FTMO is a forex trading platform. It provides capital to profitable traders. In return, the traders keep 90% of their profits while the company keeps the remaining 10%. It works by finding traders with good track records that are in need of funding and providing them with the tools and money they need to trade profitably. While this sounds like a great idea, it is important to know that it involves the use of other people’s money.
FTMO Is A Forex Trading Platform
FTMO presents itself as a money management company, rather than a broker in the strictest sense of the word. Its services include finding professional traders and transferring their money to them so they can trade Forex assets. It serves clients from 180 countries and makes 6 million trades a month on real investment accounts. In total, it pays out nearly 27 million dollars to its traders every month based on FTMO review.
Prop firms are a great way to fund your account, but they need to be realistic in their trading requirements. While a high profit split on a heavily funded account sounds good, the odds of success are slim. Prop firms that provide low trading fees, account-size capital, and straightforward rules should be considered. Also, avoid the new firms without a proven track record and business connections. You can only invest with these firms after they have been in business for several years and have a good reputation.
FTMO Offers A Capital Scaling Program
If you’re serious about becoming a successful forex trader, you might want to try FTMO’s capital scaling program. This program gives you the chance to double or even triple your account balance and then keep ninety percent of the profits. What’s more, FTMO’s program has the highest profit split in the industry. To make this program work, traders need to pass two test steps. Firstly, they need to meet their capital scaling limits and lose within their max Loss.
FTMO’s capital scaling program allows traders to increase the amount of money under management by 10% every four months. The initial real amount of money under management is 400 thousand US dollars, and this amount represents 80% of the trader’s profit. The company and investors share the other twenty percent. This means that every four months, the account limit increases by ten thousand US dollars.
The funded trading account is used by people who want to trade in stocks, Forex, or shares on the NASDAQ. These accounts are designed to limit the risk associated with trading and are a good choice for beginning traders. But it is important to choose the right one for you based on your level of experience. Beginners should first take a Forex training course and gain a thorough understanding of how the market works before choosing a funded trading account.
Profit Split Ratio
Funded trading accounts are those in which the traders pay the trading company a subscription fee and receive a portion of their profits. These types of trading accounts are beneficial for both the traders and the trading companies. The profit split ratios vary between funded trading accounts, depending on the size of the account and the type of financial assets traded.
Before opening a trading account, the trader should know what the profit split ratio is and whether there are any other fees. For example, some firms charge for trading platform licenses, educational courses, and data fees. Traders should also look for a trading platform with a comprehensive educational program and extensive training. In most cases, the profit split ratio of a funded trading account is 80:20. With this type of trading account, the trader receives a higher percentage of the profit than that of a trading account with a lower profit split ratio. Profit split ratios can increase up to 90:10.
