FTMO Test: What You Need to Know
FTMO's evaluation, often called the "FTMO test" or challenge, is the industry standard for prop trading assessments. But how does it actually work, and what should you watch out for beyond the marketing headlines? Here’s a no-nonsense, data-driven breakdown of FTMO’s challenge structure, risk rules, costs, and what it means for real traders.
FTMO Challenge: Core Specs
- Rating: 4.8/5 (PropSurvivalEngine Health Grade: see details)
- Profit Target: 10% (Phase 1), 5% (Phase 2)
- Drawdown Limits: Max 10% (overall), 5% (daily)
- Profit Split: 80/20 (scales to 90/10)
- Account Sizes: $10K, $25K, $50K, $100K, $200K
- Challenge Cost: $155 (10K) – $1,080 (200K)
- Leverage: 1:100
- Trading Days Required: Minimum 4
- Trading Period: 30 days (Phase 1), 60 days (Phase 2)
- Scaling Plan: Up to $2M after 4 months of profits
- Tradable Assets: Forex, Indices, Commodities, Crypto, Stocks
- News Trading: Allowed (but with restrictions)
- Weekend Holding: Allowed
- EA (Algo) Trading: Allowed
FTMO Test Structure: Step-by-Step
FTMO’s evaluation is a two-phase process designed to filter for disciplined, risk-aware traders. Here’s how it works:
Phase 1: The Initial Challenge
- Profit Target: 10% of starting balance
- Max Drawdown: 10% overall, 5% daily
- Time Limit: 30 calendar days
- Minimum Trading Days: 4
Example: On a $50K account, you must make $5,000 profit within 30 days, without losing more than $2,500 in a single day or $5,000 overall.
Phase 2: Verification
- Profit Target: 5% of starting balance
- Drawdown Rules: Same as Phase 1
- Time Limit: 60 calendar days
- Minimum Trading Days: 4
For the $50K account, this means $2,500 profit in 60 days.
FTMO Account: Funded Stage
- Profit Split: 80/20 (can scale to 90/10 with consistent performance)
- Scaling: Grow up to $2M after 4 months of profitable trading
- Payouts: Monthly, reliable
FTMO’s scaling plan is one of the most generous in the industry, but requires strict consistency and adherence to risk parameters.
Challenge Costs: What Are You Really Paying For?
| Account Size | Challenge Fee | Max Drawdown | Profit Target (Phase 1) |
|---|---|---|---|
| $10,000 | $155 | $1,000 | $1,000 |
| $25,000 | $250 | $2,500 | $2,500 |
| $50,000 | $345 | $5,000 | $5,000 |
| $100,000 | $655 | $10,000 | $10,000 |
| $200,000 | $1,080 | $20,000 | $20,000 |
The challenge fee is refunded if you pass and get funded. However, at $345 for a $50K account, FTMO is pricier than some competitors. The additional cost buys you FTMO’s reputation, support, and consistent payout history, but it’s a real upfront risk if you’re on a tight budget.
Profit Split and Scaling: What’s the Real Upside?
FTMO’s default profit split is 80/20 in the trader’s favor. This can improve to 90/10 with consistent performance (usually after four consecutive profitable months and following scaling milestones). Most firms top out at 80/20, so this is a genuine edge for high-performing traders.
The scaling plan allows you to double your account size every four months (if you hit targets and avoid breaking any rules), up to a maximum of $2,000,000. But remember: scaling requires continuous profitability and zero breaches of risk limits. One mistake resets the clock.
FTMO’s long-term potential is best for traders who are both profitable and extremely disciplined. If you’re prone to occasional big losses, the scaling plan is tough to fully realize.
Risk Rules: The Devil’s in the Details
FTMO’s risk rules are stringent—and enforced automatically:
- Max Daily Loss: 5% of initial balance (not equity!)
- Max Overall Loss: 10% of initial balance
On a $100K account, this means you cannot lose more than $5,000 in a day (including both closed trades and floating P/L at any point), and never more than $10,000 in total. A single slip, even from overnight swaps or slippage, can disqualify you instantly.
Many traders fail FTMO’s test not by overtrading, but by unexpected spikes or holding through high volatility. Always monitor floating losses and slippage, especially around news events.
Tradable Instruments & Flexibility
FTMO supports a wide range of assets: Forex, indices, commodities, crypto, and stocks—all tradable at 1:100 leverage. This is more generous than most prop firms, especially for indices and commodities (where many competitors restrict leverage to 1:30 or less).
Algorithmic trading (EA), news trading, and weekend holding are all permitted. However, FTMO enforces some restrictions on swing trading during major news releases: you cannot hold certain positions open during restricted news windows. This can catch swing traders off guard.
If your strategy involves holding trades over news, review FTMO’s news trading rules in detail before you risk challenge fees.
Minimum Trading Days: Designed to Deter Luck
FTMO requires at least four separate trading days in each phase. This prevents a trader from taking one big bet and sitting out. But it’s not overly restrictive—four days is minimal compared to some firms demanding 10+ days.
For systematic traders, this is a non-issue. For discretionary traders who wait for rare setups, you’ll need to plan for at least four trades per phase, even if it means scaling down position size to meet the requirement safely.
Educational Resources & Support
FTMO invests heavily in trader education: webinars, articles, and analytics tools are available to all challenge participants. Their support team is responsive—a real advantage if you need technical help during the challenge.
However, don’t expect hand-holding on strategy or risk management: FTMO expects you to be self-sufficient. Their resources are best for platform troubleshooting and understanding rules, not for "how to pass" shortcuts.
FTMO vs The Competition: Where It Stands Out
FTMO’s high challenge fees and strict rule enforcement are the main trade-offs. But you’re paying for:
- Industry-leading reputation and payout reliability
- Strong legal structure and transparency
- Generous scaling and profit split potential (up to 90/10)
Cheaper firms may offer lower challenge fees or looser drawdown rules, but often at the cost of reliability or smaller scaling plans. If you want to compare FTMO head-to-head with other firms, use our PropSurvivalEngine comparison tool for a side-by-side breakdown.
The Non-Obvious Trade-Offs
- Strict Rule Enforcement: Automated and immediate; there are no second chances if you breach.
- High Profit Target: 10% in 30 days is demanding, especially for low-volatility markets. This encourages risk-taking—be aware of your own risk tolerance.
- Scaling is Earned, Not Given: You must demonstrate consistent profitability and discipline for months before accessing higher capital and better splits.
- Challenge Fee is a Real Risk: $155–$1,080 is non-refundable if you don’t pass, and retakes are only free if you meet strict criteria (no rule breaks and a positive balance at the end).
Many traders underestimate the emotional and technical challenge of the FTMO test. Even profitable traders can struggle under the time pressure and strict risk controls.
Who Should (and Shouldn’t) Take the FTMO Test?
Best for: Disciplined traders with a proven edge, who can operate under strict risk limits and time constraints. If you’re systematic and can avoid large single-day losses, FTMO’s scaling and payout potential are industry-leading.
Not ideal for: Traders who rely on wide stops, hold through all news events, or have inconsistent daily P/L swings. The 10% profit target in 30 days can push less disciplined traders into overleveraging or "revenge trading."
Before paying for an FTMO challenge, use our PropSurvivalEngine risk calculator to simulate your real odds of passing based on your actual trading stats. Don’t rely on backtests alone—model your risk of daily drawdown breaches and time-based pressure.
Bottom Line: Is FTMO Worth It?
FTMO’s test is one of the toughest but most respected paths to prop trading capital. The rules are clear, the scaling and payouts are real, and the firm’s reputation for reliability is unmatched. But the high challenge fees and strict risk controls mean it’s not for everyone.
If you have a robust, disciplined trading approach—and can thrive under pressure—FTMO offers industry-leading upside. If you’re still refining your strategy or struggle with risk management, consider starting smaller or using a demo to test your readiness.
FTMO’s test is the gold standard for serious traders. It’s worth the cost if you’re confident in both your edge and your discipline. Use PropSurvivalEngine’s tools to evaluate your real-world pass probability before you commit real capital.