Trading Objectives & Rules

FTMO Futures Regulatory & Operational Constraints

While FTMO Futures provides CME market access through Tradovate with institutional financial backing, strict compliance rules apply. These include state-level US restrictions, banking verification standards, session cut-offs, and cycle payout accounting.

Rule / Restriction	Specific Requirement	Failure Penalty	Applicable Plans
US State Bans	AR, DE, LA, MT, SC strictly prohibited	KYC rejection / Forfeiture	Pro & Growth Plans
US Banking Type	Traditional regulated bank (No Wise/Chime)	Payout denied	All US Payouts
Tax Documentation	Valid IRS Form W-9 + SSN/ITIN	Account freeze	All US Residents
Session Cut-Off Time	All positions flat by 4:10 PM ET	Liquidation & breach	Pro & Growth Plans
Weekend Holding	Strictly prohibited	Account breach	Pro & Growth Plans
Min New Profit Rule	At least 50% of payout must be fresh profit	Request reduced	All Payout Requests
Sim-Funded Scaling	Bidirectional contract size adjustments	Contract downscale	All Sim-Funded Tiers

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1. The 5 Excluded US States & Banking Verification

Unlike retail prop firms operating offshore entities, FTMO Futures enforces compliance aligned with CFTC and state regulatory bodies:

Prohibited Jurisdictions

Traders with residential addresses or government-issued IDs in the following 5 US states are completely barred from FTMO Futures:

1. Arkansas (AR)
2. Delaware (DE)
3. Louisiana (LA)
4. Montana (MT)
5. South Carolina (SC)

45-State Acceptance: Residents of the remaining 45 US states and Washington D.C. are fully eligible to purchase evaluations and trade Sim-Funded accounts.

Banking & Identification Mandates

• Tax Clearance: US citizens and resident aliens must submit a signed IRS Form W-9 and provide a verified Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
• The Neobank Ban: Payouts to US traders cannot be processed to fintech neo-banks, digital wallets, or intermediate money transfer operators (including Wise, Chime, Revolut, Mercury, or Cash App). Traders must provide a bank statement showing account ownership at a chartered, FDIC-insured commercial bank or credit union (e.g., Chase, Bank of America, Wells Fargo, regional credit unions).

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2. The 50% Minimum New Profit Payout Rule

FTMO Futures prevents traders from parking profits and slowly trickling out withdrawals across multiple cycles without active trading.

The Accounting Mechanism

When you request a profit split:

Max Allowable Payout Request = 2 × Fresh Net Profit Earned in Current Cycle

Mathematical Demonstration

Assume you operate a $50,000 Pro Account (with a $5,000 maximum cycle payout cap):

• Cycle 1: You earn $3,000. You choose to withdraw $1,000.
  • Carried-over balance into Cycle 2: $2,000.
• Cycle 2: You trade 5 qualifying days and generate $400 in new net profit.
  • Total account profit: $2,400.
  • Applying the 50% Fresh Profit Rule: Because you only generated $400 in fresh profit, your maximum allowable withdrawal for Cycle 2 is $800 ($400 fresh profit + $400 matched carried-over profit).
  • The remaining $1,600 stays in the account buffer until you generate additional fresh profits in subsequent cycles.

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3. Session Flatting Mandate: 4:10 PM ET Cutoff

CME Group futures contracts undergo a daily maintenance settlement halt between 5:00 PM and 6:00 PM EST. However, FTMO Futures enforces a significantly earlier mandatory session close:

• Daily Liquidation Window: All open positions (ES, NQ, YM, RTY, CL, GC, etc.) must be closed by 4:10 PM Eastern Time (ET).
• Pending Orders: All working orders (Limit orders, Stop orders, Trailing stops) must also be canceled before 4:10 PM ET.
• Weekend Policy: Holding open contracts past 4:10 PM ET on Friday is a hard breach. CME contracts cannot be held over the weekend under any circumstance.
• Automated Flattening: If a trader fails to close positions by 4:10 PM ET, FTMO’s risk engine attempts automated liquidation; however, relying on automated flatting carries execution penalties and can trigger account termination if execution falls past the allowable threshold.

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4. End-of-Day Trailing Drawdown Floor Mechanics

FTMO Futures calculates maximum drawdown using an End-of-Day (EOD) model that permanently freezes once initial capital is reached:

1. Recalculation Timing: The drawdown floor adjusts only upon the completion of the daily trading session based on your closed realized balance.
2. Floor Freeze: Once your closed balance reaches or exceeds the starting account capital plus the maximum drawdown allowance, the drawdown floor permanently locks at the initial starting balance ($50,000, $100,000, or $150,000).
3. No Retraction: After the floor locks at starting capital, it never trails higher, transforming into a permanent static baseline.