FTMO Funded Account: The FTMO Account, Defined

The FTMO Funded Account, Defined

By PropTrader1 2 min read Published October 28, 2026

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Keep up to 90% of your profits. Start from €79.

Rewards up to 90% — the 1-Step pays from day one.
2-Step fee refunded in full with your first reward.
$650M+ paid to 4.5M+ traders — the 11-year standard.

Get the latest discount (affiliate link)

The FTMO Funded Account (FTMO's own name: the FTMO Account) is the account issued after passing an evaluation: same size as the evaluation, simulated, with rewards on a 14-day payout cycle at 1-2 business days' processing. On the 2-Step the split starts at 80% and rises to 90% through FTMO's scaling plan; the 1-Step starts at 90%.

What continues from the evaluation: the loss limits and behavioural rules - the account is not a rule-free zone, and the consistency gate still applies on the 2-Step before a reward. What changes: no profit target, and the fee refund arriving with the first reward on the 2-Step.

Worked example: pass the $100K 2-Step (€540, or €439 on the conditional promo). First cycle makes $5,000 at an 80% split: $4,000 to you, plus the €540 fee back. Every figure per ftmo.com, checked 25-28 October 2026.

The funded stage in full: the FTMO funded account guide; the payout machinery: the payouts hub.

Plain-language material on leveraged-trading risk is maintained by the ESMA investor corner.

Part of the firm cluster and the full prop firm glossary.

Frequently Asked Questions

Why is a 50% drawdown harder to recover than a 10% one?

A 50% drawdown requires a 100% gain to recover, while a 10% drawdown only needs 11.1%. Recovery math is exponential. At 30% drawdown you need 42.9% to break even. This is why prop firms cap drawdown at 10-12% rather than higher percentages.

What is the 3-5-7 rule in forex?

The 3-5-7 rule suggests risking 1-3% per trade, keeping total open risk at 5% or less, and limiting single market exposure to 7%. It is a general risk guideline, not a prop firm rule, but following it naturally keeps you within most max drawdown limits.

What is a good maximum drawdown?

For prop firm trading, keeping your actual drawdown under 5% is excellent. Most firms allow 10-12%, but staying well below the limit demonstrates strong risk management and gives you a buffer for unexpected market events.

Is maximum drawdown calculated on balance or equity?

It depends on the firm and drawdown type. Static drawdown is typically calculated on starting balance. Trailing drawdown follows your highest equity. Some firms include floating losses in their calculation, making equity the relevant measure.

What happens when you breach maximum drawdown?

Breaching maximum drawdown results in immediate and permanent account closure. All positions are closed automatically, the challenge is terminated, and there is no refund or appeal. It is the final rule with no second chances.

What is the difference between daily drawdown and maximum drawdown?

Daily drawdown resets every day and limits your loss within a single session. Maximum drawdown is cumulative across the entire challenge or funded period. You can breach max drawdown through many small daily losses that accumulate over time.