FTMO: All the Advantages and Disadvantages
Since FTMO’s commercial activities began in 2020, it has seen tremendous growth. Over 180 nations already have registered merchants with FTMO. Every month, over 6 million trades were opened, and with an average payment processing time of just 8 hours, $23 million has been paid out thus far in 2021.
FTMO has received the Deloitte Tech Fast 50 award three years in a row and has been highlighted on Forbes. The FTMO Test and the Verification are the two components of their evaluation procedure. Successful traders are given the opportunity to work for the FTMO Exclusive Trading business, where they can oversee up to a $400,000 account balance.
Excellent training tools and a comprehensive trading log for account analysis make the package appealing to both experienced traders and newcomers. 10 days are used to establish the minimum number of needed trade days. You must execute deals on 5 more days, for instance, if you reach your objective within 5 trading days. Anyhow, by preserving the profit objective preserved in the first 5 days, you may conduct low-risk transactions to comply with the requirements.
You may sign up with FTMO here for a free trial or select your preferred trading challenge. Since only NGAS, the Dollar Index, the Euro Bund, and the US 10yr T-Note may be traded as futures contracts with FTMO, futures traders prefer Top step over FTMO.
Let’s look at the advantages and disadvantages to wrap up the FTMO analysis.
- Trading of money for prop enterprises without taking the chance of losing your savings
- Merchants gain between 80% and 90% of profits in a profit split.
- Once a trader succeeds in the assessment process and generates profits using the funded account, the charge is refunded.
- A large selection of trading-able fiat currencies and cryptocurrencies
- heightened openness in terms of costs, regulations, and account kinds
- Not appropriate for trading stocks and futures
What do the top prop traders earn?
The pay range for a prop trader is from $42,373 to $793,331, based on their qualifications and level of expertise. Prop traders make an average of $203,679, between $203,679 to $400,084 for the middle 57%. A whopping 86% earn $793,331. At the assessment phases, a novice prop trader may do far less.
How much money do prop trading companies make?
Between 20% and 50% of each trader’s income go to prop trading firms. Users must pay to establish accounts with them as well. A select few divide profits at a 90:10 ratio, which means they receive merely 10% of each trader’s gains. Some may charge traders for instruction and professional coaching.
How lawful is proprietary trading?
It is acceptable for individuals, organizations, brokerages, and businesses to engage in proprietary trading. Banks and other financial institutions may not be allowed to engage in prop trading business in certain jurisdictions and circumstances. Most of the time, though, it is permitted.
The Funded Trader Program
The Funded Trader Program is a whole different animal when it comes to leading industry-leading prop businesses. The FTP is infamous for not controlling your trading approach. Additionally, they provide traders the advantage of making transactions overnight, during the news, and on the weekends. The prop company gives its traders a choice between two funding programmes.
The Standard Challenge Accounts are the first and are used to find talented traders. Based on their consistency over the course of the two-phase evaluation period, these traders are then rewarded. The evaluation programme account enables traders to use a leverage ratio of 1:200.
Then there are the Rapid Challenge Accounts, which seek to recognize and reward consistent traders during the two-phase evaluation period. The main distinction is that traders are permitted to use 1:100 leverage here. The Funded Trading Program is the greatest prop trading company available because of this and the weak trading regulations.
Profit division: 90% maximum
- $600,000 Maximum Capital with Standard
- 200:1 maximum leverage
- Allow news trading
- Trading on weekends and at night permitted
- $1,500,000 maximum capital with a scaling strategy.
- Very lenient trade regulations.
- With their scaling strategy, Tempting offers traders a maximum balance of $1,500,000 and a 90% profit share.
- Supports a wide range of trading assets, including indices, cryptocurrencies, and FX pairings.
- Customer service needs improvement.