FTMO Rules & Challenge Guide (2026)

Everything you need to know about FTMO's 2-step Challenge, daily loss limits, drawdown rules, and funded account requirements — updated for 2026.

✓ Last verified: March 2026
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RuleDetails
Account Sizes$10K / $25K / $50K / $100K / $200K
Evaluation Type2-step (Challenge + Verification)
Challenge Profit Target10% of starting balance
Verification Profit Target5% of starting balance
Max Daily Loss5% of starting balance
Max Overall Drawdown10% of starting balance (absolute, not trailing)
Consistency RuleBest day ≤ 50% of total profit (funded accounts)
Min Trading Days4 per phase
Time LimitNo time limit on Challenge or Verification
Allowed InstrumentsForex, Futures, Metals, CFDs
News TradingAllowed on Swing accounts; restricted on Normal accounts
Weekend HoldingAllowed on Swing accounts only
Payout Split80% → 90% via Scaling Plan
Payout FrequencyMonthly (first payout after 14 calendar days)
PlatformcTrader, DXtrade
Fee$155–$1,080 (one-time, refunded when funded)

Drawdown Rules Explained

FTMO uses an absolute (non-trailing) overall drawdown of 10% and a daily loss limit of 5%. This means your drawdown floor is fixed at 90% of your starting balance — it never moves up.

Worked Example ($100K Account)

Starting balance: $100,000. Max drawdown: $10,000 (floor at $90,000). Daily loss limit: $5,000.

Key difference from Topstep/Apex: FTMO's drawdown floor never moves up. Even if your account grows to $120,000, your floor remains at $90,000. This gives funded traders significantly more room as they grow.

The daily loss limit resets each day and is calculated from your balance at the start of that trading day. If you start the day at $104,000, you cannot lose more than $5,200 (5%) that day.

How the Challenge & Verification Works

FTMO uses a 2-step evaluation: the Challenge and the Verification.

Phase 1: Challenge

  1. Pay the one-time fee (refunded if you get funded).
  2. Reach the 10% profit target while respecting the 5% daily loss limit and 10% max drawdown.
  3. Trade for at least 4 days.

Phase 2: Verification

  1. Reach the 5% profit target with the same risk rules.
  2. Trade for at least 4 days.

There is no time limit on either phase — take as long as you need.

Once verified, you receive a funded account. Your first payout is available after 14 calendar days, then monthly. The profit split starts at 80/20 and can increase to 90/10 through FTMO's Scaling Plan.

Note: FTMO is primarily a forex/CFD prop firm but also supports futures instruments. If you are exclusively a futures trader, firms like Topstep or Apex may be a better fit.

Common Mistakes That Break FTMO Rules

❌ Hitting the 5% daily loss limit

FTMO's daily limit is strict — losing 5% of your starting balance in a single day ends your evaluation immediately. Set a personal daily stop well below this threshold.

❌ Not meeting the minimum 4 trading days

Even if you hit the profit target in 2 days, you must trade at least 4 days in each phase. Plan your trading schedule accordingly.

❌ Trading news on a Normal account

News trading is only allowed on Swing accounts. Trading during high-impact news on a Normal account can result in disqualification.

❌ Holding over the weekend on a Normal account

Weekend holding is only permitted on Swing accounts. Normal account positions must be closed before the weekend.

❌ Ignoring the best-day rule in funded phase

In the funded account, your most profitable day cannot exceed 50% of your total profit. A single huge day can block your payout.

Tips for Passing Your FTMO Evaluation

Frequently Asked Questions

Is FTMO's drawdown trailing or fixed?

FTMO uses an absolute (fixed) drawdown. Your floor is set at 90% of your initial balance and never moves up, regardless of how much profit you make.

How long do I have to pass the FTMO Challenge?

There is no time limit on either the Challenge or the Verification phase. You can take as long as you need.

Does FTMO refund the evaluation fee?

Yes. If you successfully pass both phases and receive a funded account, FTMO refunds the evaluation fee with your first payout.

Can I trade futures with FTMO?

Yes, FTMO supports futures alongside forex, metals, and CFDs. However, FTMO is primarily a forex/CFD firm, so futures-only traders may prefer Topstep or Apex.

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