FTMO Swing Account: Advantages and Disadvantages

Last Updated on February 26, 2026

The FTMO Swing Account has become the go-to option for traders who prefer holding positions for longer periods. FTMO designed this account type specifically for swing traders. It gives you the freedom to choose your own tactics, especially regarding high-impact news events and overnight holds.

However, like any trading tool, it has specific benefits and drawbacks. This post provides a detailed examination of the FTMO Swing Account to help you determine if it aligns with your trading strategy.

Understanding the FTMO Swing Account

Traders who hold positions for days or weeks benefit most from this setup. Due to its flexibility, this account enables you to capitalize on longer-term market fluctuations. You avoid the restrictive rules that often frustrate aggressive day traders, such as the mandatory closure of trades on Friday afternoons.

In the fast-paced world of proprietary trading, flexibility is often more valuable than raw leverage. The FTMO Swing Account addresses the needs of traders who cannot sit in front of their screens 24/7. It allows for a “set and forget” approach that suits part-time traders or those with full-time jobs.

Characteristics of FTMO Swing Account: 

• No News Trading Restrictions: This is the most notable feature. The FTMO Swing Account allows you to open and close trades during major economic releases (like NFP or FOMC). Standard accounts often restrict trading 2 minutes before and after these events.

• Weekend and Overnight Holding: You can keep trades open overnight and over the weekend. This is essential for strategies that take time to develop, such as riding a weekly trend on Gold or US30.

• Reduced Leverage: The account caps leverage at 1:30 for currency pairs. While this limits massive gambles, it also lowers the risk of catastrophic losses.

• High Profit Split: You keep 80% of your earnings initially. Successful traders can scale this up to 90%, matching the standard account structure.

• Diverse Account Sizes: FTMO account sizes range from $10,000 to $200,000, allowing you to choose a level that fits your risk tolerance.

Comparison: FTMO Standard vs. Swing Account

To help you choose, here is how the two account types stack up against each other.

As you can see, the trade-off is clear: You gain freedom but lose buying power.

Advantages Of FTMO Swing Account

Why do traders choose this option?

1. Strategy Flexibility

You can apply a variety of methods without time pressure. Swing traders identify long-term price trends and evaluate market patterns calmly. You make well-informed decisions that often result in larger, more sustainable gains. You are not forced to exit a winning trade just because the market is closing for the weekend.

2. Improved Risk Management

Holding positions longer with lower leverage forces better discipline. Because the FTMO Swing Account limits leverage to 1:30, you are less likely to over-leverage. This saves you from margin calls during erratic market conditions. It acts as a mechanical safety brake for your psychology.

3. News Event Profits

Trading during news events offers a major advantage. Economic announcements often cause massive price spikes. Standard account holders must sit on the sidelines during these lucrative moments. With a Swing account, you can ride these waves and capture significant profit from volatility.

4. Alignment with Long-Term Goals

This account aligns perfectly with traders who work full-time jobs or prefer a relaxed style. You can hold positions through market turbulence, aiming for larger return-on-investment targets (e.g., targeting 200 pips instead of 20).

5. Educational Support

FTMO provides a wealth of resources. Traders access trading psychology insights, educational webinars, and performance analytics to refine their skills.

Disadvantages Of FTMO Swing Account 

Despite the benefits, you must consider the downsides before switching.

1. Lower Leverage Caps

Reduced leverage limits your buying power significantly.

• Forex: 1:30

• Indices: 1:10

• Commodities: 1:10

• Crypto: 1:1

The 1:30 cap might feel restrictive if you are used to 1:100 leverage. Traders who rely on large positions to scalp small moves (scalpers) will struggle here. You need a larger stop loss and smaller lot size to make this work.

2. Swap Fees (The Hidden Cost)

When you hold trades overnight, you pay “Swap Fees.” These are interest rate differentials charged by the broker. If you hold a trade for weeks, these fees accumulate. They can eat into your final profit. You must calculate these costs before entering a long-term trade.

3. Gap Risk

Markets often “gap” when they open on Monday. If news breaks over the weekend (e.g., geopolitical conflict), the price might jump past your Stop Loss. This exposes you to larger-than-expected losses. Since you cannot close the trade while the market is closed, you are helpless until the Monday open.

4. Strict Performance Standards

You must still meet FTMO’s profit targets to pass the challenge. Even with the flexible rules, you cannot violate the daily drawdown limits. If you fail to manage risk, the firm will close your account. The rules for Max Daily Loss (5%) and Max Total Loss (10%) remain identical to the standard account.

Who Should Choose the Swing Account?

Not sure if this fits you? The FTMO Swing Account is the ideal choice for:

• Part-Time Traders: People who have day jobs and cannot close trades manually during specific news windows.

• Trend Followers: Traders who catch 4-hour or Daily trends that take days to play out.

• News Traders: People who specifically trade strategies like “Straddles” during NFP or CPI releases.

It is NOT suitable for:

• Scalpers: Traders who need high leverage to flip accounts quickly.

• Crypto Traders: The 1:1 leverage on Crypto makes it nearly impossible to trade Bitcoin effectively on this account.

Conclusion

The FTMO Swing Account presents an exceptional option for traders seeking freedom. It appeals to those with a long-term strategy who want to trade news and hold positions over weekends. However, you must accept the trade-off of lower leverage and potential swap fees.

Ultimately, your choice depends on your personal trading style. If you value patience over speed, and freedom over leverage, this is the right account for you.

Frequently Asked Questions (FAQs)

What is the FTMO Swing Account?

It is a specialized account type that allows you to hold positions overnight and over weekends. It also removes restrictions on trading during high-impact news events.

Can I trade news with the FTMO Swing Account?

Yes. Unlike the standard account, you can open, close, and hold trades during any economic news release without penalty.

What kind of leverage is available for FTMO Swing Accounts?

The firm sets the leverage at 1:30 for Forex pairs. Indices and commodities are capped at 1:10, and Crypto is 1:1.

Can I switch my current account to a Swing Account?

Yes. You can switch your account type to “Swing” every time you advance to a new stage (e.g., from Challenge to Verification, or Verification to Funded). You can do this directly in your client area

Is this account good for beginners?

Yes, but you need knowledge. Beginners often benefit from the lower leverage as it prevents them from blowing their accounts quickly. However, you must understand the risks of holding trades overnight.

Do I pay fees for holding trades overnight?

After finishing the evaluation process or just before the start of a new trading cycle, traders can. Standard swap fees apply to all trades held past the server rollover time (usually 5 PM EST). You should check the instrument specifications to see the exact cost. Switch to the FTMO Swing Account account type.