If you are planning to get started in forex trading, you might be researching various funded forex platforms. FTMO is one such funded forex platform.
First, let’s understand what these funded platforms are all about? With a funded forex platform, you do not have to trade your own hard-earned capital. Instead, you will be working for the platform itself. You will be working on the strategies provided by the platform.
In this post, we are going to talk specifically about FTMO. If you are unsure whether you should use this platform or not, this post is going to help you.
What is FTMO?
FTMO is a forex trading platform where you can trade with the company capital and not your own capital. As a beginner or experienced trader, you can get started with this platform. When starting out as a forex trader, the main problem for most traders is the lack of money. Funded platforms like FTMO are built to help new as well as experienced traders get started without much capital.
If you think you have got amazing forex trading skills, becoming an FTMO trader would be easy for you. In order to find skilled forex traders, FTMO has developed a unique 2-step Evaluation Course for the traders. The evaluation process is divided into two parts – FTMO Challenge and Verification.
To become a trader at FTMO Proprietary Trading firm, it is compulsory to complete this platform’s 2-step Evaluation process. After you successfully complete the Evaluation Course, you can remotely manage the FTMO Account with a balance of up to $200,000.
Is FTMO Challenge Legit?
If you are planning to get started with an FTMO challenge, you might have a doubt whether this challenge is legit or not. We have seen that the Evaluation process consists of two essential steps – FTMO Challenge and Verification. The first step, i.e., The FTMO Challenge is the step that supports the funders to decide whether the trader is responsible and smart in managing the capital or not.
Yes, the FTMO Challenge legit. It is an essential part of the process. Keep in mind, under FTMO Challenge; you won’t be trading with the real money of the company. This is the step in which you will be learning the trading strategies of the firm with the demo account. The purpose is to enhance and improve your trading strategies & skills. The firm developed different rules for this step, known as Trading Objectives.
In order to move to the next step of the process – Verification, the trader must achieve the trading objectives. The FTMO Challenge is for 30 days. If the trader successfully completes the trading objectives without passing 30 days, he/she can move forward to the verification step.
Second Step of The Process (Verification)
Once you complete the FTMO Challenge step successfully, this is the next step in the process. This is the second and final stage of FTMO’s evaluation process. This is the step that helps the platform to test your trading consistency. As compared to the FTMO Challenge step, the Verification step has much easier Trading Objectives.
Under the Verification stage, the profit target is reduced by half. Another good thing will be you will have 60 calendar days to meet the trading objectives. After you meet trading objectives (even if it’s less than 60 days), you will get your funded account. Once you successfully complete the first step, completing the second step would be quite easier.
What Are Trading Objectives in FTMO?
In the above explanation, we have seen that FTMO has different trading objectives in both steps. In order to successfully complete both stages, it’s imperative to understand trading objectives. The evaluation process has two steps; however, there are a total of three steps for becoming an FTMO funded trader.
After Verification, the last step is for FTMO Trader. Trading Objectives in each of these steps are different. The first step’s Trading Objectives include 30 days of the trading period, ten minimum trading days, $500 maximum daily loss, $1000 maximum loss, and $1000 profit target. Talking about the second step’s Trading Objectives, it includes 60 days of the trading period, ten minimum trading days, $500 maximum daily loss, $1000 maximum loss, and $500 profit target.
After becoming the FTMO Trader, the Trading Objectives will include an indefinite trading period, ten minimum trading days, $500 maximum daily loss, and $1000 maximum loss.
In order to move to the next step of the process, make sure to fulfill the trading objectives requirements of that step. For example, if you are still in the first step, you can’t lose more than $500 in a single day, and you have to achieve the profit target of $1000 within 30 days.
FTMO is legit and is a great option for traders looking to get funded and get a nice monthly payout. Their rules are a little more strict when it comes to news events and holding trades over the weekend. However the pros far outweigh the cons with this Prop Firm.
There are other options out there for prop firms as well here are two more below that you can check out. We recommend you do your own research when looking into these prop firms. There have been quite a few over the years that haven’t been all they stated to be on the website.
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.