FTMO is an international prop company established in the Czech Republic in 2014. The platform attracts traders to its ranks and, after two-stage testing, if it passes successfully, gives management from 400,000 USD with the possibility of scaling the deposit. The remuneration is 80% on the first step of real trading and 90% on every following step. The company works in full compliance with European financial law and is subject to the local regulator. Is FTMO good for beginners? Let’s find out in this article
The strengths of FTMO over its competitors are:
- Relatively low testing costs — from €155.
- Classic, familiar to many platforms MT4, MT5, cTrader. For these platforms developed hundreds of indicators, scripts and advisors.
- Possible profitability of the trader — 90% of the earned profit after the test. Starting reward — 80%.
- Diversification of pricing plans. Opportunity to choose demo deposit from $10K to $200K. Diversification of tariff plans for standard and aggressive trading.
- Leverage up to 1:100.
Weaknesses of FTMO:
- Tough test period requirements. Allowable maximum loss is 10% of the deposit amount. Target profit is 10% for which 1 month is given.
- 2 phases of testing instead of one. Instead of one month of trading, the trader is forced to work for three months.
- There is no information about the company’s funding.
The logical conclusion is that FTMO is not a service for beginners! Is FTMO Good for Beginners? The answer is clearly no!
A target profit of $1,000 is not much. USD is not as much as it seems. The company has no requirement to trade for all 30 days, you have to work for at least 10 days. And if you use Martingale carefully and open trades on highly volatile cryptocurrencies, 10% profitability is easy! The mistake many traders make is to get too carried away with cryptocurrencies. Stage two has more loyalties to the profit target, and therefore it would make sense to switch to less risky assets… Overall, the advice: in the first phase, trade cryptocurrencies on a clear fundamental trend — you’ll make a profit in a few days. In the second, don’t take any risks.
We recommend that beginners immediately open a Swing account — this account type is explained in detail in the FAQ. Its advantages — there are no trading restrictions, while the standard account has restrictions on the time of keeping the transaction in the market (closing the transaction before the weekend), there are restrictions when trading on the fundamental analysis. And if you accidentally forget about a news release, you can accidentally break the trading rules.