What happens if you lose FTMO money? (2024)

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.

What happens if you lose money as a funded trader?

Limited risk to the trader

Not your own. This means that your financial risk in case of unsuccessful trades is just a fee you have paid to the firm for it to fund you. If you paid the firm $500 and lost $10,000 during trading, you lost just $500.

What is the maximum loss at FTMO?

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. Our major aim is to cooperate with experienced traders.

What is the maximum loss violated in FTMO?

The Maximum Loss limit simply states that the equity on your trading account must not drop below 90% of the initial account balance at any given time during the account duration. That means that on the Normal risk account you cannot lose more than 10% of your initial balance.

Do you have to pay FTMO back?

No, we don't charge any additional or hidden fees. The one-time fee for an FTMO Challenge covers it all, including the Verification, there are absolutely no recurring fees with us.

What is the maximum loss on the funded trader?

Default simulated Max loss of 10% and simulated Daily Loss of 5%, with the ability to purchase a Drawdown add-on for a 12% simulated max and 6% simulated daily drawdown on the demo account.

Is prop trading risky?

Although commonly viewed as risky, proprietary trading is often one of the most profitable operations of a commercial or investment bank. During the financial crisis of 2008, prop traders and hedge funds were among the firms that were scrutinized for causing the crisis.

What percentage of people fail the FTMO challenge?

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.

How much profit do you keep from FTMO?

You don't need to score any minimum profit to receive a Profit Split, only just enough to cover the transaction fees* Whatever amount of profit you generate, you are entitled to withdraw 80% of it.

What is the highest account in FTMO?

You can, however, start a new FTMO Challenge and upon successfully passing another Evaluation Process, we will provide you with another FTMO Account. Just keep in mind that our maximum capital allocation on FTMO Accounts is $400,000 per trader/strategy.

Does FTMO pay out?

The default payout ratio for all FTMO Traders is set to 80%, however, an 80% share is not where we draw the line. 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.

What is the lowest account on FTMO?

The $10,000 account is the smallest account offered by FTMO, and it requires a minimum deposit of $5,000. Traders can trade up to $10,000 in capital, and the profit split is 50/50.

How much should I risk per trade on FTMO?

How much should we be risking per one trade? In most textbooks and online education programs, we can learn that we should not be risking more than 2% per one trade. Although the answer to this is more complicated, let's start by saying that 2% risk per trade is a good base to start with.

Is FTMO banned in the US?

FTMO Banned USA Clients – Heres our Top 5 Alternatives (Accepting USA Traders) 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.

Why is FTMO so expensive?

The fee covers the costs related to the FTMO Challenge provided by FTMO such as the designing, development, and operation of the FTMO platform (the technical infrastructure behind the provided educational services and applications).

Which prop firm is the cheapest?

What is the max loss rule?

Setting Loss-Limit Rules

Loss-limit rules are essentially predefined thresholds to cap the amount of loss you're willing to endure either on a single trade or over a specified period. Among the widely used loss-limit rules are the 2% loss limit per trade and the 6% monthly loss limit.

Do 95% of traders lose money?

As much as 95 per cent of day traders lose money in the market, it demands an investigation. Intraday trading is the most popular, yet data suggests that most intraday traders lose money. A 70 percent don't last beyond the first year, and 95 percent stop trading by the third year.

How many traders lose all their money?

However, it can be a frustrating and costly experience for many new traders, leaving them with little to show for their efforts. Based on several brokers' studies, as many as 90% of traders are estimated to lose money in the markets.

Can you make a living with prop trading?

Yes, as a funded trader with True Forex Funds, it is possible to make a living from prop trading firms. Proprietary trading firms, or prop firms, often provide traders with the opportunity to trade with the firm's capital, allowing them to access larger trading positions and potentially increase their profits.

Do prop traders get a salary?

The salaries of Prop Traders in The US range from $22,032 to $179,124, and the average is $46,251.

Can you make a living trading for a prop firm?

If you're working at a legitimate prop trading firm as a trader, then you should expect to start at between $100K and $200K USD in total compensation (as of 2020). Base salaries are slightly over $100K, and bonuses are usually 50-100% of base salaries.

Is FTMO better than the funded trader?

The Funded Trader offers the most competitive pricing compared to other prop simulated trading firms. For example, the price of its standard $100,000 challenge is $549, while the same challenge on FTMO is priced at $656. It also offers a maximum drawdown of 6%, compared to FTMO's 5% drawdown.

How often does FTMO pay out?

With FTMO, once you get to the FTMO Trader stage you can receive real rewards for your performance. You can withdraw your reward anytime between 14 to 60 days from your first trade on your FTMO Account (Profit Split). Periodically, we can allocate more balance into your FTMO Account if you're consistently profitable.

How many traders use FTMO?

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.