How many FTMO traders fail?
The FTMO challenge has a reputation for being extremely difficult to pass. Across FTMO's various account levels, it is estimated that only around 10% of traders are able to successfully complete the evaluation and become a funded trader. This means approximately 90% of those who attempt the challenge end up failing.
You will be removed from the Premium Programme if one of the following situations occurs: You fail the FTMO Account which is part of the Premium Programme. You fail 3 accounts regardless of the of the stage (FTMO Challenge, Verification, FTMO Account)
Risk per trade
How much should you be risking per one trade? In most textbooks and online education programs, you will learn that you should not be risking more than 2% per one trade.
At FTMO, we understand that market conditions might vary and that's why we offer our traders a generous 10% Maximum Loss buffer and 5% Maximum Daily Loss. These conditions are in a ratio of 1:1 (loss to profit), which is the top industry standard.
According to research, the consensus in the forex market is that around 70% to 80% of all beginner forex traders lose money, get disappointed, and quit. Generally, 80% of all-day traders tend to quit within the first two years.
If we discover identically traded strategies through various accounts, and exceeding the total of $400,000 in active FTMO Accounts, we reserve the right to suspend those accounts as per the contract.
For a Normal risk account type, the limit is set at 5% of the initial balance. Let's take the Normal risk account with the 5% limit as an example. If you have a $200,000 FTMO Account, you must never exceed the total equity loss of $10,000 in one day.
FTMO is a forex prop house: that is, a regulated company that provides you with a real account to manage by giving you 80% to 90% of the profits you will obtain once funded (they offered 70% until mid 2021).
The funded account comes with a profit split of 70/30, where the trader receives 70% of the profits made while FTMO retains 30%. The trader can withdraw their share of profits at any time, and there are no restrictions on the withdrawal amount or frequency.
FTMO Account
Therefore, the Trader never gains access to a real "live account" or "margin account" etc. However, the FTMO Trader will receive a real financial reward for his trading on the FTMO Account, as long as his trading is profitable and there is no violation of the contractual conditions.
What happens if you lose FTMO money?
Loss of the FTMO Trading Account: FTMO sets maximum drawdown limits that traders must adhere to. If your account balance falls below this limit due to trading losses, FTMO may terminate the trading account, and you would no longer have access to their capital.
If we know that the next trade will come up in a few days, we can probably bump our risk a little. But we must not go too crazy, in general, the rule of thumb is that the risk per trade should not be over 5%, an exception to this could be if we are taking a long term investment.
Trading. Over the year, we have created more than 960,000 trading accounts through our platform for you. This total includes all FTMO Challenges, Verifications, FTMO Accounts, and Free Trials. More than 90,000,000 trades were executed on all accounts in 2021, indicating a reasonably active approach to trading.
Most new traders lose because they can't control the actions their emotions cause them to make. Another common mistake that traders make is a lack of risk management. Trading involves risk, and it's essential to have a plan in place for how you will manage that risk.
Overtrading - either trading too big or too often – is the most common reason why Forex traders fail. Overtrading might be caused by unrealistically high profit goals, market addiction, or insufficient capitalization. We will skip unrealistic expectations for now, as that concept will be covered later in the article.
The reason many forex traders fail is that they are undercapitalized in relation to the size of the trades they make. It is either greed or the prospect of controlling vast amounts of money with only a small amount of capital that coerces forex traders to take on such huge and fragile financial risk.
FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.
The restriction is only valid for two minutes before and after the news announcement and applies to the instrument or currency selected, and trading within this window may be considered a violation of the FTMO Account Agreement.
We allow a maximum capital allocation of $400,000 on FTMO Accounts per trader or per strategy, at any given time.
All FTMO Traders can request payout on-demand. The payout can be processed just after 14 days, but you also have the ability to choose your own Profit Split Day, which can be even changed up to three times. In conclusion, we make sure that you will always receive your withdrawal on your most convenient day.
How much is FTMO 200k challenge?
In conclusion, the FTMO 200k account price is $485, which covers the one-time fee for the Challenge and Verification stages. Traders must also deposit a minimum of $5,000 to start trading the $200,000 account.
In an FTMO Challenge or Verification, you don't have to. During these stages, you can keep your positions open overnight and over the weekend as well.
Yes, there are many sites offering similar services to FTMO. These include FunderPro, the5ers and many more. If you are looking for an alternative to FTMO, FunderPro is currently rank as the number one on the list of top Forex Prop Firms.
#1 – Funder Trading
Funder Trading stands first in our list of the top prop trading firms in 2024 due to multiple reasons but notably it is the only prop trading firm that offers options funding and includes coaching for every trader signed up.
You can trade your FTMO Challenge, Verification, and FTMO Account on some of the most popular retail platforms – MetaTrader 4, MetaTrader 5, DXtrade, or cTrader.
