FTMO Rules: Complete Challenge & Funded Account Guide (2026)

FTMO runs a two-phase evaluation built around static drawdown limits, clear profit targets, and a funded stage that keeps the same core risk rails in place. Traders need to clear a 10% target in Phase 1 and a 5% target in Phase 2 while staying inside the 5% daily-loss and 10% total-drawdown limits. The structure tends to suit traders who want fixed downside parameters rather than a trailing drawdown that tightens as equity rises. That makes FTMO easier to plan around, but only if you size positions against the daily loss budget instead of the headline account size.

Last verified: April 2026

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Full rule table

Rule Phase 1 Phase 2 Funded
Profit target 10% 5% N/A
Maximum daily loss 5% 5% 5%
Maximum total drawdown 10% 10% 10%
Drawdown type Static (from initial balance) Static Static
Minimum trading days 4 4
Maximum trading days 30 60
News trading policy Permitted Permitted Restricted around major releases (see policy section)
EA / automated trading allowed Allowed Allowed Allowed
Weekend holding allowed Allowed Allowed Allowed
Consistency rule Yes - no single day may exceed 50% of total profit Yes - no single day may exceed 50% of total profit Yes - no single day may exceed 50% of total profit
Minimum trading days per month (funded stage) N/A - no requirement

Consistency rule explained

FTMO's consistency rule matters because it is designed to stop traders from passing on one oversized day and then giving most of the gain back. The current cap is 50%, which means no single trading day can contribute more than half of your total profit. In practice, that means your pass should look like a repeatable curve rather than one huge spike surrounded by flat or negative days. If your total profit after several sessions is $5,000, a single $2,500 day is the outer limit. A best day closer to $1,500 leaves more room for a clean, repeatable profile.

The easiest way to stay compliant is to spread risk over multiple sessions and keep your daily exposure anchored to the same loss budget every day. If you are pressing harder after an early win, the rule can become a problem even though the trade itself was profitable. A practical way to police that behavior is to keep your session headroom visible and avoid letting one open sequence dominate the month. The Daily Loss Limit Tracker is useful here because it keeps the session budget in front of you before the urge to oversize takes over.

News trading policy

FTMO fully permits news trading during the evaluation phases. On funded accounts, excluding Swing accounts, FTMO restricts trading inside a four-minute window around specific high-impact releases: two minutes before and two minutes after the event. The restricted list covers Interest Rate decisions, NFP, GDP, CPI, FOMC announcements for relevant currencies, and Crude Oil Inventories. The restriction applies to Forex, Gold, and US Indices.

Always check FTMO's official dashboard for the current news trading policy - it is subject to change without notice.

Payout schedule

FTMO's funded account payout structure is straightforward in the brief: the base split is 80%, scaling to 90% on the FTMO Scaling Plan. The stated minimum withdrawal threshold is $1, and the payout cadence is bi-monthly, which makes FTMO one of the cleaner programs to model once the account is live. The important distinction is that the split improvement depends on qualifying for the scaling program rather than being automatic at the moment you pass.

Account size / stage Split %
Standard funded account 80%
FTMO Scaling Plan 90%
Scaling milestones Minimum 10% net profit over a four-month cycle, at least two rewards processed, and a positive balance at the scale-up trigger. Qualifying upgrades the payout split and increases account balance by 25%.

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FAQ

What are the FTMO profit targets?

FTMO uses a 10% target in Phase 1 and a 5% target in Phase 2. Once the account is funded, the challenge-target requirement drops away and the focus moves to keeping the account inside the loss limits.

Is FTMO drawdown static or trailing?

This page is built from the current internal brief, which treats FTMO drawdown as static from the initial balance. That is one reason many traders find FTMO easier to plan around than firms that trail drawdown from peak equity.

Can you hold trades over the weekend with FTMO?

The current brief lists weekend holding as allowed in Phase 1, Phase 2, and the funded stage. You should still confirm the exact permissions in the live dashboard before carrying exposure through the close.

Does FTMO allow EAs or automated trading?

The brief lists automation as allowed, but the real compliance question is how the strategy behaves around event risk, execution style, and any account-specific restrictions. Allowed in principle does not remove the need to confirm the current operating policy.

FTMO - industry-standard two-phase challenge

If FTMO's static drawdown structure fits your process better than a trailing-drawdown program, review the current challenge terms directly before you commit capital or time to an evaluation.

View FTMO challenge →

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