What is FTMO?

FTMO is a proprietary trading firm offering traders an opportunity to trade with simulated funds while adhering to strict risk management rules. The firm’s mission is to identify skilled traders and help them scale up by offering access to real capital. Through its structured evaluation process, FTMO aims to nurture traders who demonstrate consistent performance and risk control. Traders can earn profit shares and access FTMO accounts to trade larger amounts of capital once they pass through the evaluation stages.

Introduction to FTMO

FTMO was established in 2015 and has quickly become a leading firm in the world of proprietary trading. The company offers traders the chance to participate in its evaluation process, which includes three primary stages: the FTMO Challenge, Verification, and FTMO Account. Successful traders are given the opportunity to manage real trading capital and can benefit from profit sharing of up to 90%. This structured approach ensures that traders are properly tested, trained, and ready for larger financial commitments.

The FTMO model is appealing to traders looking for a chance to prove their abilities without having to risk personal funds. The firm’s evaluation process is designed to rigorously assess traders' skills in real-market conditions while maintaining strict risk management rules.

The FTMO Evaluation Process

FTMO’s evaluation process consists of three main steps, each designed to assess a trader’s ability to meet specific trading criteria.

FTMO Challenge

The first phase is the FTMO Challenge, where traders need to demonstrate their ability to make profits while following strict risk management rules. Traders must meet a profit target within a set period, but they are also required to adhere to risk limits, such as the maximum daily loss and overall drawdown limits.

• Profit Target: Traders must reach a predefined profit goal, typically 10% of the starting balance.
• Risk Management: Traders are expected to adhere to daily loss limits and maximum drawdown limits to test their ability to manage risk effectively.

Verification

The second phase is the Verification stage. Here, traders who passed the FTMO Challenge must prove their consistency by meeting lower profit targets while still adhering to the same risk management rules. This stage acts as a confirmation of the trader’s ability to maintain their performance under less stringent conditions.

• Profit Target: The profit target is halved compared to the FTMO Challenge.
• Risk Management: Risk limits remain the same, ensuring traders stay within acceptable drawdown levels.

FTMO Account

Once traders successfully pass the Challenge and Verification, they gain access to the FTMO Account, which is a real trading account funded by the firm. Traders can now use this capital to generate real profits while adhering to FTMO's risk management rules. The profit earned in the FTMO Account is split between the trader and the firm, with traders keeping up to 90% of the profits.

Trading Tools and Resources

FTMO offers a variety of tools and resources designed to support traders at each stage of the evaluation process. Traders can access educational resources, performance coaching, and advanced trading platforms. FTMO also provides a Growth and Scaling Plan that helps traders scale their accounts as they demonstrate skill and consistency.

Key Features of FTMO Tools and Services:

• FTMO Academy: A comprehensive collection of learning materials and trading strategies.
• Performance Coaching: One-on-one coaching designed to improve trading performance and mindset.
• Advanced Platforms: Traders can use professional-grade trading platforms such as MetaTrader 4 and 5 (MT4 and MT5) for their evaluations and FTMO accounts.

These resources ensure that traders have everything they need to succeed and improve as they progress through the evaluation stages.

Scaling Up with FTMO

The FTMO model allows for gradual scaling. As traders pass through the FTMO Challenge and Verification, they can increase the size of their trading capital, moving from smaller demo accounts to larger FTMO accounts. This scaling process helps traders manage risk effectively while developing their strategies and maintaining consistent performance. The scaling opportunity ensures that FTMO traders are rewarded for their hard work and performance.

Conclusion

In conclusion, FTMO offers a structured environment where traders can develop their skills, prove their abilities, and scale up to manage real capital. By offering a comprehensive evaluation process, FTMO ensures that traders are tested thoroughly before they are given access to larger amounts of capital. Traders can benefit from up to 90% profit sharing, performance coaching, and educational resources throughout the process. FTMO’s clear focus on risk management and trader development ensures that only the most consistent and skilled traders make it to the final stage of trading real funds.