Home Forex Brokers FTMO Is it the Best Solution for Traders with no Capital?

FTMO Is it the Best Solution for Traders with no Capital?

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FTMO Is it the Best Solution for Traders with no Capital?

What Is FTMO: An Introduction

Proprietary trading companies have long existed since the near beginning of financial markets. Previously these were only available in the big banks, hedge funds, trading firms, etc., but now, with the development in internet technology, a person can sit and manage funds from the comfort of their home. FTMO is the name of one such facility which provides proprietary services to ordinary traders who prove their worth by undertaking a challenge and verification procedure. Since its inception in 2014, the company has quickly risen to fame and is a top choice among newbies, amateurs, and professionals looking for trading capital.

What Are the Steps to Manage Capital in FTMO?

There are two major stages through which every trader must pass to receive funding:

  • Challenge (Minimum ten trading days)
  • Verification (Minimum ten trading days)

A trading challenge can be taken under various adjustable parameters that include risk appetite, balance, and currency. If one cannot meet the profit target of 10 percent during the challenge, FTMO provides a new one for free. The second stage has half the number of requirements compared with the first.

Different parameters of challenges and verification
Image1: Different parameters of challenges and verification

The minimum trading period is ten days and requires a 10 percent gain with a similar maximum drawdown value. Selecting the aggressive mode multiples the factors as mentioned above by two except for trading days. FTMO takes its rules pretty seriously, and any violation will immediately result in disqualification. On the bright side, if you pass the two steps and make a profit, the fee is reimbursed to you through the first withdrawal.

Once you become a trader with the company, the profit target and time period are removed and the only requirements left are ten trading days alongside maximum drawdown. Profit share is 70/30, i.e., percent in favor of the trader and the rest in FTMOs. It is static for all equities/accounts and is non-negotiable.

FTMO Apps

As soon as you sign up, you’ll be greeted by the client area where you can see your previous tryouts and choose to take a free demo or a new challenge. The trial is available for 14 days only, but it still allows you to test their facilities. FTMO has its own exchange, which you can choose as a broker for all the funding steps. To satisfy your risk appetite on even regular accounts, lucrative leverage of 1:100 is available by the proprietary company.

Account MetriX has useful insight into your trading. This section covers everything a trader would love to know; it comprises a trading journal, statistics, daily summary, objectives, etc. In case you fail their challenge, you can review and find out where you went wrong in terms of achieving the goals. They even provide you with a psychologist to remove any mental limitations or troubles. As a large portion of trading is related to the mind, removing any associated hurdles will surely boost your gains.

Detailed statistics and daily account summary are available in the client area.
Image 2: Detailed statistics and daily account summary are available in the client area.

FTMO provides you with the following apps listed below with their specific benefits:

  • The economic calendar keeps you updated on every critical upcoming financial news.
  • The statistical app has daily updates on DAX, one of the most favorite instruments at FTMO. They have analyzed the asset data for the past couple of years, therefore, executing trades on it with quite a good accuracy, which you can follow.
  • Equity simulator helps calculate the risk/reward ratio and the win rate required to stay in the positive.
  • Time zone converter is a simple tool to see when the daily limit on the FTMO server will reset. This is extremely important if you have taken a challenge as the daily loss limit is to be respected, which will reset according to the firm’s time zone.

               Area
TimeOffsetStart HourEnd Hour Max Daily Loss
FTMO Server Time (CE(S)T)17:50:38  00:00:0123:59:59
Your Local Time21:49:38 4 hrs 04:00:01 03:59:59
Table 1: A difference in the time frame shown between FTMO and GMT +3

FTMO Academy

The firms providing capital for the locals to trade try their best to ensure the traders win as it’s beneficial for them. The education section in FTMO is enriched with plenty of videos, webinars, and other useful materials. It is enough for any beginner to grasp the necessary essential components of trading not to blow up their accounts and stay profitable.

The videos under the trading academy consist of basic trading terminologies every trader must know.
Image 3: The videos under the trading academy consist of basic trading terminologies every trader must know.

Other Important Things to Know About FTMO

Like other prop firms, FTMO also offers an increase in equity if you can maintain a 10 percent profit in four months. Two of these four months must be positive, with the balance higher than the initial during the time of scale-up.

The scale-up plan. After a year and a third, a trader will have twice the amount of equity if everything goes well
Image 4: The scale-up plan. After a year and a third, a trader will have twice the amount of equity if everything goes well.

The firm prohibits trading high impact news. No new trade is allowed, and the current positions can not be closed before and after 2 minutes of a noted financial event.

During the challenge and verification, positions can be kept open during the weekend; however, for the real account, FTMO has restrictions. No trades are permitted to run free as the market closes each Friday.

The company strictly follows its rules in terms of trading objectives. As mentioned before, if you violate any single one of them, you won’t get a new chance, period.

Customer Support

Customer support is exceptional at the proprietary firm. A wide range of options are available to reach out to the company through live chat, email, or call

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