Regulatory Status and Legal FrameworkFTMO.com operates not as a traditional brokerage firm but as a proprietary trading company (prop firm). This business model significantly deviates from retail brokerage services regulated by financial authorities such as the FCA, CySEC, or ASIC. FTMO, based in Prague, Czech Republic, operates under FTMO s.r.o., which is a registered business entity but not licensed as a financial broker or investment firm under MiFID II or any comparable regulatory regime.
This means:
- FTMO does not offer brokerage or custodial services.
- Clients do not deposit funds for trading, but rather pay fees to participate in evaluation challenges.
- As a prop trading firm, FTMO provides access to its simulated capital based on a trader's performance, subject to strict internal rules.
For risk-averse traders seeking regulatory protection or investor compensation schemes, this business model may not offer sufficient legal safeguards.
Business Model: Evaluation and Payout FrameworkFTMO's business model revolves around a two-phase evaluation designed to assess trading skill before granting access to a funded account:
- FTMO Challenge – Traders must meet profit targets (e.g., 10%) within 30 calendar days without breaching daily or total drawdown limits.
- Verification Phase – A lower profit target (5%) must be reached within 60 days under the same risk constraints.
If successful, traders are granted an FTMO Account with simulated capital ranging from $10,000 to $200,000. Profits made are shared in a profit split structure, where traders typically retain up to 90% of gains.
The evaluation fee varies based on the account size, starting at around €155 for a $10,000 account. This fee is refundable upon successful challenge completion.
Trading Conditions and PlatformsFTMO offers a wide variety of trading instruments via major platforms:
- Platforms: MetaTrader 4, MetaTrader 5, cTrader
- Markets: Forex, indices, commodities, crypto, and stocks (CFDs)
- Execution type: Demo/simulated environment with real market conditions
- Leverage: Up to 1:100 for most asset classes
- Spreads: Institutional-level, often near-zero with commission-based structures
FTMO provides low-latency trading infrastructure and allows news trading, EAs, swing trading, and scalping, but prohibits practices like high-frequency arbitrage, copy trading from live sources, or using delayed data feeds.
Financial Operations and PayoutsFTMO does not act as a custodian of client funds. Instead:
- Traders pay an evaluation fee, which is refunded after passing the challenge.
- Once funded, traders receive payouts based on monthly or bi-weekly cycles.
- Payments are typically processed via bank wire, crypto wallets, or Skrill.
Despite no direct deposits for trading, the platform has drawn scrutiny due to occasional delayed payments and disqualifications tied to subjective rule interpretations. Still, a majority of user feedback indicates prompt and consistent payouts for compliant traders.
Reputation Analysis and Customer SupportFTMO enjoys generally positive standing in the prop trading space. It has received awards such as:
- Best Proprietary Trading Firm (Finance Expo Awards)
- High ratings on Trustpilot (4.8+/5) with over 5,000 reviews
Positive feedback highlights:
- Transparent rules and fair trading environment
- Professional trader support
- Fast onboarding and clear dashboard interface
Negative feedback includes:
- Strict risk parameters that can be unforgiving
- Disputes over rule violations and trade closures
- No regulated recourse in case of arbitration
Customer support is available via live chat, email, and multilingual phone support, with generally fast and helpful responses.
Conclusion about FTMO.comFTMO.com is not a broker in the traditional sense but a well-established proprietary trading firm offering skilled traders access to simulated capital in exchange for a performance-based structure. While it lacks regulatory supervision typical of financial institutions, its transparent model, consistent payouts, and global reputation make it a legitimate and leading name in the prop trading industry.
Prospective users should, however, be fully aware of the strict risk rules, lack of financial regulation, and simulated nature of the trading accounts before committing funds to the challenge.