Is FTMO Legal in the United States?

FTMO is a globally recognized proprietary trading firm based in the Czech Republic, offering traders the opportunity to manage substantial capital in exchange for proven trading performance. Their evaluation-based model has gained massive popularity among forex and CFD traders worldwide. However, when it comes to U.S.-based traders, the legal status of FTMO becomes a complex issue. Although FTMO itself is a legitimate and transparent firm, its operations are not currently aligned with U.S. regulatory requirements. 

As a result, FTMO no longer accepts new registrations from traders residing in the United States. This restriction has raised questions among aspiring traders in the U.S. about whether participating in FTMO’s programs is legal, safe, or even possible under American financial laws.

Regulatory Challenges and Platform Transition

The U.S. financial market is governed by stringent regulations enforced by bodies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). FTMO’s operational model, which includes offering Contracts for Difference (CFDs), faces legal constraints in the U.S., where CFDs are prohibited.

In response to these challenges, FTMO has transitioned its trading platform for U.S. clients from MetaTrader 4 and 5 to DXtrade. This move is in response to MetaQuotes’ actions against firms offering funded trading accounts to U.S. clients, aiming to mitigate regulatory risks.

Impact of FTMO’s Suspension On Existing U.S. Clients

While FTMO has officially suspended onboarding new clients from the United States, individuals who previously held funded or evaluation accounts have not been abruptly removed from the platform or had their access entirely revoked. Instead, FTMO has implemented a transitional approach to ensure operational continuity while respecting regulatory boundaries.

Existing U.S.-based traders were informed via official communication that they must transition away from MetaTrader 4 and MetaTrader 5 due to MetaQuotes’ crackdown on proprietary trading services offering these platforms in unregulated jurisdictions. To comply, FTMO provided affected users with access to the DXtrade platform, which now serves as the alternative for continuing their trading activities.

As part of this transition, U.S. clients were required to close all open positions by clearly stated deadlines and switch to DXtrade to maintain access to their accounts. FTMO also offered support throughout the migration process to ensure minimal disruption. However, traders who fail to migrate within the allotted timeframe may risk losing access or being unable to continue their funded accounts. While existing traders have not received refunds solely due to the regulatory change, FTMO remains in communication with these users to address any account-specific concerns or eligibility for payout under previously agreed terms.

Use of VPNs and Location Masking

FTMO strictly prohibits the use of VPNs, false addresses, or any form of location masking to bypass regional restrictions. Such actions violate FTMO’s terms and may result in account termination and disqualification from receiving any payouts or progression within the program.

FTMO’s Regulatory Status

FTMO s.r.o., the entity behind the proprietary trading firm, is officially incorporated and based in Prague, Czech Republic. The firm operates under the legal framework of the European Union and complies with domestic Czech regulations. However, it does not hold registration or authorization from U.S. financial regulatory bodies, such as the Commodity Futures Trading Commission (CFTC) or the National Futures Association (NFA).

In the United States, firms that offer leveraged trading in derivatives such as forex or CFDs to retail clients are required to register with these regulatory bodies. Since FTMO offers simulated trading challenges and real capital funding that involve CFDs and other instruments, its business model raises compliance concerns under U.S. law — particularly because CFDs are banned for retail use in the United States.

As a result, FTMO’s lack of U.S. registration has placed it in a gray area with respect to American law. To avoid potential legal entanglements and to remain in good standing internationally, FTMO has voluntarily restricted access for new U.S. users. This decision aligns with growing industry pressure, including restrictions imposed by trading platform providers like MetaQuotes, who have also taken steps to cut off proprietary firms serving U.S. clients through MT4 and MT5 platforms.

While FTMO remains fully operational in other global markets, its self-imposed restriction reflects a cautious and compliance-conscious business stance rather than any confirmed wrongdoing or enforcement action from U.S. authorities.

Alternative Proprietary Trading Firms for U.S. Traders

Although FTMO has restricted new registrations from the United States due to regulatory complexities, several proprietary trading firms operate within the legal and regulatory framework of U.S. financial laws. These firms are fully accessible to U.S.-based traders and offer comparable opportunities for earning funding based on performance, though often with some structural differences compared to firms operating outside the U.S. regulatory perimeter.

Here are three well-established U.S.-compliant alternatives to FTMO:

1. TopStepTrader

TopStepTrader is a Chicago-based proprietary trading firm that specializes in funding traders in the futures markets. Unlike firms offering CFD-based models (which are banned in the U.S.), TopStep operates within the regulatory oversight of the National Futures Association (NFA) and CFTC, ensuring full compliance with U.S. law.

Traders must complete a two-step evaluation process where they prove their risk management skills and trading discipline using a simulated account. Once the criteria are met, successful candidates receive access to a funded account to trade real futures contracts. TopStep also offers educational content, daily webinars, and performance coaching, making it a highly structured option for U.S. traders seeking institutional-style funding without needing personal capital.

2. Maverick Trading

Maverick Trading is another well-regarded proprietary trading firm that operates legally in the United States. Founded in 1997 and based in Utah, Maverick offers two main trading divisions: equities/options and foreign exchange. While FX trading with leverage is more heavily regulated, Maverick structures its model in a way that complies with U.S. laws and focuses primarily on equity options strategies.

Unlike evaluation-only models, Maverick requires a capital contribution from traders, typically used as a form of risk buffer. In return, traders are granted access to significantly larger firm capital and retain a majority percentage of profits, depending on performance and account tier. Their programs also include intensive training, one-on-one mentoring, and ongoing support, ideal for traders seeking a long-term career path within a professional trading environment.

3. OneUp Trader

OneUp Trader offers a futures-based proprietary trading opportunity and is specifically geared toward retail traders in North America, including the U.S. Like TopStep, OneUp’s business model avoids CFDs entirely, focusing instead on exchange-traded products compliant with CFTC rules.

To get funded, traders must pass a single-phase evaluation challenge using a simulated account provided via platforms such as Rithmic. Evaluation accounts come in various sizes and rule sets, and once a trader meets the performance targets while maintaining disciplined risk management, they are matched with funding partners like Earn2Trade or Helios Trading Partners.

OneUp distinguishes itself through fast evaluation processes, daily progress tracking, and partnerships with firms that provide real accounts once funded. It’s a suitable choice for traders focused on futures markets who want to enter the proprietary trading world without navigating regulatory gray zones.

Final Note on U.S.-Compliant Prop Firms

While these firms may have more rigorous compliance protocols and may not offer the same leverage or freedom seen in offshore-based proprietary firms like FTMO, they provide a legally safe and scalable pathway for traders within the United States. Importantly, they offer fully regulated environments, real exchange-based instruments (not synthetic or OTC products), and long-term trading career possibilities for those committed to professional growth.

Verification of Firm Registration in the U.S.

Before engaging with any proprietary trading firm, it is essential for U.S. residents to verify whether the firm is appropriately registered with relevant regulatory authorities. In the United States, entities offering trading services in futures, forex, and other derivatives to retail clients are generally required to register with the Commodity Futures Trading Commission (CFTC) and become members of the National Futures Association (NFA).

To protect themselves, traders should use the NFA’s BASIC (Background Affiliation Status Information Center) tool, which is an official database provided by the NFA. This free online tool allows individuals to:

• Verify if a firm or individual is registered with the NFA or CFTC
• Check membership status and regulatory category
• Review any disciplinary history, enforcement actions, or unresolved complaints

If a firm such as FTMO does not appear in this database, it indicates that the firm is not registered to legally offer regulated trading services—like forex or derivatives—to U.S. retail clients. This is a crucial consideration for anyone evaluating the legitimacy and safety of a trading opportunity.

In addition, the CFTC’s official website offers further resources on recognizing fraudulent trading firms and understanding your rights as a U.S. investor.

FTMO’s Future Plans for the U.S. Market

FTMO has expressed its interest in making services available to U.S. residents again. However, due to regulatory concerns—particularly around trading platforms like MetaTrader—FTMO currently does not accept new U.S. clients. The company is actively exploring compliant solutions, including the use of alternative platforms like CDXtrade, but no official timeline has been announced. U.S. traders are encouraged to follow FTMO’s website and updates for future developments.

Conclusion  

FTMO’s decision to halt services for U.S. clients is primarily driven by regulatory challenges and the legal status of CFDs in the United States. While existing clients are being transitioned to alternative platforms like DXtrade, new U.S.-based traders are currently unable to join FTMO or begin new evaluations. This move reflects FTMO’s effort to remain compliant with international standards, even at the cost of limiting access. 

Fortunately, the proprietary trading landscape in the U.S. still offers robust alternatives. Firms like TopStepTrader, Maverick Trading, and OneUp Trader provide legally sound, performance-based funding options for traders looking to build a trading career.

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