The FTMO Challenge is a simulated trading evaluation in which traders must meet specified Trading Objectives without breaching FTMO’s risk limits. The exact rules depend on whether you choose FTMO Challenge: 1-Step or FTMO Challenge: 2-Step. Before placing a trade, the key is to understand the applicable profit target, Maximum Daily Loss calculation, Maximum Loss mechanism and any consistency or minimum-day requirements.

What is the FTMO Challenge?

The FTMO Challenge is FTMO’s CFD Evaluation Process for assessing whether a trader can meet defined objectives in a simulated environment. The trader uses fictitious capital and market quotes rather than a conventional live brokerage account funded in the trader’s name. Successful performance can lead to an FTMO Account, where trading remains simulated but qualifying results can generate real monetary Rewards. For broader context on the firm and its evaluation model, see our FTMO review.

FTMO Challenge: 1-Step has one evaluation phase. FTMO Challenge: 2-Step has two phases: the FTMO Challenge and Verification. Paying the Challenge fee purchases access to the Evaluation Process, not an FTMO Account itself.

FTMO also operates FTMO Futures, but that is a separate programme with a different evaluation and account structure. The rules below refer to the CFD FTMO Challenge only.

FTMO Challenge rules: 1-step vs 2-step

The most important preparation step is to keep the 1-Step and 2-Step rules separate. The headline percentages can look similar, but the drawdown mechanics, consistency requirements and fee treatment are materially different.

Rule 1-Step 2-Step Challenge 2-Step Verification Notes
Profit Target 10% 10% 5% All positions must be closed when the target is assessed.
Maximum Daily Loss 3% amount 5% amount 5% amount Equity includes open P/L, swaps and commissions; threshold recalculates at 00:00 CE(S)T.
Maximum Loss 10% EOD trailing 10% static 10% static 1-Step boundary can move upward; 2-Step boundary remains fixed.
Minimum Trading Days None 4 4 A Trading Day requires at least one new position to be opened.
Best Day Rule 50% Not applicable Not applicable For 1-Step, exceeding 50% is not an immediate breach; trading continues until the ratio is satisfied.
Trading period Unlimited Unlimited Unlimited No fixed deadline under current rules.
Fee refund Non-refundable Potentially refundable Same fee covers both phases 2-Step fee may be refunded with the first Reward after successful progression.

Rules checked: 29 September 2026. Always verify the current FTMO Trading Objectives before purchasing an evaluation because programme terms can change.

1-step FTMO Challenge

FTMO Challenge: 1-Step requires a 10% Profit Target. Its Maximum Daily Loss Amount is 3% of Initial Simulated Capital, and its Maximum Loss Amount is 10%. The Maximum Loss boundary is end-of-day trailing, so it can move upward after a higher qualifying end-of-day balance. The 1-Step model also uses a 50% Best Day Rule and has no Verification phase or minimum Trading Days requirement. The one-time Challenge fee is non-refundable under the current product terms.

2-step FTMO Challenge

FTMO Challenge: 2-Step begins with a 10% Profit Target in the Challenge and then a 5% Profit Target in Verification. Its Maximum Daily Loss Amount is 5% of Initial Simulated Capital and its Maximum Loss boundary is static at 10% below Initial Simulated Capital. Traders must complete at least four Trading Days in the Challenge and four in Verification. The one-time fee covers both phases and may be refunded with the first Reward after successful progression, subject to the current FTMO conditions.

How FTMO maximum daily loss is calculated

FTMO Maximum Daily Loss is an equity-based rule, not simply a limit on closed losses. Account equity includes the account balance plus or minus open-position P/L, swaps and commissions. If equity reaches or falls below the applicable Maximum Daily Loss Limit, the rule is breached.

Maximum Daily Loss formula

Maximum Daily Loss Limit = balance at 00:00 CE(S)T – applicable Maximum Daily Loss Amount. The amount is 3% of Initial Simulated Capital for 1-Step and 5% for 2-Step. The balance component is recalculated at the start of each FTMO trading day.

This daily reset matters because a profitable previous day can move the next day’s monetary threshold upward, while a lower balance at the next reset can move it downward. Open losses can also cause a breach before a position is closed.

How maximum loss differs between 1-step and 2-step

Both products currently use a 10% Maximum Loss Amount, but they do not use the same breach mechanism. In 1-Step, the Maximum Loss Limit trails the highest qualifying end-of-day balance. In 2-Step, the Maximum Loss Limit is static and is calculated from Initial Simulated Capital.

Rule What it limits Calculation basis Recalculation 1-Step 2-Step
Maximum Daily Loss Intraday equity floor Midnight balance less % of Initial Simulated Capital Daily at 00:00 CE(S)T 3% amount 5% amount
Maximum Loss Overall equity floor Depends on product 1-Step daily; 2-Step static 10% EOD trailing 10% static

Worked example: a $100,000 1-step challenge

This illustrative example explains the rule mechanics. It is not a recommended risk level.

  • Initial Simulated Capital: $100,000.
  • Maximum Daily Loss Amount: 3% = $3,000.
  • Maximum Loss Amount: 10% = $10,000.
  • End-of-day balance after Day 1: $103,000.

For the next trading day, the Maximum Daily Loss Limit is $103,000 – $3,000 = $100,000. The account equity therefore has to remain above the applicable daily threshold throughout that day.

For the 1-Step Maximum Loss mechanism, the highest qualifying end-of-day balance is $103,000. Subtracting the $10,000 Maximum Loss Amount gives a Maximum Loss Limit of $93,000. If a later end-of-day balance falls to $101,000, the Maximum Loss Limit does not move back down because the earlier $103,000 qualifying balance remains the high-water mark.

The practical implication is that a headline 10% Maximum Loss does not mean a trader can always lose $10,000 from the current balance. Under 1-Step, the lower equity boundary can rise as qualifying end-of-day balances increase.

Minimum trading days and the 1-step best day rule

Minimum trading days in 2-step

FTMO Challenge: 2-Step requires at least four Trading Days in the Challenge and four in Verification. A Trading Day is measured from 00:00:00 to 23:59:59 CE(S)T and requires at least one new position to be opened. Holding a position across several calendar days does not, by itself, create several Trading Days.

For UK traders, CE(S)T is FTMO’s controlling rule clock. UK local time can shift relative to it when daylight-saving transitions occur, so use FTMO’s stated CE(S)T boundary rather than assuming a fixed UK clock time throughout the year.

Best day rule in 1-step

The 1-Step Best Day Rule requires the most profitable day to represent no more than 50% of Positive Days’ Profit when the objective is assessed. If the Best Day exceeds 50%, that is not an immediate breach. The trader must continue trading until Positive Days’ Profit increases enough for the Best Day share to fall to 50% or less.

Simple example

If the Best Day is $4,000 and total Positive Days’ Profit is $7,000, the ratio is about 57.1%, so the Best Day objective is not yet satisfied. If later profitable days raise Positive Days’ Profit to $8,000 while $4,000 remains the Best Day, the ratio becomes 50%.

FTMO Challenge fees, 10K pricing and refund rules

FTMO charges a one-time Challenge fee for access to the Evaluation Process. It should not be described as the purchase price of an FTMO Account. FTMO currently advertises 10K, 25K, 50K, 100K and 200K simulated account sizes for its CFD Challenges, but pricing can vary by product, currency, region and active promotion.

Simulated account size 1-Step fee 2-Step fee Refund treatment Price checked
$10,000 €79 €89 1-Step non-refundable; 2-Step may be refunded with first Reward after successful progression 29 Sep 2026

The 10K prices above were confirmed on FTMO promotional product pages on 29 September 2026. Recheck the UK-facing order flow immediately before publication or purchase because promotions and checkout currency can change independently of the underlying Trading Objectives.

Can you trade news or hold positions overnight during the FTMO Challenge?

Yes, under the current CFD Evaluation Process, FTMO allows news trading and allows positions to remain open overnight and over the weekend. These evaluation-stage permissions apply to both 1-Step and 2-Step. They should not be confused with restrictions that can apply after progression to an FTMO Account.

Stage/account News trading Overnight holding Weekend holding Important qualification
1-Step Evaluation Allowed Allowed Allowed Forbidden Trading Practices still apply.
2-Step Challenge/Verification Allowed Allowed Allowed Applies during the Evaluation Process.
FTMO Account: Standard Restrictions apply around selected releases Restricted in specified circumstances Restricted Check current event and market-close rules.
FTMO Account: Swing No selected-news restriction Allowed Allowed Swing is currently available only through 2-Step.

Where the FTMO swing account fits

The FTMO Swing account type is currently available only through FTMO Challenge: 2-Step. Under FTMO’s current rules, Swing does not impose the selected-news, overnight or weekend restrictions that apply to Standard FTMO Accounts. Wider Trading Objectives and Forbidden Trading Practices still apply.

What trading strategies are allowed or restricted?

FTMO allows a range of trading approaches, including discretionary trading, algorithmic trading and Expert Advisors, provided the activity is legitimate, reflects real-market conditions and does not constitute a Forbidden Trading Practice. The numerical Challenge objectives are therefore only part of the rule set.

Because FTMO can update its contractual rules, avoid relying on static third-party lists of supposedly permitted or prohibited techniques. Check the current FTMO Terms, Trading Objectives and Forbidden Trading Practices before starting an evaluation, especially if your approach uses automation, trade copying, very high order frequency or behaviour designed around simulated-account mechanics.

Verify before trading

An allowed trading style is not the same as unrestricted behaviour. A strategy may be discretionary or automated and still violate FTMO rules if it exploits service errors, simulated-environment characteristics or other prohibited practices.

How to prepare for the FTMO Challenge without trading at the limits

FTMO’s loss limits are contractual breach boundaries, not recommended risk targets. A trader can prepare by building a personal buffer well inside those limits and testing how the plan behaves under realistic spreads, commissions, slippage and volatility. There is no single risk percentage that is appropriate for every trader or strategy.

Convert FTMO limits into personal risk limits

  • Identify the exact FTMO breach thresholds for the chosen Challenge type.
  • Set a smaller personal daily stop level that leaves room for floating P/L, commissions and swaps.
  • Define planned risk per trade in a way that can absorb several consecutive losses without approaching the contractual limit.
  • Include the effect of open positions carried across the 00:00 CE(S)T reset.
  • Stop trading before the FTMO boundary becomes the de facto risk budget.

Test the plan before paying a challenge fee

Where FTMO’s Free Trial is available, it can be used to rehearse rule compliance without paying a Challenge fee. Testing should include ordinary and volatile market conditions, expected spread and commission costs, slippage assumptions and any dependence on overnight or weekend exposure.

Plan around the rule clock

The FTMO day changes at 00:00 CE(S)T. A position that remains open across that boundary can face a newly recalculated daily-loss threshold. For 2-Step traders, the rule clock also determines which days count toward the four minimum Trading Days. For 1-Step traders, it is central to both Maximum Loss calculations and the Best Day Rule.

Avoid recovery trading after losses

Increasing position size after a loss, trying to force the Profit Target quickly or treating the remaining drawdown as available risk can make a rule breach more likely. A more controlled framework is to predefine position-sizing and stop conditions before the trading session and keep them unchanged simply because the account is below target.

What happens after you pass the FTMO Challenge?

For 1-Step, successful completion of the evaluation is followed by the onboarding steps required for an FTMO Account. For 2-Step, the trader must first complete Verification and then the onboarding process. FTMO Identity/KYC and the applicable agreement form part of progression.

The subsequent CFD FTMO Account uses fictitious capital and simulated trading. FTMO states that qualifying traders can receive real monetary Rewards based on their simulated performance, but the account should not be described as a conventional live funded brokerage account.

Reward structure

FTMO currently states a 90% Reward ratio for traders who qualify through 1-Step. For 2-Step, the standard Reward ratio is 80%, with an increase to 90% when applicable Scaling Plan or Premium Programme conditions are met. FTMO currently allows Reward requests from the 14th day or later after the first trade on the specific FTMO Account, subject to its current conditions and review process.

FTMO Scaling Plan

The Scaling Plan is a post-evaluation growth programme. Under the current published conditions, eligible 2-Step FTMO Accounts can receive a 25% balance increase every four months when the programme requirements are met, up to FTMO’s stated aggregate maximum of $2,000,000. The full eligibility conditions should be checked at the time of application.

Common FTMO Challenge rule mistakes to avoid

  • Assuming closed P/L is the only figure that matters for Maximum Daily Loss.
  • Confusing 1-Step trailing Maximum Loss with 2-Step static Maximum Loss.
  • Forgetting the 00:00 CE(S)T daily reset.
  • Counting days that a position remains open as separate Trading Days in 2-Step.
  • Assuming 1-Step and 2-Step have identical fee-refund rules.
  • Applying post-evaluation Standard-account news restrictions to the Challenge itself.
  • Using “funded account” as if it necessarily means a live brokerage account with real capital.
  • Relying on an old rule or price screenshot instead of current FTMO documentation.
  • Ignoring floating losses, swaps or commissions when monitoring limits.
  • Confusing the CFD FTMO Challenge with the separate FTMO Futures programme.
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Frequently asked questions

How much is the FTMO 10K Challenge?

As checked on 29 September 2026, FTMO advertised the $10,000 1-Step Challenge at €79 and the $10,000 2-Step Challenge at €89 on its promotional product pages. The fee pays for the Evaluation Process, not an FTMO Account. Prices, currencies and promotions can change, so check the current UK-facing order flow before purchasing.

Is the FTMO Challenge fee refundable?

The answer depends on the product. The 1-Step Challenge fee is currently non-refundable. The 2-Step fee may be refunded with the first Reward after successful progression to an FTMO Account, subject to FTMO’s current conditions.

Can you trade news during the FTMO Challenge?

Yes. FTMO currently states that selected-news restrictions do not apply during the CFD Evaluation Process for either 1-Step or 2-Step, provided the trading does not violate Forbidden Trading Practices. Restrictions can apply later to Standard FTMO Accounts, while Swing has different conditions.

Can you hold trades overnight during an FTMO Challenge?

Yes. During the current CFD Evaluation Process, positions may be held overnight and through weekends. After evaluation, Standard FTMO Accounts have position-holding restrictions in specified circumstances, while Swing accounts do not have the same overnight and weekend limits.

What is an FTMO Swing Account?

FTMO Swing is an FTMO Account type designed for trading styles that need unrestricted holding across overnight and weekend periods and no selected-news restriction. It is currently available only through FTMO Challenge: 2-Step and remains subject to FTMO’s wider rules and Forbidden Trading Practices.

Does FTMO offer an instant funding account?

The CFD programme covered here is evaluation-based. A trader completes the applicable FTMO Challenge process before progressing to an FTMO Account. That is different from “instant funding” products marketed elsewhere in the prop-trading industry.

Is an FTMO funded account real money?

FTMO’s CFD FTMO Account uses fictitious capital and simulated trading. FTMO Traders can receive real monetary Rewards when they meet the applicable conditions, but the trading account itself is not a conventional live brokerage account funded with capital in the trader’s name.

What is the FTMO Scaling Plan?

The FTMO Scaling Plan is a post-evaluation programme that can increase an eligible FTMO Account balance after specified performance and Reward conditions are met. FTMO currently publishes 25% scale-ups every four months, up to its stated maximum, with full conditions applying at each scale-up.

Preparing for the FTMO Challenge

Passing the FTMO Challenge requires more than reaching a Profit Target. The trader must satisfy the correct Trading Objectives for the chosen product while staying above the applicable equity limits and complying with FTMO’s wider trading rules. The most useful preparation is therefore rule-specific: know whether the account is 1-Step or 2-Step, translate the percentage limits into actual monetary thresholds, leave a personal buffer inside those boundaries and verify the current terms before starting.