FTMO $10K Challenge: The Cheapest Way to Prove You Can Pass

The $10K is FTMO's cheapest entry point. The 1-Step costs €79, the 2-Step costs €89. The daily loss limit is $300-$500. The profit target is $1,000. It is not going to replace your job, but it is the cheapest way to test whether you can actually trade inside FTMO's rules before you spend €439 on a $100K challenge.

Most traders treat the $10K as a throwaway size. That is the wrong mindset. The $10K teaches you the same rules, the same daily loss mechanics, and the same drawdown traps as the $100K, at a fraction of the cost. If you cannot pass the $10K, you are not ready for the $100K.

Here is the full breakdown of the $10K on both challenge paths, including what you can realistically earn, why it is the smartest first challenge, and when it becomes a waste of money.

FTMO $10K at a Glance

Here are the headline numbers for the $10K account on both challenge paths.

The first thing to notice: the $10K is the only tier where the 1-Step is significantly cheaper than the 2-Step. At €79 vs €89, the difference is only €10. But the 1-Step also has a $300 daily loss vs the 2-Step's $500, plus the trailing drawdown and the Best Day Rule.

For €10 less, you get $200 less daily loss room and a trailing drawdown that punishes profitable days. The 2-Step is the better deal at this size for the same reason it is the better deal at every size: wider daily loss, static drawdown, no Best Day Rule.

The reason to pick the 1-Step at $10K is not the €10 savings. It is the 90% split from day one. If you are using the $10K as a stepping stone to a larger account and you want the maximum payout from your first few funded cycles, the 1-Step gives you 90 cents of every dollar earned from the start.

1-Step $10K: The Numbers

The 1-Step $10K is FTMO's cheapest challenge at €79. One phase, $1,000 profit target, 90% split.

The rules

• Profit target: 10% ($1,000). One phase only.
• Daily loss limit: 3% ($300). Based on equity, resets at midnight CET.
• Max drawdown: 10% trailing ($1,000 starting, trails up with balance).
• Profit split: 90% from day one.
• Best Day Rule: Single best day cannot exceed 50% of total positive days' profit.
• Fee: €79, 100% refunded with first payout.
• Time limit: None as of 2026.

The $300 daily loss reality

$300 sounds tight because it is tight. On EUR/USD with a mini lot (10K units), a 30-pip adverse move is $30. Three mini lots and you are at $90. A standard lot (100K units) and a 30-pip move is $300. One standard lot, one bad move, and you have breached the daily loss on the 1-Step.

The $10K 1-Step forces you to trade small. Very small. If your normal risk per trade is 1% of account balance, that is $100 per trade on the $10K. Three consecutive losses and you are at $300, breaching the daily limit. You need to risk 0.5% or less per trade to give yourself room for a losing streak.

This is the real lesson of the $10K 1-Step: position sizing under constraint. If you learn it here for €79, you will apply it on the $100K without losing €499.

The $1,000 trailing drawdown

The trailing drawdown on the 1-Step $10K starts at $9,000 (10% below $10,000). If you grow the account to $10,500, the floor rises to $9,450 ($10,500 minus 10%). A $1,050 pullback from $10,500 and the challenge fails.

On the 2-Step, the floor stays at $9,000 regardless of how high the account goes. The static drawdown gives you $1,500 of room from $10,500 instead of $1,050 on the trailing.

2-Step $10K: The Numbers

The 2-Step $10K costs €89 and is the more forgiving path at this size. The daily loss limit is $500 instead of $300, the drawdown is static, and there is no Best Day Rule.

The rules

• Phase 1 profit target: 10% ($1,000).
• Phase 2 profit target: 5% ($500).
• Daily loss limit: 5% ($500). Based on equity, resets at midnight CET.
• Max drawdown: 10% static ($1,000, fixed at $9,000 floor).
• Profit split: 80% base, scales to 90% via Scaling Plan.
• Best Day Rule: None.
• Fee: €89 Standard, €89 Swing. Both 100% refunded with first payout.
• Time limit: None as of 2026.

The Swing variant at $10K

The 2-Step Swing costs the same €89 as the Standard and adds news trading freedom and weekend holds. At the $10K level, the Swing is actually more useful than it sounds, because $500 of daily loss room is tight enough that trading through news events can be the difference between hitting the target and falling short.

The weekend hold allowance means you can hold swing positions from Friday to Monday without closing them. On the Standard, you are forced to close everything before the Friday close, which locks in losses or cuts winners short.

Income Potential: What You Could Earn

Let me be blunt: the $10K does not generate enough income to live on. It generates enough to prove the process works and to fund your next challenge size upgrade.

The 2% scenario

2% monthly on $10K is $200 gross. After the 90% split on the 1-Step, you take home $180. Per month. That is roughly $6 per day.

Is that worth the time? As income, no. As proof that you can trade inside FTMO's rules and collect a payout, absolutely. The $180 is not the point. The funded account history and the proof of concept are the point.

The 3% scenario

3% monthly is $300 gross. $270 on the 1-Step, $240 on the 2-Step. Annualized: $3,240 or $2,880.

This is what a consistently profitable trader should expect from the $10K. It covers the challenge fee in the first payout (since the fee is refunded with the first payout, your first check includes the €79-€89 refund plus your profit split). After that, you are collecting $135 per payout cycle on the 1-Step.

The 5% and 8% scenarios

5% monthly ($450 on the 1-Step) is achievable but aggressive on a $10K account with a $300 daily loss limit. The math is tight: you need to make $500 in a month while never losing more than $300 in a single day. That means roughly 5-7 winning days and no losing days over $200.

8% monthly ($720 on the 1-Step) is possible but requires very consistent execution with tight risk management. One $250 loss day and you have almost no room left for the rest of that day's trading.

Why the $10K Is the Smartest First Challenge

If you have never taken a prop firm challenge, the $10K is the cheapest way to learn what the rules actually feel like when real money is on the line.

Low risk

€79 (1-Step) or €89 (2-Step) is the cost of a dinner out. If you fail, you are out less than €100. Compare that to €439 on the $100K 2-Step or €1,080 on the $200K. The financial pain of failing the $10K is low enough that it will not tilt you into revenge-buying another challenge immediately.

Proves the process

The $10K has the same rules as every other FTMO account size. Same daily loss percentage. Same max drawdown percentage. Same profit target percentage. Same daily loss reset time. Same news and weekend restrictions. The only difference is the dollar amounts, which are smaller.

This means: if you cannot pass the $10K, you cannot pass the $100K. The rules are identical. The percentage constraints are identical. The only variable is your ability to trade inside those rules. If you fail the $10K twice, you know you need to fix your strategy before spending €439 on the $100K.

The fee is small enough to fail without tilting

The psychological benefit of the $10K is underrated. When you fail a €439 challenge, the loss stings. It makes you want to buy again immediately to "win it back." That is tilt, and it leads to blown accounts and blown budgets.

When you fail a €79 challenge, it is annoying but not devastating. You can sit with the failure, review what went wrong, and come back with a better plan. The low stakes make you a better learner.

The Free Trial is even cheaper

Before you spend €79, run the FTMO Free Trial. It is 14 days, it is free, and it uses the same rules as the paid challenge. If you breach the daily loss on the Free Trial, you just saved €79. If you pass the Free Trial comfortably, you know you are ready for the paid $10K.

The Free Trial is the smartest first step. The $10K is the smartest first paid step.

Why the $10K Can Be a Waste

The $10K is not the right choice for every trader. Here is when it becomes a waste of money.

Too small for experienced traders

If you have been trading profitably for 2+ years and you already know you can stay inside a 3-5% daily loss limit, the $10K is a waste of your time. The income is too low to justify the hours spent on the challenge. Skip straight to the $100K or at least the $50K.

The $10K is for traders who have not yet proven they can pass. If you have already proven it, you are burning time for $270/month when you could be earning $2,700/month on the $100K.

Income too low to justify time

The $10K pays $180-$270/month at realistic returns. If you are spending 2-4 hours per day trading the challenge, the hourly rate is $1.50-$4.50. That is below minimum wage in most countries.

The counterargument: the time is an investment in learning, not in earning. But if you already know how to trade under prop firm rules, the $10K is pure opportunity cost. Every month you spend on the $10K is a month you are not earning on the $100K.

Stepping stone mentality vs real business

Some traders get stuck on the $10K because it feels safe. They pass the $10K, collect a few payouts, and never move up. The $10K becomes a comfort zone instead of a stepping stone.

The right approach: pass the $10K, collect 2-3 payouts to prove the process, then move to the $50K or $100K. The $10K is chapter one, not the whole book. If you are still trading the $10K six months after your first funded payout, you are leaving money on the table.

10K vs Bigger Sizes

Here is how the $10K compares to every other FTMO account size.

The $10K is the cheapest entry, but the capital-per-euro ratio is the worst in FTMO's lineup at €8.90 per $1K on the 2-Step. The $100K is the best at €4.39 per $1K. You pay a premium for the privilege of starting small.

That premium is worth paying if you need to learn the rules. It is not worth paying if you already know them.

Who Should Pick the $10K

Pick the $10K if:

• This is your first prop firm challenge. Start small, learn the rules cheaply, and fail for €79 instead of €439.
• You want to test whether your strategy fits FTMO's daily loss and drawdown rules before committing to a larger account.
• Your budget is tight and you cannot afford to lose €439 on a failed challenge. €79 is the cost of admission, and it is the right price for the lesson.
• You want to build a funded account track record before applying for the Scaling Plan on a larger size.
• You have run the FTMO Free Trial and want to transition to a real funded account at the lowest cost.

Do not pick the $10K if:

• You are an experienced trader who is already profitable on personal accounts. Skip to the $50K or $100K where the income justifies the time.
• You expect the $10K to replace your job. It will not. At realistic returns, it pays $180-$270/month.
• You are buying it because it is cheap and you want to "try prop trading." The $10K is not a trial. It is a real challenge with real rules. If you are not serious about passing, save the €79 and use the Free Trial instead.
• You plan to stay on the $10K permanently. The $10K is a stepping stone. Plan to move up within 2-3 months of your first payout.

The $10K is the right pick for the trader who has not yet proven they can pass a prop firm challenge. It is the wrong pick for the trader who has already proven it.

For the full rules breakdown across all account sizes, see our FTMO Challenge Rules guide. For the next step up, read our FTMO $100K Challenge breakdown. For help deciding which size fits your budget and strategy, see our FTMO account size decision guide.

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