While major brokers are arguably the most common trading intermediaries, they require large sums of deposits to make significant profits. Even with high leverage rates, you need a considerable amount of money to start earning much. But if you do not have that amount, you can try signing up for one of the proprietary trading platforms that allow you to trade with borrowed money. FTMO is one of the obvious choices, especially for experienced traders. In this article, we provide you with basic information about this company and explain how you can trade with its help.
Basic information
FTMO is a well-known international proprietary trading company that allows you to trade various kinds of assets. However, it’s not a broker: you don’t have to deposit your own money here. On the contrary, the company provides you with a hefty sum of $400,000 for trading. This way, you basically get all the capital you need without taking on too much risk. Of course, you don’t get this sum with no questions asked: in fact, you have to pass a pretty strict test to receive them.
Main requirements
Signing up for the platform costs €155, and that sum doesn’t guarantee you any funding yet. But it’s a much lower deposit than most other platforms have: they seem to ask for about €500 to take on their trial periods. FTMO requires that you pass a two-step test with pretty strict conditions. For the minimal fee of €155, you can get $10,000 in deposit. The higher your initial fee, the more capital you can claim depending on the current FTMO profile details. Then, you get to trade with that sum for 30 days.
If you manage to earn at least 10% in profits without losing more than 5% daily, you pass the first step of the test. The requirements are pretty strict, so FTMO is more suitable for professional traders. The second step of the test allows you to employ more conservative strategies: now you are given 60 days and more relaxed requirements. If you pass the second step, you get up to $400,000 in assets, and if you fail any of the steps, you can retry the test from the beginning, but you have to pay again.
Trading conditions
Once you pass the test, you are free to trade as you wish, but your transactions will still be monitored, and you’ll have to give a fraction of your profits to the company. There are many available instruments to trade, including currencies, stocks, indices, and so on.
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Chloe Jacobs
