You might have come across FTMO in your search for reliable prop firms in Kenya. It’s a name that’s been buzzing around the trading community, and the question on your mind, and rightly so, might be, “Is FTMO a legit prop firm?”
You’re in luck because I’ve done the legwork to bring you an in-depth look at FTMO, especially from a Kenyan trader’s perspective. I am going to shed light on FTMO’s operations including:
- The FTMO Challenge rules
- The Pros and Cons of FTMO compared to other popular prop firms
- FTMO Account types
What is FTMO?
- FTMO is a legit prop firm that provides talented traders the opportunity to trade with large capital by passing an evaluation program. They are not a scam, but rather offer a unique business model in the trading space.
FTMO is a proprietary trading firm that originated in the Czech Republic, and it’s been gaining traction globally for offering traders the opportunity to trade with its capital.
The firm operates on a challenge model, where you, the trader, must prove your skills in a simulated trading environment before getting access to the actual funds.
The FTMO Challenge is the first step in the process. It’s designed to assess your trading prowess under specific conditions.
You’re given a demo account with a set balance and have to reach a set profit target within a limited time while adhering to maximum loss rules. It’s a rigorous test, but it’s also fair.
The challenge ensures that only skilled traders manage the firm’s capital, which speaks volumes about FTMO’s commitment to risk management.
FTMO Pros and Cons
The FTMO prop firm offers clear rewards but also carries risks. The firm needs to protect its capital, so funded traders must master risk management and maintain discipline. With the right abilities and mindset.
- Get funded account with large capital to maximize earning potential
- Keep up to 90% of your trading profits
- Educational resources and community support
- Gain prestige/credibility as a funded FTMO trader
- Highly challenging evaluation combines profit target with strict risk limits
- Funded accounts can be revoked for violation of rules
- Psychological pressure to perform with “house money”
- Lack of regulatory oversight as a prop firm
FTMO's Legitimacy
Now, onto the big question: Is FTMO legit?
Based on numerous reviews, testimonials, and my own experience, FTMO stands out as a credible prop firm.
The firm has a long history of paying out to its traders, with a total of $29,000,000 paid out to traders on the platform. On TrustPilot, traders have shared positive experiences with FTMO, praising the firm for its efficient payout process and excellent support team. The firm has a score of 4.8 stars out of a possible 5.
They are transparent about their challenge rules and provide comprehensive support to their traders.
FTMO has also been positively featured in extensive trading journal publications such as Forbes, further cementing its legitimacy as one of the best prop firms in Kenya.
Is FTMO Regulated?
Here’s the thing: FTMO is not regulated.
Why?
Because it doesn’t operate as a broker. Instead, it’s a prop firm that provides its own funds to traders who prove their skills through its evaluation process. This might raise some eyebrows, but it’s important to remember that the lack of regulation doesn’t necessarily equate to a lack of legitimacy.
Regulatory bodies, such as the UK’s Financial Conduct Authority (FCA) or the Kenya Capital Markets Authority (CMA), oversee financial institutions to ensure they adhere to specific standards and practices, offering a layer of protection to investors.
Since FTMO operates as a proprietary trading firm and not a traditional broker or investment firm, its operational model falls outside the typical scope that regulatory bodies oversee.
FTMO Challenge Rules
The FTMO Challenge has two stages: the Challenge, and the Verification. Both have their own specific requirements, so here’s what you need to know to pass them.
- First is the Challenge. You’ll have unlimited trading days to hit a profit target of 10%. But don’t think it’s that simple — your losses are capped at 5% a day, and 10% overall. If you exceed either of these numbers, you’ve failed.
- Next is the Verification. The challenge here is easier. You’ll have unlimited trading days to hit a profit target of 5%. Again though, this comes with downsides — a max daily loss of 5%, and a max overall loss of 10%.
- Maximum Loss Limits: Your account’s equity must not decline beyond 90% of the initial balance at any point, considering both open and closed positions. This rule is crucial for managing risk and ensuring you’re trading within sustainable limits
If all this sounds intimidating, remember that it’s meant to be. Risk management and consistent profits are key skills every good trader should have.
From my experience and based on comprehensive discussions in reputable trading journals and forums, the consensus is that while challenging, FTMO’s rules are fair.
Here’s why:
- Transparency: FTMO is upfront about its rules and expectations. Before you even sign up, you have access to all the information you need to understand what will be required of you.
- Realistic Trading Environment: The rules set by FTMO mirror the risk management protocols you’d be expected to follow in a professional trading environment. They encourage discipline and a strategic approach to trading, which are invaluable skills in the Forex market.
- Support and Resources: FTMO doesn’t just set you up for the challenge and leave you to it. They offer a plethora of educational resources, tools, and even psychological coaching to help you succeed. This level of support plays a crucial role in the fairness of the challenge.
Once you’ve successfully navigated the FTMO Challenge, you’ll gain access to a funded trading account. You’re then expected to continue trading responsibly, adhering to the established risk management rules, and aiming for consistent profitability.
FTMO offers a scaling plan that increases your account balance as you demonstrate consistent success, alongside a profit split that rewards your trading achievements.
Passing the FTMO Challenge is a testament to your trading skill, discipline, and strategic insight. It opens up a world of possibilities for financial growth and professional development within the trading community.
FTMO Demo Account
As well as providing legitimacy to the platform itself, the FTMO demo account is the perfect tool to help you make that leap of faith — from practice trading to professional trading.
- Risk-Free Environment: With the FTMO demo account, you have the freedom to test different strategies without the fear of losing money. This shows that FTMO isn’t just after your profits but rather in your growth as a trader.
- Real Market Conditions: With the demo account, you’re given the same conditions as what real traders use. This level of transparency allows for a more authentic experience, further proving that they want to provide you with nothing but the best.
- Evaluation Preparation: The demo account is designed to prepare you for their challenge. By practicing in an environment similar to what you’ll be trading under if ever you pass, it puts you at a better position to meet their standards. It even shows how much they want to see you succeed.
- Educational Resources: On top of everything above, they also offer educational resources. As mentioned before, this again serves as proof of them wanting success for everyone who joins — not just on their end but on yours too.
The FTMO demo account is more than just a practice arena. It’s a testament to the platform’s dedication to your development as a trader.
By offering you this realistic and educational experience, FTMO sets itself apart as the real deal. Remember, the best traders are always learning new things. And with this demo account, you have a perfect opportunity to do so.
So take advantage of it! Refine your strategies! Get ready for the real thing!
Making an Informed Decision
Before you decide to embark on the FTMO challenge, consider the following steps to ensure you’re making an informed decision:
- Research: Dive into Forex trading forums, read reviews, and gather as much information as you can about FTMO and its operations.
- Understand the Model: Ensure you fully understand FTMO’s business model, the challenge process, and what’s expected of you as a trader.
- Risk Management: Remember, Forex trading involves significant risk. Only invest what you can afford to lose, and consider FTMO’s model as part of your broader trading strategy.
Is FTMO Scam or Legit?
Based on the available evidence, FTMO appears to be a legit platform that offers a unique opportunity for traders to access funded accounts. The company’s track record, transparent business model, and rigorous evaluation process suggest that it is a credible player in the Forex trading industry.