Prop firm challenges, explained honestly.
What a challenge is, how FTMO's rules work, what it costs, and the risk plan that gives you the best shot at passing. Plain English, no hype.
Education only. Contains an affiliate link to FTMO, clearly marked #ad.
What is a prop firm challenge?
A proprietary ("prop") trading firm lets you trade a simulated account with a large balance, such as $100,000, after you pay a fee and pass an evaluation called a challenge.
To pass, you have to hit a profit target without breaking the loss limits. If you pass, you get a funded (still simulated) account and can earn a share of the profits you make on it as a reward. If you break a rule, the account ends and you lose the fee.
So a challenge is not mainly a test of how much you can make. It's a test of whether you can control your losses under pressure.
FTMO's rules in plain English
These are FTMO's published trading objectives as we read them on 12 October 2026. Rules and prices change, so always check ftmo.com before you buy.
| Rule | 2-Step challenge | 1-Step challenge |
|---|---|---|
| Profit target | 10% (Challenge phase), then 5% (Verification phase) | 10% |
| Maximum daily loss | 5% of starting balance, measured from each day's opening balance | 3% of starting balance, measured from each day's opening balance |
| Maximum loss | 10%, fixed (static) from the starting balance | 10%, trailing: it moves up with your highest end-of-day balance |
| Minimum trading days | 4 per phase | None listed |
| Best day / consistency | None listed | Your best day can't be more than 50% of your total profit |
| Reward on the funded account | Up to 90% of simulated profits | Up to 90% of simulated profits |
Example on a $100,000 2-Step: you need to reach $110,000, then $105,000 in Verification. Your equity can never drop below $90,000, and on any single day it can't drop more than $5,000 below that day's opening balance. FTMO's day resets at midnight Central European time (11pm UK time).
FTMO also has an Instant account with different rules (including a 30% consistency rule), and it offers a free trial so you can practise first.
How much does an FTMO challenge cost?
Fees are one-off and depend on account size. FTMO's own site listed these standard euro prices on 12 October 2026 (offers come and go, and prices may differ by country):
| Account size | 2-Step fee | 1-Step fee |
|---|---|---|
| $10,000 | €89 | €79 |
| $25,000 | €250 | €199 |
| $50,000 | €345 | €319 |
| $100,000 | €540 | €499 |
| $200,000 | €1,080 | €999 |
FTMO says the fee is refunded with your first reward. If you fail, you don't get it back. Only pay a fee you'd be completely fine losing.
A simple risk plan for passing
Risk 1% or less per trade
On a $100,000 account with a 5% daily limit, 1% risk means you'd need five losses in a row in one day to break it. At 0.5% risk you'd need ten. Small risk keeps you in the game.
Many traders use 0.5% on a challenge because the limits are so tight.
Work out your lot size every time
Never guess. Enter your balance, risk % and stop distance into the gold lot size calculator and use the lot size it gives you.
Check the result against your own platform's contract size.
Know exactly how close you are to the limits
Use the prop firm drawdown calculator to see how much room you have left today and overall, and how many trades at your risk size that is.
Set a daily stop of your own
Stop for the day after two losses, or once you're down about 2%. That keeps you well clear of the firm's daily limit and stops revenge trading.
Plan for 1:2 or better
Check every trade with the risk reward calculator. If your target is twice your stop, you can lose more trades than you win and still grow.
Write every trade down
Log entries, exits, reasons and mistakes in the free trading journal. Patterns show up fast, like trading news candles or moving stops.
No time pressure, so slow down
FTMO's challenges currently have no time limit. Rushing to hit the target with big lots is the most common way people fail.
Use it in the free TopTrades FX app
Lot size calculator, prop drawdown maths, a session clock and a trading journal, all free. No sign-up.
The honest bit: most people fail
Most traders who buy a challenge do not pass, and many who pass later lose the funded account. A challenge fee is a cost, like an exam fee, not an investment, and a prop firm account is not a guaranteed income.
Funded accounts at firms like FTMO are simulated, and rewards depend on the firm's terms. Read them in full before you buy, and practise on a free trial or demo until your risk rules are automatic.
TopTrades FX is not authorised by the FCA and this page is education, not financial advice. See our risk warning.
Thinking about an FTMO challenge?
If you decide a challenge is right for you, you can use our link. Practise first: FTMO offers a free trial, and the free TopTrades FX tools help you plan your risk.
Visit FTMO (affiliate link) ↗Ad · Affiliate link — we earn a commission
#ad · Affiliate link: TopTrades FX earns a commission if you buy a challenge through it, at no extra cost to you. We only get paid if you buy. Challenge fees are not refundable if you fail. Most people who attempt a challenge do not pass. Not financial advice.
Prop firm questions
Is a prop firm challenge worth it?
Only if you already follow strict risk rules on a demo account and can afford to lose the fee. If you're still learning, practise first. It's cheaper.
What is the FTMO daily loss limit?
On the 2-Step it's 5% of the starting balance and on the 1-Step it's 3%, measured from each day's opening balance. Check ftmo.com for the latest rules.
What's the difference between static and trailing drawdown?
A static max loss stays fixed from your starting balance. A trailing one moves up as your balance makes new highs, so profits you give back count against you.
How much should I risk per trade on a challenge?
We teach 1% or less, and many traders use 0.5% on challenges. The lot size calculator turns that into a lot size.
Do you get paid if I use your FTMO link?
Yes. It's an affiliate link and we earn a commission if you buy a challenge, at no extra cost to you. It doesn't change what we tell you, including that most people fail.
Gold lot size calculator
Right position size from your balance, risk % and stop.
Open tool →Gold pip value calculator
What 1 pip and a $1 move are worth at any lot size.
Open tool →Forex lot size calculator
Position size for any pair, gold or index, in £, $ or €.
Open tool →Pip value calculator
What 1 pip is worth on any pair, gold or NAS100/US30.
Open tool →Free trading journal
Log every trade and find what's costing you money.
Open tool →Risk reward calculator
R:R, R multiple, break-even win rate and £ risk/reward.
Open tool →Prop firm drawdown calculator
Daily and max loss room, static or trailing.
Open tool →Gold trading hours (UK)
Live clock: is gold open now, in UK time?
Open tool →