FTMO safety and regulation
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?
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
👍 FTMO pros:
•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.
👎 FTMO cons:
• 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).
FTMO Fees and Minimum DepositFAQ
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 EA’s?
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. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
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. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.