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Reviewing FTMO benefits and features

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FTMO, a Czech Republic-based proprietary trading firm established in 2015, offers a unique opportunity for experienced traders lacking sufficient capital. Despite being younger than many competitors, the prop firm company has made significant strides, funding over 10,000 traders across more than 180 countries.

Central to FTMO’s approach is a two-step evaluation process: the FTMO Challenge and Verification. Successful traders can manage up to $400,000, with potential growth to $2 million under the firm’s scaling plan. A standout feature is the profit split, allowing traders to keep up to 90% of profits while being insulated from losses.

Additionally, the company supports traders’ development with various tools and educational materials. The firm also offers access to three leading trading platforms: MetaTrader 4, MetaTrader 5, and cTrader.

Their reputation is bolstered by high ratings on Trustpilot and Forexpeacearmy, reflecting positive user experiences. This in-depth FTMO review provides more information about the platform.Learn More About FTMO

IS FTMO RELIABLE?

Regarding reliability, it’s important to note that FTMO, like many proprietary trading firms, is not regulated by financial authorities, as it uses its own funds rather than external liquidity providers or traders’ money.

This means that in the event of insolvency, traders with undrawn profits might be at risk. However, user testimonials, including payment proofs on platforms like Trustpilot and Forexpeacearmy, offer insights into the firm’s credibility and operations.

Remember, user reviews and opinions are crucial in assessing the credibility and effectiveness of any company. Analyzing these reviews helps identify the strengths and weaknesses of the firm.

The majority of user reviews for FTMO are highly positive, with many users rating it as the best or among the best proprietary trading firms.

FTMO Evaluation Process

The FTMO evaluation process is a critical step for traders to access real profit-making opportunities. It consists of two main stages:

FTMO Challenge

This initial phase, lasting between 4 to 30 days, assesses a trader’s profitability, responsible trading, and risk management skills. The challenge sets trading objectives with balanced profit targets and allowable losses.A one-time fee is required at the start of this phase, with no additional monthly charges. The objectives and access costs vary based on the chosen package, which determines the forex trading account size to be managed after passing the entire evaluation.

Verification

This stage follows a successful Challenge. It focuses on verifying the trader’s consistency over a longer term (up to 60 days), ensuring profitable execution of their trading strategy within the firm’s rules.The verification phase simplifies the objectives of the first stage, halving the profit targets while doubling the available time. This phase does not require an additional fee.

FTMO Trading Rules

Known for its straightforward and transparent rules, does have some variations between its evaluation phase and the rules applied to funded accounts. Understanding these rules is essential for traders who aim to succeed in the funding program.

News Trading

Evaluation Phase

During both the Challenge and the Verification stages, traders are allowed to trade during news events.

Funded Account

Once a trader successfully completes the evaluation and moves to a funded account, certain restrictions apply regarding news trading. The company maintains a calendar of significant news events, with the most critical ones marked in red. Traders are not permitted to open or close trades within 2 minutes before and after these restricted news events.

Trading Instruments and Strategies

No Restrictions on Instruments

FTMO does not impose limitations on the trading instruments. This means you trade any instrument of your choice in as much as the instrument is available on the trading platform.

Strategy Freedom

Traders are free to employ any trading strategy, including hedging and algorithmic trading, through Expert Advisors (EAs). However, it’s crucial that these strategies do not breach the risk management rules.

Risk Management Rules

Maximum Daily Loss

This rule specifies the maximum amount a trader can lose in a single day. This limit is vital in ensuring that traders practice responsible risk management.

Maximum Overall Loss

Similar to the daily loss limit, this rule sets a cap on the total amount a trader can lose. The specific values for these limits depend on the account size, both during the evaluation and in the funded account stages.

Understanding and adhering to these rules is crucial for traders aiming to succeed. The firm’s emphasis on responsible trading and risk management reflects its commitment to both the traders’ success and the protection of its own capital.

Leverage

Level of Leverage

The firm provides leverage up to 1:100. This level is not the highest among proprietary trading firms, but it is also not the lowest, striking a balance that allows traders to amplify their trades without excessive risk.

No Restrictions on Trade Size

Traders can utilize this leverage without any restrictions on the size of their trades.

The scaling plan at FTMO is designed to reward consistent and profitable trading while providing a clear and attainable path for traders to increase their trading capital and potential earnings.

This structure aligns the interests of both the trader and FTMO, promoting sustainable and responsible trading practices.

Financial Instruments Available at FTMO

FTMO offers a diverse range of financial instruments, making it an appealing option for traders with various interests and strategies:

Forex: Includes a wide array of currency pairs from Majors, Minors, to Exotics.Metals: Trading in metal CFDs.Futures: Involves trading futures CFDs.Stocks: Offers the opportunity to trade stock CFDs.Cryptocurrencies: Includes a variety of cryptocurrency CFDs.

This diverse selection enables traders to diversify their strategies and take advantage of different market conditions.

FTMO’s commitment to offering a wide range of instruments reflects its understanding of the varied interests and approaches of traders in the modern financial landscape.

Wrapping Up

FTMO offers a unique platform for traders, combining a rigorous two-step evaluation with the opportunity to manage significant capital. Its approach, focused on responsible trading and risk management, appeals to both novice and experienced traders.

With access to a variety of financial instruments and trading platforms, plus a favorable profit split, the company stands out in the proprietary trading firm landscape. Despite the lack of regulatory oversight, positive user reviews underscore its credibility.

This Czech Republic-based firm, since 2015, has adeptly balanced trader development and risk, making it a noteworthy option for traders seeking to expand their potential. Click here to sign up for an account.

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