| Black Friday 10% off- Sign-up to a 10K evaluation for only €89 |
FTMO has trading rules to ensure traders manage risk properly and develop consistent trading habits, as these skills are crucial for long-term success in financial markets. Trading Funder team has deeply researched and simplified these rules to help traders understand and apply them easily, making the process smoother and less overwhelming.
FTMO offers different account types like the regular FTMO Account and the Swing Account. The regular FTMO Account has stricter rules, such as needing to close trades before weekends and not allowing trades during major news releases. The Swing Account is more flexible, letting traders hold positions over weekends and trade during news events. Both accounts have specific rules for maximum daily loss, overall loss, and leverage.
FTMO has clear trading rules. The Daily Loss Limit and Maximum Drawdown must be respected to avoid losing the account. Leverage is capped at 1:100, with a lower 1:30 for Swing Accounts. You can hold trades over weekends and during major news events only on the Swing Account. Expert Advisors (EAs) and hedging are allowed. There’s no restriction on trading styles, but copy trading and exceeding $400,000 in combined accounts are monitored. FTMO also offers a Scaling Plan that increases account size for consistent performance.
FTMO doesn’t offer any account type with instant funding. Every trader needs to pass a two-step evaluation process, which includes the FTMO Challenge and the Verification, to qualify for an FTMO Account. There’s no way to skip this, and no account type gets funding without passing these tests.
FTMO allows payouts every 14 to 60 days, depending on when traders request them. Profits are split, with traders keeping up to 90%. Withdrawals can be made via bank transfer, Skrill, or cryptocurrencies. There are no fees for withdrawals, but a minimum profit of $20 is needed for bank transfers and $50 for crypto. Payouts are processed within 1-2 business days after confirming the invoice.
In this article, our Trading Funder team will provide an in-depth review of FTMO’s rules and guidelines, including evaluations, funded accounts, payouts, and withdrawal policies, to help you make an informed decision.
What are the rules for FTMO’s Evaluation?
FTMO’s Evaluation rules refer to the set of trading objectives traders must follow during the FTMO Challenge and Verification phases to prove they can manage risk and trade profitably. These rules include a Daily Loss Limit, meaning you can’t lose more than 5% of the account balance in a day, and a Maximum Drawdown of 10%. Leverage is capped at 1:100. You can’t hold trades over weekends or during major news events unless you’re using a Swing Account. Hedging and Expert Advisors (EAs) are allowed, and there are no restrictions on trading style, but copy trading isn’t allowed. There’s also no Scaling Plan during the evaluation.
The table below summarizes the key trading rules across FTMO’s account types, including those during the FTMO Challenge and Verification stages:
| Rule | FTMO Challenge/Verification | FTMO Account | Swing Account |
|---|---|---|---|
| Daily Loss Limit | 5% of account balance | 5% of account balance | 5% of account balance |
| Maximum Drawdown | 10% of account balance | 10% of account balance | 10% of account balance |
| Leverage Limit | Up to 1:100 | Up to 1:100 | Up to 1:30 |
| Holding Over Weekends | Allowed | Not allowed | Allowed |
| Holding Over News Events | Allowed | Not allowed unless on Swing Account | Allowed |
| Hedging | Allowed | Allowed | Allowed |
| Scaling Plan | Not applicable | Yes, increases balance by 25% for consistency | Yes, same scaling plan as FTMO Account |
| Use of Expert Advisors (EAs) | Allowed | Allowed | Allowed |
| Trading Style Restrictions | No restrictions | No restrictions | No restrictions |
| Copy Trading | Not allowed | Not allowed | Not allowed |
1- The Drawdown
FTMO’s drawdown rule helps ensure traders manage risk properly. It includes both a Maximum Daily Loss (5% of the account balance) and a Maximum Drawdown (10% of the account balance). If a trader hits either limit, their account is closed, and they fail the challenge or verification. For example, if a trader starts with a $100,000 account, they can’t lose more than $5,000 in a single day or exceed $10,000 in total losses over the entire evaluation.
The table below shows the Drawdown Limits for Each Account Type:
| Account Size | Daily Loss Limit (5%) | Maximum Drawdown (10%) |
|---|---|---|
| $10,000 | $500 | $1,000 |
| $25,000 | $1,250 | $2,500 |
| $50,000 | $2,500 | $5,000 |
| $100,000 | $5,000 | $10,000 |
| $200,000 | $10,000 | $20,000 |
These limits apply throughout the FTMO Challenge and Verification stages.
2- Leverage Limit
FTMO’s leverage limits define the amount of margin you can use when trading. For most accounts, FTMO provides leverage of up to 1:100, meaning for every $1 of your capital, you can control up to $100 of market exposure. This allows traders to manage larger positions with less initial capital. However, for the FTMO Swing Account, the leverage is limited to 1:30, which is more suitable for swing traders who hold positions longer. For example, with a $100,000 account and 1:100 leverage, you could open positions up to $10 million in value.
The table below shows the leverage limits by account type:
| Account Type | Leverage Limit |
|---|---|
| Regular FTMO Account | Up to 1:100 |
| FTMO Swing Account | Up to 1:30 |
3- Consistency Rule
FTMO’s Consistency Rule ensures that traders are not just lucky in a few trades but can maintain a stable and repeatable performance over time. It measures whether a trader’s profit distribution aligns with their overall strategy. For instance, if a trader makes 90% of their profit in just one trade, it could signal inconsistency. To pass the Verification phase, traders need to show steady gains across trades without extreme fluctuations.
4- Trading Hours
FTMO’s trading hours follow the global market hours for each asset class. Forex markets are open 24 hours from Monday to Friday, but close over the weekend. Trading hours for specific instruments like stocks, indices, and commodities vary, and you can find the exact times in the platform by checking the instrument’s “Specification” in MetaTrader or the instrument info in cTrader or DXtrade.
For regular FTMO accounts, you must close positions before the weekend or during long market breaks. However, with the Swing Account, you can hold positions over weekends and during market closures.
5- Allowed Instruments
FTMO allows trading in a broad range of instruments, including:
- Forex pairs (major, minor, and exotic currencies)
- Indices like US30, NAS100, GER40
- Commodities such as gold, silver, oil
- Stocks (on selected platforms)
- Cryptocurrencies like Bitcoin (BTC), Ethereum (ETH)
All instruments are available on supported platforms: MetaTrader 4, MetaTrader 5, cTrader, and DXtrade. Traders can check specific details like available symbols, spreads, and trading hours directly in their platform.
What are the objectives of FTMO’s evaluation?
FTMO’s evaluation objectives are the key criteria traders must meet to advance through the Challenge and Verification phases. These objectives ensure traders can manage risk and trade consistently. The main objectives include:
- Profit Target: In the FTMO Challenge, traders need to reach a profit target of 10% of the account balance, while in the Verification stage, this is reduced to 5%.
- Consistency and Discipline: FTMO monitors how consistently traders perform across their trades to ensure they are not relying on a few high-risk trades.
- Time Limit: There is no maximum time limit, but traders must trade a minimum of 4 days during both the Challenge and Verification phases .
1- profit target
FTMO’s profit targets are key objectives in their evaluation process. During the FTMO Challenge, traders must reach a profit target of 10% of the account balance. In the Verification phase, the profit target is reduced to 5%. These targets ensure that traders can demonstrate profitability while following the risk management rules. Once traders pass both stages, the profit target is removed for the funded FTMO Account.
The table below shows the profit targets for each account type:
| Account Size | FTMO Challenge (10%) | Verification (5%) |
|---|---|---|
| $10,000 | $1,000 | $500 |
| $25,000 | $2,500 | $1,250 |
| $50,000 | $5,000 | $2,500 |
| $100,000 | $10,000 | $5,000 |
| $200,000 | $20,000 | $10,000 |
2- Consistency and Discipline
FTMO’s Consistency and Discipline objective ensures traders maintain stable performance without relying on one or two high-risk trades. It checks that profits are spread evenly across trades. If most profits come from a single trade while others are inconsistent, the trader may not meet this objective.
3- Time Limit
FTMO’s evaluation process has a minimum time requirement but no maximum time limit. For both the FTMO Challenge and Verification stages, traders must trade for at least 4 days, but these days don’t need to be consecutive. There’s no upper time limit, meaning traders can take as long as they need to meet the objectives.
what are FTMO’s Funded Accounts rules?
FTMO’s Funded Accounts rules apply to traders after they complete the evaluation process and receive an FTMO Account. These rules ensure risk management and consistent trading. The key rules include:
- Daily Loss Limit: 5% of the account balance (e.g., $5,000 for a $100,000 account).
- Maximum Drawdown: 10% of the account balance.
- Leverage Limit: Up to 1:100 for regular accounts, and up to 1:30 for the Swing Account.
- Consistency Rule: Traders must maintain consistency in trading habits without relying on large, risky trades.
- Holding Over Weekends and News Events: Not allowed on regular accounts, but allowed on the Swing Account.
- Hedging and EAs: Allowed on all accounts.
- Scaling Plan: Available for traders who meet performance criteria, increasing the account balance by 25%.
- Trading Style Restrictions: No specific restrictions, but copy trading is not allowed .
The table below summarizes the key rules for FTMO’s Funded Accounts, covering the main aspects like daily loss limits, drawdown, leverage, and specific rules on holding trades and using trading tools.
| Rule | FTMO Account | FTMO Swing Account |
|---|---|---|
| Daily Loss Limit | 5% of account balance | 5% of account balance |
| Maximum Drawdown | 10% of account balance | 10% of account balance |
| Leverage Limit | Up to 1:100 | Up to 1:30 |
| Consistency Rule | Monitored | Monitored |
| Holding Over Weekends | Not allowed | Allowed |
| Holding Over Major News | Not allowed | Allowed |
| Hedging | Allowed | Allowed |
| Scaling Plan | Available | Available |
| Use of Expert Advisors (EAs) | Allowed | Allowed |
| Trading Style Restrictions | No specific restrictions | No specific restrictions |
| Copy Trading | Not allowed | Not allowed |
Additional rules
In addition to the main trading rules for FTMO’s funded accounts, there are a few additional rules traders must follow:
- Maximum Capital Allocation: Traders can hold a maximum of $400,000 in FTMO Accounts at one time, unless they qualify for scaling, which increases this limit.
- Merging Accounts: Traders can merge multiple FTMO Accounts, provided they meet the drawdown limits and there’s no ongoing profit split.
- Forbidden Trading Practices: FTMO strictly prohibits practices like exploiting market inefficiencies or using strategies that interfere with normal trading conditions.
- Trading Platform Limits: Platforms may have limits like 200 orders at a time or 2,000 positions per day, particularly if using Expert Advisors.
What are FTMO’s Funded Accounts objectives?
FTMO’s Funded Accounts objectives are designed to ensure that traders manage risk effectively and trade consistently after completing the evaluation process. These objectives include:
- Profit Targets: Once funded, there are no specific profit targets, allowing traders to focus on steady growth without pressure.
- Consistency and Discipline: While no direct consistency rule is enforced on funded accounts, maintaining stable trading performance over time is important for capital growth and future scaling.
- Time Limit for Objectives: There is no time limit or minimum trading days required on funded accounts, giving traders flexibility to manage their pace.
Does FTMO have a consistency rule?
FTMO does not have a formal Consistency Rule for its funded accounts. However, consistency is important during the Verification phase of the evaluation. In this phase, FTMO monitors traders to ensure they can replicate their trading performance consistently, rather than achieving success with just a few high-risk trades. While this is not strictly enforced in funded accounts, maintaining consistency is important for future scaling and overall performance.
Does FTMO have a scaling plan rule?
Yes, FTMO has a Scaling Plan. This rule allows traders to increase their account balance by 25% every four months if they meet the criteria. To qualify, traders must generate at least 10% net profit during the four-month period, with two or more profit withdrawals, and maintain positive performance without violating risk limits. The maximum account size with scaling can reach up to $2,000,000.
what are FTMO’s withdrawal/payout rules?
FTMO’s withdrawal/payout rules govern how traders can access their profits from funded accounts. The main rules are:
- Profit Split: Traders keep up to 80% of profits, or 90% if they meet the Scaling Plan requirements.
- Payout Schedule: Payouts can be requested every 14 days, up to 60 days after the first trade. Traders can adjust their Profit Split Day three times within this period.
- Minimum Payouts: A minimum of $20 is required for bank transfers, and $50 for cryptocurrency payouts.
- Payout Processing: Once requested, payouts are processed within 1-2 business days.
- Payment Methods: Available through bank transfer, Skrill, or cryptocurrency.
- Account Balance & Drawdown: The trader must respect the maximum drawdown and daily loss limits to maintain the account.
- Scaling Plan: Successful traders can grow their account balance by 25%, and enjoy a 90% profit split.
- Effect of Multiple Withdrawals: Multiple withdrawals don’t impact the account negatively, as long as the account is in compliance with the drawdown rules.
FTMO’s withdrawal/payout policy help traders smoothly withdraw profits and keep growing their accounts.
What are the spread and commissions at FTMO?
FTMO offers competitive trading conditions with spreads and commissions that vary depending on the asset class and market. For forex pairs, spreads are usually tight, especially on major pairs like EUR/USD, with typical values starting around 0.2 pips. However, exact spreads can fluctuate due to market conditions.
As for commissions, there are no charges on most forex pairs, but on assets like indices and commodities, commissions typically apply. For example, trading indices such as US30 can incur a commission of $3 per lot per side.
These spreads and commissions are designed to emulate real market conditions, ensuring traders practice with realistic pricing.
Is FTMO a Regulated Company?
No, FTMO is not a regulated company.
FTMO was founded in 2015 by Otakar Šuffner and operates as a proprietary trading firm based in Prague, Czech Republic. It offers traders demo accounts to pass its Evaluation Process, and successful traders receive FTMO Accounts to trade with profit-sharing. FTMO supports trading in forex, indices, commodities, stocks, and cryptocurrencies. Since it doesn’t handle client deposits or act as a broker, it isn’t regulated by financial authorities. FTMO works with external liquidity providers for market data, and although unregulated, it maintains internal risk management and uses trader data for its own live trading.
Is FTMO a Legit Company?
Yes, FTMO is a legitimate company. Founded in 2015 by Otakar Šuffner, it is headquartered in Prague, Czech Republic. FTMO has a strong reputation, reflected by its 4.9/5 rating on Trustpilot based on over 5,000 reviews. One of its key pros is the structured evaluation process that offers traders the chance to earn up to a 90% profit split. However, a key con is the strict trading rules, such as the daily loss limit, which can be challenging for some traders.
Conclusion on FTMO’s rules
FTMO’s rules are crafted to promote disciplined trading with a strong emphasis on risk management. As the Trading Funder team has analyzed, these rules include strict limitations on daily losses, overall drawdowns, and leverage usage. However, there is some flexibility in their Swing Account, allowing traders to hold positions over weekends and during news events. One of FTMO’s key strengths, as we found, is its well-defined structure, which offers traders the opportunity to scale their accounts and earn up to 90% of profits. That said, the stringent loss limits can pose challenges for some traders. From our consulting perspective, FTMO offers a robust framework that supports traders in building consistency and discipline, essential for those aiming for long-term success.
|
| Black Friday 10% off- Sign-up to a 10K evaluation for only €89 |
