Before you can trade for FTMO, we need to see how you can manage risk. Because of this, we have developed Trading Objectives. There are four basic Trading Objectives you need to know to become an FTMO Trader and to trade up to $200,000 on your FTMO Account. The second rule is called Maximum Daily Loss.
The Maximum Daily Loss is one of the most important Trading Objectives. We have developed this rule so that traders can become experienced risk managers with habits of professional traders. We could call this trading objective “trader’s daily Stop Loss”. For a Normal risk account type, the limit is set at 5% of the initial balance.
Let’s take the Normal risk account with the 5% limit as an example. If you have a $200,000 FTMO Account, you must never exceed the total equity loss of $10,000 in one day. That means if you had a losing streak and the total loss would result in -$8,000 in one trading day, your permitted loss for the rest of the day would be $2,000 before exceeding the limit. Bear in mind that the Maximum Daily Loss works with your equity, and therefore both floating losses and your closed positions are included in the calculation. The limit is inclusive of commissions and swaps.
Be careful, as the Maximum Daily Loss resets at midnight CE(S)T! Let’s say you had a great start to the week and your Monday trading session resulted in a closed profit of $4,000. Your Maximum permitted Loss for the rest of the day is now at $14,000. If you would now open a new trade which would go into a $13,000 floating loss, then up until 11:59 PM, you would be still staying within the limit, because, as mentioned previously, your permitted loss for the rest of the day is $14,000.
However, the Maximum Daily Loss resets at midnight CE(S)T, so at 12 AM on Tuesday your permitted loss is by default reset to $10,000. If you would still be carrying the $13,000 floating loss, you would exceed the limit as the profits made the previous day no longer count in a new day.
The Maximum Daily Loss resets at midnight CE(S)T, which means you should use the FTMO timezone converter to check when exactly the Maximum Daily Loss resets in your local time. For example in Tokyo time, which is at GMT+9, the Maximum Daily Loss limit will reset exactly at 7 AM Tokyo time.
The Maximum Daily Loss is a rule that is beneficial to both FTMO and traders, because it clearly defines risk for the company and gives all traders plenty of room to trade with a reasonably adjusted risk.
FAQs
Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.
Does FTMO really pay? ›
In conclusion, FTMO is a reputable proprietary trading firm that pays out profits to its traders as promised. The company has a transparent and reliable payout process, and numerous positive reviews from satisfied traders attest to this.
Why is FTMO banned in India? ›
Due to regulatory developments and business decisions based on risk management considerations, FTMO does not accept clients in India, the Russian Federation, the Republic of Belarus, the Republic of Indonesia, Cuba, Venezuela, Sudan, and South Sudan.
Did FTMO ban US traders? ›
In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.
How many people fail FTMO? ›
The FTMO challenge has a reputation for being extremely difficult to pass. Across FTMO's various account levels, it is estimated that only around 10% of traders are able to successfully complete the evaluation and become a funded trader. This means approximately 90% of those who attempt the challenge end up failing.
Why is FTMO expensive? ›
The fee covers the costs related to the FTMO Challenge provided by FTMO such as the designing, development, and operation of the FTMO platform (the technical infrastructure behind the provided educational services and applications).
Is there a monthly fee for FTMO? ›
No recurrent charges, no membership or other hidden fees. Moreover, the fee is automatically reimbursed to you with the first Profit Split.
How fast does FTMO pay out? ›
The payouts are processed within 1-2 business days upon confirming the invoice. You can receive your profits by a regular bank wire transfer, Skrill or cryptocurrencies. We don't charge any commissions for withdrawals.
Is FTMO trading worth it? ›
If you then feel confident of passing the Evaluation and you would benefit from more capital, I would certainly recommend taking the FTMO Evaluation Process to become one of their traders! Also BE PATIENT! It may take you years (it takes most years) to become consistently profitable, but it is all worth it.
Can you use FTMO in the USA? ›
Please note that FTMO does not provide services to persons in/from (both nationals and residents) Iran, Syria, Myanmar, North Korea and USA, persons listed on sanction lists, persons with criminal records related to financial crime or terrorism, and persons previously banned because of breach of contract.
It is not illegal to operate or trade with a prop firm. However, where most online prop firms come unstuck is in their business practices and terms of service. Some of the largest prop firms that I'm sure you would have heard of have fallen victim to these mistakes over the last few months.
What does FTMO stand for? ›
The name of the company FTMO consists of the first letters of the names of four people (Filip, Tomáš, Marek, Otakar) who worked for the company at the time when the company decided to expand beyond the borders of the Czech Republic.
Is FTMO no longer available in the US? ›
FTMO just banned US citizens: USA update – January 2024: Since the establishment of our company, our goal has been to provide top-quality services for our clients. Unfortunately, at present, we are not able to do that in the United States due to specific conditions in the market segment there.
Why is MT4 banned in the US? ›
The two MetaTrader apps were banned on Apple's App Store in 2022 for their alleged use by fraudsters targeting the US citizens and residents.
Why are prop firms closing in the US? ›
Prop trading firms have been shutting down or suspending their services, particularly to U.S.-based clients, because of a crackdown from MetaQuotes, the company behind the popular MetaTrader trading platforms.
Is FTMO a good prop firm? ›
One of the main reasons why FTMO is a good prop firm is their investment options. They offer traders the opportunity to trade with their own capital, as well as access to additional capital from FTMO.
Which is better than FTMO? ›
FTMO vs The Trading Pit
There are several reasons why we found The Trading Pit to be better than FTMO, including: Lower challenge fee: To acquire their funded account, which provides you with $10,000 to trade with, you only need to pay a € 99 fee.
What percentage does FTMO take? ›
We don't charge any commissions for withdrawals.
You don't need to score any minimum profit to receive a Profit Split, only just enough to cover the transaction fees* Whatever amount of profit you generate, you are entitled to withdraw 80% of it.
