FTMO is a proprietary trading firm that provides traders with the opportunity to trade with the firm’s capital. The company was founded in 2015 and has become a popular option for traders who want to improve their skills and access more capital than they might have on their own. In this article, we’ll explore what FTMO is, how it works, and what you need to know if you’re interested in trading with the firm.
What is FTMO?
FTMO stands for Forex Traders Funding Marketed by Objective. The company offers traders the opportunity to trade with the firm’s capital by passing a challenge, which is a simulated trading evaluation. If a trader passes the challenge, they can become a funded trader and access the firm’s capital to trade.
FTMO offers multiple account options, with varying levels of capital and risk parameters. Traders can choose the account that best fits their trading style and goals.
How does FTMO work?
The first step to trading with FTMO is to pass a challenge. The challenge consists of a simulated trading evaluation, which tests a trader’s ability to manage risk and make profitable trades. The challenge has specific rules, such as a maximum daily loss limit and a minimum number of trading days required.
If a trader passes the challenge, they become a funded trader and can access the firm’s capital to trade. Funded traders receive a profit split, which means that they keep a percentage of their profits, while the rest goes to the firm. The profit split percentage depends on the account type and risk parameters.
FTMO offers a variety of tools and resources to help traders improve their skills and increase their chances of passing the challenge. These include educational materials, trading journals, and risk management guidelines.
Benefits of trading with FTMO
Trading with FTMO offers several benefits for traders. Firstly, it provides access to more capital than a trader might have on their own, which can allow for larger trades and potentially higher profits.
Secondly, FTMO offers a way for traders to improve their skills and demonstrate their abilities to potential employers or clients. Passing the challenge and becoming a funded trader can be a valuable addition to a trader’s resume or portfolio.
Finally, trading with FTMO can be a way for traders to mitigate their own risk. Since they are trading with the firm’s capital, they are not risking their own money. However, it’s important to note that there is still risk involved in trading, and traders should only trade with money they can afford to lose.
FTMO is a proprietary trading firm that offers traders the opportunity to trade with the firm’s capital by passing a challenge. Trading with FTMO can provide access to more capital, a way to improve skills, and a way to mitigate risk. However, it’s important to understand the risks involved in trading and to only trade with money you can afford to lose. If you’re interested in trading with FTMO, be sure to do your research and read the company’s rules and guidelines carefully.