Ftmo.com Review

After careful evaluation of ftmo.com, We give it a Trust Score of 0.5 out of 5 stars.

The core offering of FTMO, which involves participating in simulated trading with the promise of “rewards” based on “simulated profits” and potential employment by a proprietary trading firm like Quantlane, falls squarely into an area fraught with financial risks and ethical concerns from an Islamic perspective.

While the website emphasizes simulated environments and fictitious funds, the entire premise is built upon profiting from speculative market movements without actual ownership or productive enterprise.

This model, despite its disclaimers, leans heavily into elements of financial speculation, which can be akin to gambling due to its high-risk, zero-sum nature and detachment from real economic activity.

The enticing prospect of “up to 90% of simulated profits” without risking personal capital, while seemingly attractive, masks the underlying mechanism of taking a fee to participate in a challenge where the vast majority of participants are unlikely to succeed.

The business model of “prop firms” often relies on the initial fees paid by hopeful traders, rather than the sustained profitability of a large cohort of their “funded” traders.

This aligns with a pattern often seen in ventures that extract value from participation fees rather than generating genuine, tangible economic growth.

The website attempts to frame this as an “Evaluation Process” and skill enhancement, but the financial structure and the nature of the “rewards” are highly problematic.

Here’s an overall summary of ftmo.com:

• Website Purpose: To identify “trading talents” through a simulated “Evaluation Process” FTMO Challenge and Verification and potentially reward participants with a share of “simulated profits,” leading to potential employment at a proprietary trading firm.
• Core Offering: Simulated trading accounts with fictitious funds, where participants pay a fee to undergo an evaluation. If successful, they can receive “rewards” of up to 90% of simulated profits.
• Financial Model: Participants pay an initial fee for the FTMO Challenge €89 for a $10,000 challenge. The promise of “rewards” is contingent on meeting specific “Trading Objectives” in a simulated environment. The refundable fee with the first “reward” is a common incentive.
• Ethical Concerns Islamic Perspective:
  • Speculative Nature: The entire operation revolves around profiting from fluctuations in financial markets forex, commodities, etc. without any underlying real assets or productive exchange. This is fundamentally speculative and can resemble gambling, which is forbidden.
  • “Simulated Profits” and “Fictitious Funds”: While disclaimers state these are demo accounts and simulated profits, the incentive structure is identical to real trading, encouraging a mindset focused on pure speculation rather than ethical investment or trade.
  • Riba Interest Proximity: Although not explicitly an interest-based loan, the structure of earning “rewards” from financial market activities without genuine ownership or risk-sharing can border on problematic financial transactions that lack the ethical foundations of Islamic finance.
  • Misleading Prospects: The high success rates often advertised by such firms typically refer to those who pass the initial challenge, not those who consistently earn substantial “rewards” over the long term. The emphasis on “fictitious funds” subtly shifts the risk, but the participant still pays a real fee.
• Transparency: While FTMO provides detailed information on its “Evaluation Process” and “Trading Objectives,” the inherent nature of prop trading models, where the firm profits regardless of the individual trader’s long-term success, warrants extreme caution.
• User Testimonials: The testimonials are compelling, featuring individuals who claim significant “payouts.” However, these are success stories, and the vast majority of participants in such challenges may not achieve similar results.
• Overall Recommendation: Not recommended from an Islamic financial perspective due to the speculative nature, potential for misleading participants, and the detachment from real economic value creation. It encourages a focus on quick, speculative gains rather than diligent, ethical business practices. The underlying premise encourages a mindset that is far removed from the principles of ethical and permissible earning in Islam.

Instead of engaging in speculative trading challenges like ftmo.com, consider these alternatives that align with ethical financial practices and personal development:

• Islamic Finance Education Platforms: Instead of engaging in speculative trading, invest in learning about true Islamic finance, including halal investments, ethical banking, and sharia-compliant business models. Understanding these principles is crucial for building long-term, permissible wealth.

  

  • Key Features: Courses on Mudarabah, Musharakah, Sukuk, ethical investing, Zakat calculation.
  • Average Price: Varies, from free online resources to paid courses e.g., $50-$500.
  • Pros: Fosters ethical financial understanding, promotes genuine wealth creation, aligns with Islamic principles.
  • Cons: Requires dedication to learning, may not offer immediate “rewards” like speculative trading.

• Online Business Courses: Focus on building actual businesses, whether e-commerce, service-based, or product development. These courses teach sustainable models.

  • Key Features: Business plan development, marketing, sales, operations, customer acquisition.
  • Average Price: $100-$1000+, depending on depth and platform.
  • Pros: Teaches real-world skills, builds sustainable income streams, creates value, aligns with ethical trade.
  • Cons: Requires significant effort and time, success is not guaranteed and requires consistent work.

• Skill-Based Freelancing Platforms: Invest time in developing a marketable skill e.g., writing, graphic design, web development and offer it on platforms. This directly exchanges effort for income.

  • Key Features: Project management, client communication, portfolio building, invoicing.
  • Average Price: Free to join, earnings vary based on skill and effort.
  • Pros: Direct income generation, builds valuable experience, flexible work arrangements.
  • Cons: Can be competitive, requires self-discipline, income might be inconsistent initially.

• Real Estate Investment Education: Learn about investing in tangible assets like real estate through ethical financing methods e.g., Murabahah or Ijarah for property acquisition.

  • Key Features: Property analysis, market trends, tenant management, ethical financing options.
  • Average Price: Books range from $20-$50, courses can be $500-$2000+.
  • Pros: Tangible asset, potential for long-term appreciation and rental income, can be structured ethically.
  • Cons: High capital requirement, market fluctuations, requires significant research and management.

• Digital Marketing Certifications: Gain certifications in areas like SEO, content marketing, or social media marketing. These are highly sought-after skills for legitimate businesses.

  • Key Features: SEO best practices, content strategy, social media campaigns, analytics.
  • Average Price: Many free resources Google Digital Garage, paid certifications $100-$1000+.
  • Pros: High demand skills, can lead to stable employment or freelance opportunities, helps businesses grow.

• Sustainable Agriculture & Farming Education: Learn about sustainable farming practices, which involve direct production and contribute to society’s well-being.

  • Key Features: Crop rotation, organic farming, soil health, farm management.
  • Average Price: Books and workshops vary from $30-$300+.
  • Pros: Produces real value, contributes to food security, can be a fulfilling livelihood.
  • Cons: Labor-intensive, requires land and capital, dependent on environmental factors.

• Craft and Artisan Skill Development: Learn a craft like calligraphy, pottery, woodworking, or traditional textile work. These skills produce tangible goods that can be sold.

  • Key Features: Material knowledge, design principles, production techniques, marketing crafts.
  • Average Price: Varies widely based on craft and materials, from $20 for basic kits to hundreds for workshops.
  • Pros: Creates unique products, can be a passion project turned income, direct value creation.
  • Cons: Requires artistic talent or manual dexterity, market for crafts can be niche.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on our research and information provided by the company. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Ftmo.com Review & First Look: Deconstructing the Prop Trading Model

Let’s cut to the chase.

When you land on ftmo.com, you’re immediately hit with a bold promise: “Grow & Monetize your demo TRADING Master your trading skills on our simulated trading platform, improve your trading on A demo FTMO account WITH up to $200,000 and get A reward OF up to 90% of your simulated profits.” Sounds enticing, right? Especially that “without any risk of losing their own capital” part.

But here’s the deal: anything that promises high “rewards” based on “simulated profits” in financial markets should make you hit the brakes and really dig into the details.

The FTMO model positions itself as a way to discover and nurture trading talent through a rigorous “Evaluation Process” — specifically, the FTMO Challenge and Verification steps. The idea is to prove your trading prowess on a demo account, adhering to strict “Trading Objectives” like maximum daily loss and overall loss limits, and a profit target. If you pass, you get access to an “FTMO Account” with fictitious funds, and if you continue to perform, you can earn up to 90% of the simulated profits you generate. The ultimate carrot is the potential to join Quantlane, a proprietary trading firm, as a salaried professional trader.

Now, let’s unpack this. Easy-form-filler.com Review

The emphasis on “simulated,” “fictitious,” and “demo” is critical.

You’re not trading real money, and you’re not getting a share of real profits generated in the market.

You are getting a “reward” from FTMO based on your performance in a simulation.

The revenue for FTMO, like many “prop firms” in this space, primarily comes from the initial fees participants pay to undertake these challenges.

According to their site, a $10,000 FTMO Challenge is €89. With “more than 240,000+ FTMO Accounts” created, even a fraction of those paying the challenge fee adds up to significant revenue, regardless of how many actually pass or receive “rewards.” Evri.com Review

The concept of a “prop trading firm” traditionally involves a company providing capital to traders who then trade real money on behalf of the firm, sharing in the profits and losses. FTMO’s model is a hybrid, where they test on demo accounts and then offer “rewards” from their own coffers, only then potentially transitioning successful traders to their proprietary firm, Quantlane, where real capital is involved. This distinction is crucial for understanding the ethical implications. While the site aims to identify trading talent, the pathway to monetizing that talent involves a system that, from an ethical standpoint, blurs the lines of permissible financial engagement.

It’s about the difference between producing value and speculating on price movements. From an ethical lens, particularly an Islamic one, profiting solely from price fluctuations in markets without contributing to real economic activity, owning tangible assets, or engaging in productive exchange can be problematic. The speculative nature, even when simulated, cultivates a mindset that prioritizes quick gains from market volatility over diligent, value-adding endeavors. The “no risk of losing your own capital” often refers to the trading capital, not the challenge fee you paid to enter the system. And that fee is a very real cost.

Think of it like this: you pay to enter a highly complex game.

If you win, you get a prize from the game organizer.

The game itself simulates a real-world activity, but the prize is not directly derived from that activity in the way real business profits are. clickfunnels.com Company Worth

This isn’t the same as investing in a business that produces goods or services, or engaging in ethical trade where goods change hands for a mutually agreed price.

It’s a system designed around assessing skill in market prediction, which inherently carries significant speculative risk.

The question isn’t just “Is it a scam?” but “Is this the right path for generating permissible income and building long-term financial well-being?” For many, the answer leans heavily towards finding alternatives that align with productive and ethical financial principles.

Deconstructing the FTMO Challenge: The Entry Point

The FTMO Challenge is the initial hurdle, a gateway if you will.

It’s the first step in their “Evaluation Process” and requires adherence to specific “Trading Objectives.” This isn’t just a free play. Clickfunnels.com Review

It costs you real money to even begin this simulation.

• Initial Fee Requirement: To even access the challenge, you must pay a fee. For instance, the $10,000 FTMO Challenge costs €89. This non-refundable fee until you succeed and get your first “reward” is a primary revenue stream for FTMO.
• Simulated Environment: All trading in this phase is conducted on a demo account with fictitious funds. This means you are not actually trading live markets or risking real capital, but your “performance” is measured as if you were.
• Trading Objectives: You are required to meet several strict parameters:
  • Maximum Daily Loss: A critical rule where the sum of closed positions and open floating P/Ls cannot exceed 5% of the initial balance in any given day. This enforces strict risk management.
  • Maximum Loss: The overall equity of the trading account cannot decline below 90% a 10% maximum loss limit of the initial balance at any point during the challenge.
  • Profit Target: For the FTMO Challenge, this is typically set at 10% of the initial balance. All positions must be closed to pass this rule.
  • Minimum Trading Days: A minimum of 4 trading days is required, meaning at least one trade must be executed per day. These days do not have to be consecutive.
• Indefinite Trading Period: Unlike some other challenges, FTMO states there is no time limit to pass the profit target. This offers flexibility but also means prolonged engagement can tie up your initial fee.
• Tools & Services Unlocked: With the purchase of the FTMO Challenge, participants gain access to various in-house developed “Tools & Services” designed to “help on your journey.” This adds perceived value to the initial fee.
• Non-Refundable Profits: It’s explicitly stated that “simulated profits in the Evaluation Process are only part of the Trading Objectives and do not belong to the client to be rewarded.” This means even if you hit your profit target early, you don’t get anything until you complete the entire Evaluation Process and become an “FTMO Trader.”

The Verification Step: Consistency is Key

Following a successful FTMO Challenge, you proceed to the Verification step.

This phase is designed to confirm the skills demonstrated in the initial challenge, albeit with slightly relaxed “Trading Objectives.”

• Reduced Profit Target: The profit target is halved, typically to 5% of the initial balance, making it ostensibly easier to pass. This tests consistency rather than aggressive growth.
• Maintained Loss Rules: Crucially, the “Maximum Daily Loss” and “Maximum Loss” rules remain identical to the FTMO Challenge 5% and 10% respectively. This underscores FTMO’s emphasis on risk management.
• Continued Simulated Environment: Like the challenge, all trading in the Verification step is also conducted on a demo account with fictitious funds. You are still not trading real money.
• No Time Limit: Similar to the challenge, there is no time limit to pass the Verification step, allowing traders to take their time to meet the objectives.
• Tools & Services Remain Unlocked: The tools and services granted during the FTMO Challenge continue to be available during Verification.
• Path to FTMO Account: Successful completion of the Verification step is the final gateway to signing the “FTMO Account Agreement” and becoming an “FTMO Trader.” It’s important to remember that these “simulated profits” are still not your own, and the entire process is a hurdle race to qualify for a particular status.

The FTMO Account: “Monetized” Demo Trading

Upon successfully navigating both the Challenge and Verification, you are offered an “FTMO Account Agreement.” This is where the “rewards” come into play, but it’s essential to grasp the nuances.

• Simulated Demo Environment: Despite being called an “FTMO Account” with “fictitious funds up to $200,000,” the key detail is repeated: “It is important to mention that all accounts we provide to our clients are demo accounts with fictitious funds and any trading is in a simulated environment only.” You are still trading on a demo.
• No Profit Target or Minimum Trading Days: Once an FTMO Trader, the strict “Profit Target” and “Minimum Trading Days” rules are removed. The focus shifts entirely to risk management, with only the “Maximum Daily Loss” and “Maximum Loss” rules remaining in effect.
• Reward Structure: This is the core incentive. FTMO states that traders can receive a “reward” of 80% of the simulated profits generated. This can be upgraded to 90% if “Scaling Plan” requirements are met. It’s vital to reiterate: this is a reward from FTMO based on your demo performance, not a direct share of live trading profits.
• Refundable Fee: With the first “reward,” the initial fee paid for the FTMO Challenge is refunded. This makes the initial outlay seem less risky, but only for those who reach this stage and generate a “reward.”
• No Employment Status: The agreement explicitly states, “It is important to mention that you do not become an FTMO employee” at this stage. This clarifies that despite the potential “rewards,” you are still an independent participant in their program, not a staff member.
• Access to Exclusive Opportunities: Successful FTMO Traders gain access to “exclusive opportunities,” including the “FTMO Premium Programme,” which is the pathway to Quantlane. These opportunities are the ultimate lure for many.

Quantlane Professional Trader: The Ultimate Lure

The final stage of the FTMO journey is the potential to become a “Professional Trader” at Quantlane, a proprietary trading firm. clickfunnels.com commission

This is where real capital and a fixed salary are introduced, theoretically.

• Real Capital Trading: Unlike the preceding steps, Quantlane manages its own “real capital” and operates in a “real market environment with institutional conditions.” This is a significant shift from simulated trading.
• Eligibility Requirements: To qualify for an interview with Quantlane, traders must meet stringent conditions:
  • Completion of the full FTMO Evaluation Process.
  • Obtaining an FTMO Account.
  • Fulfilling the “FTMO Premium Programme” conditions Prime and Supreme status. These additional tiers likely involve sustained, high-level performance on the simulated FTMO Account.
• Benefits of Quantlane Trader:
  • Contract with Fixed Salary: This is a major appeal, offering stable income in the trading world.
  • Performance & Mindset Coach: Continued support for professional development.
  • Institutional Trading Conditions: Access to tight spreads, deep liquidity, robust risk frameworks, and other advantages typically reserved for large financial institutions.
  • Custom Platform & Tooling: Tailored technology for professional trading.
• The “Final Goal”: FTMO frames this as “the final goal of a trading career which FTMO envisioned.” It represents the transition from a speculative “reward” model to a professional, salaried trading role.
• High Barrier to Entry: While enticing, it’s safe to assume that only a very small percentage of FTMO Challenge participants ever reach this coveted stage. The journey is designed to filter out all but the most consistently profitable in simulation and disciplined traders. The actual number of individuals transitioning to Quantlane is not prominently disclosed, and it’s likely a highly exclusive group.

This tiered system, from paying a fee for a simulated challenge to potentially earning a salary at a real prop firm, is a well-structured recruitment and filtering mechanism.

However, its foundation in speculative trading, even if simulated, warrants strong caution from an ethical perspective.

Ftmo.com Review: Key Concerns and Ethical Considerations

While ftmo.com presents a polished image and a structured path for aspiring traders, a deeper dive reveals significant concerns, particularly when viewed through an ethical lens.

The very nature of the service it provides, despite being “simulated,” encourages and trains individuals in a financial activity that raises red flags. clickfunnels.com Pros & Cons

Is ftmo.com a Scam? Unpacking the Business Model

The term “scam” is often thrown around loosely, but it’s important to differentiate. FTMO operates as a legitimate business entity, with clear terms and conditions, a physical presence based on WHOIS data and company information, and a stated process. However, whether its business model is ethical or sustainable for the average participant is a different question entirely.

• Reliance on Challenge Fees: A significant portion of FTMO’s revenue likely comes from the initial challenge fees. With hundreds of thousands of accounts created, even a small fee per account generates substantial income.
  • Data Point: If 240,000+ accounts were created at an average of €89 for the $10k challenge, that’s potentially over €21 million in revenue from fees alone, irrespective of payouts. While larger accounts cost more, this illustrates the potential scale.
  • Business Model Insight: This model can be sustainable for the firm even if only a small percentage of traders succeed in getting a refund or payout. The challenge itself acts as a profitable product.
• High Attrition Rate: Trading is inherently difficult, and the vast majority of aspiring traders, whether using real money or in simulated environments, do not consistently achieve profitability. Prop firm challenges, with their strict rules daily loss, overall drawdown, are designed to be difficult to pass.
  • Statistical Implication: While FTMO highlights success stories, the implied reality is that a significant number of participants fail to meet the “Trading Objectives,” thus forfeiting their initial fee and not reaching the “reward” stage.
  • Transparency Gap: The website does not prominently display success rates for passing the challenges or the percentage of “FTMO Traders” who consistently receive “rewards.” This information, if provided, would give a more realistic picture of individual probabilities.
• “Simulated” vs. “Real”: The constant emphasis on “fictitious funds” and “simulated environment” while simultaneously promising “rewards” and “monetization” creates a subtle psychological disconnect. Participants are encouraged to behave as if it’s real trading, but the financial mechanics of their “rewards” are entirely at FTMO’s discretion based on a predetermined algorithm.
  • Real Risk, Unreal Gain: The user puts real money the challenge fee at risk, but the “profits” they make are not real profits from market activity. they are calculated bonuses from FTMO’s pool of funds, largely derived from the fees of other participants.
• The “Scam” Debate Reframed: It’s less about FTMO being a “scam” in the traditional sense of outright fraud, and more about whether it’s a sound and ethical financial endeavor. For many, it’s a very expensive learning curve with a low probability of significant financial return.

Ethical Implications: Why FTMO’s Model Is Problematic

From an ethical perspective, especially when considering Islamic finance principles, the FTMO model faces significant challenges.

• Speculation Gharar and Gambling Maysir: The fundamental activity encouraged by FTMO is speculation on financial markets. While some forms of trading with real assets for productive purposes are permissible, trading purely for price differences especially in derivatives or forex, which are often involved in prop trading without tangible ownership or productive activity can quickly delve into gharar excessive uncertainty/risk and maysir gambling.
  • Lack of Real Economy Connection: The “rewards” are derived from simulated performance, not from value creation in the real economy. This detachment from productive enterprise is a key issue.
  • Zero-Sum Game: Many financial markets, particularly highly leveraged ones, resemble zero-sum games where one person’s gain is another’s loss, without any underlying growth in wealth or assets. This contrasts with ethical business, where both parties can benefit, and society as a whole can gain.
• Riba Interest Proximity: While FTMO doesn’t explicitly involve interest-based loans for the trading capital, the fee structure and the “reward” mechanism can be seen as indirectly related to a system that profits from market fluctuations rather than tangible assets or services. The “time value of money” and potential for earning without genuine risk-sharing from the firm’s perspective on the participant’s “capital” can be problematic.
• Risk of Addiction and Psychological Harm: The pursuit of quick “rewards” from speculative trading can be highly addictive. The psychological toll of constantly trying to meet strict “Trading Objectives,” facing potential “resets” by hitting loss limits, and the intense pressure to perform can lead to stress, anxiety, and a chasing mentality that is detrimental to mental well-being.
  • Gambling Parallel: The thrill of “winning” or passing a challenge, the potential for large “payouts,” and the rapid feedback loops can mimic the psychological effects of gambling, a highly discouraged activity.
• Misallocation of Resources: Investing time, effort, and real money the challenge fee into a speculative endeavor distracts from more ethical and productive avenues for wealth creation. Instead of learning skills that build businesses, create jobs, or produce tangible goods, individuals are encouraged to focus on predicting market movements.
  • Opportunity Cost: The time and money spent on FTMO challenges could be better invested in acquiring skills for actual entrepreneurship, vocational training, or ethical investment education.

FTMO.com Pros & Cons from a neutral, objective standpoint, before ethical overlay

Even without the ethical overlay, a critical evaluation of FTMO reveals both potential advantages and disadvantages for an aspiring trader.

• Pros from a secular perspective:

  • Access to Capital Simulated: Allows traders to practice with significant “fictitious capital” $200,000 without risking their own funds beyond the initial fee.
  • Discipline & Risk Management Training: The strict “Trading Objectives” daily loss, max loss force traders to develop strong risk management habits, which are crucial in real trading.
  • Structured Evaluation Process: Provides a clear, step-by-step path to assess and improve trading skills.
  • Performance Coaching & Tools: Offers resources like performance coaches and various trading tools, which can aid skill development.
  • No Time Limit on Challenges: Flexibility for traders to pass the challenge at their own pace, reducing pressure.
  • Potential for High Payouts Simulated: The 80-90% “reward” share can be very attractive for successful demo traders.
  • Path to Professional Trading: Offers a rare potential route into proprietary trading with a fixed salary Quantlane for elite performers.
  • Refundable Fee: The initial challenge fee is refunded upon the first “reward,” making the upfront cost less daunting for those who succeed.
  • Multilingual Support: Customer service available in 18 languages, indicating a global reach.

• Cons from a secular perspective: getresponse.com Alternatives

  • Initial Fee Required: You must pay real money to even begin the evaluation, which is forfeited if you fail.
  • High Difficulty: The “Trading Objectives” are strict, and most aspiring traders find it challenging to consistently meet them. High failure rates are common in such programs.
  • Psychological Pressure: Even in a simulated environment, the pressure to meet targets and avoid hitting loss limits can be immense.
  • “Simulated” Nature: Despite “rewards,” the trading itself is not real. This can create a disconnect from the realities of live market psychology and execution.
  • Limited Transparency on Success Rates: FTMO highlights successful individuals but doesn’t publicly disclose the overall pass rates for their challenges or the percentage of traders consistently receiving payouts.
  • No Real Money Trading Experience Initially: While a pro for avoiding risk, it means traders don’t gain experience with the emotional and psychological aspects of trading real capital until potentially much later at Quantlane.
  • Focus on Short-Term Gains: The profit targets, while challenging, can sometimes incentivize aggressive trading strategies to hit thresholds quickly, which may not be sustainable in the long run.
  • Competitive Environment: With hundreds of thousands of participants, the competition to stand out and reach the higher tiers is intense.

When weighing these pros and cons, especially through an ethical Islamic lens, the “cons” related to the speculative nature and the detachment from real economic activity become paramount.

Ftmo.com Alternatives: Ethical Paths to Financial Growth

Given the ethical concerns surrounding speculative trading platforms like FTMO, it’s crucial to explore alternative avenues for financial growth and skill development that align with permissible and beneficial practices.

These alternatives focus on real value creation, ethical investment, and sustainable business models.

Why Choose Alternatives to Speculative Trading?

The core issue with platforms that promote simulated or real speculative trading for “rewards” or “profits” is their detachment from productive economic activity.

Islamic finance emphasizes transactions that involve: getresponse.com Pros & Cons

• Tangible Assets: Exchange of real goods or services.
• Risk Sharing: Both parties genuinely share in profit and loss not just one side bearing all real risk while the other collects fees.
• Productivity: Contribution to the real economy, creating value, goods, or beneficial services.
• Avoiding Gharar Excessive Uncertainty and Maysir Gambling: Reducing elements of pure chance or zero-sum outcomes.

Alternatives focus on building skills, investing in real businesses, and engaging in trade that benefits society.

Exploring Permissible Financial Avenues

Instead of trying to “monetize simulated trading,” consider these paths that build real wealth and align with ethical principles:

• E-commerce Business Models: Instead of speculating on market prices, build a business that sells actual products. This involves creating value, serving customers, and managing inventory.

  

  • Key Features: Setting up an online store e.g., Shopify, WooCommerce, product sourcing, marketing SEO, social media, customer service, order fulfillment.
  • Ethical Alignment: Direct buying and selling of permissible goods. Clear exchange of value.
  • Average Price: Varies widely, from low startup costs for dropshipping to significant investment for inventory and marketing.
  • Pros: Builds a tangible asset the business, creates real value, income directly tied to effort and market demand.
  • Cons: Requires significant effort, marketing skills, inventory management, high competition.

• Digital Content Creation & Monetization: This involves creating valuable content e.g., educational blogs, ethical lifestyle YouTube channels, informative podcasts and monetizing it through advertising, sponsorships, or selling related products/services. How to Effectively Use Semrush.com for Marketing

  • Key Features: Niche selection, content strategy, audience building, SEO, video editing, audio production.
  • Ethical Alignment: Provides beneficial information or entertainment, builds a community, generates income from legitimate advertising or product sales.
  • Average Price: Low startup cost camera, microphone, editing software, time-intensive investment.
  • Pros: High scalability, builds personal brand, can be very fulfilling, aligns with sharing knowledge.
  • Cons: Takes time to build an audience, inconsistent income initially, requires consistent effort.

• Ethical Stock Market Investing Halal Stocks: Instead of active day trading or highly leveraged speculation, focus on long-term investment in Sharia-compliant companies. This involves owning a share in a productive business.

  • Key Features: Screening companies for ethical business practices no alcohol, gambling, interest-based finance, diversification, long-term holding strategy, fundamental analysis.
  • Ethical Alignment: Ownership in a real business, sharing in its real profits and losses, no excessive speculation.
  • Average Price: Investment capital required can start small with fractional shares, brokerage fees.
  • Pros: Participates in real economic growth, potential for long-term wealth appreciation, passive income from dividends.
  • Cons: Requires research, market fluctuations can affect value, not suitable for quick gains.

• Service-Based Business / Consulting: If you have expertise in a particular field e.g., marketing, IT, education, coaching, offer your services to clients. This is a direct exchange of skills for income.

  • Key Features: Identifying a niche, marketing services, client acquisition, contract negotiation, project management.
  • Ethical Alignment: Providing a beneficial service, direct value exchange, builds professional reputation.
  • Average Price: Low startup cost website, marketing materials, time-intensive.
  • Pros: High profit margins, leverages existing skills, flexible work, direct impact on clients.
  • Cons: Requires strong client acquisition skills, income can be inconsistent, demanding schedule.

• Real Estate Investment Halal Methods: Focus on acquiring tangible properties for rental income or long-term appreciation, using Sharia-compliant financing methods.

  • Key Features: Property research, market analysis, tenant management, Murabahah or Ijarah financing structures.
  • Ethical Alignment: Investing in a tangible asset, generating rental income from real property, clear ownership.
  • Average Price: High capital requirement, but can start with real estate investment trusts REITs or crowdfunding platforms.
  • Pros: Stable income potential, asset appreciation, hedge against inflation.
  • Cons: High barrier to entry, requires significant research and management, illiquid asset.

• Sustainable Agriculture & Food Production: Engaging in farming or food production e.g., urban gardening, selling produce, small-scale farming directly contributes to societal well-being and provides real, tangible goods.

  • Key Features: Crop cultivation, livestock management if applicable, halal standards, direct-to-consumer sales, local market engagement.
  • Ethical Alignment: Produces essential goods, contributes to food security, direct application of effort for tangible output.
  • Average Price: Varies widely, from small garden setups to significant land and equipment investment.
  • Pros: Direct value creation, healthy lifestyle, potential for community building, resilient business.
  • Cons: Labor-intensive, dependent on weather, requires specific knowledge.

• Vocational Skills Training & Entrepreneurship: Learn a practical trade e.g., plumbing, electrical work, carpentry, auto repair, IT repair and start a business offering these services. Is Semrush.com Legit?

  • Key Features: Hands-on training, certification, tool acquisition, client management, marketing local services.
  • Ethical Alignment: Provides essential services, direct exchange of skilled labor for income, fulfills community needs.
  • Average Price: Varies for training programs, tool investment can be significant.
  • Pros: High demand for skilled trades, consistent income potential, tangible value provided.
  • Cons: Physically demanding, requires continuous learning, client acquisition.

These alternatives represent paths that not only offer legitimate income and growth potential but also uphold ethical principles, ensuring that financial endeavors contribute positively to society and personal well-being.

Does ftmo.com Work? Understanding Their Evaluation Process

When people ask, “Does ftmo.com work?” they’re usually wondering if it’s genuinely possible to navigate their system, pass the challenges, and eventually receive “rewards” or become a professional trader.

The short answer is: yes, for a select few, it “works” in the sense that they meet the criteria and receive what FTMO promises.

However, for the vast majority, it likely doesn’t “work” in terms of leading to consistent income or a professional trading career.

The “working” here is heavily skewed towards FTMO’s internal metrics and filters. Rehype.me’s Business Model: Subscription, Pricing, and Transparency

• The “Work” for FTMO: For FTMO as a company, the system demonstrably “works” as a highly effective business model. Their ability to attract hundreds of thousands of participants paying challenge fees, while only a subset successfully pass and receive “rewards,” ensures their profitability.
  • Revenue Generation: The payment of an initial fee e.g., €89 for a $10,000 challenge from a large pool of applicants creates a significant revenue stream. This revenue can then be used to pay out the “rewards” to successful traders, cover operational costs, and generate profit for FTMO.
  • Talent Scouting: The rigorous evaluation process serves as a highly efficient and cost-effective method for FTMO to identify individuals who demonstrate exceptional discipline and risk management skills in a simulated environment. These individuals are the ones they might consider for their Quantlane arm.
• The “Work” for the Individual Trader Successful Few: For the small percentage of traders who successfully pass both the FTMO Challenge and Verification, and then consistently manage an “FTMO Account” to generate “simulated profits” within the rules, the system “works” in that they receive “rewards.”
  • Testimonial Evidence: FTMO’s website features testimonials from individuals who claim to have received significant “payouts.” These stories serve as powerful motivators, demonstrating that the stated process can lead to receiving the promised “rewards.”
  • Discipline and Consistency: The success stories often highlight extreme discipline, adherence to risk management, and a deep understanding of trading mechanics. This implies that “working” the FTMO system requires a level of skill and psychological resilience far beyond what most aspiring traders possess.
• The “Work” for the Individual Trader Majority: For the vast majority of participants, the system likely does not “work” in the sense of leading to sustained income or professional opportunities.
  • High Failure Rate: The strict “Maximum Daily Loss” and “Maximum Loss” rules are designed to weed out traders quickly. A single bad day or a series of poor trades can lead to failing the challenge and forfeiting the fee.
  • Psychological Toll: Even if a trader is skilled, the pressure of constant evaluation, the fear of hitting a drawdown limit, and the need to achieve specific profit targets can be psychologically debilitating, leading to errors and failure.
  • Learning Curve: Trading is a complex skill, and many individuals enter these challenges without sufficient prior experience or a robust trading plan. The challenge acts as an expensive learning experience for them.
  • Unrealistic Expectations: Many individuals are drawn in by the promise of large simulated accounts and high “reward” percentages, without fully grasping the difficulty of consistently meeting the strict criteria.

FTMO Commission Structure: Understanding the “Payouts”

When FTMO talks about “commission” or “rewards,” it’s crucial to understand it within the context of their “simulated profits” model. They are not taking a direct commission on your live trades because you’re not making live trades on their “FTMO Account”. Instead, they are rewarding you based on the simulated profits you generate.

• Simulated Profit Sharing: The primary “commission” or “reward” structure is an 80/20 split, where the FTMO Trader receives 80% of the simulated profits generated on their FTMO Account which uses fictitious funds.
  • Scaling Plan Incentive: FTMO offers an incentive through its “Scaling Plan” to increase this “reward” to 90%. This plan typically requires consistent profitability and adherence to rules over a specified period.
  • Refundable Fee: With the first “reward payout,” the initial fee paid for the FTMO Challenge is refunded. This effectively means that once you successfully reach the “FTMO Account” stage and generate a “reward,” your initial cost is recouped. However, if you never reach this stage or never generate a payout, the fee is not refunded.
• No Direct “Commission Per Lot” for FTMO Accounts: Because the “FTMO Account” itself is a simulated demo, FTMO isn’t directly earning “commission per lot” from your trades like a traditional broker might. Their revenue comes from the challenge fees and potentially from managing actual capital through Quantlane. Any “commissions” or “spreads” displayed on the demo platform are part of the simulation to mirror real trading conditions.
• Frequency of Payouts: FTMO allows traders to request a “reward” payout every 14 calendar days. This relatively frequent payout schedule can be appealing, as it provides quicker access to “rewards” for consistent performers.
• Withdrawal Methods: Payouts are typically processed via bank wire transfer, cryptocurrencies, or other online payment services, offering flexibility to traders worldwide.

In essence, while the term “commission” might be used colloquially, FTMO’s system is more accurately described as a “simulated profit-sharing reward program.” Their primary business model is not based on per-trade commissions from their funded traders but on the upfront challenge fees and the potential to onboard elite traders into their actual prop trading arm, Quantlane.

Is ftmo.com Legit? Unpacking Trust and Transparency

The question of whether ftmo.com is “legit” is complex.

On one hand, FTMO is a registered company with a long operating history since 2015, positive reviews on platforms like Trustpilot, and clear terms of service.

On the other hand, the nature of “prop trading challenges” in general raises questions about their underlying business model and the true chances of success for the average participant. Rehype.me’s Claims Versus Reality: An In-Depth Analysis

Aspects of Legitimacy:

• Company Registration: The WHOIS data confirms the domain FTMO.COM was created in 2001 though the company started operating as FTMO in 2015 and is registered through GoDaddy.com, LLC. The presence of clear contact information and business details enhances its perceived legitimacy.
• Public Reviews Trustpilot: FTMO has a strong presence on Trustpilot with a high rating. This indicates that many users have had positive experiences, including receiving payouts as promised.
  • Caveat on Reviews: While positive reviews are good, it’s essential to remember that:
    • They often come from successful individuals who passed the challenges.
    • They might not reflect the experiences of the vast majority who fail the challenges and lose their initial fee.
    • Some reviews might focus on customer service rather than long-term profitability.
• Clear Terms and Conditions: The website clearly outlines the “Evaluation Process,” “Trading Objectives,” and the “reward” structure. The explicit declaration that accounts are “demo accounts with fictitious funds” and that traders are “not FTMO employees” demonstrates a level of transparency regarding the nature of the service.
• Contact Information and Support: FTMO provides multiple channels for customer support WhatsApp, LiveChat, Email, Phone, available in many languages, which is a sign of a professionally run operation.
• Partnerships and Awards: Mentions of “FTMO Awards” and the connection to Quantlane a traditional proprietary trading firm lend credibility to their aspirations and potential real-world connections.

Areas of Scrutiny and “Legitimacy” Red Flags:

• Business Model Reliance on Fees: As discussed, a significant portion of FTMO’s revenue comes from the challenge fees. This model is inherently profitable for the company regardless of the individual trader’s long-term success. It’s a “legitimate” way to generate revenue, but it also means the barrier to entry the fee is crucial to their profit.
• Success Rate Transparency: While FTMO highlights testimonials, they don’t publicly share overall success rates for passing the challenges or the percentage of “FTMO Traders” who consistently receive payouts. This lack of broad statistical transparency can be a concern for potential participants trying to gauge their true odds.
• Psychological Marketing: The language used often emphasizes high “rewards,” potential for “up to $200,000” in “fictitious funds,” and the dream of professional trading. While not illegal, such marketing can create unrealistic expectations for individuals new to trading or those unaware of the extremely high failure rates in this field.
• Disguised Learning Cost: For many, the challenge fee acts more as a fee for a rigorous trading course where failure means losing your tuition. While there’s a refund for successful individuals, it’s a significant upfront cost for many who will not make it.
• Ethical “Legitimacy”: This is where the primary concern arises. Even if legally “legit,” the core activity—speculation on financial markets, even if simulated for “rewards”—is problematic from an Islamic ethical standpoint. A business can be legally legitimate but ethically dubious if it encourages activities that are harmful or wasteful of resources according to religious principles.

In conclusion, FTMO is a legally legitimate company that delivers on its stated promises for those who meet its strict criteria.

However, its business model heavily relies on initial fees, and the overall success rate for participants is likely very low.

The ethical considerations around its core offering of speculative trading remain a significant concern, making it a venture that requires extreme caution and is best avoided from an Islamic perspective.

How to Cancel FTMO.com Participation / Free Trial

If you’ve started an FTMO Challenge or are utilizing their Free Trial, and you’ve decided it’s not for you, either due to the difficulty, the cost, or ethical considerations, canceling your participation is relatively straightforward.

Since you are paying for a service the challenge rather than a subscription, the “cancellation” largely refers to discontinuing your involvement and not renewing or attempting new challenges. Dissecting Rehype.me’s Operational Model: Beyond the “No Bots” Claim

Cancelling an FTMO Challenge:

An FTMO Challenge is a one-time purchase for a specific evaluation.

There isn’t a continuous “subscription” to cancel in the traditional sense.

• No Automatic Renewal: When you purchase an FTMO Challenge, it’s a single payment for that specific challenge. It does not automatically renew. You will not be charged again unless you actively purchase a new challenge.
• Forfeiting the Fee: If you decide to stop participating in an active FTMO Challenge, or if you fail the challenge by hitting a loss limit, you simply discontinue. The fee you paid for that specific challenge is generally not refundable unless you successfully pass the entire Evaluation Process Challenge and Verification and receive your first “reward” payout on an FTMO Account.
• Stopping Participation: To “cancel” an active challenge, you simply cease trading on the provided demo account. You don’t need to notify FTMO of your decision to stop, unless you have specific questions about your account status.
• No “Cancel Subscription” Button: Because it’s not a subscription service, you won’t find a “cancel subscription” button in your client area for a purchased challenge.

Cancelling FTMO Free Trial:

The FTMO Free Trial is, as its name suggests, free.

There’s no financial commitment, so there’s no money to refund or subscription to stop.

• No Financial Obligation: Since you haven’t paid anything for the Free Trial, there’s no financial impact if you stop using it.
• Simply Stop Using It: To “cancel” the Free Trial, you simply stop logging into or using the demo account provided for the trial. It will likely expire after a certain period of inactivity or after a set duration, as outlined in the trial terms.
• No Formal Cancellation Process: You do not need to formally “cancel” the Free Trial with FTMO customer support. Just cease participation.

General Steps for Discontinuing FTMO Involvement:

1. Stop Trading: The most direct way to “cancel” is to simply stop executing trades on any active challenge or free trial account.
2. Review Client Area: Log into your FTMO Client Area to review the status of any active challenges. While you can’t “cancel” a purchased challenge for a refund unless you pass, you can monitor its status.
3. Remove Payment Information if applicable: If you are concerned about future purchases, ensure that any stored payment information in your client area if such an option exists is removed. However, FTMO does not auto-renew challenges.
4. Contact Support if needed: If you have specific questions about account deletion, data privacy, or any unusual charges though unlikely for challenges, you can contact FTMO customer support via LiveChat, email , or phone +420 910 920 310.

It’s important to differentiate between “cancelling a subscription” and simply “discontinuing participation” in a one-time purchase challenge. Does Cloudflare.com Work?

FTMO’s model is more akin to buying a ticket to an event.

If you don’t attend or don’t complete the event, you generally don’t get a refund unless specified.

This is a crucial point for anyone considering participating in their “Evaluation Process.”

FTMO Company Valuation: A Look at Market Position

Estimating a precise private company valuation like FTMO’s is challenging without access to their internal financial statements.

However, we can infer a significant valuation based on their operational scale, market position, and stated achievements. Cloudflare.com Features

FTMO has positioned itself as one of the leading firms in the “prop trading challenge” space.

• Market Leadership and Brand Recognition: FTMO is widely recognized as a pioneer and a dominant player in the prop trading challenge industry. This strong brand recognition translates into significant market share and pricing power. Their name is frequently brought up in discussions around “prop firms” and “trader funding.”
• Volume of Participants: The company states it has “already created more than 240,000+ FTMO Accounts.” While this number includes challenges and free trials, even if a fraction of these convert into paying challenge participants, the revenue from initial fees alone would be substantial.
  • Hypothetical Revenue: If just 100,000 unique individuals purchased a $10,000 challenge for €89, that’s nearly €9 million in direct fees. Considering larger challenges exist and many might attempt multiple challenges, the actual fee revenue is likely far higher.
• Profitability Model: The business model, which relies on a large volume of relatively small, non-refundable fees until a refund is earned through success, with a low overall success rate for participants, is inherently profitable for the company. They collect revenue upfront, and payouts are contingent on meeting strict criteria that most will not achieve.
• Global Reach and Infrastructure: Operating in multiple languages, with 24/7 customer support, and supporting various trading platforms MetaTrader 4, MetaTrader 5, cTrader indicates a robust operational infrastructure and global reach. This requires significant investment in technology, staff, and marketing.
• Connection to Quantlane: The link to Quantlane, a traditional proprietary trading firm that manages real capital, adds a layer of institutional credibility and suggests a more diversified business strategy beyond just challenge fees. This connection can also serve as a high-value talent pipeline.
• Awards and Recognition: Their mention of “FTMO Awards” suggests industry recognition, further boosting their public image and perceived value.

While a precise valuation is speculative, it’s reasonable to assume FTMO’s company valuation is in the tens of millions to potentially hundreds of millions of Euros/Dollars. Their strong brand, high volume of participants, efficient business model, and established infrastructure point to a highly successful and valuable private entity within the financial technology and prop trading space. Their ability to consistently attract new traders and maintain a large base indicates a strong, ongoing revenue stream.

FTMO Competitors: A Crowded Market of Prop Trading Challenges

The “prop trading challenge” industry, pioneered or at least popularized by FTMO, has become increasingly crowded.

Many firms have emerged, offering similar evaluation models aimed at identifying and “funding” talented traders on simulated accounts.

While FTMO remains a dominant player, several competitors vie for market share, each with its own nuances in rules, pricing, and payout structures.

• MyForexFunds now defunct/in legal trouble: Historically, MyForexFunds was one of FTMO’s largest competitors. It offered a similar challenge-based model with various funding options. However, it faced significant legal action from the CFTC Commodity Futures Trading Commission in 2023, alleging fraud and misrepresentation, leading to its closure. This event highlights the regulatory scrutiny and potential pitfalls in this unregulated sector.
  • Key Lesson: The MyForexFunds situation underscores the inherent risks and lack of regulatory oversight in much of the prop trading challenge space.
• The Funded Trader: This is another prominent firm offering different challenge types Standard, Rapid, Royal with varying rules and leverage. They also provide both simulated and potential live accounts.
  • Similarities: Like FTMO, they emphasize strict risk management rules daily drawdown, overall drawdown and profit targets.
  • Differentiation: May offer more flexible parameters or faster scaling plans depending on the challenge type.
• FundedNext: This competitor markets itself with unique scaling plans and profit split options, including a “no time limit” challenge and direct funding options.
  • Focus: Often highlights strong community support and educational resources.
  • Competitive Edge: May offer more aggressive profit splits or lower fees for certain challenge sizes to attract traders.
• Topstep: One of the older and more established prop firms, Topstep focuses specifically on futures trading. They have a detailed “Trading Combine” evaluation process.
  • Distinction: Primarily futures, whereas FTMO offers a broader range of instruments forex, indices, commodities, crypto. Topstep is often seen as more institutionally focused.
• Apex Trader Funding: Another popular firm, particularly among futures traders, known for its multiple account options and relaxed rules compared to some others.
  • Appeal: Often cited for its lower cost of entry for certain challenges and flexible scaling.
• True Forex Funds also faced issues: Similar to MyForexFunds, True Forex Funds also encountered significant operational disruptions and suspension of services in early 2024, leading to concerns about the stability of many firms in this sector.
  • Industry Trend: These closures indicate that regulatory pressure and operational challenges are a constant threat in the prop firm industry.
• Proprietary Trading Firms Traditional: Beyond the challenge model, there are traditional proprietary trading firms that directly hire and train traders, providing them with real capital from day one e.g., Jane Street, Hudson River Trading, but these are highly selective and not accessible via a challenge.
  • Key Difference: These firms are typically looking for experienced professionals or recent graduates from top universities, not offering a challenge-based entry point for the general public.

The common thread among most FTMO competitors is the “challenge” or “evaluation” model.

They all charge an upfront fee to access a simulated environment where traders must prove their discipline and profitability according to predefined rules.

The allure is the promise of “funded accounts” and a share of profits again, often simulated initially. The increasing number of firms, alongside recent regulatory actions and operational issues for some, underscores the volatility and potential risks associated with this sector for both the firms and the aspiring traders they attract.

FTMO Combine Accounts: Scaling and Progression

The concept of “combining accounts” within FTMO generally refers to their “Scaling Plan” and the natural progression from smaller simulated accounts to larger ones, rather than literally merging multiple separate accounts into one.

FTMO’s system is designed to reward consistent profitability and disciplined risk management by increasing the “fictitious capital” available to a successful trader.

• The Scaling Plan: FTMO’s Scaling Plan is the mechanism by which traders can increase the size of their “FTMO Account” fictitious capital and improve their profit split. It’s a reward for consistent performance.
  • Criteria for Scaling: To qualify for a scale-up, an FTMO Trader typically needs to:
    • Generate a certain percentage of profit e.g., 10% on their “FTMO Account” within a specific timeframe e.g., 4 consecutive payout cycles.
    • Have processed at least two payouts.
    • Maintain disciplined risk management, never breaching the maximum daily loss or overall loss limits during the scaling period.
  • Automated Process: Once the criteria are met, the account scale-up is often automatic, and the trader is notified.
• Increasing Capital: The scaling plan allows traders to double their “fictitious capital” up to certain limits. For example, a $10,000 account could potentially scale to $20,000, then $40,000, and so on, up to the maximum initial offering of $200,000 per FTMO Account.
• Improved Profit Split: Along with increased capital, successful scaling also typically leads to an improved profit split, moving from the initial 80/20 to 90/10 in favor of the trader.
• Why Scale?
  • Higher Potential “Rewards”: With a larger “fictitious capital” base, the absolute amount of simulated profits and thus the “reward” to the trader can be significantly higher for the same percentage gain.
  • Recognition of Skill: Scaling is a tangible acknowledgment from FTMO that a trader has demonstrated consistent profitability and sound risk management, which are highly valued attributes.
• “Combine Accounts” Misconception: The term “combine accounts” might mislead some into thinking they can take several small FTMO Challenge accounts they pass and merge them into one larger one. FTMO’s system is generally based on scaling a single successful “FTMO Account” rather than combining multiple separate evaluation passes. While a trader can potentially open multiple FTMO Challenges, each successful evaluation leads to a separate FTMO Account up to a combined limit of $400,000 of initial capital, which then scales independently. The official scaling plan applies to the individual FTMO Accounts.
• Premium Programme: The ultimate scaling for the most successful traders is the “Premium Programme,” which is the direct pathway to being considered for employment at Quantlane, where a fixed salary and trading with real capital are offered. This represents the pinnacle of “account combining” or progression, moving from “simulated” to “real” professional trading.

In essence, FTMO’s system is designed to progressively reward and entrust successful simulated traders with larger “fictitious capital” based on their consistent adherence to risk management and profitability benchmarks.

This scaling mechanism is a core part of their offering, incentivizing long-term engagement and the development of disciplined trading habits.

FTMO Commission Per Lot Forex: Clarifying Trading Costs in a Simulated Environment

The concept of “commission per lot” in the context of FTMO requires careful clarification, as most of the trading conducted within their evaluation process and on “FTMO Accounts” is in a simulated environment.

In traditional forex trading, “commission per lot” refers to a direct fee charged by a broker for each standard lot 100,000 units of base currency traded.

This is in addition to the spread the difference between the buy and sell price.

Commissions in FTMO’s Simulated Environment:

• Simulated Brokerage Environment: When you trade on an FTMO Challenge or FTMO Account, you are using a demo platform MetaTrader 4, MetaTrader 5, or cTrader that simulates real market conditions. This simulation includes spreads and, where applicable, commissions, to provide a realistic trading experience.
• Not Real Commission Revenue for FTMO: It’s crucial to understand that FTMO itself is not directly profiting from these simulated commissions as a traditional broker would. Since the trading is with “fictitious funds,” any “commission per lot” displayed on your trading platform is merely a part of the simulated environment to accurately reflect potential trading costs in a live market.
  • FTMO’s Revenue Model: As previously discussed, FTMO’s primary revenue streams are the initial challenge fees paid by participants and, for Quantlane, actual proprietary trading. They don’t generate income directly from the simulated commissions on your demo trades.
• How Simulated Commissions Impact You as a Trader:
  • Realistic Cost Calculation: The inclusion of simulated commissions ensures that your “Profit Target” and “Maximum Loss” calculations are realistic, reflecting the real costs you would incur in live trading. This forces you to account for trading expenses in your strategy.
  • Impact on Profitability: High commissions or wide spreads can significantly eat into a trader’s profits. By including these in the simulation, FTMO tests whether your trading strategy can remain profitable even after accounting for typical trading costs.
  • Risk Management Integration: It reinforces the importance of understanding and incorporating trading costs into your risk management and trade planning.
• Typical Simulated Commission Rates: FTMO’s simulated commission rates for forex pairs are generally competitive and reflect industry standards. For example, for major forex pairs, you might see simulated commissions around $3 to $7 per standard lot round turn meaning for opening and closing a trade. These rates can vary depending on the specific trading platform and instrument.
• Instruments Affected: Commissions are typically charged on Forex pairs and some commodity CFDs. Indices and cryptocurrencies are often traded with spreads only no separate commission.
• Transparency of Trading Conditions: FTMO makes efforts to display the typical spreads and commissions on its “Symbols” page, allowing prospective traders to understand the simulated trading costs they will face.

In summary, while “commission per lot” is a component of the simulated trading environment on FTMO, it’s not a direct revenue source for FTMO itself. Its purpose is to provide a realistic testing ground for traders, ensuring they can be profitable even when accounting for the typical costs associated with live forex trading. For actual “rewards,” FTMO takes a percentage of your simulated net profits after these simulated costs are accounted for, not a direct commission per lot from your account.

FTMO Academy: Education and Resources

The FTMO Academy is presented as a comprehensive educational resource designed to help aspiring and active traders improve their skills and navigate the challenges of financial markets.

It’s an important part of FTMO’s offering, aiming to support participants beyond just providing a trading platform.

• Purpose: The Academy’s goal is to equip traders with the knowledge and understanding required to succeed in the FTMO Evaluation Process and potentially beyond. It covers a range of topics from basic trading concepts to advanced strategies and psychological aspects of trading.
• Content Pillars: The Academy typically includes:
  • Educational Articles and Guides: In-depth written content explaining various trading concepts, technical analysis, fundamental analysis, risk management, and market psychology.
  • Video Tutorials: Visual learning aids that demonstrate trading platforms, strategies, and key principles.
  • Webinars and Workshops: Live or recorded sessions with experts covering specific topics, market analysis, or Q&A sessions.
  • Quizzes and Tests: To help users check their understanding of the material.
  • Trading Psychology: A strong emphasis on the mental aspect of trading, including managing emotions, discipline, and avoiding common psychological pitfalls. This is crucial for navigating high-pressure environments like prop firm challenges.
  • Risk Management Focus: Given FTMO’s strict “Trading Objectives,” the Academy heavily emphasizes proper risk management techniques, position sizing, and understanding drawdown limits.
• Accessibility: Access to the FTMO Academy is often granted upon purchasing an FTMO Challenge or sometimes even through the Free Trial, providing value to participants from the outset. This encourages users to leverage the educational content to improve their chances of success.
• Integration with FTMO System: The Academy’s content is tailored to the FTMO system, ensuring that the knowledge gained is directly applicable to passing the FTMO Challenge and Verification, and managing an FTMO Account. It helps traders understand the specific rules and objectives set by FTMO.
• Not a Replacement for Real-World Experience: While comprehensive, the Academy is an educational tool. It provides theoretical knowledge and strategic frameworks but cannot fully replicate the learning gained from actual live market trading with real capital and the associated emotional experiences.
• Ethical Considerations: Even though the Academy focuses on education, the context is still preparation for speculative trading. While learning about markets and risk management can be beneficial, the ultimate aim is to participate in a system that may be ethically problematic. Therefore, while the content itself might be educational, its application within the FTMO model needs careful ethical consideration.

In essence, the FTMO Academy serves as a valuable resource for those who engage with the FTMO platform, providing structured learning to enhance trading skills and improve the chances of success within their evaluation framework.

It underscores FTMO’s commitment to trader education as part of its overall ecosystem.

FTMO.com FAQ

What is ftmo.com?

FTMO.com is an online platform that offers a “prop trading challenge” designed to identify and support skilled forex and CFD traders.

Participants pay a fee to undergo an “Evaluation Process” FTMO Challenge and Verification on simulated demo accounts.

If successful, they can manage “FTMO Accounts” with fictitious funds and receive “rewards” based on their simulated profits, with the potential to eventually trade real capital at Quantlane.

How does the FTMO Challenge work?

The FTMO Challenge is the first step of the Evaluation Process.

You pay a fee, receive a demo trading account with fictitious funds, and must meet specific “Trading Objectives” e.g., 10% profit target, 5% max daily loss, 10% max overall loss within an indefinite trading period.

Once completed, you proceed to the Verification step.

What are FTMO’s Trading Objectives?

FTMO’s Trading Objectives are rules that must be met during the evaluation process. They include:

1. Profit Target: 10% in the Challenge, 5% in Verification.
2. Maximum Daily Loss: Equity cannot drop more than 5% from the starting balance of the day.
3. Maximum Loss: Equity cannot drop more than 10% from the initial account balance.
4. Minimum Trading Days: At least 4 trading days with one executed trade.

Is FTMO legit or a scam?

FTMO is a legitimate company that operates as described.

It’s not a scam in the sense of stealing money or not delivering on promises.

However, its business model heavily relies on initial fees from participants, and success rates for passing the challenges are generally low.

From an Islamic ethical perspective, its focus on speculative trading, even if simulated, is problematic.

Can I get a free trial on FTMO?

Yes, FTMO offers a Free Trial.

This allows you to test their platform and evaluation rules in a simulated environment without any financial commitment.

How often does FTMO pay out?

FTMO allows traders on “FTMO Accounts” to request a “reward” payout every 14 calendar days.

What is the FTMO commission per lot on forex?

FTMO itself does not charge a “commission per lot” as revenue.

However, its simulated trading environment includes realistic commission rates e.g., $3-$7 per standard lot round turn for forex and spreads to accurately reflect real trading costs.

These simulated costs are deducted from your simulated profits.

What are the main FTMO competitors?

Key competitors in the prop trading challenge space include The Funded Trader, FundedNext, Topstep futures-focused, and Apex Trader Funding.

Historically, MyForexFunds and True Forex Funds were major competitors but have faced significant operational and legal issues.

Can I combine accounts with FTMO?

FTMO does not typically allow literally combining multiple passed challenge accounts.

Instead, they offer a “Scaling Plan” where a single successful “FTMO Account” can have its “fictitious capital” progressively increased scaled up based on consistent performance and adherence to rules.

You can hold multiple FTMO Accounts up to a certain maximum combined capital.

What is the FTMO Scaling Plan?

The FTMO Scaling Plan allows successful “FTMO Traders” to increase the size of their “fictitious capital” on their FTMO Account and improve their profit split from 80% to 90%. This is achieved by consistently meeting specific profit targets over several payout cycles while adhering to risk management rules.

How much does an FTMO Challenge cost?

The cost of an FTMO Challenge varies depending on the initial “fictitious capital” size.

For example, a $10,000 FTMO Challenge costs €89. Larger account sizes have higher fees.

What is the FTMO Premium Programme?

The FTMO Premium Programme is the ultimate tier for the most successful “FTMO Traders.” It offers exclusive opportunities, including the potential to be considered for employment as a professional trader with a fixed salary at Quantlane, a traditional proprietary trading firm that trades real capital.

Are FTMO “profits” real money?

No, the “profits” you make during the FTMO Challenge and on the “FTMO Account” are simulated.

They are generated with “fictitious funds” in a “demo environment.” FTMO then pays you a “reward” based on these simulated profits from its own company funds, not directly from live market gains.

How is the FTMO fee refunded?

The fee you pay for the FTMO Challenge is refunded with your first “reward” payout, provided you successfully pass both the FTMO Challenge and Verification steps and generate a “reward” on your “FTMO Account.”

What trading platforms does FTMO support?

FTMO primarily supports MetaTrader 4 MT4, MetaTrader 5 MT5, and cTrader.

These are widely used platforms in the retail forex and CFD trading industry.

What is FTMO Academy?

The FTMO Academy is an educational resource provided by FTMO.

It offers articles, videos, and guides on trading concepts, risk management, trading psychology, and strategies, designed to help participants improve their trading skills and navigate the FTMO Evaluation Process.

Does FTMO offer performance coaching?

Yes, FTMO offers performance coaching sessions to “FTMO Traders.” These coaches are intended to help traders improve their mental game, discipline, and overall trading performance.

What instruments can I trade on FTMO?

On FTMO’s simulated platform, you can typically trade a range of instruments including Forex pairs, Indices, Commodities like gold and oil, and Cryptocurrencies as CFDs.

What happens if I hit the maximum daily loss on FTMO?

If your equity closed positions + open floating P/L hits the maximum daily loss limit typically 5% at any point during a trading day, your account will be breached, and you will fail the FTMO Challenge or Verification.

Your account will be closed, and you would need to purchase a new challenge to continue.

How do I contact FTMO customer support?

You can contact FTMO customer support via WhatsApp, LiveChat, email , or by phone at +420 910 920 310. They offer support in multiple languages.