pros & cons of ftmo prop firm

Hi brenda, I have taken a challenge with FTMO and here are some of my observations about them

The Good Side:

1. FTMO allows a 14-day free trial of their platform so you can register and trade under test conditions for free.

2. Evaluation plans are easy to understand

3. Refundable fees (if you pass the 2-step challenge your initial purchase fee is refunded)

4. Popular MT4, MT5, cTrader platforms are available

5. Scaling is allowed, so if you reach your profit target FTMO will increase your account balance & increase your profit split from 80% to 90%

6. Leverage up to 1:100

7. Forex, Indices, Crypto, Metals, Commodities & even custom symbols can be traded

8. Customer support is great & they respond quickly

The Bad Side

1. High challenge fees (the chepest challenge costs 89 euros just for a $10k account)

2.No instant funding challenge (minimum trading days is 4)

3. Profit split is not 100% (its actually 80%)

I have used ftmo and i can only comment on the pros. I like the fact that the popular trading platforms are supported (for me is use MT5 but there is also cTrader) and i also like the fact that they allow you a free trial period to experiemnt with their services. This is invaluable to me.

1:30 leverage is inadequate on the swing account

Pros of Ftmo

1. High Profit Split

One of FTMO’s biggest advantages is its generous profit sharing. Traders start with about 80% of the profits, and this can increase to 90% under the scaling plan if performance is consistent.

This means if a trader makes $10,000 profit, they can keep up to $8,000–$9,000.

2. Access to Large Trading Capital

FTMO allows traders to control accounts ranging from $10,000 to $200,000, with the possibility of scaling up to about $2 million over time if performance remains strong.

For many traders who do not have large personal capital, this is a major opportunity.

3. Refundable Challenge Fee

To join FTMO, traders must pay a challenge fee, but this fee is refunded after the trader passes the evaluation and receives their first payout.

This makes the cost more like a testing fee rather than a permanent expense.

4. Good Reputation and Track Record

FTMO is considered one of the most established prop firms in the industry, with a long record of payouts and a large global trader community.

This reputation gives traders more confidence compared to newer prop firms.

Cons of FTMO

1. Strict Risk Management Rules

FTMO has very strict risk rules:

Maximum daily loss: 5%

Maximum total loss: 10%

Breaking these rules results in immediate account termination.

For traders who use aggressive strategies, these rules can be difficult to manage.

2. Two-Step Evaluation Process

To get funded, traders must pass:

FTMO Challenge

Verification phase

Each phase has profit targets and time limits, which many traders find difficult to achieve consistently.

3. Challenge Fees Can Be Expensive

Depending on the account size, challenge fees can range from about €89 to over €1,000.

If a trader fails the challenge, the fee is lost.

4. Strict Rule Violations

Many traders lose their funded accounts not because of bad trading but because they accidentally break rules such as:

exceeding daily loss limits

violating risk parameters

trading during restricted conditions

This makes discipline extremely important.

5. Funded Accounts Are Simulated

Even when traders become funded, they are usually trading on simulated accounts rather than real market capital, although payouts are still based on performance.

Some traders dislike this model.