For most newbie forex traders, the main problem is the lack of capital. If you are one of those traders, you can consider getting started with a funded platform. Just make sure you are mentally ready before taking this step as you don’t want to lose money for no reason. Getting ready is as simple as demoing, back-testing, following a mentor and getting your mind right with books. Demo by using the FTMO and passing their demo challenge for FREE before paying any money.
When you are just getting started with trading, becoming a sole trader can be a bit risky. By becoming a sole forex trader, you will be risking your own money and then learning. There will be high chances that you will end up losing your hard-earned money.
This is when the importance of funded forex platforms comes in. By using a funded forex platform, you do not have to put your own capital at risk. You will be using the firm’s capital. FTMO is one of the popular funded forex trading platforms out there.
Before you trade with the company’s capital and become a trader, you must pass the evaluation process. When you sign up with FTMO, the evaluation process consists of two steps – FTMO Challenge and Verification. In this post, we will talk about how much does FTMO Challenge cost. First, let’s understand what exactly this FTMO Challenge is?
What is FTMO Challenge?
FTMO Challenge is a crucial part of FTMO’s Evaluation process. The company has built a two-step evaluation process to find traders with the best trading strategies and skills. The company has formulated its own rules for both steps.
The first step is known as FTMO Challenge and the second step is the Verification step. The FTMO Challenge is the step that supports the funders to decide whether the trader is responsible and intelligent enough in managing the capital or not.
Although you won’t be trading with real money under this step, it still plays a crucial role. In order to move forward to the next step (i.e., the Verification step), you must fulfill all the Trading Objectives set by the firm within the given time. Depending on whether it’s FTMO Challenge or Verification step, the Trading Objectives in both the steps are different.
In order to move to the second step, you must achieve the trading objectives within 30 days of the time period. Once you successfully complete in the given time period, you can move forward to the Verification step. When you get started with FTMO, it charges money. Your question might be how much it will cost for the first step.
How Much Does FTMO Challenge Cost?
The cost for FTMO Challenge and Verification steps won’t be charged separately. The fee you will be paying for the FTMO Challenge step will cover everything, including the Verification. Besides this, the company does not charge any hidden or recurring fees from its traders. When it comes to fees and costs, the company maintains transparency by not charging any hidden fees.
When you will be starting out with the FTMO Challenge step, you will be charged €155. This will be the charge when you choose the balance of $10,000. Depending on whether you choose the balance of $10,000, $25,000, $50,000, $100,000, or $200,000, the charges for FTMO Challenge will vary. Remember that this fee is reimbursed to you with the first profit split when you become the FTMO Trader. In a nutshell, if you have got amazing trading skills & strategies, you can start working on this trading platform for absolutely nothing.
What is the Verification step?
Another step in the Evaluation process of FTMO is the verification step. Under this step, the Trading Objectives are pretty easier than the FTMO Challenge step. Under the Verification step, you will get an increased trading period, and there will be a lower profit target. This way, passing the second stage would be a lot easier.
After the firm gets an idea about your skills & strategies in the FTMO Challenge step, the Verification step will also help with the same. Keep in mind; you won’t be charged for the Verification step separately. Whatever money you will pay in the FTMO Challenge step will include everything.
Becoming An FTMO Trader
After you successfully complete FTMO Challenge and Verification steps (the two-step evaluation process), you will become the FTMO trader. Once you become the trader on this platform, the rules will be different.
With the balance of $10,000, the maximum daily loss would be $500, and the maximum total loss will be $1,000.
By becoming an FTMO trader, you do not have to risk your money in trading. You will be using the firm’s capital.
So there you have using FTMO to get funded is a great way to get started but is it the best way? Well we think they are top 3 for sure, but if you are a longer term trader or just don’t like the way you have 30 days to pass part 1 then look at our other two recommendations below. They give you 6 months and up to a year along with more funding options available over $1 million even. The costs are definitely comparable and they even have more favorable rules on passing their challenge. This includes 6% total and holding trades over weekend among other pros.
No Timeline: City Traders Imperium – CTI has been around awhile their payout isn’t the best starting at 50% to 60% then up to 70% when to get to 7 figures funded. Now why would we suggest somebody with a lesser payout? Because if the company is making more money they will be much happier relaxing the rules and letting traders do what they want. You can trade during the news, hold over the weekends and take as much time up to to a year on your verification. 50k funded account will cost you around $500 USD.
Longer Timeline: 5%ers – same thing they have a lesser payout at 50%, but you have to look at that they want you to succeed that much more with them paying you 50% and the upside is 7 figures again. They have been around awhile and they give you 6 months to pass the verification as well. It is a little pricier for the verification at around $875 USD, but again not as much pressure as a 60 day verification. Take your time and take the higher quality trades instead of rushing into them.
Most Reputable: FTMO – FTMO has been around about the longest of the most popular prop firms. They aren’t too expensive they have different tiers which used to be only up to 100k, but now they do have a 200k. The only downside with FTMO is the rules they are very strict on things like the news and not holding trades over the weekend and such. This can make you better yes, but it can hold a lot of traders back based on their strategy and principles. We have always been low risk high reward traders so it doesn’t affect us that much.