FTMO is the prop firm every other prop firm gets compared with. It has run trading challenges since 2015, says it has paid out more than $650 million to traders, and in 2025 its group bought the regulated broker OANDA. The rules are clear and the payouts have a long record. But FTMO is not a broker, the money you trade is simulated, and the challenge fee is a cost most people never get back. This review explains how it works, the rules that end most attempts, and one rule that matters a lot if you follow signals.
What we like
- The longest track record of any major prop firm
- Group also owns a regulated broker, OANDA
- No time limit on challenges
- 2-Step fee refunded with your first reward
- Swing account allows news and weekend holding
What to watch
- Fees are higher than many newer firms
- All accounts are simulated, and FTMO isn’t a regulated broker
- Third-party signal copiers aren’t allowed
- News and weekend limits on Standard funded accounts
- Not available in about 70 countries
FTMO at a glance
2015 in Prague, Czech Republic
Prop firm — trading evaluation on simulated capital, not a broker
2-Step and 1-Step
€540 for 2-Step (refundable) · €499 for 1-Step
80% on 2-Step, up to 90% · 90% on 1-Step
5% on 2-Step · 3% on 1-Step
10% · static on 2-Step, trailing on 1-Step
None
MT4, MT5, cTrader, TradingView
From 14 days after your first funded trade
How a prop firm actually works
A prop firm is not a broker and not an investor. You don’t deposit trading money. Instead, you pay a fee to take a challenge on a demo account. If you hit a profit target without breaking the loss limits, you get an FTMO account where you keep a share of the profits you make.
FTMO is clear that every account it provides is a demo account using simulated capital, including funded ones. Your rewards are paid by FTMO from its own business, and it may copy successful traders’ trades on its own real accounts. That’s the standard prop firm model, and it’s legitimate. It just means you aren’t protected by a regulator or compensation scheme the way a broker account is. Your real risk is the challenge fee.
The honest truth about any challenge is that most attempts fail. Not because the rules are unfair, but because they punish exactly the habits that lose money on a normal account: oversized trades, no daily stop, and trying to win back a loss the same day.
2-Step or 1-Step?
| $100,000 account | 2-Step | 1-Step |
|---|---|---|
| Fee | €540, refunded with first reward | €499, not refunded |
| Profit target | 10% then 5% | 10% |
| Daily loss limit | 5% of starting balance | 3% of starting balance |
| Maximum loss | 10%, fixed at $90,000 | 10%, trails your highest end-of-day balance |
| Minimum trading days | 4 per phase | None |
| Best-day rule | None | Best day ≤ 50% of total profit |
| Profit split | 80%, rising to 90% | 90% |
The 1-Step looks faster, but its rules are tighter. A 3% daily limit leaves little room, the trailing maximum loss moves up as you profit, and the 50% best-day rule means one big winning day can’t carry the whole target. For most traders, the 2-Step is the more forgiving route, and the fee comes back with your first payout.
The rules that end most challenges
The daily loss limit
This is the rule that catches the most people. On a 2-Step $100,000 account, you can’t lose more than $5,000 in a day, and that includes open trades that are losing, not just closed ones.
$100,000 2-Step account · daily limit $5,000
Risk 1% per trade = $1,000
You can lose 4 trades in a row and still be safe
Risk 2.5% per trade = $2,500
2 losses and the challenge is over
Keep risk per trade at 1% or less, and set your own daily stop below FTMO’s, for example 3%. Our lessons on risk per trade and daily loss limits were written for exactly this situation.
The maximum loss
On the 2-Step, your equity must never fall below $90,000. That level doesn’t move, so profits build a buffer. On the 1-Step, the floor trails your highest end-of-day balance, so a good week raises the line you can’t cross. Read our drawdown lesson before choosing the 1-Step.
Rules on funded accounts
During the challenge you can trade news and hold over weekends. On a Standard funded account, you can’t open or close trades on affected instruments from two minutes before to two minutes after major news, and positions must be closed before the weekend. The Swing account, available on the 2-Step, removes both restrictions. If you swing trade or hold through news, choose Swing from the start.
Can you use signals or a copier?
FTMO lets you copy trades between your own FTMO accounts. But its terms don’t allow an account to be connected to an outside signal provider or service, and FTMO caps the capital it allocates to traders using the same strategy. Accounts that break these rules can be denied payouts or closed. That means you shouldn’t connect Telegram Trade Linker, or any other signal copier, to an FTMO account.
Our signals and TTL are designed for your own broker account, where you control everything. A prop challenge is a test of your own trading. If you want to use FTMO, use our daily analysis and Trading Academy to build your own process, and trade it yourself. Always read FTMO’s current Forbidden Trading Practices page before starting.
Fees and payouts
A $100,000 2-Step challenge costs €540, and smaller accounts cost less. The fee is refunded with your first reward on the 2-Step, but not on the 1-Step. Treat the fee as money you can afford to lose, because statistically you probably will, at least the first time.
Once funded, you keep 80% of profits on the 2-Step, rising to 90% through the scaling plan, and 90% from the start on the 1-Step. Your first reward can be requested from the 14th day after your first trade, and FTMO says reviews take one to two business days. Payments go by bank wire, card push, Skrill or crypto without FTMO charging a fee.
Scaling
If you make at least 10% net profit over four months with two processed rewards, FTMO adds 25% to your account. Total capital is capped at $400,000 per trader before scaling and $2 million with scaling.
Why FTMO is trusted
The prop firm industry has seen many firms close suddenly, sometimes without paying traders. FTMO stands out for three reasons. It has operated for more than ten years. It says it has paid over $650 million in rewards, a figure that isn’t independently audited but is backed by a very long public payout record. And in 2025 the FTMO group bought OANDA, a long-established regulated broker, which says a lot about its finances and its plans.
FTMO itself is still not regulated as an investment firm, and it is not available in about 70 countries, including Indonesia and Russia. Check your country is accepted before you pay. You can also look up FTMO’s operating history in our licence checker.
Who FTMO suits — and who it doesn’t
A good fit if you…
- are already profitable and consistent on your own account
- keep risk at 1% or less and use a daily stop
- want access to more capital than you have
- value a long, reliable payout history over the cheapest fee
- swing trade and can use the Swing account
Look elsewhere if you…
- are still learning — trade a small real account first
- want to copy signals or use a third-party copier
- need regulator protection on your account
- want the lowest possible challenge fee
- live in a country FTMO doesn’t accept
How we scored FTMO
4.8
4.6
4.5
4.4
4.0
3.8
Overall: 4.5 / 5. FTMO earns the top score on our list for trust and clarity. It isn’t the cheapest prop firm, and its funded-account restrictions and copier rules won’t suit everyone, but few firms have proved as reliable over as many years.
The bottom line
FTMO is the safest-feeling way into prop trading, for a trader who is ready. That last part matters. A challenge doesn’t make you consistent, it tests whether you already are.
If you’re still building that consistency, trade a small real account first with proper position sizing. When your journal shows months of controlled risk, take the 2-Step, keep each trade at 1% or less, and stop for the day long before FTMO’s limit stops you.
Frequently asked questions
Is FTMO legit?
Yes. FTMO has operated since 2015, says it has paid over $650 million in rewards, and its group bought the regulated broker OANDA in 2025. It isn’t itself a regulated investment firm, and all its accounts use simulated capital, which is normal for prop firms.
How much does an FTMO challenge cost?
A $100,000 2-Step challenge costs €540 and is refunded with your first reward. The $100,000 1-Step costs €499 and isn’t refunded. Smaller accounts cost less.
What is FTMO’s daily loss limit?
5% of your starting balance on the 2-Step and 3% on the 1-Step, including losses on open trades. Breaking it ends the challenge or account.
Can I use signals or a trade copier on FTMO?
You can copy trades between your own FTMO accounts. Connecting an FTMO account to an outside signal provider or service isn’t allowed, so don’t use Telegram Trade Linker or other signal copiers on FTMO accounts. Check FTMO’s current Forbidden Trading Practices page.
What profit split does FTMO pay?
80% on the 2-Step, rising to 90% through scaling, and 90% from the start on the 1-Step. The first reward can be requested from 14 days after your first funded trade.
Is there a time limit on FTMO challenges?
No. There’s no time limit on either challenge, though the 2-Step requires at least four trading days per phase.
Prop firm challenges are paid evaluations on simulated accounts, and most attempts fail. Only pay a fee you can afford to lose. This review is for information only and is not financial advice. Our scores are not affected by any affiliate relationship. Rules and prices change often, so confirm current terms on FTMO’s website before you buy a challenge.