Company Overview 2026
FTMO

1. The Evaluation Process

To become an FTMO Trader, you must pass a standardized evaluation. FTMO traditionally uses a 2-Step Evaluation, though they recently introduced a 1-Step option. The standard 2-Step process includes:

• Phase 1: The FTMO Challenge
  • Profit Target: 10% (Normal Risk) or 20% (Aggressive Risk).
  • Time Limit: Unlimited (Take as much time as you need).
  • Minimum Trading Days: 4 days.
• Phase 2: The Verification
  • Profit Target: 5% (Normal Risk) or 10% (Aggressive Risk).
  • Time Limit: Unlimited.
  • Minimum Trading Days: 4 days.

Note: Once you pass both phases and reach the Funded Stage (FTMO Trader), there are no profit targets.

2. Core Risk Management Rules (The Drawdowns)

FTMO is incredibly strict regarding capital preservation. Violating either of the following drawdown limits will result in the immediate loss of your account.

• Maximum Daily Loss (5% Normal / 10% Aggressive): You are not allowed to lose more than 5% of your initial account balance in a single day. Crucially, this includes floating losses. The daily loss limit resets at exactly midnight Central European (Summer) Time (CE(S)T).
• Maximum Total Loss (10% Normal / 20% Aggressive): Your account equity must never drop below 90% of your initial starting balance at any point. This is a static, hard stop-loss for the entire lifespan of the account.

3. Trading Style & Allowed Strategies

FTMO is generally flexible regarding how you trade, allowing Forex, Indices, Crypto, Commodities, and Stocks. However, your account type determines certain restrictions:

• Weekend Holding & Overnight Trading: On a standard FTMO account, you must close all trades before the weekend or major market closures. If you wish to hold trades over the weekend, you must select the FTMO Swing Account during checkout (which waives this restriction).
• News Trading: Standard account holders are restricted from executing trades 2 minutes before and after the release of high-impact macroeconomic news. Swing Account holders are exempt from this rule and can trade through the news.
• Expert Advisors (EAs) & Bots: FTMO allows algorithmic trading and EAs. However, they strictly enforce a Maximum Capital Allocation limit of $400,000 per trader/strategy. If you use a generic, off-the-shelf EA that many other FTMO traders are using, you risk breaching this rule and having your funded account denied.
• Forbidden Practices: Arbitrage, tick scalping, grid trading manipulating the demo environment, and copy-trading from third-party signals are strictly prohibited.

4. Payouts and Scaling

• Profit Split: Funded traders start with an 80/20 profit split (you keep 80% of your generated profits).
• The Scaling Plan: If you generate a net profit of at least 10% over a 4-month period and process at least two payouts, FTMO will increase your account balance by 25%. Traders who qualify for the Scaling Plan are also upgraded to a 90/10 profit split.
• Refund: The initial fee you paid for the FTMO Challenge is 100% refunded to you alongside your very first profit withdrawal.