You will trade with the same account balance used during the FTMO Challenge. If you traded $200,000 in the FTMO Challenge, you would also be responsible for managing $200,000 in the FTMO Account.
To avoid confusion, please remember that all accounts offered by FTMO are demo accounts with virtual currency. After a client becomes an FTMO Trader, they are given login credentials for a demo account, except that the FTMO Account is linked to their Proprietary Trading Firm’s live trading account, through which they produce actual cash flow. Clients are entitled to up to 90 per cent of FTMO Account profits. This system is far less demanding from an administrative standpoint and allows them greater freedom to manage risk actively.
You can apply for another FTMO Challenge and trade additional accounts if you wish to trade with a more extensive account balance. Each FTMO Challenge must be traded from scratch, regardless of the progress made on other accounts. Due to the necessity for risk and exposure diversification, they permit a maximum capital allocation of $400,000 per trader or strategy at any given time. This can be interpreted as two accounts, each containing $200,000, or 4 accounts, each containing $100,000, etc.
Please avoid creating numerous accounts through repeated registrations. If they identify identically traded methods across many accounts with an aggregate capital worth exceeding $400,000, they reserve the right to suspend those accounts under the terms and conditions.
Please note that the maximum capital allocation for an Aggressive risk-setting version is $200,000, as the loss limitations are doubled. Alternatively, if you are regularly profitable on the FTMO Account, they would gladly provide you with more funds in accordance with their Scaling Plan.
How can you withdraw your earnings?
Profit Split on the FTMO Account is performed every month by default, with the option to request a payout after 14 days from the date of the account’s first trade. The Profit Split Day can be modified up to three times each withdrawal, between 14 and 60 days after the start of trading. Suppose a trader needs to modify their Profit Split Day before the conclusion of a one-month cycle. In such a case, the Profit Split Day will be fixed to the final day of the specified Reference Period, and the trader will be unable to modify it during the current cycle. For instance, if a trader begins trading on the 1st of April, the first Profit Split Day will be on the 15th of April, and the last Profit Split Day will be 60 days later, on the 31st of May.
Advantages of FTMO Proprietary Trading
There are numerous advantages to proprietary trading for a financial institution or commercial bank, including increased quarterly and yearly earnings. When a brokerage business or investment bank executes transactions on behalf of clients, it earns commissions and fees. This revenue can represent a tiny portion of the money invested or the gains created. Still, the procedure enables an institution to receive one hundred per cent of the investment’s profits.
The second advantage is that the institution can accumulate a stockpile of securities. This serves two purposes. First, speculative inventory enables the institution to provide clients with an unexpected benefits. Second, it assists these institutions in preparing for bear or illiquid markets, where buying or selling securities on the open market becomes more difficult.
The third and final benefit is related to the second benefit. A financial institution can become an influential market maker through proprietary trading by offering liquidity on a single security or group of securities.
Traders Union has described “What is a Prop” very efficiently in this article. You should check it out!
You will trade using the same account balance you used throughout the FTMO Challenge. If you traded $200,000 in the FTMO Challenge, you would also be accountable for $200,000 in the FTMO Account.
They allow a maximum capital commitment of $400,000 per trader or strategy at any moment due to the need for risk and exposure diversification. This may be understood as two accounts with $200,000 each, four accounts with $100,000 each, etc.
Just refrain from engaging in illegal transactions. Some business techniques can be utilized to generate constant, risk-free earnings or to take advantage of conditions or services. Refer to the Terms and Conditions for more information on what constitutes Prohibited Business Conduct.