FTMO Rules
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Structure of FTMO Evaluation Model
FTMO uses a two-stage evaluation system. Each stage requires the trader to meet performance objectives while maintaining strict control over risk.
FTMO Evaluation Phases – Key Rules Comparison
Parameter | FTMO Challenge | Verification Stage |
Profit Target | 10% | 5% |
Max Daily Loss | 5% of initial balance | 5% |
Max Overall Loss | 10% of initial balance | 10% |
Minimum Trading Days | 4 | 4 |
Time Limit | No limit (soft limit may exist for scoring) | No limit |
These rules apply to all account sizes (from $10,000 to $200,000 demo balance). All profit targets are calculated based on the initial balance, not equity or balance after drawdown.
Core FTMO Rules to Follow
Once you start trading in either stage or on a funded account, there are several non-negotiable rules. Breaking these typically results in losing the account.
The main rules include:
- Max Daily Loss Rule: Your net loss from the beginning of the day must not exceed 5% of your initial balance.
- Max Loss Rule: At any time, your account must not drop below 90% of its initial balance.
- Profit Target: Specific to Challenge and Verification. No profit target exists for the FTMO Account.
- No Copy Trading or Account Sharing: You must trade alone. Copying trades from other traders or using signals from other FTMO accounts is not allowed.
- Trading News Events (Optional Restriction): You are allowed to trade during high-impact news, but in some programs, it is restricted depending on account type.
These FTMO Rules are applied uniformly. Even a single breach can result in immediate failure of the phase or termination of your FTMO Account.
What Happens After You Pass?
If you pass both the Challenge and Verification, you will be offered an FTMO Account. This account operates under a similar risk structure but with greater flexibility.
FTMO Account Conditions
Element | Description |
Profit Target | None |
Max Daily Loss | 5% of starting balance |
Max Overall Loss | 10% of starting balance |
Minimum Days | No minimum trading days |
Payout Cycle | Monthly (can be earlier after 14 days) |
Profit Split | 80% by default, up to 90% with consistent profit |
Even though you are not trading with real money (it’s a demo account), you receive real payouts based on your simulated performance.
Strategy and Platform Considerations
FTMO permits many trading styles but still imposes structure. This makes sense given their model—FTMO has to replicate a safe trading environment for simulated capital.
Approved Trading Elements
- Manual day trading
- Swing trading
- Algorithmic strategies and EAs
- Trading using MT4, MT5, cTrader, or DXtrade platforms
- Access to forex, indices, crypto, and commodities
Restricted Practices
- Martingale or grid systems that cannot be replicated on real money
- Arbitrage or tick scalping across brokers
- Sharing strategies between FTMO accounts
- Trading for third parties using your account
These rules ensure fairness across traders and protect FTMO from operational risks related to unscalable or non-compliant behavior.
Account Monitoring Tools
To help enforce the rules and assist traders, FTMO provides built-in risk and performance tools:
- MetriX: Detailed stats on performance, loss limits, and drawdowns
- Trading Journal: Logging feature for tracking strategy and decision-making
- Mentor App: Prevents overtrading with screen time and pause alerts
- FTMO Calendar: Highlights key economic events and avoids conflict with news trades
You can access all of these after registration from the FTMO Client Area. They are included free of charge in all phases.
Social Media & Community Channels
FTMO maintains active official profiles across social platforms. While not used for direct support, these channels are often updated with policy changes, education material, and trader achievements.
Summary and Risk Note
The FTMO Rules are more than guidelines—they’re a system of metrics. FTMO evaluates your ability to trade profitably and responsibly. These rules are strict by design. They’re not impossible, but they do require awareness, planning, and mental control.
If you’re unable to follow a risk plan or often trade emotionally, the FTMO system will reflect that. It won’t reward short-term gambling or big swings. Instead, it’s structured to identify traders who can stay inside well-defined limits. And that means reading and respecting the rules—not just passing the profit target.
FAQ
You immediately fail the Challenge, regardless of overall profit. There are no exceptions.
FTMO sets no hard time limits. However, traders are encouraged to complete the phases efficiently to show consistency.
Some account types restrict trading during high-impact news events. Always read your contract and current rules per account.
