Trading with limited capital can be quite a gigantic challenge when trying to make severe gains in a competitive market. There are a lot of good traders who don’t have enough capital to get going, and it’s here where most dreams of trading full-time kind of seem to hit the wall.
Fortunes can be saved with FTMO, and when it comes to funded accounts, they hold the real treasure in that regard. Any trader needs to go through the evaluation process to be allowed to trade sizes of vast amounts of capital without risking their own money, which, in turn, increases the opportunity to take more significant trades and keep up to 90% of the profits.
If you need to scale your trading without risking your capital, then keep reading to learn about how the FTMO funded accounts work and how that could help you scale up to become a great trader.
What is an FTMO Funded Account?
FTMO-funded accounts are accounts given to those who pass their evaluation process, thus giving them a chance to trade with the capital supplied by FTMO and not theirs. This allows traders to prove their skills in real life without risking their capital. The two-step challenge of FTMO makes it possible to assess whether a trader can keep his discipline, adhere strictly to risk management rules, and perform persistently well on the market.
Winning the ChallengeChallengeChallenge guarantees the trader a funded account for more significant trades with more significant chances of winning money. It is an attractive model for traders because it does away with the barrier of needing large amounts of capital to start trading professionally.
FTMO-funded accounts have gained immense popularity based on a balance between accessibility and potential for profit-sharing with FTMO.
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FTMO Funded Account Price
The price to participate in FTMO’s evaluation process varies depending on the size of the funded account you want to get hold of. For example, a challenge of $10,000 may Cost approximately €155, while a challenge of $100,000 might be closer to €540. The fee is only paid once to participate in the FTMO challenge. After successful completion, traders receive access to a funded account without investing further capital.
Important to note that these fees are refundable after a challenge has been passed by a trader as successful, thereby FTMO being risk-free for any serious trader who is confident in his skills. With this refund, what would be lost in the ChallengeChallengeChallenge would be the skills and discipline of a trader. Thus, the facility becomes a worthy source for scaling up trading operations.
FTMO Funded Account Review
The FTMO-funded trading accounts have been received well within the trading community. Traders appreciate the disciplined nature of their evaluation process, which rewards discipline and effective risk management. Many users point out that the application is transparent and clear rules are set during the Challenge Customer support is a high point.
Fast responds; you can trade at capital level.”. However, the evaluation stage, particularly tough risk management criteria for some traders, can be a real challenge. A trader should be well-equipped and aware of the difficulties before signing up. FTMO will provide an attractive way towards professional trading, but it is not a get-rich-quick scheme; success requires steady performance and careful compliance with their rules.
FTMO Funded Account Rules
Trades are taken strictly under specific rules adhered to throughout the evaluation process to qualify for a funded FTMO account. The key feature of these rules is risk management. There needs to be a daily loss limit and an overall account drawdown limit, which should be kept below The trader fails the challenge should trader at all times. Should either of the traders fail the Challenge?
This evaluation also comprises that the trader manages to hit his target profit within the defined number of trading days. In an ideal world, these rules should help a trader check if he’s a consistent and responsible speculator with sound risk management skills.
Adherence to those rules is a “must-have” for passing the evaluation and keeping a funded account open. FTMO fully stresses discipline, sound risk management, and sustainable strategies in trading.
How To Get an FTMO Funded Account?
Getting an account funded by FTMO involves two main steps: the FTMO Challenge and the Verification phase. In the ChallengeChallengeChallenge, traders must reach a set profit target within 30 days while strictly keeping to the risk management guidelines set by FTMO. This will put the trader’s risk management skills in perspective while maintaining sustained profits.
Once a trader has passed the ChallengeChallengeChallenge, he reaches the Verification stage. The verification process takes 60 days, and the profit target is adjusted to half, but the trader’s risk management rules remain the same as in the Challenge stage.
Once both stages are passed, the trader receives an FTMO-funded account and becomes qualified to trade on the funds of the FTMO company. This mechanism grants access to funded accounts only to disciplined and skillful traders.
How much am I compensated?
FTMO allows traders to enjoy a fantastic profit share by maintaining up to 90% of the profit on the funded accounts. The good thing with FTMO is that the payout system works as an excellent profit-sharing model. The other 10% goes to FTMO for all expenses incurred using other people’s capital and managing the platform. For the trader, it means having a higher chance of profits without risking the trader’s capital.
The share of profit motivates traders to succeed and manage risk well. A thing that needs to be highlighted here is that all profits realized can only be withdrawn subject to conditions such as having fulfilled specific requirements such as having passed a minimum trading period.
Risk Management in FTMO Funded Accounts
The main idea of the evaluation process is risk management in FTMO evaluations, which must be kept for a funded account. There are even daily and overall loss limits that every trader must follow. If these limits are broken, failure to pass the evaluation phase may happen or, worse, losing a funded account. This requires high-risk management requirements since traders will have to focus on consistency rather than on general reckless trading.
It simulates professional trading conditions, which brought risk management to the forefront for ultimate long-term success. In other words, for those traders, learning and correctly applying good risk management strategies is as important as making the right trades.
What Distinguishes FTMO From Other Prop Firms?
Risk management rules. Many prop firms provide capital, but none provide support, as well as FTMO, which offers transparency in this business that most prop firms are very secretive about. This two-step evaluation ensures that only the most they need to competent traders to get funded accounts.
Thirdly, this provider offers its traders an educational platform to aid them in succeeding in trading. Whereas other companies will compel their traders to invest their capital in the account, FTMO will cover all the capital after evaluation of the trader, thus making this type more accessible to many traders. The clear structure, low-risk entry, and high potential rewards set up a difference for FTMO.
FTMO Funded Account vs. Traditional Trading
The capital is the most distinguishing factor between trading with the FTMO-funded account and traditional trading. With a funded account provided by FTMO, traders will have thousands of dollars more in capital than they might have otherwise on their accounts, which they can use to make larger trades that bring about higher potential profits.
However, this also means traders must comply with strict risk management policies as required by FTMO. They can trade with their accounts as they please, but they also take all the attendant risks of these trades. Funded accounts in FTMO usually give a better structure for traders to scale up from trading without using their own money.
How FTMO Conditions Traders for Professional Trading?
The systematic review process that FTMO follows is geared toward preparing the trader for the realities of professional trading, aiming at risk management, discipline, and consistency. Experienced traders in the finance sector are supposed to be very strict regarding following particular risk management protocols while achieving results consistently.
The two-step evaluation at FTMO has mimicked this in expectations, thereby making a trader better equipped to face the trading pressures of professional settings. The profit-sharing model motivates traders to become responsible and manage risks efficiently.
FTMO also equips its traders with many tools and resources, such as educational content and software for tracking performance, to aid them in improving their trading strategies toward long-term success.
Common Mistakes That Will Get You Failed
Many traders fail the FTMO Challenge due to common mistakes that could easily have been avoided. The most common error is overleveraging, which is taking a position that needs to be bigger that needs to be bigger relative to your account size. Thus, it can hit the daily loss limit or overall drawdown limit. Another standard error in the FTMO Challenge is not adhering strictly to the risk management rules.
Most of these losers need help understanding FTMO Challenge rules before entering, hence getting unnecessary errors that could otherwise be avoided. To avoid such blunders, a trader must patiently review the requirements of the ChallengeChallengeChallenge and remain disciplined throughout the assessment period.
Can I redo the FTMO Challenge?
Yes, you can. If you fail at your very first attempt, don’t worry. FTMO allows you to redo the ChallengeChallengeChallenge as often as you want, with a particular retake fee each time. However, FTMO offers a no-fee repeat opportunity for traders who cannot meet the profit target but need to exceed the risk management rules during the ChallengeChallengeChallenge.
In other words, traders have another opportunity to succeed without paying any fee. A repeat of the ChallengeChallengeChallenge gives the traders some time to refine their strategies, improve on the ones they have conducted regarding risk management, and be better at preparing themselves to face their next attempt. Mistakes like these should be learned to enhance further chances of success in subsequent challenges.
Advantages of Trading with an FTMO Funded Account
Trading using an FTMO-funded account has various advantages, especially in scaling up operations without using personal capital. The most apparent advantage is trading with substantially more significant amounts of capital through increasing profits. Second, FTMO takes care of all types of losses, meaning traders do not jeopardize their money. Profit-sharing is another exciting part because traders benefit despite making an error.
To establish discipline and proper risk management, FTMO provides a structured environment that gives a clear path for traders to improve upon them. Learning becomes more effective with learning tools and performance-tracking software via FTMO.
How to Win in the Verification Phase of FTMO?
The Verification is the final and last step in FTMO evaluation; it involves verifying the trader’s ability to trade steadily and responsibly for 60 days. To move on to this final stage, traders should apply the same rules of risk management and discipline as were applied in the FTMO Challenge, but the profit objective becomes half, thus allowing more freedom to the trader.
Consistency and not deviating from the strategies that proved fruitful in the ChallengeChallengeChallenge is the way to a closed deal. Traders must stay on track with steady gains, avoid overleveraging, and continue sticking to the risk management rules to close the FTMO-funded account.
In short, FTMO-funded accounts are one of the best opportunities for skilled and disciplined traders to succeed within a structured trading environment. It is a beautiful offer while keeping massive chunks of the gains for the traders to those without considerable capital to trade with.
However, more than strict evaluation is needed, and success requires one to observe the rules of FTMO, and risk management, and deliver a consistent performance. To self-disciplined traders, funded accounts from FTMO mean a straightforward and effortless way into the professional trading world where they can reap enormous profits.
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(FAQs)
What is FTMO Challenge, and how does it work?
The first step in accessing a funded account with FTMO is the FTMO Challenge. In this ChallengeChallengeChallenge, the trader is supposed to reach a particular profit target in a specific period but under rather extreme risk management rules. Upon completing one ChallengeChallengeChallenge, one moves on to the Verification stage where one has to meet rather stringent standards to win his funded account.
What are the fees applied to FTMO-funded accounts?
The fee for participating in the FTMO Challenge depends on the size of the account you would love to engage with. For instance, an account valued at $10,000 will have approximately €155 as its ChallengeChallengeChallenge. Nonetheless, the fees are one-off, and you can regain your fee once you qualify for the testing if you trade well.
How does profit generated from FTMO-funded accounts split?
The company strategy is to take profits from up to 90% of the client’s funded accounts. Still, the remaining 10% of profits go directly to FTMO to cover all the costs associated with capital provision and maintenance.
What rules am I obliged to keep in my FTMO-funded account?
Yes, FTMO has rules regarding strict risk management for its funded accounts. The traders are to follow the program’s daily loss limits and overall drawdown limits. If these limits are crossed, the trader is at risk of losing their funded account. So, it is essential to be aware of and follow such rules to maintain access to the account.
Can I re-take the FTMO Challenge in case I fail?
Yes, traders can retry the FTMO Challenge as often as they want if they fail. FTMO also has a free retry feature for traders who fail to hit the profit target but still fulfill all of their rules in terms of risk management. This allows traders to hone their strategies and try again without extra costs.