This page explains every FTMO rule that can fail your account or delay a payout, in plain English and with dollar examples. Rules are based on FTMO’s published terms as of September 2026; firms change rules often, so check the official help centre before you trade. For our overall verdict, read the FTMO review.
FTMO rules at a glance
2-Step (FTMO Challenge + Verification)
| Profit target | 10% (Phase 1), 5% (Phase 2) |
|---|---|
| Maximum daily loss | 5% of initial balance, measured on equity |
| Maximum loss | 10% of initial balance, static |
| Time limit | None |
| Consistency | None |
1-Step (launched February 2026)
| Profit target | 10% |
|---|---|
| Maximum daily loss | 3% |
| Maximum loss | 10%, trailing |
| Best Day Rule | Best day ≤ 50% of positive days’ profit (to pass and for rewards) |
| Time limit | None |
What the main rules mean in dollars
On a $100,000 account using the main program’s numbers:
| Rule | Percentage | In dollars |
|---|---|---|
| Profit target (first phase) | 10% | $10,000 |
| Daily loss / daily limit | 5% | $5,000 |
| Maximum loss | 10% | $10,000 |
FTMO uses a static maximum loss that stays fixed below your starting balance on this program. Profits you make increase your buffer, which gives you more room over time. Our trailing vs static drawdown guide has worked examples.
Other rules to know
- Equity counts toward the daily limit: balance plus open P/L, swaps and commissions.
- Your fee is refunded with your first reward.
- The first reward can be requested 14 days after your first trade on the FTMO Account.
- The FTMO Account has no profit target; the Scaling Plan can raise the split to 90%.
Banned strategies
Strategies that exploit the simulated environment, such as latency arbitrage, and copying other people’s trades. EAs themselves are allowed.
Recent rule changes
In February 2026 FTMO launched its 1-Step challenge, adding a trailing maximum loss and a Best Day Rule that don’t apply to the 2-Step. If you read an FTMO guide from before 2026, it describes only the 2-Step.
Evaluation vs funded account
Don’t assume the rules stay the same once you’re funded. Check these funded-account conditions at FTMO, and re-read the funded section of the terms the day you pass:
| Payout schedule | First after 14 days, then bi-weekly or on demand |
|---|---|
| Payout speed and methods | Usually fast |
| Consistency | None on 2-Step; 50% Best Day Rule on 1-Step |
| Profit split | 80%, up to 90% via scaling |
FTMO rules for South African traders
Yes. FTMO accepts South African residents for all its challenges. Know your daily loss reset time in SAST: firms that reset at 5 PM New York time reset at 23:00 or 00:00 SAST. Fees and payouts are in foreign currency, and payouts are income for SARS.
How traders most often break FTMO’s rules
- Letting floating losses on open trades eat into the 5% daily limit.
- On the 1-Step, making most of the profit on one day and failing the Best Day Rule.
- Forgetting the 1-Step’s maximum loss trails, unlike the 2-Step’s static limit.
For a practical plan to avoid these, read how to pass the FTMO challenge.
Visit FTMO Read our FTMO review
FTMO rules FAQ
What is the FTMO daily loss limit?
On the main program it’s 5% ($5,000 on a $100,000 account). See the tables above for other programs and how it’s calculated.
Is FTMO's drawdown static or trailing?
FTMO uses a static maximum loss that stays fixed below your starting balance on its main program.
What strategies does FTMO ban?
Strategies that exploit the simulated environment, such as latency arbitrage, and copying other people’s trades. EAs themselves are allowed.
How often does FTMO pay out?
First after 14 days, then bi-weekly or on demand. Speed and methods: Usually fast.
Can South Africans trade with FTMO?
Yes. FTMO accepts South African residents for all its challenges.