Brokers Watch · Due Diligence ReportFTMO
Prop Firm · Prague · Founded 2015 · ftmo.com
⚠ Simulation Trading Notice
This firm offers an evaluation/simulation service, not regulated brokerage. You are not trading real market assets unless explicitly stated. Industry data shows the majority of evaluation participants do not receive a payout. Read the firm's terms carefully before paying any fee.
FTMO
Czech-based proprietary trading firm offering 2-step evaluations across forex, indices, commodities, crypto and stocks on MT4, MT5, cTrader and DXtrade.
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Additional Information
Regulatory Status
Regulatory status of proprietary trading firms
Proprietary ("prop") trading firms that sell evaluation challenges to the public typically operate outside the scope of traditional financial regulation. In most jurisdictions, simulated-account challenges and profit-split arrangements are not classified as regulated investment services, so firms in this category are usually not licensed or supervised by financial conduct authorities such as the FCA, ASIC, CySEC, SEC or CFTC.
Internal industry data suggests a 90% to 95% failure rate for evaluation-based challenges. Challenge fees should be categorized as a High-Risk Speculative Expense, not an investment.
This is general information about the prop-trading industry and is not a statement about any specific company.
Prop Firm vs Regular Broker
| Feature | Prop Firm (the "Game") | Regular Broker (the "Account") |
|---|---|---|
| Ownership | You own nothing — you are a contractor | You own 100% of the assets and equity |
| Regulation | Generally unregulated; no statutory safety net | Regulated by FCA / ASIC / SEC and equivalents |
| Withdrawals | "Profit Targets." You can only withdraw after hitting a specific % or after a "waiting period." | Anytime — it is your money |
| Rules - The "Catch" | Hidden Traps: consistency rules, lot limits, max drawdown, time limits | None imposed by the broker — trade your way |
| Your Loss - Risk | Lose 100% of the challenge fee if drawdown rules are breached. One mistake ends everything. | You only lose what the market takes from your capital. You control your stop-loss. |
| Protection | No investor compensation scheme; firm can cease operating | Often covered by SIPC (US, up to $500k) / FSCS (UK, up to £85k) / equivalent |
| Profit Split | 60–90%. The firm keeps a "commission" for letting you trade. | 100%. You keep every cent of profit you generate. |
| The "Buffer" Trap | Required balance — many firms require you to leave a "buffer" in the account before you can withdraw. | Zero buffer. You can withdraw down to your last cent at any time. |
| Tax Treatment | Self-employed income — taxed as a service provided to the firm (standard income tax). | Capital gains — often eligible for lower tax rates or tax-free status (e.g. Spread Betting in the UK). |
| Compounding | Limited. You are capped by the account size the firm gives you. | Infinite. You can leave profits in to increase your buying power and grow exponentially. |
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