the limit. The company has a scaling plan with certain conditions, and if the trader can meet those conditions, the balance of their FTMO Account is increased by 25% while the payout ratio becomes 90:10. FTMO traders also have the option of payout on-demand and it can be available just after 14 days.
PROS AND CONS OF THE FTMO FUNDED TRADING PROGRAM
Advantages of the FTMO funded trading program
- FTMO is legitimately verified with a flawless reputation which means they can be trusted.
- Traders can retain up to 90% of the profits they make on their funded accounts and only 10% goes to FTMO.
- The trading conditions of FTMO are not stringent when compared to other similar service providers. Also, traders are allowed up to a 10% drawdown on their funded account.
- Traders can have access to 2 funded accounts with each containing $200,000 thus making a total of $400,000. It all depends on their performance in the evaluation course.
- There is a free trial version of the evaluation course that allows traders to get familiar and have an idea of what to expect.
- Traders are forced to sharpen their risk and money management skills as well as elevate their levels of self-discipline.
- Despite the difficulty of the challenge, there has been evidence of many traders completing the challenge, having the funded account, and building up a large and profitable portfolio from there.
- Quick and easy withdrawal of funds with adequate and functioning customer support to help clients through any problems or inquiries.
- Traders are given access to excellent tools and education which are useful in aiding the traders in their quest to make sustainable profits in the forex markets.
Disadvantages of the FTMO funded trading program
- The cost to register for the evaluation course may be steep for some people as it ranges between $180 and $1300.
- When the traders are funded, they are not allowed to maintain open trading positions over the weekends which may be discouraging for some traders.
- The challenge can be difficult to pass especially for traders lacking self-discipline and emotional strength.
- Violation of any rule will lead to an invalidation of the account of such a trader and loss of eligibility in continuing the Evaluation Course. And if the trader is still interested in the challenge, it will involve starting again from scratch and purchasing a brand new FTMO challenge.
- There are no refunds when traders lose their accounts due to breaking any rule.