FTMO Hidden Rules 2026: What They Don't Tell You on the Sales Page
FTMO has built its reputation on transparency, but like every prop firm, there are nuances that aren't prominently displayed on marketing pages. Understanding these "hidden" rules can mean the difference between keeping your funded account and losing it to a technicality.
Profit Split
80-90%
Max Funding
$400,000
Rating
4.9/5
Evaluation
2-Step
1. The 2-Minute News Trading Buffer
Most Common Violation
This rule catches more traders than any other. FTMO prohibits opening or closing positions within 2 minutes of high-impact news events on Standard accounts.
What many traders miss:
| Aspect | What You Need to Know |
|---|---|
| Closing trades | You can't close positions 2 minutes before news either |
| High-impact definition | NFP, FOMC, CPI, central bank decisions (FTMO calendar) |
| Penalty | Repeated violations flag account for review |
| Workaround | Swing accounts have no news restrictions |
Pro Tip: Set phone alarms for 5 minutes before major news. Use ForexFactory or FTMO's own economic calendar to stay ahead.
2. Weekend Holding Restrictions
Standard vs Swing
Standard accounts are not designed for weekend holding. Swing accounts are specifically created for this purpose.
| Account Type | Weekend Holding | Leverage |
|---|---|---|
| Standard | ❌ Not recommended | 1:100 |
| Swing | ✅ Allowed | 1:30 |
What happens:
- Monday gap can push you through stop-loss instantly
- Equity drawdown calculated on gap open
- Many traders wake up on Monday already in violation
If you swing trade, choose the Swing account type from the start.
3. The Equity-Based Drawdown Trap
Critical Difference
FTMO uses equity-based drawdown, not balance-based. This is stricter than many other firms.
| Drawdown Type | How It Works | Example |
|---|---|---|
| Balance-based | Only counts closed P&L | Long losing trade can recover |
| Equity-based (FTMO) | Counts floating losses | -$4,500 floating = $500 room left |
Real-time calculation means:
- Floating losses count continuously
- You can be terminated even if trade eventually wins
- Swing traders have less breathing room
Alternative
Firms like FundedNext use balance-based drawdown if you need more room to let trades breathe.
4. Copy Trading Between Accounts
FTMO explicitly prohibits copy trading between your own FTMO accounts:
❌ Prohibited:
- Trade copier software across your accounts
- Same trades on multiple accounts simultaneously
- Third-party signals resulting in identical trades
✅ Allowed:
- Managing different strategies on different accounts
- Different entry timing/sizing on each account
Why: FTMO wants independent trading decisions. Similar patterns across accounts trigger compliance review.
5. The Unofficial Consistency Expectations
Not Officially a Rule
While not stated explicitly, FTMO has flagged accounts showing unusual patterns. They want consistent traders, not lucky gamblers.
Patterns that trigger review:
- Making entire profit target in 1-2 trades
- Dramatically different lot sizes without reasoning
- Trading only during extreme hours of your timezone
- 90%+ win rate on very few trades
Reality: Even if you hit target quickly and legitimately, expect extra scrutiny before approval.
6. Verification Phase Differences
Common Mistake
Many traders relax after Phase 1, only to fail Phase 2. The rules are the same, but psychology changes.
| Aspect | Phase 1 (Challenge) | Phase 2 (Verification) |
|---|---|---|
| Profit Target | 10% | 5% |
| Daily Loss | 5% | 5% (same) |
| Max Drawdown | 10% | 10% (same) |
| Common Problem | Passing | Overconfidence |
Why traders fail Phase 2:
- Lower target = different position sizing needed
- "Hurry up and get funded" pressure
- Assuming rules relaxed (they're not)
7. Payout Timing Nuances
| Payout Aspect | Rule |
|---|---|
| First payout | After 14 calendar days (not trading days) |
| Subsequent | Bi-weekly on scheduled dates |
| Processing | 1-2 business days (trading locked during) |
| Open trades | Close before requesting payout |
Tip
Request payouts when flat (no open positions) to avoid complications during processing.
Pros
- More transparent than most competitors
- Rules are well-documented in T&Cs
- Support team answers rule questions
- Swing account option for flexibility
- Clear economic calendar provided
Cons
- News trading restricted (Standard)
- Equity-based drawdown is strict
- Copy trading between own accounts banned
- Weekend holding issues (Standard)
- Consistency expectations not clearly stated
Frequently Asked Questions
The Bottom Line
FTMO remains the gold standard for good reason—they're more transparent than most competitors. But "more transparent" doesn't mean "no fine print."
Before you start:
- Read the full Terms & Conditions (not just FAQ)
- Ask support when uncertain
- Choose Standard vs Swing based on your style
- Understand equity-based drawdown implications
Remember
FTMO isn't trying to fail you. They profit when you're profitable and trading actively. These rules maintain their funding model's integrity. Work with them, not against them.
PropFirmCircle Team
View ProfileEditorial Team
Our team of experienced traders and analysts dedicated to providing unbiased prop firm reviews.