Two tracks, a simulated account
FTMO offers two evaluation tracks. The 2-Step has two phases: a 10% profit target in phase one and 5% in phase two. The 1-Step has a single phase with a 10% profit target. In both tracks the trading period is unlimited. It is important to understand what is being traded: FTMO states that all accounts it provides to clients are demo accounts with fictitious funds, and that all trading takes place in a simulated environment only. In other words, the challenge evaluates how you trade; it is not a deposit into a live trading account.
Maximum daily loss: 5% vs 3%
The maximum daily loss is a level that account equity must not fall below during the day. According to FTMO's trading objectives page, the level is recalculated every day at 00:00 Central European time, as the day's starting balance minus a fixed percentage of the initial simulated capital. In the 2-Step the percentage is 5%, and in the 1-Step it is 3%. If equity falls below the level, the rule counts as breached. So in the 1-Step the daily room for movement is narrower, and it is worth sizing positions against that level in advance.
Maximum loss: static vs trailing
In both tracks the maximum loss is 10% of the initial simulated capital, but it is calculated differently. In the 2-Step the level is static: the initial balance minus 10% of it, and it does not move. In the 1-Step the level trails at end of day: it is recalculated every day at 00:00 Central European time as the highest balance recorded so far minus 10% of the initial balance. This means that in the 1-Step, once the balance rises, the loss level rises with it, so your buffer from the level does not grow with profits.
Minimum trading days and the best day rule
The 2-Step requires a minimum of 4 trading days. FTMO defines a trading day as a day on which at least one position was opened. The 1-Step has no such requirement, but it has the best day rule: the profit of the best day cannot exceed 50% of the total profit of all positive days. FTMO clarifies that exceeding this is not treated as a breach, but it requires you to keep trading until the ratio balances. So in the 1-Step, profit concentrated in a single day will not be enough on its own to meet the target.
Reward, fee refund and account type
According to the comparison table, the reward split in the 2-Step is up to 90%, and in the 1-Step it is 90%. In the 2-Step the fee is refunded in full (100%), and in the 1-Step there is no refund. In the 2-Step you can choose between a Standard and a Swing account, while the 1-Step offers Standard only. FTMO states that the Swing account is available only in the 2-Step track. The difference between Standard and Swing concerns news trading and holding positions overnight and over the weekend after you pass the evaluation, and it is explained in the rules guide.
How to think about the choice
Both tracks test the same thing, risk management over time, in different ways. The 2-Step is longer with two phases, but has a wider daily limit, a static loss level, the option of a Swing account and a fee refund. The 1-Step is shorter with one phase, a 3% daily limit, a trailing level and the best day rule. Leveraged trading carries high risk, and meeting the targets is not guaranteed. FTMO does not promise a reward, and conditions may change, so read the current rules on the company's site before choosing.
How long do I have to pass the challenge?
According to FTMO's comparison table, the trading period is unlimited in both tracks.
Is the fee refunded?
In the 2-Step the fee is refunded in full. In the 1-Step there is no refund.
What is the best day rule?
A 1-Step rule: the best day's profit must not exceed 50% of the total profit of positive days. Exceeding it is not a breach, but you must keep trading.
Is trading at FTMO done with real money?
No. FTMO states that all accounts it provides are demo accounts with fictitious funds, and trading takes place in a simulated environment only.
This information is for learning and comparison, not investment advice. Verify product details and eligibility conditions against the current source.
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