FTMO, a major player in proprietary trading and forex trading markets, recently decided to stop allowing new traders from the United States to register for accounts. This move has sent ripples through the finance landscape, particularly affecting prop traders who have been utilizing FTMO’s services.
The implications of this decision extend beyond individual traders, impacting the broader trading community and raising questions about the regulatory environment in the US.
In this blog post, we delve into the reasons behind FTMO’s ban on US traders and explore the potential consequences for both traders and the financial industry as a whole.
FTMO Banned in US – Who Can Join FTMO?
In an update, FTMO has made a huge decision to ban traders from the USA.
USA update – January 2024: Since the establishment of our company, our goal has been to provide top-quality services for our clients. Unfortunately, at present, we are not able to do that in the United States due to specific conditions in the market segment there. Therefore, we have decided to suspend the purchase of the FTMO Challenge for our new and existing US clients, both nationals and residents (clients who are non-US nationals but reside in the USA), just as we put a hold on onboarding new US clients. At the same time, we are looking for ways to make FTMO available again to all those interested in trading in the USA. Please note that US nationals who reside outside of the USA are also included in these restrictions and cannot be onboarded. Our existing clients can continue to use the services as normal. Nothing changes for clients, partners and those interested in our services in other markets, as the problem only concerns the specifics of our operations in the US market. Our goal remains that FTMO brings value to everyone interested in trading, taking them at least a step further. Please note that FTMO does not provide services to persons in/from Iran, Syria, Myanmar, and North Korea, persons listed on sanction lists, persons with criminal records related to financial crime or terrorism, and persons previously banned because of breach of contract. In the case of the United States of America, FTMO does not accept clients in Louisiana, South Carolina, Montana, Arkansas, and Delaware. FTMO also does not accept clients – legal persons, who are company trusts. Due to regulatory developments and business decisions based on risk management considerations, FTMO does not provide services to clients in Afghanistan, India, the Russian Federation, the Republic of Belarus, Ukraine (restrictions are limited to the following regions: Crimea, Sevastopol, Donetsk, Kherson, Luhansk, and Zaporizhzhia), the Republic of Indonesia, Cuba, Venezuela, Sudan, and South Sudan.
Why Did FTMO Suspend US Accounts?
FTMO stopped letting new traders from the United States sign up because of certain conditions in the US market. The firm decided because they’re worried about regulations and they want to keep their brokerage, which might cause problems with the US government.
FTMO didn’t use another company to serve US clients, which might’ve caught the attention of regulators, leading to them stopping new US accounts. This affects prop traders in the US and shows a growing trend of stricter rules in prop trading.
Top Alternative to FTMO – The Funded Trader (TFT) Alternative
In March 2024, The Funded Trader (TFT) encountered problems because it lacks a brokerage license and has grown too big, making it hard to switch to new platforms.
Despite this, TFT has swiftly adapted and is now offering DXTrade and Ctrader platforms.
TFT stands out as one of the few firms equipped to handle the influx of traders, boasting ready-to-go technology and support systems.
TFT provides a range of account options from $5,000 to $400,000, along with choices of 1, 2, or 3 phase challenges. Here are some notable features of The Funded Trader:
- Regular Promotions: Access extra perks and discounts through ongoing promotions.
- High Payouts: TFT has facilitated many six-figure payouts, with some exceeding $200,000.
- Broker Selection: Traders can choose from three different brokers with TFT. and read our review
Visit The Funded Trader and read our review.
Best Alternative to FTMO for Live Capital – FunderPro
March 2024 Update: FunderPro emerges as a strong contender, especially adept at handling recent industry challenges. As part of a larger enterprise alongside Netrois and RedAcre, FunderPro remains stable, making it the safest option for cautious traders.
FunderPro stands out by offering live capital to traders, aligning more closely with traditional prop trading. This ensures mutual interests and strong support for traders’ success.
Key features include:
- Tradelocker Platform: Trade directly on TradingView with FunderPro’s unique platform, Tradelocker.
- Daily Payouts: Enjoy the flexibility of receiving profits daily.
- Giveaways: FunderPro is currently offering giveaways for free accounts.
For further details, check out our comprehensive FunderPro Review.
Visit FunderPro and read our review.
Best Budget Alternative to FTMO – FundedNext
March 2024 Update: FundedNext maintains stability thanks to its investment in its brokerage license. With positive feedback from traders, FundedNext remains a reliable choice despite suspending new US traders.
FundedNext, an Asian-based prop firm, offers challenge options starting at around $50 for a $6,000 account. Known for its broad accessibility and regular updates, FundedNext boasts fewer country restrictions compared to its competitors.
Key highlights include:
- Regular Promotions: Benefit from additional perks and discounts through ongoing promotions.
- Stellar Challenges: Explore new challenges allowing news trading and expert advisors.
- Competitive Spreads: FundedNext offers attractive spreads, enhancing profitability.
For more insights, read our Stellar challenge review.
Visit FundedNext and read our review.
Best Reputation alongside FTMO – The 5%ers
March 2024 Update: The 5%ers remain robust with their own brokerage license and an experienced team, avoiding many industry challenges. However, they have suspended trading for US traders, impacting their availability.
Established since 2016, The 5%ers enjoy a solid reputation in the trading community, with many FTMO fans following them for their reliability.
Key features include:
- Bootcamp Option: Pay the majority of the fee after passing the challenge.
- Pros’ Salary: Skilled traders can earn up to 100% profit split and a fixed monthly salary.
- Fast Scaling: Double your account size at each profit target up to $4 million.
Visit The 5%ers and read our review.
