FTMO rules & hidden risks
Czech RepublicPrague-based prop firm since 2015, selling 1-Step, 2-Step and futures evaluations
Our grade
Excellent
7.6 / 10 · ranked #1 of 10
FTMO hidden rules
The fine print, highlighted
Hidden Risk score
4.8/10
High risk
Average: 6.3
FTMO's written objectives are clear, so few traders fail on a surprise number. The risk sits in discretionary clauses: FTMO decides what counts as one-sided betting, cross-account hedging or excessive risk per trade idea, and can then cap risk, remove trades or refuse an FTMO Account without prior notice. These cases are a small share of accounts but the main source of 2026 complaints.
- highdiscretion
Risk per Trade Idea cap imposed after review
Clause 7.6.6 lets FTMO cap the drawdown of all positions in one trade idea at a percentage of starting capital it chooses. Reviewers report a 1% cap applied at a payout request and carried over to every future account.
Source - highstrategy
One-sided betting and overexposure are judged case by case
Overleveraging, overexposure, one-sided bets and account rolling are banned, and FTMO alone decides whether trades fall into them. No numeric threshold is published; the blog only recommends 1-1.5% risk per trade.
Source - highaccount
Passing does not guarantee an FTMO Account
After KYC and the account agreement, FTMO Trading 'may' offer an FTMO Account. 2026 reviews describe refusals and permanent bans for alleged cross-account hedging or linked registrations, with appeals declared final and no trade-level evidence shared.
Source - mediumconsistency
Best Day Rule on every 1-Step reward
On the 1-Step your best day may not exceed 50% of the profit from positive days, both to pass and for each reward. One large winning day means trading on until the ratio falls, while the trailing max loss keeps rising.
Source - mediumnews
News window on funded Standard accounts
Funded Standard accounts cannot open or close trades on affected instruments from 2 minutes before to 2 minutes after listed releases. A stop loss or take profit filling inside the window also counts as a breach.
Source - mediumother
Weekend and long-break closures on funded Standard accounts
Positions must be closed before the weekend and before any market break longer than 2 hours once funded on a Standard account. Swing accounts are exempt but are sold only on the 2-Step, up to $100K.
Source - mediumstrategy
Vague gap-trading ban at every stage
The forbidden list treats as gap trading any position opened when major news or earnings are scheduled, or within 2 hours of a market closing for 2 hours or more. Read literally it covers many Friday-afternoon and pre-news entries, and FTMO decides when it applies.
Source - mediumaccount
$400K cap per trader or strategy
Total starting capital across 1-Step and 2-Step accounts is capped at $400,000 per trader or strategy before scaling. Identical strategies traded by different people, such as a popular third-party EA, can be suspended once they exceed it together.
Source - mediumdrawdown
Daily loss includes costs and resets on CE(S)T midnight
Loss limits are measured on equity including commissions and swaps, and the daily limit resets at 00:00 CE(S)T, which is 01:00 on the MT4/MT5 server clock. Several 2026 reviews describe breaches by a few dollars after costs or slippage.
Source - mediumaccount
Swing configurations withdrawn mid-journey
Traders report that the 200K Swing option was dropped in 2026 and existing 200K Swing accounts were switched to Standard, adding weekend and news restrictions to accounts bought under different terms.
Source - lowcosts
0.7% currency conversion adjustment
Since the August 2026 terms update, realized profit or loss on any instrument whose profit currency differs from the account currency is adjusted by 0.7%, cutting wins and enlarging losses (for example GER40 on a USD account).
Source - lowaccount
Inactivity and parked-loss terminations
A challenge can be ended if no trade is opened for 30 days, or if a loss of 8-10% of starting capital is held for more than 30 days. A phase not started within 30 days is suspended and must be renewed within 6 months.
Source - lowpayout
Refund only with the first 2-Step reward
The 1-Step fee is never refunded, and the 2-Step fee 'may be' refunded with the first reward, so it is lost if the FTMO Account fails or is refused before a payout.
Source
FTMO rulebook
Grouped from the terms, FAQ and help center
Drawdown
- 2-Step: daily limit is the balance at 00:00 CE(S)T minus 5% of starting capital; the overall limit is fixed at 90% of starting capital.
- 1-Step: daily limit is the midnight balance minus 3% of starting capital; the max loss trails the highest midnight balance by 10% and resets after each reward.
- Both limits are measured on equity, including open P/L, swaps and commissions; touching either ends the account.
- Futures: end-of-day trailing drawdown that locks at the starting balance; the Pro plan adds a hard daily loss limit.
Consistency
- 2-Step: no consistency rule in either phase or on the FTMO Account.
- 1-Step: Best Day Rule, best day no more than 50% of positive days' profit, applies to passing and to every reward.
- Futures evaluation: best day no more than 40% (Growth) or 50% (Pro) of total profit; no rule once Sim-Funded.
- The terms allow FTMO to add temporary or permanent consistency measures to accounts it suspects of exploiting the model.
News & timing
- Funded Standard accounts: no opening or closing, including stop and target fills, on affected instruments 2 minutes before to 2 minutes after listed releases.
- Funded Standard accounts: close positions before the weekend and before market breaks longer than 2 hours.
- All stages: no gap trading, defined as opening trades when major news is scheduled or within 2 hours of a market closing for 2+ hours.
- The trading day for all rules starts at 00:00 CE(S)T; MT4/MT5 server time is GMT+2 (GMT+3 in summer).
Gambling & risk
- Overleveraging, overexposure, one-sided bets and account rolling are forbidden, as judged by FTMO.
- Avoid substantially larger positions or a very different number of trades than your own norm on any account.
- FTMO can enforce a Risk per Trade Idea cap (reported as 1% of starting capital), cut leverage or remove trades after a review.
- FTMO's blog guidance: risk no more than 1-1.5% of the starting balance per trade idea.
Prohibited strategies
- Cross-account hedging: opposite positions across your own accounts, other firms or other people's registrations.
- Exploiting price errors, latency or slow feeds, and AI or ultra-high-speed tools that give an unfair edge.
- EAs that exceed 2,000 server requests a day; platforms cap open orders at 200.
- Spreading one trade over several days, or hedging, to get around the Best Day Rule.
- Letting anyone else trade or manage your accounts, or trading in coordination with others.
Account & KYC
- One registration per person; $400,000 maximum starting capital per trader or strategy (Prime $600K, Supreme $1M).
- KYC (FTMO Identity) and the FTMO Account Agreement come after passing, and FTMO may still decline to offer an FTMO Account.
- Each phase must be started within 30 days or access is suspended (renewable within 6 months); 30 days without a trade, or a loss of 8-10% held over 30 days, can end the challenge.
- Do not log in to MetaTrader or cTrader from the US or through a US VPN location.
- Disputes fall under Czech law and Czech courts; FTMO is not a regulated financial firm.
Drawdown and targets by program
5 programs
| Program | Targets | Daily loss | Max loss | How drawdown works | Min days | Time limit | News | Leverage |
|---|---|---|---|---|---|---|---|---|
| FTMO Challenge: 2-Step (Standard) | 10% / 5% | 5% | 10% static | Daily limit = balance at 00:00 CE(S)T minus 5% of starting capital; overall limit fixed at 90% of starting capital; both measured on equity incl. swaps and commissions | 4 | Unlimited | Restricted | Up to 1:100 FX, 1:50 gold |
| FTMO Challenge: 2-Step (Swing) | 10% / 5% | 5% | 10% static | Same limits as Standard: 5% daily from the midnight CE(S)T balance, overall limit fixed at 90% of starting capital | 4 | Unlimited | Allowed | Up to 1:30 FX, 1:15 gold |
| FTMO Challenge: 1-Step | 10% | 3% | 10% eod trailing | Daily limit = midnight CE(S)T balance minus 3% of starting capital; max loss trails the highest midnight balance by 10% of starting capital, never moves down and resets after each reward | 0 | Unlimited | Restricted | Up to 1:100 FX, 1:50 gold |
| FTMO Futures Growth | 6% | None | 4% eod trailing | Max drawdown $2,000 / $3,500 / $5,000 (4% / 3.5% / 3.3%) trailing the end-of-day balance and locking at the starting balance; no daily limit in the evaluation, soft $1,000 / $2,000 / $3,000 daily limit once Sim-Funded | 0 | Unlimited (monthly subscription) | Allowed | Contract limits: 2 / 4 / 6 at the start, scaling to 5 / 10 / 12 |
| FTMO Futures Pro | 6% | 2% | 6% eod trailing | Max drawdown $3,000 / $4,500 / $6,000 (6% / 4.5% / 4%) trailing the end-of-day balance and locking at the starting balance; hard daily loss $1,000 / $1,500 / $2,000 in the evaluation and on the Sim-Funded account | 0 | Unlimited (monthly subscription) | Allowed | Contract limits: 2 / 4 / 6 at the start, scaling to 5 / 10 / 12 |
What FTMO allows
Strategies
- Restricted
EAs / bots · Restricted
Allowed up to 2,000 server requests a day and 200 orders at a time; third-party EAs can breach the $400K per-strategy cap
- Restricted
News trading · Restricted
Free in evaluations and on Swing or futures accounts; funded Standard accounts cannot open or close trades 2 min either side of listed releases
- Restricted
Weekend holding · Restricted
Allowed in evaluations and on Swing accounts; funded Standard accounts must close before the weekend
- Restricted
Overnight holding · Restricted
Allowed, but funded Standard accounts must close before any market break longer than 2 hours
- Restricted
Copy trading · Restricted
Copying between your own accounts is fine within the $400K cap; trading by or in coordination with third parties is banned
- Restricted
Hedging · Restricted
Allowed inside one account; opposite positions across accounts or with other traders count as cross-account hedging
- Allowed
Scalping · Allowed
Allowed; FTMO applies a simulated execution delay of up to 200 ms and bans latency or price-error exploits
Restricted countries: Afghanistan, Anguilla, Antarctica, Antigua and Barbuda, Belarus, Belize, Bhutan, Bouvet Island, Burundi, Cape Verde, Central African Republic, Chad, Comoros, Republic of the Congo, Cook Islands, Cuba, Djibouti, Dominica, Equatorial Guinea, Eritrea, Eswatini, Fiji, Gabon, Gambia, Grenada, Guinea, Guinea-Bissau, Indonesia, Iran (EEA residents may qualify), Iraq, Kazakhstan, Kiribati, Kosovo, Kyrgyzstan, Lesotho, Liberia, Malawi, Mali, Marshall Islands, Mauritania, Micronesia, Myanmar (EEA residents may qualify), Nauru, Niger, Niue, North Korea, Papua New Guinea, Russia, Saint Barthélemy, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Sao Tome and Principe, Seychelles, Sierra Leone, Solomon Islands, Somalia, South Sudan, Sudan, Suriname, Syria (EEA residents may qualify), Tajikistan, Timor-Leste, Tokelau, Tonga, Turkmenistan, Tuvalu, Ukraine (Crimea, Sevastopol, Donetsk, Kherson, Luhansk and Zaporizhzhia regions only), Uzbekistan, Vanuatu, Vatican City, Venezuela, Western Sahara.
FTMO rules FAQ
Questions traders ask
What are FTMO's hidden rules?
The objectives page is clear, but the terms add discretionary risk rules: no positions far larger than your norm, no repeated high risk per trade idea, no one-sided bets, no cross-account hedging and no gap trading before long market closures. If FTMO's risk team flags you, it can cap your risk per idea, cut leverage, remove trades or refuse the FTMO Account.
Can you trade news with FTMO?
During the evaluation, yes, on every account type. On a funded Standard account you cannot open or close trades, including stop and target fills, on affected instruments from 2 minutes before to 2 minutes after listed releases such as NFP, CPI and central bank decisions. Swing accounts and FTMO Futures have no news restriction.
Are EAs allowed at FTMO?
Yes, as long as an EA stays under 2,000 server requests a day and the platform limit of 200 orders at a time. Third-party EAs carry extra risk: if other traders run the same EA, the combined capital can exceed the $400,000 per-strategy cap and FTMO may suspend or refuse the accounts.
Does FTMO accept US traders?
Not on the global site. US residents sign up through FTMO x OANDA (ftmo.oanda.com), opened after an August 2025 partnership and offering MT5 and TradingView. FTMO Futures accepts US residents except those living in Arkansas, Delaware, Louisiana, Montana and South Carolina.
What happens if I breach an FTMO account?
Hitting the daily or overall loss limit ends that challenge or FTMO Account immediately, and you need a new challenge to continue. Breaching the forbidden-practice rules can go further: FTMO can terminate all your agreements, cancel pending rewards and bar you from buying again.
FTMO 1-Step vs 2-Step: which is easier?
The 1-Step is faster, with one 10% target and no minimum days, and pays 90% from the start, but it has a 3% daily loss, a trailing max loss, a 50% Best Day Rule and no refund. The 2-Step needs 15% over two phases yet offers a static 10% max loss, 5% daily room and a refundable fee, which makes it more forgiving for most traders.
Can I hold trades over the weekend with FTMO?
During the challenge, yes. On a funded Standard account you must close positions before the weekend and before market breaks longer than 2 hours, while Swing accounts, sold only with the 2-Step up to $100K, can hold over weekends.
Does FTMO have a consistency rule?
The 2-Step has none. The 1-Step's Best Day Rule requires your best day to be no more than 50% of the profit from positive days, both to pass and for each reward. FTMO Futures uses 40% (Growth) or 50% (Pro) during the evaluation only.