FTMO Rules and Payouts 2026: Complete Guide

FTMO Rules at a Glance

FTMO rules center on measurable profit targets and tight drawdown limits that reward consistency over aggressive risk taking. Traders must meet these benchmarks on simulated accounts before accessing funded capital. As of June 2026 the firm operates two primary evaluation paths that scale across account sizes from $10,000 to $200,000.

The classic 2-Step challenge requires a 10 percent profit target in Phase 1 and 5 percent in Verification. The newer 1-Step challenge sets a single 10 percent target with an added Best Day Rule. Both paths enforce daily loss and maximum loss limits calculated on balance or equity. News trading remains permitted during evaluations on both paths.

Funded accounts carry the same drawdown rules plus a profit split that reaches 90 percent after scaling. Lune's prop firm directory lists these exact thresholds alongside 46 other firms so traders can match rules to their style before paying evaluation fees.

Evaluation Rules in 2026

FTMO runs a single 1-Step evaluation model as of June 2026. The structure stays consistent across account sizes while scaling the numbers proportionally. Traders must hit a clear profit target without breaching daily loss or overall drawdown limits.

Profit Targets by Account Size

Every 1-Step challenge requires a 10 percent profit target. The table below lists the exact dollar amounts for each available size.

Once funded, the profit target disappears. You keep the same drawdown rules and receive an 80/20 or 90/10 split after scaling.

Drawdown Rules

FTMO uses two separate limits. The daily loss limit resets each day at midnight CET. The max drawdown trails the equity high on an end-of-day basis and includes open profit and loss. Traders must treat both numbers as hard stops. Crossing either limit ends the challenge immediately.

Minimum Trading Days

No minimum trading days apply to the 1-Step model. You can finish the challenge in a single session if risk rules allow it.

Lune's full FTMO review tracks these exact parameters in real time across 47 firms so you can compare FTMO rules side by side before you pay any fee.

Trading Rules & Restrictions

FTMO enforces clear rules to protect both traders and the firm. These restrictions shape how you approach each evaluation and funded account.

Allowed Instruments

FTMO focuses on forex pairs. The platform does not support futures, stocks, or cryptocurrencies. All trading occurs in a simulated environment that mirrors live market conditions. Scalpers benefit from tight forex spreads, while swing traders must adapt to currency pair volatility only.

News Trading Policy

News trading is allowed during evaluations. Funded Standard accounts face a two-minute restriction window around major releases. Swing accounts remove this limit entirely.^[4]

Scalpers can trade news spikes in evaluations but must pause on funded Standard accounts. Swing traders prefer Swing accounts to hold positions through releases without risk of breach.

Weekend & Overnight Holding

Overnight and weekend holding are not permitted on Standard accounts. Swing accounts allow these positions with reduced leverage of 1:30.

Day traders avoid weekend gaps naturally. Swing traders should select Swing accounts to hold multi-day positions without forced closure.

Position Limits

Position sizes tie directly to drawdown rules. Daily loss limits range from 3 percent on 1-Step challenges to 5 percent on 2-Step challenges. Maximum loss stays at 10 percent across both paths.^[1]

Aggressive scalpers must cap risk at 1 percent per trade to stay inside daily limits. Swing traders benefit from the larger account sizes that allow wider stops while respecting the 10 percent max loss.

Payout Rules & Schedule

FTMO structures payouts to reward consistent performance while protecting capital. The firm offers an industry-leading profit split that starts at 80/20 and scales to 90/10 once traders meet volume milestones on funded accounts.

Profit Split Structure

Traders keep 90 percent of profits on funded accounts after scaling. FTMO refunds 100 percent of the initial challenge fee on the first payout. This structure applies to both the 2-step and 1-step evaluation paths.

Payout Frequency

Once funded, traders can request payouts on a flexible schedule. FTMO processes requests quickly with no fixed monthly minimum after the first withdrawal. Most traders receive funds within a few business days of approval.

Minimum & Maximum Payouts

There is no stated minimum payout amount. Maximum payouts scale with account size and performance. The largest accounts ($200,000) allow substantial withdrawals once profit targets and drawdown rules are met.

First Payout Eligibility

After passing an evaluation, traders become eligible for their first payout on funded accounts. Here is a concrete timeline example:

• Day 1: Pass the evaluation and receive funded account credentials.
• Day 14: First payout becomes eligible after meeting any minimum trading day requirements.
• Day 17: Receive funds after FTMO processes the request and refunds the original fee.

Industry experts note that FTMO prioritizes steady risk management over aggressive sizing, which directly supports reliable payout cycles.

Lune tracks these exact parameters across 47+ prop firms so traders can compare FTMO payouts side-by-side with futures-focused alternatives.

Account Scaling & Progression

FTMO structures trader advancement around clear milestones that reward consistent performance. Traders start in evaluation challenges and move to funded accounts once they meet profit targets and loss limits. The process differs slightly between the standard 2-Step and the 1-Step paths.

1. Phase 1 (FTMO Challenge): Hit a 10% profit target while staying under a 5% daily loss limit and 10% maximum loss. Complete at least 4 trading days. Most traders reach this stage in 10 to 30 days with disciplined position sizing.
2. Phase 2 (Verification): Repeat the process with a lower 5% profit target under the same loss rules. Another 4 trading days minimum are required. Passing both phases unlocks the funded stage.
3. Funded Account Activation: No profit target applies. Drawdown rules remain in force. You receive an 80/20 profit split that can scale to 90/10 after meeting performance thresholds. The first payout refunds 100% of your challenge fees.
4. Scaling Plan: FTMO increases account size once you maintain profitability over set periods. Larger accounts keep identical drawdown percentages but allow bigger absolute position sizes. News trading stays restricted on Standard funded accounts, though Swing accounts remove this limit and cap leverage at 1:30.
5. Multiple Accounts Policy: FTMO permits traders to run several funded accounts simultaneously provided each follows its own rules. Separate logins and risk monitoring apply to each account.

Progression rewards steady risk management more than aggressive wins. Traders who keep daily losses under 1% to 1.5% of account equity typically advance faster and avoid early breaches.

Tips to Stay Within the Rules

Many traders fail FTMO evaluations because they overlook how rules interact with real trading behavior. Here are the most common mistakes we see and how to avoid them.

Miscalculating Drawdown Limits

FTMO uses equity-based monitoring that includes open profit and loss, commissions, and swaps. A 3 percent daily loss limit on a $100,000 1-Step account means you cannot drop below $97,000 intraday. Traders often breach when they hold losing positions overnight without checking the full equity impact.^[1]

Ignoring the Best Day Rule on 1-Step Challenges

This rule caps your single best trading day at 50 percent of total profits across positive days. If your largest winning day exceeds that share, the challenge fails even if you hit the overall 10 percent target. Review daily P&L before scaling size.

Trading News on Funded Standard Accounts

News trading is allowed during evaluations but restricted to a two-minute window around high-impact releases on funded Standard accounts. Swing accounts remove this restriction entirely. Many traders lose funded status by ignoring the distinction.^[4]

Failing Minimum Trading Day Requirements

Each phase requires at least four trading days with an open position. Holding no trades for several days near the end of a challenge can disqualify an otherwise successful evaluation.