Is FTMO a scam or legit? Is FTMO safe?

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

FTMO is a legitimate proprietary trading firm, though it is not regulated like a traditional broker because it does not handle client deposits. Instead, it offers traders the opportunity to access funded accounts after passing a two-step evaluation process. The company has built a strong reputation through transparent rules, consistent payouts (with millions paid to traders), and availability in over 180 countries, but success depends on strict risk management and the ability to meet performance targets, making it a reliable yet demanding platform rather than a guaranteed source of income.

In the prop trading space, FTMO is a leader - and for good reason. Among its most talented prop traders are those discovered and developed by the firm.

With FTMO, investors can trade various instruments, such as Forex, stocks, cryptocurrencies, bonds, and more.

Traders and investors from around the world are attracted to the company's very competitive profit split, which is up to 90%.

But is the firm legit? Check out our FTMO trading review to find out.

Is FTMO legit?

FTMO Review

Go to broker

Your capital is at risk.

For the most part, FTMO is a reputable company with a long history. Prop firms face a few more challenges than other firms. There is therefore a small margin of error to work with. If you don't want to lose your account, you need solid trades and mostly wins.

Is FTMO legit in my country?

Trades from around the world are accepted by FTMO. FTMO does not provide services to residents of Iran, Syria, or North Korea.

Is FTMO regulated by governments?

Since FTMO does not work as a broker, it is not regulated. This company uses a two-step evaluation process that has a relatively low pass rate. In this way, only capable traders are promoted to professional status. Before paying the FTMO joining fee and starting the Challenge, new traders can refine their skills on a free demo account.

Is FTMO a scam or safe?

The FTMO system is safe and works if you apply proper risk management consistently over time, but it is not real money, only leveraged. A total of $29,000,000 has been paid out to traders on the platform. Over 180 countries are covered by FTMO, and they send payouts regularly to countries where $1,000 represents a significant amount of money, which is no small feat.

FTMO pros and cons

The one-time fee at FTMO is one of the lowest among proprietary trading firms, and it is fully refundable after passing their evaluation.
The company has paid millions to its funded traders and is eminently trustworthy. Over $29 million was paid out to traders in 2021, according to FTMO's website.
Profit payouts at FTMO are among the best in the industry. New traders receive 80% of their profits, with the potential to graduate to 90% if they achieve their goals.
There are few firms that offer as many trading options as FTMO does. Most FTMO traders trade forex, but commodities, bonds, stocks, and indices are also available.
With enormous investment in trade-tracking software, FTMO helps guide your trading strategies. You can maximize your profit and manage your risk with FTMO's apps.
Up to $2 million of trading capital is available to FTMO's most skilled traders through its scaling plan.
Since FTMO has been used by so many traders over the years, many resources have been created by traders, including tips for passing the FTMO Challenge.

Even those who have completed the FTMO Challenge and become fully funded remain on demo accounts. You may or may not execute your trades in the actual market, even though your profits are very real.
The two-step evaluation process is the industry standard, but some traders are put off by it. A trading account is funded once a trader passes the FTMO Challenge and a verification process.
It might seem a bit steep to aim for 10% profit for the FTMO Challenge. Passing the Challenge, however, results in a 5% verification target.

FTMO background

FTMO began as an idea in 2014 when three traders from a Prague office teamed up. The company was originally known as Ziskejucet.cz, but as it grew, it secured funding and in 2017 became FTMO.

In addition to developing a trading system suited to their needs, each of those three traders (founders) also developed new ideas on risk management. With constant innovation, FTMO has become one of the most successful proprietary trading firms in the world.

Since its establishment in 2020, FTMO has grown tremendously. Over 180 countries are registered with FTMO today. Every month, more than 6 million trades are opened, and $29 million has been paid out in 2021, with a payout processing time of only 8 hours on average.

FTMO has been featured on Forbes three consecutive years and been awarded the Deloitte Technology Fast 50 award. The FTMO Challenge and Verification are the components of their evaluation process. The FTMO Proprietary Trading firm offers traders a position with an account balance of up to $400,000 if they succeed in the evaluation process.

Trading journals and excellent educational resources make the offer complete and attractive to beginners and professionals alike.

With a few exceptions, FTMO operates similarly to other prop trading firms. The FTMO provides up to $200,000 for you to start trading if you pass the evaluation stage. Profits are kept at 80–90%, while losses are covered by them.

Starting an account costs a one-time fee (€155 for a $10,000 account) and you select the account size you want. By passing the 30-day FTMO Challenge after you pay the fee, you prove your trading skills. The trading parameters must not be violated in order to pass (10% for normal accounts).

Evaluate FTMO in terms of risks and expectations

When traders evaluate FTMO or any other prop firm, they often apply the wrong framework — they look for traditional regulation, as if they were choosing a broker. But FTMO operates under a different model, and understanding this distinction is key to assessing its safety.

What matters more than formal regulation in this case is operational transparency and payout consistency. FTMO has a long track record of processing withdrawals, clear trading rules, and a structured evaluation system. These are stronger indicators of reliability in the prop trading space than regulatory status alone.

That said, traders should clearly understand what they are signing up for. You are not trading your own capital or a standard brokerage account — you are participating in a performance-based evaluation model. The rules are strict, and breaching them can lead to account termination, regardless of your overall profitability.

My recommendation is to approach FTMO from a risk and expectations standpoint. Treat the challenge as a professional assessment, not a guaranteed path to income. If you fully understand the rules, accept the constraints, and focus on consistency, FTMO can be considered a safe and legitimate environment to develop and monetise trading skills.

Conclusion

FTMO is widely regarded as a reliable and legitimate prop trading firm, but its safety should be evaluated through the lens of its business model rather than traditional regulation. The company’s strong reputation is built on transparent rules, a consistent history of payouts, and a structured evaluation system, yet success within the platform depends heavily on a trader’s ability to manage risk and follow strict guidelines. For those who clearly understand the conditions and approach the challenge with discipline and realistic expectations, FTMO offers a secure and professional environment to develop trading skills and scale capital without risking their own funds.

FAQs

What is FTMO?

FTMO is one of the world's most popular proprietary trading firms. In addition to having one of the best reputations in the industry, they have more than 10,000 traders worldwide.

Is FTMO regulated?

No. As FTMO does not operate as a broker or in that industry, they are technically unregulated by any governing body like the FCA.

Is FTMO legit?

Yes. As one of the world's leading prop trading firms, FTMO has long maintained a reputation for excellence. Although it is unregulated, many traders have passed the challenge and have had a good experience with the platform.

Does FTMO allow EAs?

Yes. FTMO allows traders to use EAs and bots in their trading. Generally, retail trading EAs will work fine. However, liquidity issues and latency may be a problem if you're using a high frequency trading bot.

Team that worked on the article

Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform.

Learn about our editorial policies

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK.

Top 5 companies for you

United States