FTMO is an online company that seeks for successful Forex traders, that can constantly yield profits. It allows them to work as fund managers. The company was founded in 2014 in the Czech Republic and at the start, it was only available to Czech citizens. The project has become international in 2017. To become a fund manager you have to successfully pass their challenge. As fund managers, you will be able to trade the company’s funded accounts and receive 70% of generated profits while not risking your funds. Sounds almost unreal? Well, here is an insight.
FTMO Challenge
To become the fund manager the trader has to pass two-step verification process. The first step is called FTMO Challenge, while the second is named Verification. The company claims that both steps are tailored to discover new trading talents. In the FTMO Challenge step, the applicant has to trade the demo account with the following goals. In 30 calendar days, the applicant needs to make a 10% profit. At least ten days has to be tradeable and by tradeable day I mean the day when the trader has placed at least one trade. Maximum daily loss cannot be greater than 5% of initial capital and cumulative loss cannot be greater than 10% of initial capital. The applicant has to pay the refundable fee for this challenge which is returned if he reaches FTMO Trader status. This fee varies about the initial capital the trader is having for the challenge. The initial capital can be $10000, $25000, $50000 and $100000 and the fee is €155, €250, €345 and €540.
The second step is called verification, in this step, the applicant has to prove that he is capable to trade profitably for two months in a row. The task is in 60 calendar days to earn another 5%, where at least ten days have to be tradeable. Same as in the previous step, a maximum daily loss cannot be greater than 5% of initial capital, and cumulative loss cannot be greater than 10% of initial capital.
After passing this test you will become an FTMO trader and you will get resources available for trading where you will earn 70% of profits you made. The fee that you have paid for the first step of the challenge will be refunded. As the trader, you will have the same limitations regarding the losses as during the challenge.
Trading Rules
During the challenge and as a trader you are free to trade whatever instrument you like. You can keep the trades running overnight and over the weekend. The only limitation is that you will not be able to trade during major news releases. You may choose MT4, MT5, and cTrader platform for trading and you may choose one 8 partnering brokers including Admiral Markets, XM, CMC, Blueberry Markets, Purple Trading, Cresco FX, Bossa, Axiory, and Blackwell Global. You will get access to FTMO educational and market analysis tools that are made for beginners, not for experienced traders.
As a challenger and trader, you will have access to their proprietary web-based Account MetriX application which shows you your trading progress towards the objectives. It will display general information, an overview of objectives, balance and equity charts, and your daily trading summary. Moreover, you will know what is your daily loss, risk-reward ratio, average profit and loss, and expectancy profit factor. It is very similar to the account metric that you can get on MyFxBook, FX Blue, or Mql5.com.
A very important is their economic calendar not only because it displays the events and their release impacts on the market, but also because it tells whether you are allowed to trade during the event. If you trade five minutes before or during the restricted event your account will be terminated.
Conclusion
Thus, FTMO is an online company that seeks successful Forex traders and allows them to become fund managers. Their claim that they are looking for serious traders and they are asking you to deliver a 10% profit in twenty days. In my opinion, it is possible to achieve but it requires a dose of luck because it is hard to find the strategy that will be profitable and it will be able to deliver 10% every month. On the other hand, if you are a successful trader that is constantly yielding the profits you will not need to pay the fee to become the fund manager. Frankly speaking, I think that their business idea is good but with their restrictions, they will not attract the best traders. It is worth trying.
