Payout
Also known as: prop firm payout, reward, withdrawal of profits
Payout: A prop firm payout is the payment of a funded trader's share of eligible profits, made by the firm under its profit split and payout rules.
How does a prop firm payout work?
On a funded account, the trader requests a payout of the eligible profit, usually the closed profit above the starting balance since the last payout. The firm checks the account against its rules and pays the trader’s profit split share. Payout frequency, minimum amounts, payment methods and conditions such as minimum trading days or a consistency rule vary by firm and programme.
What can delay or stop a payout?
A rule breach found in the review, missing identity checks, a consistency rule not yet met, or the firm’s own financial difficulties. An independently verifiable payout history is one of the main checks of whether a firm pays reliably: are prop firms legit.
Worked example
Illustrative only: a $50,000 funded account closes the period at $53,000. The trader requests a payout of the $3,000 eligible profit; with an 80% profit split, the firm pays $2,400, and the account continues from its starting balance.
Learn more
- Are Prop Firms Legit? Regulation, Risks and How to Check
Are prop firms legit or scams? How prop firms are regulated, past industry problems, red flags and a checklist for checking whether a prop firm is legit.
- What Is a Prop Firm? How Prop Trading Firms Work
What a prop firm is and how prop trading firms work: challenge fees, prop firm evaluations, funded and simulated accounts, profit splits, rules and risks.
Related terms
- Profit split
A profit split is the percentage of eligible profits on a funded prop firm account that the firm pays to the trader; the firm keeps the rest.
- Funded account
A funded account is the prop firm account a trader receives after passing a challenge, or directly through instant funding, on which profits are shared under the firm's profit split.
- Consistency rule
A consistency rule is a prop firm condition that limits how much of a trader's total profit may come from a single day or trade, so that results are not driven by one outsized gain.