How does the FTMO challenge work?

You pay a one-time evaluation fee, then prove you can trade profitably within the rules. The 2-Step Challenge requires a 10% profit target in phase one and 5% in phase two, with a 5% daily loss limit and 10% maximum loss. The 1-Step Challenge uses a single 10% target with a tighter 3% daily loss limit and a 10% end-of-day trailing maximum loss. Pass, and you trade an FTMO funded account and keep most of the profits.

How much does FTMO cost?

Fees are one-time and depend on account size, from about 79 to 89 euros for a $10,000 account up to roughly 999 to 1,080 euros for a $200,000 account. The fee is refunded with your first profit split once you are funded and profitable.

What profit split does FTMO pay?

Funded traders start at an 80% profit split on the 2-Step path, rising to 90% through the Scaling Plan. The 1-Step path pays 90% from the first withdrawal. Profit share is paid out fortnightly (every 14 days by default), and FTMO reports having paid out more than $160 million to traders.

Can you grow an FTMO account?

Yes. Under the Scaling Plan, accounts that earn at least 10% net profit over four months (with two withdrawals) are increased by 25%, repeatable up to $2 million in simulated capital, with the profit split rising to 90%.

Why do most traders fail the FTMO challenge?

Almost always risk management, not strategy. Hitting the daily loss limit by oversizing positions is the most common failure. Risking around 0.5 to 1% per trade keeps you inside the 3 to 5% daily loss rules even on a bad day, which is exactly what a position size calculator is for.

FTMO Review (2026): Challenge Rules, Costs & Profit Splits

Name: FTMO Review (2026): Challenge Rules, Costs & Profit Splits
Item: FTMO
Rating: 4.5
Author: Pips Perspective

FTMO is the most established name in prop trading: pass its evaluation and you trade a simulated account of $10,000 to $200,000 while keeping 80 to 90% of the profits, with no personal trading capital at risk beyond the one-time fee. It has paid out more than $160 million to traders. Here is how the challenge really works, what it costs, and why most people fail it.

Our verdict ★★★★½4.5 / 5

Best for disciplined traders with a proven strategy who lack capital. The deal is genuinely good: a refundable fee, up to 90% splits and scaling to $2M. But the rules are strict by design, and the daily loss limits punish over-sizing ruthlessly. If your risk management is not solid yet, the challenge fee becomes tuition. Get your position sizing right first, then attempt it.

FTMO at a glance

Account sizes	$10,000 to $200,000 (simulated capital)
Evaluation models	1-Step Challenge or 2-Step Challenge
One-time fee	From about €79 ($10K) up to about €999 to €1,080 ($200K)
Fee refund	Refunded with your first profit split
Profit split	80% on the 2-Step path, rising to 90% · 1-Step pays 90% from the first withdrawal
Payout cycle	Profit share paid fortnightly (every 14 days by default)
Scaling	+25% every 4 months (10% net profit + 2 withdrawals), up to $2M
Track record	$160M+ paid out, strong Trustpilot reputation

Specs sourced from FTMO and independent reviews, June 2026. Fees and rules change; always confirm current terms on FTMO's site before paying.

How the challenge works

Both paths test the same thing: can you make money without breaching the loss limits?

Rule	1-Step	2-Step
Profit target	10%	10%, then 5%
Daily loss limit	3%	5%
Maximum loss	10% trailing (end-of-day)	10% static
Starting profit split	90%	80% (to 90% via scaling)

The 1-Step path is faster and pays more sooner, but its 3% daily line and trailing drawdown are far less forgiving. Most beginners find the 2-Step's static 10% maximum loss easier to manage.

The rule that fails most traders

It is almost never the profit target; it is the daily loss limit. Risk 2% per trade and three losers in one session ends a 1-Step attempt. Risk 0.5 to 1% and even a bad day keeps you alive. That is pure position sizing, and it is exactly what our free lot size calculator does for you on every trade.

Pros and cons

What we like

Trade meaningful size without risking your own capital
80 to 90% profit splits, paid fortnightly
Challenge fee refunded with your first payout
Scaling Plan up to $2M for consistent traders
Longest track record in the industry, $160M+ paid out
Clear, published rules (no hidden fine print on losses)

What to watch

Most traders fail the evaluation; the fee is only refunded if you succeed
The 1-Step trailing drawdown is harsher than it first looks
Funded accounts are simulated capital, not a live brokerage account
Strict rules mean one undisciplined day can end a good attempt

How to give yourself the best shot

Prove your strategy first. If you cannot stay inside a 5% daily loss limit on your own account, the challenge will just be an expensive lesson.
Pick the path that fits. Confident and fast? 1-Step pays 90% immediately. Want breathing room? The 2-Step's static drawdown is more forgiving.
Risk 0.5 to 1% per trade, every trade. Use the lot size calculator so the daily limit is mathematically out of reach on a normal losing day.
Avoid high-impact news until you are comfortable: check the economic calendar before each session.

Take the FTMO Challenge

Accounts from $10,000 to $200,000, up to 90% profit splits paid fortnightly, fee refunded with your first payout.

Get funded with FTMO Affiliate link · no extra cost to you · most participants do not pass the evaluation

Who should (and should not) take the challenge

Take it if you have a strategy with real results behind it, your risk per trade is already small and consistent, and capital is the only thing holding you back. For that trader, FTMO's terms are about as good as the industry offers.

Skip it for now if you are still learning or your account history shows big drawdowns. Spend a few months trading small with a regulated broker first (our TMGM review covers our pick), build the discipline, then come back. The challenge will still be here.

This review is for information and education only and is not financial advice. Prop-firm evaluations are difficult and most participants do not pass; never pay a challenge fee with money you cannot afford to lose. FTMO funded accounts operate on simulated capital under the firm's terms. Fees, rules and splits change: always verify current conditions directly with FTMO before purchasing.