FTMO Challenge Rules Explained (1-Step and 2-Step)

FTMO sells two evaluations: the 2-Step FTMO Challenge (Challenge plus Verification) and the 1-Step FTMO Challenge. Both test the same thing. Can you hit a profit target without breaking a loss limit? The details differ, and the details are where most accounts fail.

This guide covers each rule as FTMO states it on its Trading Objectives page, checked on 3 November 2026. For a side-by-side view of every FTMO account size, see our prop firm rules database.

FTMO rules at a glance

2-Step FTMO Challenge

• Profit target: 10% in the Challenge, 5% in the Verification.
• Maximum Daily Loss: 5% of initial capital.
• Maximum Loss: 10% of initial capital, static (it never moves).
• Minimum trading days: 4 in each phase.
• Time limit: none.
• Fee: refunded with your first reward on the FTMO Account.
• Reward split: 80% by default, rising to 90% if Scaling Plan or Premium Programme conditions are met.

1-Step FTMO Challenge

• Profit target: 10%.
• Maximum Daily Loss: 3% of initial capital.
• Maximum Loss: 10%, trailing on end-of-day balance.
• Best Day / consistency rule: your best day must not exceed 50% of total profit.
• Time limit: none.
• Fee: not refundable.
• Reward split: 90%.

Prices (EUR)

FTMO prices its challenges in euros. These are the standard fees in our database, verified against FTMO's site:

• 2-Step: 10K €89 · 25K €250 · 50K €345 · 100K €540 · 200K €1,080
• 1-Step: 10K €79 · 25K €199 · 50K €319 · 100K €499 · 200K €999

FTMO's homepage currently advertises 19% off the 100K FTMO Challenge. The discount is applied automatically, so there is no code to enter. Check the checkout page for the final price.

Maximum Daily Loss: how FTMO calculates it

This is the rule that ends the most challenges, so it is worth reading slowly.

FTMO takes your balance at 00:00 CE(S)T and subtracts a fixed amount: 5% of initial capital on the 2-Step, 3% on the 1-Step. Your equity must stay above that level until the next midnight reset. Equity includes open positions, swaps and commissions, not only closed trades.

Example (2-Step, 100K): the daily allowance is always $5,000. If your balance at midnight is $102,000, equity cannot touch $97,000 that day. A floating loss counts, even if the trade later recovers.

Example (1-Step, 100K): the allowance is $3,000. With the same $102,000 midnight balance, the floor is $99,000. That leaves much less room for a single bad trade.

Two practical points follow:

• The reset uses Central European time, not your local time. Know when midnight CE(S)T falls for you.
• Swaps charged overnight and commissions reduce equity, so they eat into the daily allowance.

Our daily loss limit guide explains balance-based and equity-based limits in more depth.

Maximum Loss: static on 2-Step, trailing on 1-Step

2-Step: static

The 2-Step Maximum Loss is calculated only from initial capital. On a 100K account, equity must never fall to $90,000. It does not move up when you make money. That makes it easy to track.

1-Step: end-of-day trailing

The 1-Step limit starts at 10% below initial capital. Each day at 00:00 CE(S)T, FTMO looks at your highest end-of-day balance. The limit sits 10% below that high. FTMO says it "can only increase, but never decrease".

Example (1-Step, 100K): you start with a $90,000 floor. If your best end-of-day balance reaches $104,000, the floor rises to $94,000. A losing week after that gives you $10,000 of room from the high, not from the start.

Because it trails on end-of-day balance, intraday swings do not move the floor. Only the closing balance at midnight does. Read our trailing vs static drawdown guide for how this compares with futures-style trailing limits.

Minimum trading days

The 2-Step requires at least 4 trading days in both the Challenge and the Verification. FTMO counts a trading day as any day (00:00 to 23:59:59 CE(S)T) on which you open at least one position. Opening counts, not closing.

So you can hit the target on day one and still need three more days with at least one trade opened. A small trade satisfies the rule.

FTMO's 1-Step page does not list a minimum trading days objective. Confirm on the Trading Objectives page before you plan around it.

Profit target

The target is met when your balance exceeds it with all positions closed. On a 100K 2-Step, that is $110,000 in the Challenge. The Verification resets to the starting balance and asks for 5%, so $105,000.

There is no time limit on either model. You can take as long as you need, which removes the pressure to force trades late in a phase.

The 1-Step Best Day rule (consistency)

The 1-Step adds a consistency check. For orders created on or after 12 October 2026, your best day must not exceed 50% of total profit. Total profit is the sum of closed profits and losses across all days. Some FTMO pages give a slightly different start date, so check which version applies to your order.

For older orders, the legacy version applies: your best day must not exceed 50% of the profit from positive days only.

This is not a breach. If one day is too large, you keep trading until the best day falls to 50% or less of the total.

Example: you make $6,000 on Monday and $4,000 over the rest of the week. Total profit is $10,000 and the best day is 60%. You need more total profit before you pass, even though you hit 10%. Our consistency calculator shows how much more.

Rules on the funded FTMO Account

The restrictions below do not apply during the evaluation, on either model. They start once you trade an FTMO Account.

• News: on the Standard account type, trading is restricted around selected news releases (2 minutes before and after). The Swing account type has no such restriction.
• Overnight and weekend holding: restricted on Standard accounts. Allowed on Swing accounts.
• Swing availability: Swing is offered with the 2-Step. Our database shows it is not offered for the 1-Step.
• Expert advisors: allowed.
• Platforms: MT4, MT5, cTrader and TradingView.

Payouts and the refund

FTMO's withdrawal FAQ says you can request a reward on the 14th day after your first trade on the account, or any day after. All positions and pending orders must be closed. FTMO reviews requests within 1-2 business days and typically sends the reward 1-2 business days after the invoice is approved.

On the 2-Step, the challenge fee is refunded with your first reward. The 1-Step fee is not refundable.

Downsides to weigh

• The 1-Step's 3% daily limit and trailing floor leave little margin for error.
• The Best Day rule can delay a pass after one big winning day.
• Standard funded accounts limit news trading and weekend holding.
• The 2-Step default split is 80%, not 90%.
• Prices are in euros, so your cost moves with the exchange rate.

For a full assessment, read our FTMO review. If you want a plan for actually passing, see how to pass the FTMO Challenge.

Rules and prices were checked against FTMO's official pages on 3 November 2026 and can change. Confirm current terms on ftmo.com before you buy. This is educational content, not financial advice; trading involves risk. FundedKings may earn a commission if you buy through some links on this site. See our affiliate disclosure.