Is FTMO a good prop firm? (2024)

Are you an aspiring trader looking for a prop firm to join? Or perhaps you're already a seasoned trader but want to take your skills to the next level. Either way, you've probably come across FTMO in your search for prop trading firms. But is FTMO a good prop firm? In this blog post, we'll dive into the details of FTMO and help you determine if it's the right fit for you.

Is FTMO a good prop firm? (1)

FTMO Funding Overview

Before we get into the specifics of FTMO, let's first understand what prop trading is and how it differs from traditional trading. Prop trading, short for proprietary trading, is when a firm provides capital to traders to trade on their behalf. This allows traders to have access to larger amounts of capital than they would on their own, increasing their potential profits.

FTMO is one such prop trading firm that offers funding to traders. They provide traders with the opportunity to trade their own capital, as well as access to additional capital from FTMO. This means that traders can potentially earn a higher profit while still having the support and resources of a prop firm.

What Is FTMO?

FTMO is a prop trading firm founded in 2015 by two experienced traders, Otakar Suffner and Matus Bajur. The company is based in the Czech Republic and has quickly gained popularity among traders worldwide. They offer a unique approach to prop trading, with a focus on risk management and providing traders with the tools they need to succeed.

FTMO offers three different account types: FTMO Challenge, Verification, and FTMO Trader. We'll discuss each of these in more detail later on in this blog post.

Is FTMO a Good Prop Firm?

Now, let's answer the question at hand - is FTMO a good prop firm? The short answer is yes, but let's break down why.

FTMO Investment Options

One of the main reasons why FTMO is a good prop firm is their investment options. They offer traders the opportunity to trade with their own capital, as well as access to additional capital from FTMO. This means that traders can potentially earn higher profits while still having the support and resources of a prop firm.

Additionally, FTMO offers flexible profit splits for their traders. Traders can choose between a 70/30 or 80/20 profit split, depending on their trading style and preferences. This allows traders to have more control over their earnings and make decisions that align with their goals.

FTMO Pricing

Another factor that makes FTMO a good prop firm is their pricing structure. Unlike other prop firms that charge high fees or require traders to pay for training programs, FTMO has a simple and transparent pricing model. Traders only pay a one-time fee for the FTMO Challenge and Verification, and there are no hidden costs or recurring fees.

The pricing for the FTMO Challenge varies depending on the account size, with the smallest account starting at $99 and the largest at $499. The Verification fee is a flat rate of $199 for all account sizes. Once a trader becomes an FTMO Trader, there are no additional fees or charges.

Trading Education

FTMO offers a comprehensive trading education program for its traders. This includes video courses, webinars, and written materials covering various topics such as risk management, trading psychology, and technical analysis. The education program is designed to help traders improve their skills and become consistently profitable traders.

Moreover, FTMO also provides traders with access to their proprietary trading indicators and tools. These tools are specifically designed to help traders make better trading decisions and improve their overall performance.

Personal Mentoring

In addition to the educational resources, FTMO also offers personal mentoring for its traders. This means that traders have access to experienced traders who can provide guidance and support as they navigate the markets. The mentors at FTMO are available to answer any questions and provide feedback on trades, helping traders to continuously improve their skills.

Community Support

Another feature that sets FTMO apart is its strong community support. Traders have access to a private forum where they can interact with other traders, share ideas, and learn from each other. This creates a sense of camaraderie and allows traders to feel like they're part of a larger community, rather than just trading on their own.

Moreover, FTMO also hosts monthly webinars and live trading sessions where traders can ask questions and get real-time feedback from experienced traders. This further enhances the sense of community and provides traders with valuable insights and knowledge.

Customer Service

Last but not least, FTMO has excellent customer service. They have a dedicated team that is available to assist traders with any issues or concerns they may have. Whether it's technical difficulties or questions about the program, traders can rest assured that they will receive prompt and helpful responses from the FTMO team.

Selection Process

The selection process for FTMO is rigorous, with traders having to pass both the Challenge and Verification phases to be eligible for a funded account. This ensures that only skilled and disciplined traders are accepted into the program, which can be seen as a positive aspect of the firm.

However, some traders may find the strict risk parameters and profit targets challenging to meet, especially in the Verification phase. This could lead to frustration and disappointment if they are unable to progress to the funded account.

Profit-Sharing Scheme

FTMO's profit-sharing scheme is attractive, with traders keeping 70% of the profits they make on the funded account. This is higher than many other prop firms, which typically offer a 50/50 split. However, it is important to note that FTMO also charges a monthly fee for using their platform, which can range from $99 to $499 depending on the account level. This means that traders will need to make enough profits to cover this fee before they can start earning a share of the profits.

Trading Conditions

One of the main benefits of trading with FTMO is the flexibility it offers in terms of trading conditions. Traders have the freedom to trade any instrument and use any trading strategy they wish, as long as they stay within the risk parameters set by FTMO. This allows for a diverse trading portfolio and can be seen as a positive aspect of the firm.

However, some traders may find the risk parameters too restrictive, especially if they are used to trading with higher leverage or taking on more risk. This could limit their potential profits and may not be suitable for all trading styles.

How Does It Work?

Now that we've covered the features and benefits of FTMO, let's take a closer look at how the program works.

  • FTMO Challenge

The first step in becoming an FTMO Trader is to pass the FTMO Challenge. This is a two-part evaluation process that tests traders' skills and risk management abilities. Traders must trade a demo account and reach the profit target within a specific time frame while adhering to strict risk management rules.

  • Verification

Once a trader successfully completes the FTMO Challenge, they move on to the Verification stage. This involves trading a live account with FTMO's capital and reaching the profit target within a specific time frame. Traders must also adhere to strict risk management rules during this stage.

  • Becoming an FTMO Trader

If a trader successfully completes both the FTMO Challenge and Verification, they become an FTMO Trader. This means that they can trade their own capital, as well as access additional capital from FTMO. Traders also have the option to choose between a 70/30 or 80/20 profit split at this stage.

Is FTMO a Scam or Legit? Is FTMO Safe?

With any prop trading firm, there may be concerns about its legitimacy and safety. However, after thorough research and personal experience, it can be concluded that FTMO is not a scam and is a legitimate prop trading firm.

FTMO has a transparent and straightforward approach to prop trading, with no hidden fees or charges. They also have a strong track record of successful traders who have gone on to become profitable and consistent traders. Moreover, FTMO is regulated by the Czech National Bank, providing an added layer of security and credibility.

In terms of safety, FTMO takes risk management very seriously. They have strict rules in place to protect both traders and the company's capital. Additionally, all traders' funds are kept in segregated accounts, ensuring that they are safe and secure.

Conclusion

In conclusion, FTMO is a good prop firm for traders looking to take their skills to the next level. With its flexible investment options, transparent pricing, and comprehensive features, FTMO provides traders with the resources and support they need to succeed. Whether you're a new or experienced trader, FTMO offers a unique and valuable opportunity to grow and improve as a trader. So, if you're considering joining a prop firm, FTMO is definitely worth considering.

FAQs

What is the minimum deposit required to start trading with FTMO?

There is no minimum deposit required to start trading with FTMO. However, traders will need to pay a monthly fee ranging from $99 to $499 depending on the account level.

Is FTMO regulated?

FTMO is not regulated by any financial authority. However, they do have a legal entity registered in the Czech Republic.

Can I withdraw my profits at any time?

Yes, traders can withdraw their profits at any time. However, there is a 30-day holding period for profits made on the funded account.

Are there any restrictions on trading strategies?

Traders have the freedom to use any trading strategy they wish, as long as they stay within the risk parameters set by FTMO.

Is FTMO suitable for beginner traders?

FTMO's selection process and strict risk parameters may make it challenging for beginner traders to pass the Challenge and Verification phases. It is recommended for more experienced traders who have a proven track record of profitable trading.

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