FTMO Review 2023: Is this prop trading firm still a good investment?

Bottom Line : FTMO is an exciting leading exclusive trading company loved by thousands of seasoned traders.

Sponsored traders can start trading with up to 400,000 USD with 1:100 leverage and keep up to 90% of the profits earned. FTMO has paid out over 130 million USD in profits to traders on its platform in over 180 countries.

In this FTMO review, we discuss FTMO’s features, pros & cons, and costs.

Pros & Cons

Pros

• A large selection of tradeable cryptocurrencies and fiat currencies.
• Share 90% Of profits with revenue share.
• Trade for a prop enterprises company without risking your own capital.
• A refundable fee after the evaluation stage Is over.
• Get the support and education you need along your trading journey.

Cons

• Investors must complete two verification stages.
• Not appropriate for investing in stocks and derivatives.

What Is FTMO?

FTMO is a Czech-based proprietary trading firm that funds skilled traders. To earn this funding, traders undergo a two-step evaluation, focusing on profitable trades and rule adherence. Though its main emphasis is on the Forex market, FTMO also encompasses commodities, crypto, and indices.

The firm’s unique approach involves the FTMO Challenge and the Verification stage. Both are essential to gauge a trader’s potential. Success in these tests results in a trading account funded up to $400,000, with prospects to scale up to $2M.

The main benefits of becoming an FTMO funded trader include:

• No personal capital at risk: The trader doesn’t need to risk their own money, as FTMO provides the trading capital.
• Profit sharing: FTMO funded traders receive a percentage of the profits they generate, usually up to 70% or more.
• Education and support: FTMO provides educational resources, trading tools, and a supportive community to help traders succeed.
• Scaling opportunities: As traders demonstrate consistent success, FTMO may increase the capital they manage, allowing for greater profit potential.

FTMO’s business model is primarily based on the success of their funded traders. The more profits the traders generate, the more revenue FTMO makes through their share of the profits. This creates a win-win situation for both the company and the funded traders.

So, what are you waiting for?

How FTMO Started

FTMO started as an idea back in 2014 when three traders working from a Prague office decided to join forces. Initially, FTMO was known as Ziskejucet.cz but as the company grew it managed to secure funding and in 2017 and is now known as FTMO.

Each one of those three traders (founders) contributed to developing a trading system suited to them along with new ideas on risk management. Through constant innovation, FTMO Is the Best Proprietary Trading Firm.

FTMO Investment Options

Investors have a wide variety of resources that they can trade with various investment options:

There are no restrictions on your trading strategy or plan as long as it is legal, complies with current market circumstances, and FTMO can replicate it on existing business accounts.

In terms of tradin platforms, FTMO offers the well-known MT4, MT5, and even cTrader giving investors many opportunities to make profits.

FTMO Pricing

FTMO has a scaled pricing structure that starts at €155 EUR and eventually scales up to €1080 EUR. Trading capital ranges from €10,000 to €160,000 EUR depending on the FTMO challenge you are competing in.

Below is an example of the pricing structure:

€155 FTMO Challenge

After paying the €155 to compete in the FTMO Challenge you will be given an initial trading capital of €10,000 EUR (or the equivalent in USD, AUD, GBP, CHF, CAD).

€250 FTMO Challenge

After paying the €250 to compete in the FTMO Challenge you will be given an initial trading capital of €10,000 EUR (or the equivalent in USD, AUD, GBP, CHF, CAD).

Compete in the FTMO Challenge Swing you will be given an initial trading capital of €20,000 EUR (or the equivalent in USD $25,000. GBP 20,000 and CHF 20,000. CAD 30,000 and AUD 30,000).

FTMO Features

FTMO has a stack of cool features. Below we will take a closer look at the best features FTMO has to offer.

• Account MetriX: A web application that monitors your progress towards becoming an FTMO Trader, providing an overview of trading objectives and a range of essential statistics.
• Account Analysis: An unbiased analysis of your trading results, offering insights into potential areas for optimization in your strategy. Prepared after your Challenge is over using all trading data.
• Statistical App: An application that provides data-driven market behavior probabilities, helping traders make smarter decisions and increase profitability.
• Trading Journal: An easy-to-use journal for tracking trading results, thoughts, and feelings about trades. Automatically stores trades and allows for retrospective analysis to improve future trading.
• Mentor App: A unique application designed to strengthen trader discipline by enforcing rules and risk limits. Compatible with MetaTrader 4, MetaTrader 5, and cTrader platforms.
• Equity Simulator: A tool for simulating possible equity curve outcomes, helping traders understand and manage drawdowns and randomness in their strategies.
• Economic Calendar: A useful tool that provides an overview of scheduled economic events and their potential impact on financial markets. It helps traders stay informed about market-moving news, plan their trading strategies accordingly, and anticipate potential market volatility.

FTMO Performance

Every month, FTMO initiates over 16 million trades, and with an average payout process time of just 8 hours, $130 million has been paid out to traders. FTMO shares profits from profitable traders ranging from 80% to 90%.

Over 180 nations have now been listed as investors on the FTMO platform.

FTMO has earned the Deloitte Technology Fast 50 award three times as of 2022. And with Forbes highlighting FTMO, the future of this firm looks promising.

How Does It Work?

The FTMO evaluation process is designed to identify and nurture talented traders who can manage the firm’s capital. The process is broken down into three main stages: the FTMO Challenge, Verification, and becoming an FTMO Trader. Here’s a detailed look at how each stage works:

1. FTMO Challenge

The FTMO Challenge is the first stage of the evaluation process. It serves as an initial test of a trader’s skills, discipline, and ability to adhere to specific trading objectives. During this challenge, traders must meet the following requirements:

• Reach the profit target set by FTMO (depending on the account size chosen)
• Trade a minimum of 4 trading days
• Adhere to the maximum daily loss limit
• Adhere to the maximum overall loss limit

Traders can choose from various account sizes, each with its corresponding initial fee, profit target, and loss limits. It’s essential to select an account size that aligns with your trading style and risk tolerance.

2. Verification

Once you have successfully passed the FTMO Challenge, you will advance to the Verification stage. This stage is designed to confirm your trading skills and ability to maintain discipline over an extended period. During the Verification process traders must meet the following requirements:

• Reach a reduced profit target set by FTMO
• Trade a minimum of 4 trading days
• Adhere to the maximum daily loss limit
• Adhere to the maximum overall loss limit

The Verification stage serves as a final confirmation of your trading abilities, ensuring that you can consistently achieve profitable results.

3. Becoming an FTMO Trader

Upon successful completion of the Verification stage, you will be offered a placement as an FTMO Trader. As an FTMO Trader, you will remotely manage an FTMO Account with a balance of up to $400,000. Your primary responsibility will be to trade consistently and responsibly, while adhering to the trading objectives set by FTMO.

As an FTMO Trader, you will receive up to 90% of the profits generated from your trading activities. If you consistently generate profits, your account may be scaled according to FTMO’s Scaling Plan, allowing you to manage even larger sums of capital.

FTMO’s Educational and Support System

One of the key aspects that sets FTMO apart from other prop trading firms is its strong emphasis on trader education and support. FTMO recognizes that a well-informed and consistently improving trader is an asset to their business model. As such, they have developed a robust educational and support system to ensure that their traders are well-equipped to succeed in the markets.

Trading Education

FTMO offers a comprehensive educational program covering various aspects of trading, including technical analysis, fundamental analysis, risk management, and trading psychology. This educational program is designed to cater to traders with varying levels of experience, from beginners to seasoned professionals. The educational content is presented in the form of articles, webinars, and video tutorials.

Additionally, FTMO has a blog that publishes regular market analysis, trading tips, and updates on the platform’s features and policies. This not only keeps traders informed about the platform but also helps them stay updated on the latest market trends and trading strategies.

Personal Mentoring

FTMO provides personalized mentoring to its funded traders, focusing on individual needs and specific areas of improvement. This one-on-one support from experienced trading professionals can be invaluable in helping traders overcome challenges, refine their strategies, and achieve consistent profitability.

Community Support

FTMO has built a strong community of traders, fostering a collaborative environment where traders can share their experiences, insights, and ideas. The FTMO community is active on various social media platforms, including Facebook, Twitter, and Instagram. There are also dedicated discussion forums where traders can interact with each other and the FTMO team.

This sense of camaraderie among the FTMO traders not only helps them learn from each other’s experiences but also offers emotional support during the ups and downs of trading.

Customer Service

FTMO provides exceptional customer service, with a dedicated customer support team available to assist traders with any questions or concerns. The support team can be reached via email, live chat, or phone, ensuring that traders receive prompt and efficient assistance.

Importance of Trading Psychology and Performance Coaching at FTMO

Trading psychology plays a crucial role in determining a trader’s success, as it influences decision-making, risk management, and overall trading performance. In fact, up to 80% of success in trading can be attributed to psychological factors. From beginning traders, to professional traders, psychology plays a major role. Recognizing the significance of psychology in trading, FTMO has integrated performance coaching into their platform to help traders enhance their trading results and maximize their potential.

Why is Trading Psychology So Important?

Trading psychology is essential because it impacts a trader’s ability to make well-informed decisions under pressure, manage risk effectively, and maintain discipline. The market can be unpredictable and volatile, causing traders to experience various emotions such as fear, greed, and overconfidence. These emotions can lead to poor decision-making, impulsive actions, and the development of bad habits.

To overcome these challenges, FTMO offers performance coaching services, assisting traders in identifying the root causes of their unwanted behaviors and implementing long-term solutions for better trading results.

Meet FTMO’s Performance Coaches

FTMO has onboarded qualified performance coaches who understand the unique challenges that traders face and possess the necessary expertise to help traders improve their psychological strategies.

1. Nelly N.

Nelly is a performance coach with a Master of Science in Psychology from Coventry University Faculty of Health and Life Sciences. She specializes in sport psychology, motivation, and performance coaching. Nelly helps traders discover their strengths and weaknesses and creates tailored plans designed to optimize their trading performance.

2. Michael K.

Michael holds a master’s degree in Psychology from Charles University and has completed certified training in psychodynamic coaching. He has experience in aviation psychology, working with airline pilots to develop the necessary psychological skillset for high-performance environments. As a FOREX trader since 2015, Michael is well-versed in the challenges that traders face and uses his skills, knowledge, and experience to help them achieve their goals.

How Can Performance Coaching Benefit You?

FTMO’s performance coaches will work with you individually to understand your unique challenges and develop the tools, insights, and psychological strategies needed to enhance your trading performance. By addressing the psychological aspects of trading, you can better manage your emotions, make more informed decisions, and ultimately, achieve better results in the market.

As Mark Douglas, a famous author and trader, once said, “Great traders are not born, they are made.” With the support of FTMO’s performance coaching, traders can embark on a journey towards self-improvement, unlocking their true potential in the world of trading.

Scaling Plan Overview

The FTMO Scaling Plan offers traders the opportunity to progressively increase their account balance and risk parameters over time. By meeting specific eligibility criteria, traders can grow their account in a systematic and controlled manner, encouraging consistency and risk management. However, it is important to note that high returns are not guaranteed and trading is inherently a risky endeavor.

Increment Principles and Trading Objectives:

Traders can choose between two account types: Standard and Aggressive. Each account type has its own maximum daily loss and minimum equity requirements.

Standard Account:

• Maximum Daily Loss: 5% of the initial balance
• Minimum Equity: 10% of the initial balance

Aggressive Account:

• Maximum Daily Loss: 10% of the initial balance
• Minimum Equity: 20% of the initial balance

Eligibility Criteria and Capital Increments:

Capital increments on FTMO accounts take place in four-month cycles. To qualify for a capital increase, traders must generate at least 10% net profit (20% for Aggressive account) over four consecutive monthly cycles. In addition, traders must process at least two payouts within the four-month period. It is essential that the account balance remains above the initial account balance (in profit) at the time of scale-up.

Eligibility is automatically assessed, and progress is shown to FTMO traders with each Profit Split. If the requirements are met, traders can confirm their wish to scale up their account during the payout process, and a new, scaled-up FTMO account will be assigned for the next trading period.

Profit Split Ratio and Maximum Limits:

FTMO traders on the Scaling Plan receive an upgraded profit split ratio of 90/10. This increased ratio applies only to newly scaled-up accounts, not to merged accounts that have already been scaled-up. The maximum limit for account increments is $2M per trader ($1M for Aggressive accounts).

Example Scenario:

Below is an example scenario for a trader who successfully passed the Evaluation Process with a $400,000 initial account balance and meets the conditions for capital increments:

In this scenario, after 16 months, the trader’s FTMO account would have doubled in balance and loss limits. The Scaling Plan is designed to incentivize consistent trading while minimizing unnecessary risks and fostering long-term success on the FTMO platform.

Strengths and Weaknesses

One of FTMO’s strengths is always offering the best trading conditions. A variety of assets are available through FTMO Solutions, with low commissions and super-raw spreads.

There are no hidden fees or recurrent charges with FTMO which is very refreshing. Instead, just pay a One-time and when you have your first profit split with FTMO, they will reimburse you your initial fee!

The only drawback that seems to deter some traders is the two-step evaluation process. The two-step process takes more time than some other trading firms.

That said, it’s very straightforward and once you become a funded trader, the lost time will be forgotten with the profits you make!

FTMO Review – Final Thoughts

After our comprehensive review, FTMO stands out as a top-notch proprietary trading firm, offering a unique opportunity for skilled and experienced traders to manage significant capital without risking their own funds. The platform’s two-step evaluation process, although time-consuming, is designed to ensure that only the most disciplined and consistent traders are granted access to FTMO’s capital.

The generous profit-sharing structure, coupled with the refund of the initial fee after the first profit split, makes FTMO an attractive choice for traders looking to take their career to the next level. Furthermore, the educational resources, performance coaching, and strong community support provided by FTMO ensure that traders have the necessary tools and resources to succeed in the competitive world of trading.

Overall, FTMO is a promising option for skilled traders seeking to advance their careers, offering a challenging yet rewarding environment for those who can demonstrate their trading prowess and consistency. Click here to get started on your trading journey today.