FTMO Review: What Traders Should Know

In the world of proprietary trading, few names command as much respect and recognition as FTMO. Since its inception in 2015, this Prague-based firm has established itself as a giant, attracting tens of thousands of traders with the promise of funding and a generous profit share. But does it live up to the hype in 2025?

This in-depth FTMO review provides an unbiased look at its model, weighing the pros and cons to help you decide if it’s the right path for your trading career. We’ll explore its history, evaluation process, and what makes it a leader, but also uncover the potential challenges that traders face.

What is FTMO and How Does It Work?

FTMO is a proprietary trading firm that provides capital to traders who can prove their skills through a rigorous evaluation process. Instead of risking their own money, traders get to manage an “FTMO Account” with a balance of up to $200,000 (and potentially more with their scaling plan).

The journey to becoming an FTMO Trader is built around a two-step evaluation:

Step 1: The FTMO Challenge This is the initial test. Traders must reach a specific profit target within a set of risk management rules.

• Profit Target: 10% of the initial account balance.
• Maximum Daily Loss: 5% of the initial account balance.
• Maximum Overall Loss: 10% of the initial account balance.
• Minimum Trading Days: 4 days (this ensures you don’t just get lucky on one trade).
• Time Limit: None. FTMO recently removed the 30-day time limit, a welcome change that reduces psychological pressure.

Step 2: The Verification After passing the Challenge, traders move to the Verification stage. This is designed to confirm the consistency of your trading strategy. The rules are similar, but the profit target is halved.

• Profit Target: 5% of the initial account balance.
• Risk Rules: The same 5% daily and 10% overall loss limits apply.
• Minimum Trading Days: 4 days.
• Time Limit: None.

Once you successfully complete both stages, you become an official “FTMO Trader.” You receive a refundable fee (paid back with your first profit split) and start earning real money, keeping an impressive 80% of the profits you generate.

The Pros: Why Thousands of Traders Choose FTMO

There’s no denying FTMO’s appeal. Its reputation is built on several key strengths that have made it an industry standard.

• High Profit Split: An 80/20 split is one of the most competitive offers in the industry. Even better, through their Scaling Plan, successful traders can increase their account size and move to a 90/10 split.
• Refundable Fee: The initial fee for the Challenge, while an investment, is fully refunded upon passing the evaluation and receiving your first payout. This rewards success and makes the entry cost effectively zero for profitable traders.
• Strong Reputation and Reliability: FTMO has paid out over $180 million to its traders, cementing its status as a trustworthy and legitimate prop firm. Payouts are processed smoothly, and the company maintains a high level of transparency.
• Excellent Trading Tools: FTMO provides access to powerful platforms like MT4, MT5, and cTrader. More importantly, they offer a suite of custom apps—like the Account MetriX, Mentor App, and Trading Journal—designed to help you analyze your performance and improve your strategy.

The Cons: Potential Drawbacks to Consider

While FTMO is a top-tier firm, its model isn’t perfect for everyone. The primary criticisms revolve around its strict risk parameters.

• Rigid Drawdown Rules: The 5% maximum daily loss is unforgiving. A single volatile day or a string of unexpected losses can cause you to breach this rule, instantly failing the Challenge. This “sudden death” model can penalize sound trading strategies that may experience short-term drawdowns before becoming profitable.
• High-Pressure Environment: Even without a time limit, the “all-or-nothing” nature of the evaluation creates significant psychological pressure. The fear of violating the strict drawdown rules can lead traders to make emotional decisions, deviating from their proven strategies.
• The 10% Profit Target: Achieving a 10% return while staying within a 10% total drawdown is a significant challenge. It requires a risk-to-reward ratio that not all trading styles can consistently produce, especially in difficult market conditions.

What to Look for in a Modern Prop Firm?

The prop firm landscape is evolving. While FTMO set the standard, newer firms are innovating to address the very pain points that traders often face. When evaluating your options, here are some crucial features to consider that reflect a more modern, trader-centric approach:

1. Accessible Entry Points: The initial fee for a prop firm challenge can be a barrier. Look for firms that offer more affordable entry options or different account sizes. This reduces the financial pressure on new traders and allows them to prove their skills without a hefty upfront investment.
2. Flexible Risk Management: Rigid drawdown rules don’t always tell the whole story of a trader’s skill. A forward-thinking firm understands that. Some are now introducing innovative solutions, such as the ability to pay a small fee to increase your daily drawdown limit temporarily. This feature acts as a “lifeline,” giving good traders a chance to recover from an unlucky day without losing their entire account. It shifts the focus from punishing single mistakes to rewarding long-term consistency.
3. An Emphasis on Growth and Education: The best prop firms don’t just test you; they invest in you. Look for platforms that integrate comprehensive educational guides and clear, actionable feedback. The goal should be to build better traders, not just filter them out. A firm that provides tools and information to help you improve is a true partner in your success.

Conclusion: Is FTMO the Right Choice for You?

FTMO is undoubtedly a legitimate and high-quality prop firm. For disciplined traders whose strategies align perfectly with its strict risk parameters, it remains one of the best options available. The high profit split, refundable fee, and excellent reputation are powerful incentives.

However, the FTMO analysis shows that it’s not a one-size-fits-all solution. The unforgiving drawdown rules and high-pressure environment can be significant hurdles.

Before you commit, consider the new wave of prop firms that offer more flexibility, accessible entry points, and innovative risk management tools. Your goal is to find a partner that not only funds you but also aligns with your unique trading style and supports your long-term growth.

We have based our opinion and point of view on user feedback, reviews, and the Forex Awards website. Be sure to check out the reviews of other prop firms and platforms. Every week, we will be creating new ratings and references so that you can continue to succeed as a trader.