2026 FTMO Exam Rules Complete Guide: Profit Targets, Drawdowns & Strategies

FTMO Core Rules and Passing Guide: Your Path to Becoming a Funded Trader

As the leading proprietary trading firm (Prop Firm) for margined CFDs, FTMO boasts over 11 years of history and an exceptional reputation. To secure funding with FTMO, you must first pass their evaluation process. Here are the core rules and essential guidelines you need to know to pass:

1. Two-Phase Evaluation Targets

The FTMO evaluation consists of two main phases. You must achieve the profit targets sequentially to qualify for a funded account:

• Phase 1 (Challenge): Profit target of 10%.
• Phase 2 (Verification): Profit target of 5%.
• Phase 3 (FTMO Trader): Upon successfully passing the first two phases, you will receive your official funded account (with a maximum total allocation limit of $400K, i.e., the Max Allocation certificate).

2. Strict Drawdown Limits (Breach Means Failure)

While pursuing profits, FTMO places the highest value on a trader's risk management capabilities, establishing strict drawdown red lines:

• Maximum Loss Limit: The total account drawdown must never exceed 10%.
• Daily Loss Limit: The maximum daily loss must not exceed 5%.

3. Trading Days and Time Limits

• No Time Limit: FTMO has removed the time limit for passing the evaluation (previously subject to a day limit), allowing you to take the test at your own pace.
• Minimum Trading Days: Although there is no maximum time limit, your total trading days must be greater than 4 days.
• Account Activity Rule: If you do not place an order for more than 30 days, the account will be forcibly closed. If you need a temporary break, it is recommended to place a micro-lot (e.g., 0.01 lot) to signal the system that the account remains active.

4. Account Type Selection: Highly Recommended "Swing Account"

When signing up, you will need to choose an account type. It is strongly recommended to select the Swing Account, which will save you a tremendous amount of hassle:

• Ignore News Trading Restrictions: Standard accounts prohibit opening and closing orders within a few minutes before and after major news or economic data releases (such as PMI, Non-Farm Payrolls, etc.) as the firm views this as speculative gambling. Choosing a Swing Account allows you to completely ignore this rule, sparing you from constantly checking the economic calendar with anxiety.
• Overnight and Weekend Holding Allowed: Swing accounts allow you to hold positions overnight and over the weekend, making them ideal for swing traders.
• The Only Drawback: The leverage is slightly lower than that of standard accounts, but for trading freedom and rule compliance, this sacrifice is well worth it.

5. Fee Refund and Profit Split

• 100% Registration Fee Refund: The evaluation fee is not cheap (e.g., approximately $1,080 USD for a $200K account), but once you successfully pass the evaluation and receive your first payout on your funded account, FTMO will refund 100% of your evaluation fee, achieving a true "zero-cost" start.
• Lucrative Profit Split: Upon obtaining a funded account, the initial profit split is 80% (you) to 20% (FTMO). If you maintain consistent profitability and meet the official Scaling Plan, the profit split can increase up to 90%.