Introduction
FTMO is one of the best-known names in the proprietary trading industry. The company has been operating since 2015 and offers traders an evaluation process designed to identify traders who can manage risk and trade consistently.
But a common mistake is to look only at the advertised account size. A "$100,000 FTMO Account" does not mean you receive $100,000 in cash to withdraw and trade however you want.
FTMO's CFD program uses simulated trading with fictitious capital. Traders who successfully meet the requirements can become eligible for real-money performance rewards.
What Is FTMO?
FTMO is a proprietary trading company that evaluates traders through predefined Trading Objectives. Traders pay a challenge fee, trade a simulated account and must demonstrate that they can reach the required profit objectives without violating the risk limits.
FTMO currently offers two main CFD evaluation structures:
- FTMO Challenge: 1-Step
- FTMO Challenge: 2-Step
The two products are significantly different. Choosing between them should depend on your trading style rather than simply choosing whichever account has the largest advertised balance.
Important 2026 Update
FTMO's current product structure is different from the older FTMO model many traders remember from previous years.
The current CFD offering includes both a new 1-Step Challenge and the established 2-Step Challenge.
Prop-firm rules, fees, account conditions and trading restrictions can change. This article is an educational guide based on information available in 2026 and should not replace reading the applicable FTMO terms for your specific order.
FTMO Challenge: 1-Step
The 1-Step Challenge is designed for traders who want a single evaluation phase rather than the traditional two-stage Challenge and Verification process.
| Rule | 1-Step |
|---|---|
| Profit Target | 10% |
| Maximum Daily Loss | 3% |
| Maximum Loss | 10% |
| Best Day Rule | 50% |
| Minimum Trading Days | No minimum |
| Trading Period | Unlimited |
| Reward | 90% |
| Fee Refund | No |
The 1-Step structure can be attractive to traders who dislike the additional Verification stage. However, the 3% daily loss limit and 50% Best Day Rule make risk management particularly important.
FTMO Challenge: 2-Step
The 2-Step Challenge is the traditional FTMO evaluation model. It contains two phases:
1 FTMO Challenge
The first stage requires a 10% profit target while respecting the applicable risk limits.
2 Verification
The second stage requires a lower 5% profit target while continuing to respect the trading objectives.
| Rule | Challenge | Verification |
|---|---|---|
| Profit Target | 10% | 5% |
| Maximum Daily Loss | 5% | 5% |
| Maximum Loss | 10% | 10% |
| Minimum Trading Days | 4 | 4 |
| Trading Period | Unlimited | Unlimited |
| Best Day Rule | No | No |
The 2-Step model provides more room on the Maximum Daily Loss rule than the 1-Step model, but it requires the trader to successfully complete two phases.
FTMO 1-Step vs 2-Step
| Feature | 1-Step | 2-Step |
|---|---|---|
| Evaluation phases | 1 | 2 |
| Profit target | 10% | 10% + 5% |
| Maximum Daily Loss | 3% | 5% |
| Maximum Loss | 10% | 10% |
| Minimum trading days | None | 4 days per phase |
| Best Day Rule | 50% | No |
| Trading period | Unlimited | Unlimited |
| Reward ratio | 90% | Up to 90% |
| Fee refund | No | Yes, with first Reward |
The 1-Step is simpler in structure but stricter on daily loss and consistency. The 2-Step takes longer but offers a larger daily-loss allowance and no Best Day Rule.
FTMO Profit Target Explained
1-Step
The 1-Step Challenge has a 10% Profit Target.
Once the required objective is reached with the applicable conditions satisfied, the account proceeds to review.
2-Step
The 2-Step Challenge requires:
Phase 2 = 5%
Therefore, a trader must demonstrate profitability twice.
A $100,000 account does not mean you should risk $1,000 or more on every trade. The drawdown limits are the numbers that actually determine how much room you have.
Maximum Daily Loss Explained
This is one of the most important FTMO rules.
2-Step
The Maximum Daily Loss is 5% of the initial simulated capital. The daily limit is recalculated using the relevant account balance at the daily reset.
1-Step
The Maximum Daily Loss is 3% of the initial simulated capital. The daily limit is calculated using the account balance at the daily reset minus 3% of the initial simulated capital.
Example: 2-Step $100K
Initial balance = $100,000
Maximum Daily Loss Amount = $5,000
Initial daily limit = $95,000
If the relevant reset balance is $102,000, the next calculated daily limit can become $97,000.
Floating losses matter. A position temporarily moving heavily against you can threaten the daily-loss limit even if the trade is eventually closed for a smaller loss.
Maximum Loss Explained
The Maximum Loss rule is different from the daily loss rule.
2-Step
The Maximum Loss is 10% of the initial simulated capital and is static.
Minimum equity threshold = $90,000
1-Step
The 1-Step Maximum Loss is 10%, but its calculation uses an end-of-day trailing mechanism.
This distinction is extremely important for traders who allow their account to grow and then give back profits.
A trader can be profitable overall and still violate a drawdown rule if equity reaches the relevant limit.
The 50% Best Day Rule
The Best Day Rule applies to the current 1-Step structure.
Your most profitable trading day must not represent more than 50% of your Positive Days' Profit.
Example
Suppose your profitable days are:
- Day 1 = +$1,000
- Day 2 = +$2,000
- Day 3 = +$1,000
Total Positive Days' Profit = $4,000.
Your Best Day = $2,000.
$2,000 ÷ $4,000 = 50%.
The ratio therefore meets the 50% requirement.
Exceeding the 50% ratio is not itself a hard failure. You generally need to continue generating additional positive-day profit until the Best Day represents no more than 50%.
A trader who makes nearly all of the required profit in one unusually large day may need additional trading days to satisfy the consistency requirement.
Minimum Trading Days
1-Step
There is no minimum trading-day requirement.
2-Step
You need at least 4 Trading Days in the Challenge and at least 4 Trading Days in Verification.
The days do not have to be consecutive.
Do not trade simply to satisfy the minimum-day rule. A trader should trade when a valid setup exists.
Is There a Time Limit?
FTMO currently provides an unlimited trading period for both the 1-Step and 2-Step CFD Challenges.
This is one of the major advantages compared with evaluation programs that force traders to reach a target within a short fixed period.
A disciplined trader can wait for high-quality setups rather than increasing risk simply because the deadline is approaching.
Can You Trade News?
News rules depend on the account type and stage.
During Evaluation
FTMO states that traders may trade during macroeconomic news releases during the Evaluation Process.
FTMO Account
For Standard accounts, restrictions apply to selected high-impact news releases once you are trading an FTMO Account.
The Swing account type does not have the same selected-news restriction.
XAUUSD can move very quickly around U.S. inflation, employment, Federal Reserve and other major macroeconomic releases.
Overnight & Weekend Trading
The Standard and Swing account types have different holding conditions.
Standard
Overnight and weekend holding restrictions apply once you are trading an FTMO Account.
Swing
The Swing account is designed for traders who need the ability to hold positions overnight and over weekends.
If you normally close every position within the same trading day, the Standard account structure may be more suitable.
For swing traders:The Swing structure may be more appropriate if your strategy requires overnight or weekend exposure.
What Can You Trade?
FTMO's CFD environment provides access to multiple asset categories depending on the available platform and account conditions.
- Forex
- Gold and other commodities
- Indices
- Stocks
- Crypto
Always check the current instrument list and contract specifications before trading a specific symbol.
Forbidden Trading Practices
Passing the numerical objectives does not mean every trading method is automatically acceptable.
FTMO has a separate list of Forbidden Trading Practices.
Examples of Practices That Can Cause Problems
- Exploiting price-feed errors or service delays.
- Manipulative opposite-position arrangements between accounts or people.
- Strategies designed to exploit the simulated environment.
- Certain forms of gap trading around major events or market closures.
- Excessive overleveraging or unrealistic exposure.
- Hyperactive automated trading that overloads the server.
- Artificially distributing risk/profit across days to circumvent the Best Day Rule.
- Account sharing or allowing another person to trade your account.
Do not build a strategy around trying to exploit a prop firm's rules. Build a strategy that could reasonably be executed in real market conditions.
Can You Use EAs or Automated Trading?
FTMO allows legitimate algorithmic trading and EAs, provided the strategy complies with the applicable rules and represents genuine, replicable trading behavior.
However, automated systems that create excessive server activity or attempt to exploit platform behavior can create problems.
FTMO also places restrictions around practices involving third-party systems and strategies that may be replicated across multiple registrations in ways that conflict with its requirements.
"If an EA makes money, FTMO must accept it."
The strategy must still comply with FTMO's trading conditions and forbidden-practice rules.
FTMO Payouts & Rewards
FTMO uses the term Reward for the performance payment available to eligible FTMO Traders.
Although trading itself takes place in a simulated environment, eligible traders can receive real-money rewards if the applicable conditions are satisfied.
When Can You Request a Reward?
Under the current CFD rules, a Reward can be requested from Account MetriX on the 14th day or later after the first trade on the specific account, subject to the applicable conditions.
Open positions and pending orders must be closed when submitting the Reward request.
Reward Ratio
- 1-Step: 90% of eligible simulated profit.
- 2-Step: 80% initially, potentially increasing to 90% under applicable Scaling Plan or Premium Programme conditions.
Bank transfer, selected card-based transfer methods, Skrill and cryptocurrency, subject to the applicable conditions and limits.
FTMO Fees & Refund Policy
FTMO charges a one-time Challenge fee rather than a recurring subscription fee for its CFD Challenges.
2-Step
The 2-Step Challenge fee covers both the Challenge and Verification. If you successfully reach the FTMO Account stage and receive your first Reward, the initial fee is refunded with that Reward.
1-Step
The 1-Step fee is not refundable.
The correct question is whether your trading strategy can operate comfortably within the drawdown and consistency rules.
FTMO Account Sizes
FTMO currently offers CFD Challenge sizes ranging from $10,000 to $200,000, depending on the product.
| Account | Available | Example 10% Target | Example 10% Max Loss |
|---|---|---|---|
| $10,000 | Yes | $1,000 | $1,000 |
| $25,000 | Yes | $2,500 | $2,500 |
| $50,000 | Yes | $5,000 | $5,000 |
| $100,000 | Yes | $10,000 | $10,000 |
| $200,000 | Yes | $20,000 | $20,000 |
FTMO may offer discounts, promotions or different pricing by account/product. Check the official pricing page before purchasing rather than relying on an old screenshot or article.
FTMO Rules for Gold Traders
Gold (XAUUSD) is one of the most popular instruments among intraday traders and is particularly relevant when evaluating a prop firm.
Why XAUUSD Requires Extra Attention
- Gold can move very quickly.
- Spread and execution can change around major news.
- Large candles can create substantial floating losses.
- High leverage can make oversized positions dangerous.
- News events can create sudden volatility.
Example: 2-Step $100K
Suppose you risk 0.5% per trade.
0.5% of $100,000 = $500.
A trader should then calculate the appropriate XAUUSD position size based on the stop-loss distance and contract specification.
The important point is that your lot size should come from your risk model—not from the account headline.
Why Should You Buy an FTMO Challenge?
FTMO can make sense for a trader who already has a tested strategy and wants to operate under a defined risk framework without depositing a large amount of personal trading capital.
Potential Advantages
- Established company with a long operating history.
- Clearly defined Trading Objectives.
- Unlimited evaluation period.
- Multiple account sizes.
- 1-Step and 2-Step options.
- Up to 90% reward ratio depending on product and applicable conditions.
- 2-Step fee refund with first Reward.
- Educational tools and performance analytics.
- Well-known platform support.
FTMO May Be Especially Interesting If:
- You already have a profitable or thoroughly tested strategy.
- You can consistently keep risk small.
- You are comfortable trading under drawdown limits.
- You want to scale beyond the capital you personally want to allocate.
- You can follow rules without changing your strategy emotionally.
Why You Shouldn't Buy an FTMO Challenge
FTMO is not automatically the right choice for every trader.
You Probably Shouldn't Buy Yet If:
- You do not have a tested strategy.
- You frequently revenge trade.
- You increase lot size after losses.
- You need to make 10% very quickly.
- You regularly hold oversized XAUUSD positions.
- You cannot accept a predefined stop loss.
- You depend on one huge winning trade.
- Your strategy relies on exploiting price-feed or platform behavior.
- You are buying another Challenge simply because you failed the previous one.
The Biggest Psychological Trap
A trader may think:
This mindset can lead to oversized positions, overtrading and drawdown violations.
The correct mindset is:
What Are Traders Saying on Reddit?
Reddit discussions about FTMO are mixed, but the overall discussion often separates into two themes: traders who value FTMO's reputation and payouts, and traders who warn others about the difficulty of surviving strict drawdown rules.
Reddit should therefore be used as a source of trader experiences—not as proof that every complaint or every positive experience applies to every trader.
When reading Reddit, look for multiple recent experiences, the exact account type, the rule involved, screenshots or supporting details, and whether the trader acknowledges any breach of the Terms.
FTMO Trustpilot Reviews
Trustpilot is another useful source for evaluating customer sentiment. FTMO currently has a very large volume of reviews and a strong overall Trustpilot rating.
Common Positive Themes
- Fast or reliable support.
- Clear trading objectives.
- Positive payout experiences.
- Professional platform and account tools.
- Long-term reputation.
What About Negative Reviews?
Negative reviews should not simply be ignored. They can reveal potential problem areas such as rule interpretation, trading restrictions, account termination or payout-related disputes.
However, a negative review also needs context. Check whether the complaint involved a specific rule violation, a misunderstanding of the account type or a disagreement about the Terms.
Never judge a prop firm solely from either Trustpilot or Reddit. Compare official rules with independent trader experiences.
Who Is FTMO Best Suited For?
1. Disciplined Day Traders
Traders who enter selectively and maintain consistent position sizing may fit well with FTMO's risk structure.
2. Gold Traders With Controlled Risk
XAUUSD traders who use sensible stops and conservative risk can potentially adapt their strategy to FTMO.
3. Systematic Traders
Traders with clearly defined entry, stop and target rules can find it easier to respect the account objectives.
4. Traders Looking to Scale
FTMO may be useful for traders who have an edge but do not want to place a large amount of personal capital at risk.
Who Should Avoid FTMO?
- Beginner traders without a tested strategy.
- High-risk scalpers who routinely approach daily drawdown.
- Traders who use revenge trading.
- Traders who need immediate income from trading.
- Traders who cannot follow predefined restrictions.
- Traders whose strategy depends on unrealistic execution or market anomalies.
Buying a Challenge does not create a trading edge. It only gives a disciplined trader an evaluation environment in which that edge can be demonstrated.
ChartScalping Verdict: Is FTMO Worth It?
Based on the current rules, FTMO is one of the more established options for traders who want a structured evaluation environment.
Why We Consider FTMO Attractive
- Long operating history.
- Clear published Trading Objectives.
- Unlimited evaluation period.
- Strong independent customer-review footprint.
- Multiple account sizes.
- Both 1-Step and 2-Step structures.
- Established reward system.
Why We Would Not Recommend It for Everyone
- The evaluation still requires disciplined risk management.
- 1-Step has a strict 3% Maximum Daily Loss.
- 1-Step has a 50% Best Day Rule.
- Standard accounts have trading restrictions after reaching the FTMO Account stage.
- Rules surrounding forbidden practices must be taken seriously.
- The account is simulated, not a personal cash account.
Therefore, the answer is not simply "FTMO is good" or "FTMO is bad."
The better question is:
Should You Choose 1-Step or 2-Step?
Choose 1-Step If:
- You want a single evaluation stage.
- You are comfortable with a 3% daily-loss limit.
- You can manage the 50% Best Day Rule.
- You value a 90% reward ratio.
- You prefer no minimum trading-day requirement.
Choose 2-Step If:
- You prefer a 5% Maximum Daily Loss.
- You are comfortable completing two stages.
- You want the 2-Step fee refund after your first Reward.
- You do not want the 1-Step Best Day Rule.
- You can comfortably trade at least 4 days per phase.
Before You Buy an FTMO Challenge
Use this checklist before spending money on an evaluation.
- I have a clearly defined trading strategy.
- I have backtested my strategy.
- I know my average risk per trade.
- I know my maximum losing streak.
- I understand the Maximum Daily Loss.
- I understand the Maximum Loss.
- I understand whether my chosen product has a Best Day Rule.
- I know the news restrictions for my account type.
- I know whether I need overnight/weekend holding.
- I have checked the current instrument list.
- I have read the Forbidden Trading Practices.
- I can afford to lose the Challenge fee.
- I am not buying the Challenge because I need emergency income.
- I can accept losing the Challenge without revenge buying another one immediately.
FTMO Checklist for XAUUSD Traders
If your primary instrument is Gold, the following checklist is especially important.
- Use a predefined dollar risk per trade.
- Calculate lot size from stop-loss distance.
- Monitor floating equity, not only closed P/L.
- Check major economic news before entering.
- Avoid oversized positions around major releases.
- Keep daily risk well below the FTMO hard limit.
- Do not revenge trade after a Gold loss.
- Do not widen the stop because Gold moved against you.
- Avoid trying to recover a losing day with one oversized trade.
A Conservative FTMO Risk Model
FTMO does not impose a universal fixed percentage risk per trade, but a trader can create their own conservative framework.
Example
Account: $100,000
Risk per trade: 0.5%
Dollar risk: $500
Maximum planned trades per day: 3–4
The exact risk plan should be validated against your historical win rate, losing streak and the specific FTMO product you choose.
A risk model should be designed to survive the drawdown, not to reach the profit target as quickly as possible.
Final Thoughts
FTMO can be a strong option for experienced traders who already have a tested edge and want to trade within a structured evaluation environment.
But the biggest mistake is buying a Challenge first and trying to develop a strategy afterward.
The correct sequence is:
For Gold traders, this becomes even more important because XAUUSD can move rapidly and floating losses can affect the account's drawdown calculations.
FTMO should therefore be viewed as a tool for disciplined traders—not as a shortcut to becoming profitable.
ChartScalping's Bottom Line
If you already have a tested strategy and can trade comfortably inside FTMO's risk limits, FTMO can be worth considering.
If you are still searching for a strategy, struggling with discipline, or relying on oversized trades, buying an FTMO Challenge is probably premature.
FTMO Rules — Quick Summary
- 1-Step Profit Target = 10%.
- 1-Step Maximum Daily Loss = 3%.
- 1-Step Maximum Loss = 10%.
- 1-Step Best Day Rule = 50%.
- 1-Step has no minimum trading-day requirement.
- 2-Step Profit Target = 10% then 5%.
- 2-Step Maximum Daily Loss = 5%.
- 2-Step Maximum Loss = 10%.
- 2-Step requires at least 4 trading days per phase.
- Both products have an unlimited trading period.
- 1-Step Reward ratio = 90%.
- 2-Step starts at 80%, with potential increases to 90% under applicable conditions.
- 2-Step fee is refundable with the first Reward.
- 1-Step fee is non-refundable.
- Standard and Swing accounts have different holding/news conditions.
- Forbidden Trading Practices must be followed.
Sources & Further Reading
For the most current rules, always verify the official FTMO documentation before purchasing.
- FTMO Trading Objectives
- FTMO 1-Step vs 2-Step Comparison
- FTMO Forbidden Trading Practices
- FTMO Reward Withdrawal Information
- FTMO on Trustpilot
- FTMO Discussions on Reddit
This article is for educational and informational purposes only. Prop-firm rules, fees, account conditions, trading restrictions and reward policies may change. Always read the current FTMO Terms, Trading Objectives and account agreement applicable to your purchase.
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