TL;DR: FTMO is a proprietary trading firm based in Prague, Czech Republic, founded in 2015. It offers two account types: the Two Step Challenge (requiring 10% then 5% profit targets, with 5% daily loss and 10% max loss limits using static drawdown and unlimited time) and the One Step Challenge (requiring 10% profit with 3% daily loss and EOD trailing drawdown, featuring a 50% best day rule). Traders can choose Standard accounts with 1:100 leverage or Swing accounts with 1:30 leverage. Account sizes range from $10,000 to $200,000, with evaluation fees from €155 to €1,080. Successful traders keep 80% profit (upgraded to 90% via the scaling plan after 4 months with 10% profit). The scaling plan increases capital by 25% per cycle with no additional fee, capping at $2,000,000 maximum. Payouts occur every 14 days with approximately 8 hours processing time on FTMO’s end.
Finding a reliable proprietary trading firm can feel overwhelming for beginner and intermediate traders. Over the past few years, the prop firm industry has grown rapidly. In 2026, many companies offer different funding models. For traders who want to increase their trading capital, these firms provide a real opportunity. They give you access to large, simulated funding accounts in exchange for a share of the profits you generate.
However, trading with a prop firm is not a path to easy money. You need a tested strategy, strict emotional control, and a clear understanding of the firm’s specific rules. This review will examine FTMO in depth. We explain how their evaluation works, what it costs, the exact risk rules you must follow, and how payouts happen.
This guide gives you an honest, educational look at FTMO for funded traders. By focusing on practical math, worked examples, and clear rules, this review will help you decide if this prop firm matches your trading style and your comfort with risk.
Introduction to FTMO and Prop Trading
FTMO is a proprietary trading firm based in Prague, Czech Republic, founded in 2015. A “prop firm” provides traders with simulated capital to trade forex, indices, commodities, and cryptocurrencies. Instead of risking your own money, you pay a one-time fee to take a trading test. Pass the test by showing you can manage risk and generate profits, and you get access to a funded account.
Once funded, you trade on a simulated account that mirrors real market conditions. The firm copies your trades into their live corporate accounts. In return for your skill, they pay you a percentage of the profits you create. This model aligns trader and company goals. Both want you to succeed because the firm makes money when you make money.
By 2026, the prop firm industry faces tight rules and market changes. Many smaller, less stable firms have shut down. FTMO has held its position and built a strong reputation for clear rules, reliable payouts, and solid infrastructure. While they may not offer the cheapest fees or the most flexible rules, traders widely trust them for their consistency. This makes them the main reference point for new traders entering this space.
How the FTMO Evaluation Process Works
FTMO does not give out large accounts to anyone who pays a fee. You must prove your trading skill through an evaluation. FTMO offers two evaluation types to fit different trading styles. The classic Two Step Challenge and the newer One Step Challenge are both run on demo accounts with virtual money.
The Two Step Challenge
The Two Step Challenge is FTMO’s traditional evaluation model. It has two phases that test your ability to make profit and stay consistent.
Phase 1 is the FTMO Challenge.
You must hit a 10% profit target based on your starting account balance. You must do this while staying within a 5% daily loss limit and a 10% maximum overall loss limit. There is no time limit. You can take weeks or months to hit the 10% target. However, you must actively trade on at least four different days to pass.
Phase 2 is the Verification.
This phase confirms your Phase 1 success was not luck. The rules are the same as Phase 1, but the profit target drops to 5%. You need only 5% profit to pass. You still must respect the 5% daily loss limit, 10% max loss limit, and four minimum trading days.
Once you pass both phases, FTMO verifies your identity, you sign a contract, and you become an FTMO Trader with a funded account.
The One Step Challenge Alternative
The One Step Challenge was created for traders who want faster funding. It removes the Verification phase. You only pass one testing phase to get a funded account.
The One Step Challenge gives you unlimited time to hit a 10% profit target. Because the evaluation is shorter, the risk limits are tighter. Instead of a 5% daily loss limit, it has a 3% daily loss limit. The 10% max loss stays the same, but it is calculated differently than the Two Step model.
The One Step Challenge also includes a “Best Day Rule” to check consistency. This rule says your biggest trading day profit cannot be more than 50% of your total required profit. This stops traders from passing with one lucky big move during a major news event.
Account Sizes and Pricing
FTMO offers account sizes to match different budgets and skill levels. The sizes show the amount of simulated capital you will manage. Remember, you pay an evaluation fee for the chance to manage this capital. You are not depositing money to trade with.
Available account sizes are $10,000, $25,000, $50,000, $100,000, and $200,000. The firm is in Europe, so fees are in Euros (EUR). You can also pay in United States Dollars (USD) or other currencies.
The evaluation fee is a one-time payment. If you pass the evaluation and get your first payout on a funded account, FTMO refunds this fee along with your profit share. If you fail by breaking a rule, you lose the fee and must pay again if you want to retry.
Here is pricing for the Two Step Challenge based on 2026 exchange rates:
- $10,000 Account: €155 (about $170–$183 USD)
- $25,000 Account: €250 (about $275 USD)
- $50,000 Account: €345 (about $380 USD)
- $100,000 Account: €540 (about $590 USD)
- $200,000 Account: €1,080 (about $1,180 USD)
The One Step Challenge costs slightly more than the Two Step. For example, a $100,000 One Step Challenge runs about $589 USD, a bit higher than the Two Step version.
Understanding the Trading Rules
Most FTMO evaluation failures do not happen because traders lack market knowledge. They happen because of poor risk management and broken rules. Learning the exact math behind these rules is essential for new and intermediate traders. For a deeper look at how drawdown rules work across different firms, check out our full guide.
Meeting the Profit Target
The profit target is the financial goal you must reach to pass an evaluation phase. It is a percentage of your starting account balance.
Example:
You buy a $100,000 challenge account with the Two Step model. Your Phase 1 target is 10%.
- 10% of $100,000 equals $10,000.
- You must grow your account to $110,000 to pass.
For Phase 2, the target drops to 5%.
- 5% of $100,000 equals $5,000.
- You must grow your Phase 2 account to $105,000 to pass.
Since there are no time limits, successful traders take a slow, patient approach.
The Daily Loss Limit
The daily loss limit is the top reason traders fail evaluations. It works like a daily stop-loss for your entire account.
For the Two Step Challenge, the daily loss limit is 5% of your starting balance. For the One Step Challenge, it is tighter at 3% of your starting balance.
This limit covers both closed and open trades. It resets every day at midnight Central European Time.
Example:
You have a $100,000 account. Your 5% daily loss limit is $5,000.
Start the day with $100,000. Take a trade that goes down $4,000. You are still okay. But if the market falls more and you hit -$5,001, your account is breached. You fail, even if the trade later recovers.
Now say your balance is $104,000 at midnight reset. Your 5% daily limit for that day is still $5,000 (based on your starting equity). Your account cannot drop below $99,000 during that 24-hour period.
The Maximum Overall Loss Limit
The maximum overall loss is the hard limit your account cannot cross. If your equity drops below it at any point, the account closes. Both One Step and Two Step challenges have a 10% max loss limit. But it is calculated differently.
Static Drawdown (Two Step Challenge):
FTMO uses a fixed drawdown for the Two Step model. The 10% limit stays tied to your starting balance forever.
Start with $100,000. Your 10% max loss is $10,000. Your balance can never drop below $90,000.
A big plus of static drawdown vs trailing drawdown is that the static model lets you build a safety cushion. If you make a $5,000 profit and reach $105,000, your stop-out line stays frozen at $90,000. You now have $15,000 of room to work with.
Trailing Drawdown (One Step Challenge):
The One Step Challenge uses an End-of-Day (EOD) trailing drawdown. The 10% limit follows your highest balance at the close of each trading day.
- Day 1: Start with $100,000. Your loss limit is $90,000.
- Day 2: Make a profit and close at $104,000. Your 10% loss limit now trails up. It is $104,000 minus $10,000, setting your new termination line at $94,000.
This trailing system makes the One Step Challenge stricter because you cannot build a safety buffer the same way as the static model.
The Best Day Rule for One Step Accounts
Traders on the One Step Challenge must respect the 50% Best Day Rule. This says no single trading day can be more than 50% of your total profit target.
Example:
You have a $100,000 One Step Challenge. Your goal is $10,000 profit.
You make $6,000 on a Tuesday by trading a big news move. Tuesday is 60% of your $10,000 goal.
You did not break the rule, but your profit target extends. To pass, you must keep trading until that $6,000 day is less than 50% of your total profit. You need over $12,000 total profit before you can pass the evaluation.
Standard Accounts versus Swing Accounts
When you set up your FTMO evaluation, you must choose between a Standard Account and a Swing Account. This choice changes your trading parameters once you are fully funded.
The Standard Account:
The Standard account suits day traders and scalpers. It offers high maximum leverage of 1:100. But this high leverage comes with strict rules once you pass and get funded. On a funded Standard account, you cannot hold trades over the weekend. You must close all positions before Friday’s market close. You also cannot open or close trades within two minutes before or after major news releases.
The Swing Account:
The Swing account works for traders who want to hold positions for days or weeks. To balance the risk of holding through volatile times, max leverage is 1:30. In exchange for lower leverage, you get full freedom. You can hold trades overnight, keep positions open over the weekend, and trade through major news events.
Understanding Leverage
For new traders, the gap between 1:100 and 1:30 leverage may seem big, but it is simple to manage with the right position size. Leverage dictates how much margin you need to open a trade. If your strategy needs a $300 stop-loss, you can take that trade on a 1:30 Swing account with the right lot size. Experienced traders often favor the Swing account because the freedom from news limits and weekend closures matter more than having huge leverage.
Profit Splits and Payouts
The main goal of taking an FTMO challenge is to get a funded account and earn payouts. FTMO’s payout process is known as one of the best in the prop firm industry.
When you start on a funded account, the default profit split is 80/20. This means you keep 80% of all profits, and FTMO keeps 20% to cover costs and revenue.
You can request your first payout 14 days after your first trade on the funded account. After that, you can set up a bi-weekly (every 14 days) or monthly payout schedule.
To request a withdrawal, your account must show profit and all trades must be closed. The minimum withdrawal is $20 for bank transfers and $50 for crypto.
Once you request a withdrawal, FTMO processes it in about 8 hours on average. Depending on your payment method, funds reach your bank account in 1 to 5 business days. Traders frequently praise FTMO for this speed and reliability. You can see verified FTMO payout proof and processing history in our trust profile.
The FTMO Scaling Plan
For intermediate traders building a trading career, a starting $100,000 or $200,000 account may feel limiting over time. FTMO has a Scaling Plan to reward consistent traders. This program grows your account balance without requiring you to pay another fee or pass another evaluation.
To qualify for account growth, meet these requirements over four months:
- Time Requirement: Trade on the funded account for four months minimum.
- Profit Target: Generate 10% total profit over those four months (average 2.5% per month).
- Payouts: Process at least two successful payouts during the four months.
- Positive Balance: Your account must show profit when the scale happens.
If you meet all requirements, FTMO increases your starting balance by 25%. Your profit split also upgrades from 80% to 90% for good. You can continue scaling every four months up to $2,000,000 maximum.
Example of Account Growth
Here is how the scaling plan works for a trader who starts with $400,000 (two merged $200,000 accounts).
- Month 0 (Start): Balance $400,000. Daily loss limit $20,000. Max loss $40,000.
- Month 4: You make 10% profit ($40,000) and take two payouts. FTMO adds 25% ($100,000). New balance $500,000. Daily loss limit $25,000. Max loss $50,000. Profit split now 90%.
- Month 8: You make another 10% profit ($50,000) over four months. FTMO adds another 25% ($100,000). New balance $600,000. Daily loss limit $30,000.
- Month 12: After another successful four months, your balance grows to $700,000.
This pattern shows how a disciplined trader can grow their earning power over one to two years without risking any personal money.
Strategies for Passing the Evaluation
About 90% of traders fail prop firm challenges. This high failure rate is usually not because markets are hard. It is because traders lack emotional control and use poor position sizing. Our guide on why traders fail funded accounts covers the most common mistakes in detail.
Risk Small Per Trade:
Many traders misread the 5% daily loss limit. They think it means they can risk 3% per trade. But if that trade hits the stop loss, slippage and fees push daily loss to 3.1%. You feel afraid to take another trade because one more loss will hit the 5% limit and end your account.
Professional traders advise risking 0.5% to 1% of your account per trade. On a $100,000 account, 1% risk means a $1,000 stop loss. You can then lose four trades in one day and still survive.
Trade Consistently, Not Fast:
The standard evaluations have no time limits. There is no reason to rush. Trying to make 10% profit in three days means taking huge risks with big positions. A better approach is to aim for 15 to 20 solid trade setups over three to four weeks. Making 2% per week is a safe, pro pace that gets you through the challenge phases.
Comparing FTMO to Other Prop Firms
The prop firm space is competitive, and FTMO is not the only choice. Many traders compare firms by fee, payout speed, rule flexibility, and max capital. FTMO is known for its strong reputation and reliability, but other firms have their own strengths for different trading styles.
- The5ers: Swing traders and those wanting long-term growth favor this firm. While FTMO caps initial capital at $200,000, The5ers scales up to $4,000,000. Their challenges often need just 8% profit for Phase 1 instead of FTMO’s 10%.
- Funding Pips: This firm offers cheap evaluations and is popular with budget-conscious traders. They give up to 100% profit splits under certain terms and fast funding. But their leverage is lower than FTMO standard accounts.
- FunderPro: This firm offers daily payouts once you hit 1% profit on Pro accounts. They are flexible with rules, allowing unlimited time, news trading, and weekend holds by default. This makes them good for traders who find FTMO’s Standard rules too tight.
- Topstep: For futures traders (not forex or CFDs), Topstep is the top choice. They have a structured evaluation for futures and let traders keep 100% of the first $10,000 in profit.
Prop Firm Comparison Table
Here is how FTMO compares to its main competitors in 2026. All figures show standard terms and may change with promotions or special tiers.
| Feature | FTMO | The5ers | Funding Pips | FunderPro |
|---|---|---|---|---|
| Max Initial Funding | Up to $200,000 | Up to $20,000 (Scales higher) | Up to $100,000+ | Up to $200,000 |
| Profit Split | 80% to 90% | 50% to 100% | 80% to 100% | Up to 80% |
| Phase 1 Profit Target | 10% | 8% to 10% | 8% | 10% |
| Drawdown Type | Static (Two Step) | Static/Trailing by tier | Balance-Based | Balance-Based |
| Time Limits | Unlimited | Unlimited | Unlimited | Unlimited |
| Scaling Cap | $2,000,000 | $4,000,000 | $2,000,000 | $5,000,000+ |
Frequently Asked Questions
What happens if I hit the daily loss limit?
If your account drops below the 5% daily loss limit (or 3% on One Step) any time during the day, your account closes immediately. There are no warnings or extra time. You lose your evaluation fee and must buy a new challenge to try again.
Can I hold trades over the weekend?
It depends on your account type. On a Standard FTMO Account, you must close all trades before the weekend closes. On the FTMO Swing Account, there are no limits. You can hold trades overnight and over weekends.
How fast are FTMO payouts?
FTMO is known for quick payouts. Once you request a withdrawal, processing takes about 8 hours on average. After that, time depends on your bank. Crypto transfers usually finish within hours. Bank wires may take 2 to 5 business days.
What is the maximum capital I can trade?
Through standard evaluations, you can buy and merge accounts up to $400,000 initially. If you show steady profits and qualify for the Scaling Plan, FTMO will grow your balance over time up to $2,000,000 maximum.
Does FTMO refund the challenge fee?
Yes, but only if you pass. The evaluation fee is a one-time refundable charge. Once you pass Phase 1 and Phase 2, verify who you are, trade on the funded account, and get your first payout, your original fee is refunded with your profit share. If you fail, the fee is not refunded.
Conclusion
As the prop firm industry grows in 2026, FTMO stands out as a top choice for new and intermediate traders. The evaluation is hard on purpose. It mirrors the strict risk rules needed by professional financial firms.
FTMO’s main strengths are clear rules, reliable payouts, and a strong scaling plan. The One Step Challenge gives a faster path to funding for aggressive traders. But the Two Step Challenge is safer because of its static drawdown rules and larger daily loss limits.
When comparing prop firms, remember that success depends on protecting your capital. Build a plan that risks no more than 1% per trade. This lets you easily handle the 5% daily loss limits. Whether you pick the high leverage of a Standard account or the weekend freedom of a Swing account, FTMO gives you the solid setup needed to turn careful demo trading into real money. For traders who value patience and consistency over quick gains, FTMO is a strong choice in 2026.
