If you are looking for a way to trade forex without risking your own capital, you might have heard of FTMO. FTMO is a company that offers funded accounts to traders who pass their evaluation process. In this review, we will take a look at what it is, how it works, what are the benefits and drawbacks of trading with them, and whether it is worth it or not.
What is FTMO and how does it work?
FTMO is a company that provides funding to forex traders who prove their skills and consistency in a two-step evaluation process. The evaluation consists of a Challenge and a Verification phase, where the trader has to meet certain objectives and follow certain rules within a given time frame.
If the trader passes both phases of the evaluation, he or she becomes an FTMO trader and receives a funded account with the same size as the chosen trading account in the Challenge phase. The trader can then trade with real money and keep 70% of the profits every month. It covers all the losses and provides support and education to its traders.
What is the evaluation process?
The evaluation process is designed to test the trader’s ability to trade profitably and consistently while following strict risk management rules. The evaluation process has two phases: the Challenge phase and the Verification phase.
The Challenge phase is the first and hardest part of the evaluation. Traders must choose an account size between $10,000 and $200,000 and pay a one-time fee based on the size of the account. The fee ranges from $155 for a $10,000 account to $540 for a $200,000 account.
Once traders have chosen an account size and paid the fee, they must trade for 30 calendar days and achieve a minimum profit target. The profit target varies depending on the account size, from 10% for a $10,000 account to 4% for a $200,000 account.
In addition to the profit target, traders must also follow certain risk management rules. They cannot lose more than 10% of their initial balance (maximum loss), lose more than 5% in a single day (daily loss limit), or hold positions over the weekend (trading hours).
If traders meet all of the requirements of the Challenge phase, they will be approved as a trader.
The Verification phase is the second and easier part of the evaluation. The trader has to trade for 60 calendar days and achieve a minimum profit target of 5% for the $10,000 account, 4% for the $25,000 account, 3% for the $50,000 account, 2.5% for the $100,000 account, and 2% for the $200,000 account. The trader also has to follow the same risk management rules as in the Challenge phase.
The trader can use any trading strategy or system that works on any market and timeframe. However, the trader cannot use arbitrage, scalping, hedging, martingale, grid, or any other high-risk or unethical methods.
The trader can also trade multiple accounts or instruments at the same time, as long as he or she follows the rules and objectives of each account. The trader can also combine different account sizes and instruments to diversify his or her portfolio.
The trader can change his or her trading platform or broker during the evaluation or after becoming an FTMO trader, as long as he or she informs FTMO about it and gets their approval. The trader can choose from a list of supported platforms and brokers that it works with, such as MetaTrader 4, MetaTrader 5, cTrader, NinjaTrader, etc.
What are the benefits of trading with FTMO?
It has several benefits, such as:
– You can trade with up to $200,000 of capital without risking your own money.
– You can keep 70% of your profits every month.
– You can trade any market and timeframe that suits your style.
– You can use any trading platform and broker that you prefer.
– You can withdraw your profits every month via bank transfer or Skrill.
– You can get access to various tools and resources such as performance analysis, trading journal, psychological coach, webinars, etc.
– You can get support from a dedicated account manager and a friendly community of traders.
What are the drawbacks of trading with FTMO?
Like all trading, it has some drawbacks, such as:
– You have to pay a fee to enter the evaluation process.
– You have to follow strict rules and objectives that might limit your trading style and freedom.
– You have to share 30% of your profits with FTMO every month.
– You have to trade at least 10 days per month and open at least 10 trades per month.
– You have no control over the funded account and its settings.
– You have no guarantee that you will pass the evaluation or keep your funded account.
Is this a scam or is it legit?
NO, it is not a scam but a legit company that has been operating since 2014 and has funded over 3,000 traders from more than 100 countries. It is registered in the Czech Republic and has a transparent and verified track record of its traders’ performance. It also has a positive reputation and feedback from its clients and partners. It is not a broker but a funding provider that works with various brokers and platforms. It does not manipulate the markets or the trades of its traders. It makes money from the fees paid by the applicants and the profit share from the funded traders.
FAQ
Q: How long does it take to become a trader?
A: It depends on how fast you can pass the evaluation process. The minimum time is 90 calendar days (30 days for the Challenge phase and 60 days for the Verification phase). The maximum time is 180 calendar days (60 days for each phase). Get Started Today.
Q: Can I trade multiple accounts or instruments at the same time?
A: Yes, you can trade multiple accounts or instruments at the same time, as long as you follow the rules and objectives of each account. You can also combine different account sizes and instruments to diversify your portfolio.
Q: Can I use any trading strategy or system?
A: Yes, you can use any trading strategy or system that works on any market and timeframe. You can use technical analysis, fundamental analysis, indicators, signals, robots, etc. However, you cannot use arbitrage, scalping, hedging, martingale, grid, or any other high-risk or unethical methods.
Q: Can I change my trading platform or broker during the evaluation or after becoming a trader?
A: Yes, you can change your trading platform or broker during the evaluation or after becoming a trader, as long as you inform them about it and get their approval. You can choose from a list of supported platforms and brokers that FTMO works with, such as MetaTrader 4, MetaTrader 5, cTrader, NinjaTrader, etc.
Q. There are so many traders out there. Do you recommend a worthy Forex Trader that I can learn from?
A: Yes of course! We highly recommend LNX Trading – they have over 3 years of trading experience and offer monthly and Lifetime fees. Check them out LNX Trading.
Final verdict: Is it all worth it?
100%, it is worth it if you are a skilled and consistent trader who wants to trade with more capital without risking your own money. It is also worth it if you are looking for a challenge and an opportunity to improve your trading skills and mindset.
It is not worth it if you are a beginner or an inconsistent trader who cannot follow the rules and objectives of the evaluation. It is also not worth it if you are looking for a quick and easy way to make money from trading. It is not a get-rich-quick scheme but a serious and professional company that requires commitment and dedication from its traders.
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