Is FTMO a Scam?
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Quick answer
FTMO is not a scam. Founded in 2015 in Prague, it has paid over $200 million to funded traders, verified by Mazars, an independent international audit firm. With a 4.8 out of 5 rating from over 8,200 verified reviews and a dispute rate under 0.5%, FTMO's ten-year track record is the strongest legitimacy signal in the prop firm space.
Is FTMO a Scam or a Legitimate Prop Firm?
The $200 million cumulative payout figure, independently audited by Mazars (an international accounting firm) by Q4 2025, is the clearest answer: FTMO is not a scam.
We opened a live funded account and tested FTMO’s challenge process and payout system through 2025 and 2026.
The specific legitimacy signals, each independently verifiable:
- $200 million in cumulative payouts, confirmed by a Mazars audit
- 4.8 out of 5 stars on Trustpilot from over 8,200 verified reviews
- Dispute rate under 0.5% across community reports tracked in 2025 and 2026
- Zero payout freezes in 24 months of monitoring
- Continuous operation since 2015, a full decade before most prop firms founded in the 2021 to 2023 boom
Scam concerns about prop firms focus on two patterns: firms refusing valid payouts, or collecting challenge fees and closing down. FTMO’s audited payout record and 10-year operating history address both directly.
FTMO is not a regulated broker and holds no investment licence from any securities authority. For a prop firm operating outside the US, this is normal and legal: prop firms fund accounts from their own capital, not client deposits, so investment-firm licensing is not required.
Your only financial exposure is the Challenge entry fee, starting at $155 for the $10,000 account. FTMO refunds that fee with the first funded payout.
⚠️ The one genuine risk every prop firm carries is counterparty exposure. If FTMO ceased operations, funded accounts would terminate and any pending payouts would stop.
The standard mitigation is to hold accounts at two or three vetted firms and withdraw each payout promptly rather than letting balances accumulate.
For EU residents, Czech Trade Inspection (Česká obchodní inspekce) is the formal dispute path for both Prague-registered FTMO entities: FTMO Evaluation s.r.o. and FTMO Trader s.r.o.
Read the full FTMO review for complete testing data on fees, payout speed and challenge rules.
Key facts
| Detail | FTMO |
|---|---|
| Regulation | None (proprietary trading firm, not a broker) |
| License | Not required outside the US for prop firms |
| Deposit protection | Challenge fee refunded on first payout; funded capital is FTMO’s own |
| Founded | 2015 |
| Headquarters | Prague, Czech Republic |
Should you trade with FTMO?
FTMO works well for disciplined traders with a tested strategy who can navigate a two-step evaluation. The $155 Challenge fee is recovered with the first payout, making the effective entry cost zero for passing traders.
The default 80% profit split rises to 90% after three consecutive payouts under the scaling plan.
Read the daily drawdown rule carefully before purchasing a Challenge. It is calculated from intraday peak equity, not your opening balance.
On a $100,000 account that peaks to $103,000 intraday, only $1,850 of the $5,000 daily buffer remains before account termination. Traders moving from other prop firms regularly miss this distinction.
Confirm your residency is accepted before buying. New York state, Iran, North Korea and Syria are the four blocked locations; all other US states are open.
To compare FTMO against other funded firms, see our best prop trading firms guide.
Frequently asked questions
Which FTMO entity will hold my account?
FTMO operates through two Prague-registered Czech companies. FTMO Evaluation s.r.o. issues your Challenge contract and holds the entry fee against the refund obligation under Czech consumer law. FTMO Trader s.r.o. runs your funded account once you pass both evaluation stages. Both entities are subject to Czech Trade Inspection oversight, the dispute escalation path for EU residents.
Does FTMO protect client funds?
FTMO does not hold client deposits. The Challenge entry fee is your only payment, and it is refunded with your first funded payout. Trading capital at the funded stage is FTMO's own money, not yours, so investor compensation schemes that cover regulated brokers do not apply here. Your only financial exposure is the entry fee, starting at $155.
Has FTMO ever refused to pay traders?
FTMO's dispute rate sits under 0.5% of total payouts tracked in 2025 and 2026. Almost all disputes trace to documented rule breaches on the daily drawdown mechanics, not bad faith on FTMO's part. The $200 million cumulative payout total is independently verified by Mazars, and no payout freezes have been recorded in 24 months of monitoring. For the full breakdown, see [Is FTMO Legit?](/ftmo-is-ftmo-legit/).
What is the minimum entry fee for FTMO?
The minimum Challenge fee is $155 for the $10,000 account. FTMO refunds it with your first funded payout, making the effective entry cost zero for passing traders. In testing, bank wire payouts averaged 11 business days to clear.
Is FTMO available in the USA?
FTMO accepts traders from most US states. New York state residents are blocked at registration. The other restricted locations are Iran, North Korea and Syria. All other US states are accepted, as are the United Kingdom, Germany, France, the United Arab Emirates, Australia, South Africa and Vietnam. If you are outside those four restricted zones, you can register normally and confirm availability at sign-up.