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FTMO Prop Trading Firm: How It Works, Evaluation Process, Profit Split & More

FTMO is a leading proprietary trading firm (or prop firm) widely regarded as one of the best prop trading firms for Forex and CFD traders. Founded in 2015 and based in Prague, FTMO has built a strong reputation for transparency and trader-friendly conditions. The firm’s model is simple: you trade on a demo account during an evaluation, and if you meet all requirements, FTMO funds you with a live FTMO Account (in a simulated environment) to trade company capital – allowing you to keep up to 80–90% of the profits while FTMO covers the losses. This funding model means traders can access significant capital (initial accounts up to $200,000) without risking their own money. FTMO has thousands of traders from over 180 countries and has paid out tens of millions in profits, earning accolades like the Deloitte Technology Fast 50 award for multiple years. In this post, we’ll explain how FTMO works – covering the evaluation process, account types (normal risk model), profit split, scaling plan, trader support – and compare FTMO to other top prop firms. We’ll also show how you can get an FTMO discount on the challenge fees (via TopPropOffers.com) and why FTMO stands out in the industry.

How FTMO Works: Funding Model Overview

FTMO operates on a prove-yourself-first funding model. Traders don’t get immediate live capital; instead, you must pass a two-phase evaluation on demo accounts to demonstrate profitable trading and sound risk management. The process works as follows: you pay a one-time fee to take the FTMO Challenge (Phase 1) and, upon passing, proceed to a Verification (Phase 2). If you succeed in both steps while following all rules, you are offered a funded FTMO Account to trade capital provided by FTMO. This FTMO Account is a funded demo account (the trades are simulated on FTMO’s servers), but it’s connected to FTMO’s live trading capital. In practice, this means you trade as if live, and FTMO covers the risk – you keep 80% of any profits you generate (with the option to reach 90% profit share through consistent performance). Notably, FTMO refunds your challenge fee with your first profit payout, so successful traders essentially join for free. If you fail the challenge, you can always try again (paying a new fee each time), but FTMO even offers free re-takes if you didn’t hit the profit target but ended the trial in profit without violating any loss rules. Overall, FTMO’s model lets traders access large funding with no personal financial risk beyond the initial fee, making it a popular choice for those who can trade well but lack big capital.

 

Account Types and Risk Settings

During the FTMO Challenge signup, traders choose their account parameters such as account size, base currency, and risk mode. FTMO’s account types previously included a Normal and an Aggressive risk model – however, the aggressive risk option is no longer available (FTMO discontinued it, so now all challenges use the standard risk settings). Under the normal risk model (Standard Account), the rules are as follows in the challenge: Profit Target of 10% (of initial balance) for Phase 1 and 5% for Phase 2, a Max Daily Loss of 5%, and a Max Total Loss of 10% of the account balance. For example, on a $100,000 account challenge, you cannot lose more than $5,000 in a single day or $10,000 total, and you need to profit $10,000 to pass Phase 1. (FTMO formerly offered an “Aggressive” account with double the drawdown limits and a 20% profit target, but this has been phased out in favor of a single standard model.)

FTMO also offers a Swing account option (within the normal risk model) for traders who want more flexibility holding trades over longer periods. The Swing account has the same profit targets and drawdown rules, but leverage is reduced (e.g. 1:30 instead of 1:100) to accommodate overnight or weekend positions. This is useful for swing traders, since the regular FTMO accounts typically require you to close positions by the weekend or avoid certain high-impact news events. Aside from that, all account types have the same profit split and rules. Traders can choose their account size from $10,000 up to $200,000 for the challenge. Note that FTMO allows traders to have multiple funded accounts and even merge accounts, with a maximum combined capital of $400,000 at the start. Through the scaling plan (explained later), this can grow even further.

 

FTMO Challenge Fee and Discounts

FTMO’s evaluation isn’t free – you must pay a challenge fee when you sign up for Phase 1. The fee varies by account size; for instance, a $100,000 normal risk challenge costs around €540, a $50,000 challenge is about €345, and the smallest $10,000 challenge is roughly €155 (recently on special for €89. This fee covers both stages (you don’t pay again for Verification or for the funded account) and, as mentioned, the fee is refunded to you with your first profit split once you’re funded. That effectively makes the evaluation risk-free if you succeed. If you fail, the fee is not refunded, but FTMO’s free retry policy can save you money – if your challenge ends with a profit (even small) and no rule violations, they’ll give you a new challenge at no charge.

Saving on FTMO fees: While FTMO itself rarely offers public sales or big promotions (they pride themselves on consistency rather than constant sales), you can sometimes get an FTMO discount on the challenge fee via third-party affiliates. For example, the affiliate site TopPropOffers.com provides discount codes for FTMO and other prop firms, which can reduce your fee or add bonuses when signing up. Such platforms aggregate the latest prop firm sales and promo codes, helping traders start with lower costs. If you’re planning to attempt an FTMO Challenge, it’s worth checking TopPropOffers.com for any FTMO discount code to save a percentage off the fee.

 

FTMO Evaluation Process: Challenge & Verification

FTMO’s evaluation consists of two phases designed to test your trading ability and discipline. The rules (called “Trading Objectives”) ensure that you can make profits while controlling risk. Here’s a breakdown of each step in the FTMO evaluation:

  • Phase 1 – FTMO Challenge: This is the initial challenge where you must achieve a Profit Target of 10% within the allowed trading period while respecting the drawdown limits. Important update: FTMO no longer imposes a strict time limit like 30 days for the challenge – **there is no maximum time limit; the trading period is now indefinite. You can take as long as needed to hit the target, with the only requirement being a minimum of 4 trading days of activity. (This change greatly reduces pressure on traders, as earlier versions had a 30-day limit.) You pass Phase 1 by reaching 10% profit before violating any loss limits. Additionally, you must trade at least 4 days – this simply means you can’t hit the target in one lucky day and stop; FTMO wants to see consistent trading over a few days. If you pass, you move to Phase 2. If you fail (by not reaching 10% or by breaking the loss rules), the challenge ends.
  • Phase 2 – Verification: This is a second, shorter evaluation to verify your performance. The rules in Verification are a bit easier: the Profit Target is reduced to 5% (half of Phase 1) while the drawdown limits remain the same (5% max daily loss, 10% max total loss). Again, there is no set time limit to hit the 5% – you have an indefinite period, but with a minimum of 4 trading days. Many traders complete Verification within another month or two, but you’re not forced to rush. There is no fee for Verification – you only paid once at the start. If you achieve the 5% profit without breaking any rules, you pass Verification and will be offered a funded account. Just like the Challenge, FTMO allows a free retry of Verification if you end positive but under the target and with no violations.

After passing these two steps, you officially become an FTMO Funded Trader (Phase 3). You sign an agreement with FTMO and receive your login for the funded FTMO Account to start live trading with company funds. It’s worth noting that FTMO’s rules (max daily and total loss) continue to apply on the funded account to ensure you don’t take excessive risks with their capital. But there is no profit target anymore once funded – you trade to earn profits at your own pace. FTMO’s model is very trader-friendly in that you can even withdraw profits anytime (payouts are processed on-demand, as frequently as bi-weekly). The profit split at the funded stage starts at 80% to the trader by default. This means you keep 80% of all profits you make, while 20% goes to FTMO as their share. Notably, FTMO’s profit split is among the highest in the industry (many firms offer 70% or 75% by default). And as we’ll cover next, you can increase it to 90% with good performance.

 

Profit Split and Payouts

One of FTMO’s biggest appeals is its generous profit split. All funded FTMO traders receive 80% of the profits they generate on their funded account. For example, if you make $5,000 in a month, $4,000 is yours and $1,000 goes to FTMO. Profit withdrawals (FTMO calls them “reward payouts”) can be requested on a bi-weekly basis, and FTMO is known for paying out quickly – often within hours after you request a withdrawal. In fact, the average payout processing time has been cited as around 8 hours, which means traders get their money the same day in many cases. You can withdraw via bank transfer or other supported methods, and there are no hidden fees on payouts.

FTMO’s profit split can become even more attractive through its Scaling Plan. Traders who demonstrate consistent profitability over time are rewarded with a higher profit share. Specifically, if you meet the scaling criteria (detailed in the next section), FTMO will increase your profit split to 90%. A 90/10 profit split is outstanding in this industry – it means the trader keeps the vast majority of profits, comparable to or better than most competitors. Achieving the 90% profit share effectively means FTMO only keeps 10% as an administrative fee, maximizing the trader’s earnings.

Another nice aspect: FTMO refunds your challenge fee with your first profit split payout. For instance, if you paid €540 for a 100k challenge, when you get your first profit withdrawal, FTMO will add €540 to it (on top of your profits) to reimburse the fee. This policy shows FTMO’s confidence in successful traders and essentially makes the evaluation free if you succeed.

 

FTMO Scaling Plan: Grow Your Account

FTMO encourages traders to stay consistent by offering a Scaling Plan that can dramatically increase your account size over time. Here’s how it works: Every 4 months, FTMO reviews your performance. If you met the conditions – at least 10% net profit over the last 4 months (equivalent to roughly 2.5% per month on average) and at least two profit withdrawals in that period, with no violations – then you qualify for scaling. Upon qualifying, FTMO will increase your account balance by 25% and simultaneously raise your profit split to 90% going forward. This means your $100k account would become $125k, or a $200k account becomes $250k, and so on, and you keep 90% of profits thereafter. The scaling can be applied repeatedly; every 4-month cycle that you hit the +10% target and meet the criteria, the account grows by another 25%.

FTMO caps the scaling at a maximum initial account size of $2,000,000 per trader Considering you can start with up to $400k (by combining accounts or via the FTMO Premium** program), reaching $2M is achievable after several successful scaling increments. For example, a trader who starts with a $200k account could scale to $250k, then $312k, $390k, and eventually up to $2M if performance is consistently strong. At that point, the 90% profit share means potentially very substantial payouts. Few other prop firms have such a clear and attainable scaling plan with profit split increases. This is a key strength of FTMO – it provides a pathway for traders to grow into managing seven-figure capital without additional cost or re-evaluation, purely by trading well over time.

Why does scaling matter? It incentivizes disciplined trading. Even after getting funded, aiming for that 10% in four months (which is very reasonable) can lead to more capital. More capital means you can trade larger lot sizes for the same risk percentage, hence potentially higher absolute profits. And with 90% of those profits going to you, FTMO’s scaling plan can significantly boost a trader’s income in the long run.

 

Trader Support and Resources

FTMO distinguishes itself not just by its funding program, but also by the support and resources it provides to traders. Once you join FTMO (even during the challenge), you gain access to a suite of tools and services designed to help improve your performance. In the FTMO Client Area and mobile app, traders can use advanced account analytics to review their trades, an Account MetriX dashboard to track objectives, a Trading Journal, and even a Mentor App that helps monitor your risk (for example, alerting if you exceed certain lot sizes or session times). FTMO also offers educational content through the FTMO Academy and Blog, sharing trading tips and market analysis.

A unique aspect of FTMO’s support is their Performance Coaches. These are psychologists/trading coaches available to funded traders who need help with the mental side of trading. Performance coaching sessions can help traders overcome issues like anxiety, over-trading, or lack of discipline. This level of support shows that FTMO is invested in trader development, not just collecting fees. Additionally, FTMO maintains a community Discord and other social channels where traders can connect.

In terms of customer service, FTMO is top-notch. Their support team is available 24/7 via email, live chat, and even WhatsApp, and supports traders in 18 different languages. This is a big plus, as many prop firms have limited support hours or slow response times. FTMO traders often report that queries about accounts or payouts are addressed quickly and professionally.

FTMO also stays up to date with technology – they offer trading on MT4, MT5, and cTrader platforms, giving flexibility for traders’ preferences. They provide an Economic Calendar highlighting news events (including which events are restricted to trade if any) and various trading calculators. If you prefer hands-off strategies, FTMO allows use of EAs (Expert Advisors) and algo trading, and even offers a Swing account type specifically for those who hold trades longer or during news. The only strategies that are off-limits are those that exploit technical platform loopholes (e.g. latency arbitrage). Normal strategy freedom – including news trading and weekend holding (on swing accounts) – is allowed, which is not the case with some other prop firms that ban certain styles. In summary, FTMO provides a very supportive environment for traders to succeed: from tools and coaching to responsive support.

 

FTMO vs. Other Top Prop Firms

The prop trading industry has grown crowded, but FTMO remains a benchmark against which others are compared. How does FTMO stack up against other top prop firms, and what are its unique strengths?

  • Two-Step Evaluation vs. One-Step: Some competitors offer one-step evaluations or even instant funding. For example, firms like MyFundedFX or Funded Trading Plus have single-phase challenges, and a few like TopStepTrader (focused on futures) use a monthly subscription model instead of one-time fees. While a one-step challenge might seem easier, FTMO’s two-step process ensures traders can perform consistently, which ultimately leads to more reliable funded traders. The slightly longer vetting might be a con for impatient traders, but it’s a quality filter – and remember, FTMO removed the time limits, so you have flexibility. Many traders actually prefer FTMO’s structured approach because it forces good risk management habits, whereas one-step challenges can encourage reckless trading to hit a single target.
  • Profit Split and Payouts: FTMO’s 80% base profit split (scaling to 90%) is among the highest in the industry. Some competitors have tried to match or even exceed this – for instance, The Funded Trader and others sometimes advertise up to 90-100% in special cases. However, those often come with conditions (like profit split increases only after many payouts or for higher fee “instant funding” programs). FTMO’s 80% is standard from the start for all, and 90% is realistically attainable via the scaling plan. Also, FTMO has a long track record of reliable and fast payouts. Newer firms may offer high splits on paper but have shorter operating histories, so trust is a factor. FTMO’s reputation for paying out on time (usually within hours) and transparently is a huge strength.
  • Maximum Capital and Scaling: Initially, FTMO allows up to $400k in combined accounts per trader (e.g., 2×200k accounts). Some rivals offer larger instant account sizes or scaling: for example, The5%ers (another well-known firm) starts smaller but can scale accounts up to $4M with a different multi-stage program. FundedNext and others advertise scaling to $1–2M as well. FTMO’s approach is to start a bit lower but steadily scale to $2M with compounding 25% boosts. So while a few firms might edge out FTMO in max capital, FTMO provides a very achievable path to seven-figure funding. Considering their combination of high capital and high profit share, FTMO remains extremely competitive.
  • Trading Conditions: FTMO is known for decent trading conditions – they use reputable liquidity providers (and even have a connection to a sister company, Quantlane). Traders get up to 1:100 leverage on standard accounts, a wide range of instruments (Forex, indices, commodities, crypto, stocks), and professional platforms. Spreads and commissions with FTMO are generally competitive (for example, major FX pairs have low spreads, with a small commission per lot). Some newer prop firms offer raw spreads or gimmicks like no lot size limits; FTMO already does not limit position size or lot count (just the drawdown limits). There are no monthly data fees or recurring costs – once you pay the challenge fee, there’s no other cost except maybe a small withdrawal fee depending on method. Overall, trading with FTMO feels much like trading with a decent broker account. In comparison, some competitors might have stricter rules (like consistency rules, lot size limits, or no news trading). FTMO’s rules are relatively straightforward with no “gotcha” rules that some firms use to trip up traders. This fairness is a big reason many traders choose FTMO over others.
  • Reputation and Trust: FTMO has been operating since 2015 and has garnered trust in the trading community. They were one of the pioneers of the two-step funding model and have maintained an excellent reputation (4.8/5 on Trustpilot, for example). They have also been featured in major media (Forbes) and won awards, adding credibility. In contrast, some popular prop firms that rose quickly (offering cheaper challenges) have also faced issues – e.g., regulatory shutdowns or payment troubles. FTMO’s longevity and stable operations are a huge plus. As one trader succinctly put it, “FTMO is awesome. They’ve been around the longest, have the most experience, and it shows. No silly discounts, no gimmicks. Customer service is super fast.”. This community sentiment reflects FTMO’s strengths: professionalism, reliability, and focus on trader success rather than marketing tricks.

In summary, while there are many prop firms out there – The5%ers, Topstep, The Funded Trader, FundedNext, MyFundedFX, and more – FTMO consistently ranks at the top due to its balanced funding program and strong track record. FTMO might not always be the cheapest option (its fees are slightly higher than some competitors), but you are paying for quality, support, and the assurance that the firm will deliver on its promises. The combination of an 80–90% profit split, up to $2M scaling, quick payouts, and comprehensive trader support makes FTMO a flagship prop firm in the industry.

 

Conclusion

FTMO has proven itself as a premier proprietary trading firm for traders of all levels. Whether you’re an ambitious beginner or an experienced trader, FTMO’s structured evaluation provides a clear path to securing funding. We’ve covered how FTMO works – from the two-step FTMO Challenge and Verification process, to the normal risk account rules (5%/10% risk limits), the generous 80% profit split (scalable to 90%), and the lucrative scaling plan that can grow your account towards $2 million. We also discussed FTMO’s excellent trader support, including educational resources, performance coaching, and 24/7 customer service. These features, along with FTMO’s reputation for trustworthiness, set it apart from other prop firms.

If you’re considering taking an FTMO Challenge, make sure you understand the trading objectives and have a solid strategy in place. Treat it like a real account with strict risk management – that’s exactly what FTMO is looking for. And don’t forget to take advantage of any FTMO discount codes available (for instance, via TopPropOffers.com which aggregates prop firm deals) to save on your challenge fee. Starting with a discount is always nice, but ultimately your skill and discipline will determine success in the evaluation.

FTMO offers an exciting opportunity: trade with substantial capital and keep the majority of the profits. For those who can rise to the challenge, FTMO can literally be career-changing – many traders have used FTMO’s funding to generate life-changing income streams. With its emphasis on transparency, fairness, and trader growth, FTMO continues to be a top choice in 2025 for prop trading hopefuls. Good luck on your trading journey – maybe the next big FTMO payout will have your name on it!