My Next Trading Challenge – And My Issue with FTMO (2024)

I have recently passed and received myfirst funded accountwith Prop Firm FTMO, and am in the process of taking on my next trading challenge for another $130,000 of funding. Instead of taking my challenge with FTMO, I have decided to partner with another prop form, Lark Funding. Lark Funding is a new prop firm on the scene, and today we will cover why I decided not to go for another FTMO challenge, and the issues I have with FTMO.

What is Lark Funding?

Lark Fundingis another new proprietary trading firm on the scene. I have covered exactly what a prop firm in another blog, but essentially its the best way for a trader to make a significant income off their trading once they are consistently profitable.

All prop firms will have a trading challenge which traders will need to pass in order to gain access into their funding. Lark Funding has a one phase challenge, whereasFTMOis a two phase. In the trading challenge, the trader is required to make a 10% return on their account. There is a 4% daily drawdown allowed, and a 5% maximum drawdown allowed. Once funded, Lark offers a 75% split to traders on profits, which is actually lower than FTMO. The split isn’t the real reason why I decided to take the challenge with Lark.

My Next Trading Challenge – And My Issue with FTMO (1)

The real reason behind my decision to take Lark Fundings challenge is the time limit. As a result of there being no time limit on how long you need to pass the challenge, whereas the first stage, which is the more difficult for FTMO, is 30 days. I personally, if I am trading to my standard risk parameters, would very very rarely return 10% in a month. 99% of tradings would not be able to sustainably return 10% on an account. Therefore, what most traders, including myself, would need to do is to break your rules when it comes to risk manegement. I typically risk 1-2% per trade, whereas on my challenge, I was risking 2-2.5% per trade. This is not ideal. I am an advocate for always following your rules. Howevever, its difficult to be able to follow your risk management rules and return 10% in a month.

Lark Funding’s process is alot more sustainable, as there is no time restriction for you to return 10%. If you can return 10%, without a drawdown of 5%, you are a pretty decent trader. I don’t think that the challenge process with FTMO is sustainable as it forces traders to potentially break their rules and trade with more risk than they should be. I have covered this before in anotherblogwith my thoughts on the FTMO process.

Drawdown is Coming

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns. This is one of the main reasons why I decided to not go back to back with another FTMO challenge.

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I had my best ever trading month inAugust, and some of the reason of how I passed my challenge first attempt is due to luck. But I know that after a fantastic trading month, I am bound to have a period of drawdown coming soon. I know that the probability of me passing another FTMO challenge, due to the time limit in place, would be very low. This is the main reason why I decided to go with Lark Funding. The no time limit allows me a bit more time to be able to potentially get through my drawdown, as variance will come into play after a long winning streak. My goal is to be trading around $200,000 in funded accounts by the end of the year, and going with Lark will assist me in acheiving this.

My Next Trading Challenge – And My Issue with FTMO (5)

The cons of Lark Funding

Now there are going to be parts of the process where FTMO is significantly better than Lark in. This is the reason why they are the largest funder of Forex Prop Traders. There are 3 main cons when it comes to Lark Funding;

1. Profit Split

The profit split for lark is 75% – 25%, compared to 80% – 20% with FTMO. This means that the trader takes a little less of their profits than what we do with FTMO.

2. Cost

The major difference is the cost of the challenge. If we compare the cost of a $50,000 account across both, the challenge fee is about $50 more in Lark than FTMO. On top of this, with FTMO, once you receive a profit from your funded account after passing the second phase, the fee charged for the challenge is refundable. With Lark Funding, instead of being refundable, they give you a free attempt for another funding account. I do like the idea of giving the successful trader the free attempt of another account, however understand that as a new business they would rely more on the challenge fees to fund their business than FTMO would.

3. Time Constraints

The major reason behind why I decided to take a Lark Funding Challenge was the timing constraints of FTMO. Because I have had such a great run I am expecting a drawdown to come soon, and theres no point throwing money away with FTMO. I personally think putting a timing constraint on a challenge will make a trader gamble, more than sustainably manage their money. This is why I believe in Larks funding process, and recommend any trader looking to take a challenge to partner with Lark first.

My Next Trading Challenge – And My Issue with FTMO (6)
My Next Trading Challenge – And My Issue with FTMO (2024)


What percentage of people fail the FTMO challenge? ›

The FTMO challenge has a reputation for being extremely difficult to pass. Across FTMO's various account levels, it is estimated that only around 10% of traders are able to successfully complete the evaluation and become a funded trader. This means approximately 90% of those who attempt the challenge end up failing.

How hard is it to pass the FTMO challenge? ›

Passing the FTMO Challenge can be challenging. But with the right money management system, you can increase your chances of success. This simple system involves using a risk reward ratio of 1:3 for the first trade. Then, 1:3 again for the second trade, risking 4% of your account and targeting 12% of your account.

Why is FTMO banned in the US? ›

FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.

What happens if I fail my FTMO challenge? ›

You will be removed from the Premium Programme if one of the following situations occurs: You fail the FTMO Account which is part of the Premium Programme. You fail 3 accounts regardless of the of the stage (FTMO Challenge, Verification, FTMO Account)

What is the biggest FTMO payout? ›

Dariusz from the USA exceeded everyone's expectations and made his dreams come true. As our FTMO Trader with a maximum allocation, he beat the previous record payout of $500,180 thanks to his profit of $1,206,225, the biggest payout in the industry!

What is the max loss on FTMO? ›

At FTMO, we understand that market conditions might vary and that's why we offer our traders a generous 10% Maximum Loss buffer and 5% Maximum Daily Loss. These conditions are in a ratio of 1:1 (loss to profit), which is the top industry standard.

Does FTMO really pay? ›

In conclusion, FTMO is a reputable proprietary trading firm that pays out profits to its traders as promised. The company has a transparent and reliable payout process, and numerous positive reviews from satisfied traders attest to this.

How much is FTMO 200K challenge? ›

In conclusion, the FTMO 200k account price is $485, which covers the one-time fee for the Challenge and Verification stages. Traders must also deposit a minimum of $5,000 to start trading the $200,000 account.

Can you pass FTMO in one day? ›

There is no time limit within which you need to pass the Profit Target, the Trading Period is indefinite. As soon as all the Trading Objectives of your FTMO Challenge are met and your results are reviewed, you can proceed to the Verification phase. The minimum time to complete an FTMO Challenge is 4 trading days.

Why did FTMO leave the USA? ›

In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.

Is FTMO no longer accepting US traders? ›

FTMO just banned US citizens: USA update – January 2024: Since the establishment of our company, our goal has been to provide top-quality services for our clients. Unfortunately, at present, we are not able to do that in the United States due to specific conditions in the market segment there.

Who is better than FTMO? ›

FTMO 's top competitors in May 2024 are: FunderPro, the5ers and more. FunderPro is currently rank as the number one on the list of top Forex Prop Firms.

How many people fail FTMO? ›

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.

Can I redo the FTMO challenge? ›

You can retake your Free Trial as many times as you want to make sure you are fully prepared for an FTMO Challenge.

Can you do 2 FTMO challenges? ›

You can, however, start a new FTMO Challenge and upon successfully passing another Evaluation Process, we will provide you with another FTMO Account. Just keep in mind that our maximum capital allocation on FTMO Accounts is $400,000 per trader/strategy.

What is the risk percentage for FTMO? ›

How much should we be risking per one trade? In most textbooks and online education programs, we can learn that we should not be risking more than 2% per one trade. Although the answer to this is more complicated, let's start by saying that 2% risk per trade is a good base to start with.

What percentage of people pass prop firm challenges? ›

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

What percentage of profit does FTMO make? ›

You are becoming an FTMO Trader with an FTMO Account. Trade responsibly and consistently and receive up to 90% of your profits.

What is the failure rate of forex trading? ›

Trading the financial markets is notoriously difficult and many wonder what percentage of forex traders fail. Using official data from 32 ESMA regulated brokers, my research shows that an average of 72.2% of forex traders lose money.

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