The FTMO profit split is a key aspect of the FTMO-funded trading program and plays a crucial role in determining the earnings of traders. In this guide, we will delve into the details of the FTMO profit split, covering topics such as profit allocation, share models, distribution, and percentage calculations. Understanding how the profit split works is essential for aspiring traders who wish to participate in the FTMO-funded trading program.
Key Takeaways:
- The FTMO profit split refers to the distribution of profits earned by traders in the FTMO-funded trading program.
- Traders in the program trade with fictitious capital but have the opportunity to earn real money based on their trading performance.
- The profit split is done every month, with traders being entitled to a portion of the profits they generate.
- FTMO uses a profit-sharing agreement and a specific profit allocation model to determine the distribution of earnings.
- The profit percentage received by traders depends on their adherence to the Scaling Plan, with percentages ranging from 80% to 90%.
How Does FTMO Work?
To participate in the FTMO funded trading program, traders must go through a two-step evaluation process. This process is designed to assess the trader’s skills, discipline, and ability to manage risk effectively. Let’s take a closer look at how the evaluation process works and what it entails.
FTMO Evaluation Process
The FTMO evaluation process consists of two stages: the FTMO Challenge and the FTMO Verification. The purpose of these stages is to ensure that traders meet the requirements and demonstrate consistent profitability.
- The FTMO Challenge: Traders start by trading a demo account using FTMO’s proprietary trading platform. The objective is to achieve certain profit targets and comply with specific trading rules and guidelines. Traders have a set time frame to complete the challenge.
- The FTMO Verification: Once the trader completes the FTMO Challenge, they move on to the Verification stage. This stage involves trading a real account funded by FTMO. The trader must continue to meet the profit targets and follow the trading rules set by FTMO to pass the verification process.
If a trader completes both stages of the evaluation process, they become eligible for the FTMO-funded trading program.
FTMO Funded Trading Program
Upon successful completion of the evaluation process, traders are awarded a funded account by FTMO. This means they can trade with FTMO’s capital, taking advantage of the potential for higher profits while minimizing their own risk.
Traders in the funded program are entitled to a portion of the profits they generate, based on a profit-sharing agreement with FTMO. The profit split percentage can range from 70% to 90%, depending on the trader’s adherence to the Scaling Plan and their trading performance.
FTMO Trader Selection and Account Rules
FTMO follows a stringent selection process to ensure that only the most skilled and disciplined traders are accepted into the funded trading program. This selection process includes evaluating the trader’s trading history, risk management, and overall trading strategy.
Once accepted into the program, traders must adhere to specific account rules set by FTMO. These rules are designed to maintain consistency, discipline, and risk management in the trading process. Failure to comply with these rules may result in penalties or disqualification from the program.
FTMO Account Balance
The account balance in the FTMO-funded trading program is a combination of the trader’s profits and the subscribed capital. The trader’s profits are generated from successful trades, while the subscribed capital represents the capital provided by FTMO for trading purposes.
Traders need to manage their account balance effectively, ensuring that they maintain profitability and meet the required profit targets set by FTMO.
Conclusion
In conclusion, FTMO offers a unique opportunity for traders to access funded trading accounts and capitalize on their trading skills. By participating in the FTMO-funded trading program, traders have the potential to earn a share of the profits they generate, providing a tangible incentive for success.
One of the key benefits of FTMO is the profit split, which is based on the trader’s performance. Traders can earn a profit percentage ranging from 80% to 90% depending on their adherence to the Scaling Plan. This profit-sharing model ensures that traders are rewarded for their skill and dedication.
Moreover, FTMO provides various account types to cater to the diverse needs and strategies of traders. Whether you’re a conservative trader or a high-frequency trader, FTMO offers account options that suit your trading style.
By joining FTMO, traders also gain access to a supportive community and valuable educational resources. FTMO aims to empower traders, providing them with the knowledge and tools necessary to succeed in the challenging world of trading.
