FTMO is one of the most popular proprietary platforms that can give you a free deposit for trading, but you have to prove that you can use it to make stable profits first. While this platform is a great chance to earn without actually investing too much or taking on too many risks, some ex-users claim that the platform is a scam and can’t be trusted. In this article, we’re going to analyze how FTMO is regulated and how it treats withdrawals to explain whether the platform is really reliable.
FTMO employs professional traders and gives them large sums of money for trading in exchange for a small share of their resulting profits. However, you have to prove that you’re a reliable trader first: a two-step verification process is there to test your skills. First, you need to pay at least €155 to access the testing procedure, and you’ll receive from $10,000 to $200,000 for trading. If you manage to earn at least 10$ in profits during 30 days, you’ll be able to proceed to the second step.
There, you use your deposit to trade for 60 days, but the objective stays the same. If you can achieve the required profitability rate without suffering too much losses daily, you can be accepted as a funded trader. That status allows you to use $400,000 for trading, and you can choose between many various instruments: currency pairs, stocks, indices, commodities, and even cryptocurrencies. The leverage is up to 1:100, and the starting reward is 80% of profits.
Should you trust it?
Founded in 2014, FTMO is widely considered a reputable prop company with lots of users from many different countries. However, the platform is not actually a broker since you can’t deposit your money, so it’s not regulated by any major financial organizations. That’s why these FTMO scam rumors often get posted online. But you don’t have to worry: you can trade with borrowed money without spending almost anything, and withdrawals work pretty well.
FTMO is known to pay its traders honest sums of money: about $29 million was paid out to traders in 2021, according to the company. The pretty complex evaluation process makes sure that only skillful traders get funding, so the platform remains financially stable. FTMO has earned numerous awards for its services, and it hasn’t actually been involved in any shady schemes. All in all, the platform is a legitimate one, so you can trust it.