If you’re weighing the FTMO prop firm against your trading style, here’s the quick read: FTMO runs a two‑step evaluation with 5% daily loss and 10% max loss rules, profit targets of 10% then 5%, first payout in 14 days, and a profit split up to 90% (as of October 2026, source: ftmo.com). You trade popular instruments on MT4/MT5 and cTrader. Whether it fits comes down to whether your risk math works inside those guardrails.

Key takeaways

• Two-step evaluation: FTMO’s process is Challenge then Verification before funding (as of October 2026, source: ftmo.com).

• 5% daily / 10% max loss: Hard loss caps shape your sizing and streak tolerance.

• 10% then 5% target: Phase 1 target is 10%; Phase 2 target is 5% (as of October 2026, source: ftmo.com).

• 14-day first payout: First profit split can be requested 14 days after your first live trade (as of October 2026, source: ftmo.com).

• Up to 90% split: FTMO advertises up to 90% to the trader (as of October 2026, source: ftmo.com).

• MT4/MT5 and cTrader: Broad platform choice plus forex, indices, commodities, crypto, and stock CFDs (as of October 2026, source: ftmo.com).

The context: FTMO’s rules in plain English (and the math)

As of October 2026, FTMO states its evaluation is two phases before funding, with 5% daily loss, 10% max loss, and profit targets of 10% (Phase 1) and 5% (Phase 2). Each phase requires a minimum of 4 trading days (source: ftmo.com). That’s the framework; the decision is purely arithmetic.

Example on a nominal $100,000 evaluation: a 5% daily loss means your worst allowable daily draw is $5,000 (including open P/L). The 10% max loss means a cumulative drawdown of $10,000 from the starting equity fails the account, even if the day’s loss is smaller. The Phase 1 target 10% is $10,000; Phase 2 target 5% is $5,000.

With a 5% daily cap, five 1% losses in one day would breach it; with a 10% overall cap, ten 1% losses over any span would breach it—even across “good” days.

Translating R-multiples: if your average loss is 1R and your daily cap equates to 5R, that’s your room for error in a single session. To hit a 10R target for Phase 1, the path could be ten +1R outcomes, five +2R outcomes, or combinations—provided the losses never stack beyond the caps. That’s why how to pass a prop firm challenge usually starts with converting the firm’s rules into position size boundaries and session stops.

How does the FTMO evaluation actually work?

As of October 2026, FTMO lists a two-step evaluation—the FTMO Challenge followed by Verification—before a funded FTMO Account (source: ftmo.com). The objectives include a 10% target in Phase 1, a 5% target in Phase 2, and hard loss limits of 5% daily and 10% max (source: ftmo.com). FTMO also states a minimum of 4 trading days per phase, which means even if you hit the target quickly, you still need to place trades across at least four distinct days to complete the phase (source: ftmo.com).

Fees vary by nominal account size and, per FTMO, are refunded with your first Profit Split after you pass and start on the FTMO Account (as of October 2026, source: ftmo.com). There’s no broker account to fund; you’re proving your process inside firm-defined limits before revenue sharing. If you want broader context on how proprietary trading firms operate, see what is prop trading for definitions and common structures.

What can you trade with FTMO and on which platforms?

Instrument choice and platforms matter for fills, spreads, and execution style. As of October 2026, FTMO indicates access to forex, indices, commodities, crypto, and stock CFDs and support for MetaTrader 4, MetaTrader 5, and cTrader (source: ftmo.com). That lineup covers most discretionary and systematic strategies that rely on spot FX or CFD derivatives.

Platform nuances can affect your statistics. For instance, algorithmic traders may prefer MT5’s multi-threaded tester while manual traders might choose cTrader’s depth-of-market and quick order tickets. The math stays the same: your stop distance, instrument tick value, and the firm’s daily/overall limits determine your position size and the number of consecutive losses you can absorb before hitting a rule.

How are payouts, profit splits, and scaling handled at FTMO?

As of October 2026, FTMO advertises a profit split up to 90% to the trader and notes the first profit split can be requested 14 days after the first trade on the FTMO Account (source: ftmo.com). Thereafter, payout frequency and methods are explained on their site. Importantly, FTMO states that the evaluation fee is refunded with your first Profit Split after passing (source: ftmo.com). That refund changes the net cost of a pass and is worth factoring into your breakeven math.

Scaling specifics and caps can change, so confirm current terms on FTMO’s official pages. When assessing any scaling plan, translate it to concrete milestones (e.g., “X% in Y months with Z drawdown ceiling”). If a plan requires compounding, check whether your typical R distribution supports the path without breaching the 5%/10% loss rules along the way.

Start the TigerFunded challenge if you want a funded path with clear rules and fast onboarding.

Is FTMO legit—and what are the real risks?

FTMO is a proprietary trading firm, not your broker or financial advisor. In prop evaluation models, you pay for an assessment and, if you pass, you receive a revenue share from the firm’s capital. That’s consistent with how proprietary trading is commonly defined (Investopedia). The real risk for traders is not regulatory exposure to client funds—it’s failing the evaluation because your risk math doesn’t fit the firm’s limits.

Loss caps are hard stops: crossing them usually invalidates the account regardless of your prior P/L. Even if your strategy is profitable over months, a sequence of losses concentrated in a day can break the 5% daily limit. Derivatives and leveraged CFDs are inherently risky and can move rapidly; regulators like the CFTC and ESMA routinely highlight volatility and leverage risks. Translate those warnings into your plan: smaller average R-losses increase the number of attempts you can make before touching a firm’s hard caps.

Frequently asked questions

What are FTMO’s drawdown rules in plain English?

As of October 2026, FTMO cites a 5% daily loss limit and a 10% maximum loss overall (source: ftmo.com). On a $100,000 evaluation, that means a maximum of $5,000 down (closed plus floating) in any one day and $10,000 total from the start across all days. The profit targets are 10% in Phase 1 and 5% in Phase 2. If your typical loss is 0.5% per trade, then the daily cap is roughly 10R and the overall cap is 20R.

Can you pass FTMO in one day?

No. As of October 2026, FTMO states a minimum of 4 trading days per phase (source: ftmo.com). Even if you hit the profit target early, you must execute at least one qualified trade on four separate days to complete a phase. Plan your trade frequency accordingly; spreading attempts over more days lowers the chance of clustering losses that threaten the 5% daily limit.

How much does the FTMO Challenge cost?

Fees depend on the nominal account size you choose. As of October 2026, FTMO indicates the fee is refunded with your first Profit Split after you pass and begin trading the FTMO Account (source: ftmo.com). Because prices and promotions can change, check FTMO’s current pricing page directly before you decide—then factor the potential refund into your expected value calculations.

Can I use MT5 with FTMO?

Yes. As of October 2026, FTMO lists support for MetaTrader 5 alongside MT4 and cTrader (source: ftmo.com). Your platform choice won’t change the firm’s risk rules, but it can impact fill quality, algo tooling, and how easily you stick to your plan. Test your exact order workflow in a demo environment so your execution behavior matches the risk math you’ve set for the 5%/10% loss limits.

Conclusion: One clear next step

Write down your average stop size (in R) and map FTMO’s 5% daily and 10% max caps to the number of consecutive losses you can absorb on your preferred timeframe. If the math is comfortable, act: Check the current TigerFunded offer or start the TigerFunded challenge and put your plan to the test.

TigerFunded is a proprietary trading firm. Comparisons on this blog reflect our point of view; figures about other firms are checked on their official websites on the date stated.

Apply this on a funded account

The method above works on a live evaluation. Here is what TigerFunded gives you to run it.

• 95% reward split by default, up to 100% with the add-on

• Rewards processed and paid within 48 hours

• No consistency rule: trade your own style

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