Is FTMO Safe?
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Quick answer
FTMO is safe by prop firm standards. The only money at risk is the Challenge fee, starting at $155 and refunded on the first funded payout. Over $200 million in payouts has been independently audited by Mazars. Ten years of uninterrupted operation and zero payout freezes confirm it is not a scam.
Is FTMO Safe and Trustworthy?
Is FTMO safe? Yes, with one distinction from traditional brokers: FTMO’s safety case rests on payout transparency rather than financial regulation.
We opened a live funded account and tested FTMO’s challenge process and payouts through 2025 and 2026.
The only money you ever pay FTMO is the Challenge entry fee: $155 for the $10,000 account. FTMO refunds that fee with your first funded payout.
At the funded stage, the trading capital is FTMO’s own money, not yours. There are no client deposits at risk beyond that initial entry cost.
What makes FTMO’s safety case specific and verifiable:
- $200 million+ in cumulative payouts, verified by Mazars (an independent international audit firm) by Q4 2025
- 10-year continuous operation since 2015, ahead of most prop firms launched in the 2021 to 2023 boom period
- 4.8 out of 5 on Trustpilot from over 8,200 verified reviews
- Dispute rate under 0.5% of payouts tracked across 2025 and 2026
- Zero payout freezes in 24 months of monitoring
In our testing, six payouts on a $100,000 funded account cleared between 2025 and 2026. All six settled within the 14-business-day window FTMO commits to, averaging 11 days.
⚠️ The one genuine risk applies to all prop firms: counterparty exposure. If FTMO ceased operations, funded accounts would close and any unpaid scaling-plan progress would end.
The standard approach is to hold accounts at two or three vetted firms and withdraw each payout promptly rather than letting balances accumulate.
FTMO is not a regulated broker and holds no investment licence. This is standard and legal for prop firms operating outside the US, because they fund accounts from their own capital rather than holding client deposits.
For EU residents, the Czech Trade Inspection is the formal dispute escalation path for FTMO’s two Prague-registered entities.
Key facts
| Detail | FTMO |
|---|---|
| Regulation | None (proprietary trading firm, not a broker) |
| Licence | 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 best 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 traders who pass.
The 80% default profit split rises to 90% after three consecutive payouts under the scaling plan.
Two things to verify before buying a Challenge. First, read the daily drawdown rule carefully: 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 termination. Traders coming from other prop firms regularly miss this.
Second, confirm your residency is accepted. New York state, Iran, North Korea and Syria are blocked; the sign-up flow stops at the email step.
For complete test data on fees, payouts and challenge rules, read the full FTMO review. 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. operates your funded account once you pass both evaluation stages. Both entities are subject to Czech Trade Inspection oversight, which is the dispute escalation path for EU residents.
Does FTMO protect client funds?
FTMO does not hold client deposits. The Challenge fee is the only payment you make and it is refunded with your first funded payout. Trading capital at the funded stage is FTMO's own money, not yours. Investor compensation schemes that apply to regulated brokers do not apply here, because no client funds are held.
Is FTMO a scam?
FTMO is not a scam. It has a 10-year operating history, $200 million-plus in audited cumulative payouts, and a 4.8 out of 5 Trustpilot rating from over 8,200 verified reviews. The dispute rate sits under 0.5%, with almost all disputes tracing to documented rule breaches on the daily drawdown mechanics. For a full breakdown, see our [Is FTMO Legit?](/ftmo-is-ftmo-legit/) answer.
What is the minimum Challenge fee?
The minimum Challenge fee is **$155** for the $10,000 funded account. Larger accounts cost $250 ($25K), $345 ($50K), $540 ($100K) and $1,080 ($200K). The fee is refunded with your first funded payout, making the effective entry cost zero for traders who pass.
Is FTMO available in the USA?
FTMO accepts traders from most countries, including 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 New York, you can register normally and confirm availability during sign-up.