There’s a safer way to learn how to trade and perfect your trading skills before going fully into trading. That’s through demo accounts.
For someone who’s really interested in buying and selling items such as: Bitcoin, stocks and gold online, and you’re worried about losing your entire money because you’ve not fully understood the basics of trading.
A smart system that uses demo account is a good guide especially to beginners in the trading platform. This demo account is ideally a place of practice where you can actually learn all you need to know about trading. A demo account is where you use E-money to practice without the fear of losing your real money.
Platforms like FTMO, offers a simple deal. Just prove you can trade well and follow the rules on how to use the fake money account. Make profits from it and earn real money.
This idea is great because it has changed how new traders go into the market without having prior knowledge of it.
It saves potential traders from the risk of investing and losing so much money. With demo accounts, new traders get to learn proper risk management, which will help them to know when to stop trading especially, when they’re losing so much money.
Practicing with a demo account isn’t as easy as you think, because FTMO makes very rigid rules during the challenge phase. That means only the disciplined ones get to pass the test successfully.
If you eventually succeed in managing and handling the demo account the right way, you’ll become a funded trader.
In addition, as a funded trader you can continue to trading on the demo practice account, while FTMO tracks of all your results closely.
When you eventually make a virtual profit, FTMO will pay you a huge share of that profit as a reward through real cash. This method is safe for both you and the company. This system keeps both you and the company safe. You don’t risk your own money and the company only invest real money from their main account based on how successful you have mastered your trades.
Furthermore, the ability to have access to this platform is when you live in FTMO Supported Countries. FTMO wants to help potential ltraders globally.
FTMO supported countries are mostly in Europe and Asia. It has a notable presence throughout the African region. FTMO often supports local payment methods which makes it easier for individuals to join the platform.
Moreover, in the United States of America, FTMO has a partnership with OANDA to enable them to meet up with the U.S. financial regulations.
However, FTMO is not available in all the continent. People living in countries like: Iran, Syria, North Korea, and Myanmar can’t sign up on FTMO due to international laws and sanctions.
Platform like FTMO provide a safe way for you to learn a profitable skill through using a demo account. This helps you to build confidence and master risk management.
What is FTMO?
FTMO is a modern privately owned trading platform that gives potential traders an opportunity to practice trading through a demo account.
FTMO gives players the chance to try their luck and learn risk management, which would be beneficial to them in real-life trading and in the financial market.
Rather than using your money to trade, FTMO will give you access to a demo account using simulated funds. If you excel and become successful with your virtual account and make profits, you’ll be given real cash as a reward. However, there are firm rules that must be followed when using the demo account.
How FTMO Works
For potential traders to get a funded account, you must pass through the evaluation process which involves two-step. This is done in order to prove you’re a disciplined, a well-skilled trader who can manage risk and make profits. If you excel, you’ll become an FTMO trader. Below are the two steps:
Step 1: The Evaluation Process
To begin with, an evaluation fee has to be paid, which is only done once. This fee depends on size of the account and the challenge you choose. However, you’ve successfully passed the verification phase, you’ll get your fee refunded.
The challenge: Next, you begin your trade on a demo account using virtual funds. A target of 10% profit must be made, without reaching the risk limit. You must trade at least 4 days, with no specific time frame on when to meet up with the target.
Verification: The second and last stage in the evaluation process is to confirm how consistent you’re in reaching your targets. This time, the profit is reduced to 5%, with the same rules.
Step 2: Becoming an FTMO Trader
After completing the first stage, you’ll receive a funded FTMO Account. You get to recieve 80% profit when you earn more. While the remaining 20% goes to the platform.
In addition to your cash rewards, FTMO will refund your initial entry fee along with your first profit.
No Profit Target: Contrary to the evaluation stages, there’s a specific target you need to attain to enable you keep the account.
Trading Rules:
- In all the stages, you must follow to the management rules.
- You can’t lose more than 5% of your initial balance within a day.
- Your total loss can’t be 10% below your starting balance.
- Request for your first reward within 14 days after your first trade on the FTMO Account.
- If you’re consistent with your profit and you’re able to make 10% gain in 4 months, FTMO may give you 25% increase and raise your profit split from 80% to 90%.
FTMO has a market, you can trade Forex and stocks; commodities like gold and cryptocurrencies through platforms like MetaTrader 4, MetaTrader 5, cTrader, and DXtrade.
List of FTMO Supported Countries:
Africa: Algeria, Egypt, Kenya, Morocco, Nigeria, South Africa and Tunisia.
Asia: China, India, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Thailand and Vietnam.
Europe: Austria, Belgium, Czech Republic, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and United Kingdom.
North America: Canada, Mexico and United States.
South America: Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay.
Oceania: Australia and New Zealand.
List of States Where FTMO is Supported in the USA
FTMO is open to United States residents through a partnership with OANDA.
However, some states like: Arkansas, Delaware, Louisiana, Montana and South Carolina, cannot use this platform due to the state regulations. A side these states, the rest of the states in the United States can create an FTMO account and use the platform for trading and other FTMO benefits.
In addition, U.S. users must have a valid U.S. identification number before they can receive payments.
FTMO Alternatives
There are good and reputable alternatives to FTMO. Each one has different rules and services, they’re:
- FundedNext
- FunderPro
- Topstep
- The 5%ers
- Alpha Capital Group
Conclusion
FTMO supported countries are over 180 in total. Traders in FTMO Supported Countries can join the platform. Traders must be up to 18 years of age and willing to follow FTMO strict rules. However, residents of certain countries like, North Korea, Iran, Syria, Myanmar and Russia cannot use FTMO.
Furthermore, United States residents can trade through a specific partnership with OANDA, except the five (5) mentioned states.
Finally, FTMO is still one of the most accessible platforms for international traders.