After dozens, if not hundreds, of complaints on social media, prop trading firm The Funded Trader has confirmed that it has suspended all payouts because of a “self-imposed internal audit.”
“We will be ensuring all payouts are in line with our terms of service and do not violate the gambling policies we have in place. Due to the migration, in which mistakes were made, it has created a large backlog of tickets for us to resolve, payouts included,” the platform tweeted yesterday.
“We are working actively to resolve everything and will focus on attention to detail at this time to ensure our customers are getting the experience they deserve in the now and in the future.”
The company highlighted that it had distributed $150 million in payouts to date. However, that figure is self-claimed and was not audited externally.
We have enabled a self imposed internal audit of all payouts. We will be ensuring all payouts are in line with our terms of service, and do not violate the gambling policies we have in place. Due to the migration, in which mistakes were made, it has created a large backlog of…
— The Funded Trader (@thefundedtrader) March 13, 2024
A Troubled Prop Trading Platform
The Funded Trader is a part of Easton Consulting Technologies LLC, which operates a number of other prop trading platforms. It is headed by Angelo Ciaramello, the Chief Executive Officer. Ciaramello called the recent complaints a "propaganda" against the firm
Coordinated propaganda attack against @thefundedtrader ? Sounds about right.
New Judge Judy episode dropping soon 🧑⚖️
As Finance Magnates reported, Nicholas D’Arcangelo, the Co-Founder and former Chief Marketing Officer at The Funded Trader, sued his business partners, including Ciaramello, last year for forceful redistribution of his stakes in the company.
Similar to other prop trading platforms, The Funded Trader faced operational disruption with the alleged policy change of MetaQuotes against prop trading platforms. Ciaramello-led platform adopted DXtrade and cTrader as MetaTrader alternatives.
However, the customers of The Funded Trader recently took social media, primarily Trustpilot, to reveal the payout denials by the platform. Many have pointed out that the prop trading platform did not even cite a reason for the payout denial, and the customer support did not respond to messages, only with a scripted initial message.
After dozens, if not hundreds, of complaints on social media, prop trading firm The Funded Trader has confirmed that it has suspended all payouts because of a “self-imposed internal audit.”
“We will be ensuring all payouts are in line with our terms of service and do not violate the gambling policies we have in place. Due to the migration, in which mistakes were made, it has created a large backlog of tickets for us to resolve, payouts included,” the platform tweeted yesterday.
“We are working actively to resolve everything and will focus on attention to detail at this time to ensure our customers are getting the experience they deserve in the now and in the future.”
The company highlighted that it had distributed $150 million in payouts to date. However, that figure is self-claimed and was not audited externally.
We have enabled a self imposed internal audit of all payouts. We will be ensuring all payouts are in line with our terms of service, and do not violate the gambling policies we have in place. Due to the migration, in which mistakes were made, it has created a large backlog of…
— The Funded Trader (@thefundedtrader) March 13, 2024
A Troubled Prop Trading Platform
The Funded Trader is a part of Easton Consulting Technologies LLC, which operates a number of other prop trading platforms. It is headed by Angelo Ciaramello, the Chief Executive Officer. Ciaramello called the recent complaints a "propaganda" against the firm
Coordinated propaganda attack against @thefundedtrader ? Sounds about right.
New Judge Judy episode dropping soon 🧑⚖️
As Finance Magnates reported, Nicholas D’Arcangelo, the Co-Founder and former Chief Marketing Officer at The Funded Trader, sued his business partners, including Ciaramello, last year for forceful redistribution of his stakes in the company.
Similar to other prop trading platforms, The Funded Trader faced operational disruption with the alleged policy change of MetaQuotes against prop trading platforms. Ciaramello-led platform adopted DXtrade and cTrader as MetaTrader alternatives.
However, the customers of The Funded Trader recently took social media, primarily Trustpilot, to reveal the payout denials by the platform. Many have pointed out that the prop trading platform did not even cite a reason for the payout denial, and the customer support did not respond to messages, only with a scripted initial message.
FAQs
After dozens, if not hundreds, of complaints on social media, prop trading firm The Funded Trader has confirmed that it has suspended all payouts because of a “self-imposed internal audit.”
Are prop firm payouts real? ›
Yes, reputable proprietary trading firms do indeed pay traders for their profits. While there are scams out there, it's essential to differentiate them from legitimate firms. As for True Forex Funds, my experience with them has been nothing short of excellent.
What happens if you lose money in a prop firm? ›
Proprietary trading firms often provide evaluation accounts where you prove your trading skills. Usually, you pay a one-time fee to enter this "challenge." If you lose money during this evaluation, you won't owe anything beyond the initial fee.
What is a prop firm funded trader? ›
A prop trading firm is a company that provides its traders with access to capital. In return, the traders share a percentage of the profits they generate with the company. Individuals face many hurdles on their journey to become professional traders.
How many traders fail prop firms? ›
According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders.
How many people pass funded accounts? ›
Around 10% pass
According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.
Which is the most trusted prop firm? ›
Best Prop Trading Firms 2024 - Reviewed by Experts
- Topstep.
- The 5%ers.
- Earn2Trade.
- SurgeTrader.
- FTMO.
- E8.
- City Traders Imperium.
- Fidelcrest.
Legal action can be taken against a broker or prop firm for trade manipulation or unfair practices, but success is not guaranteed.
Can you lose money with a funded trading account? ›
Limited risk to the trader
Not your own. This means that your financial risk in case of unsuccessful trades is just a fee you have paid to the firm for it to fund you. If you paid the firm $500 and lost $10,000 during trading, you lost just $500.
What happens when you fail a funded account? ›
If you break the Maximum Loss Limit rule in either the Express Funded Account or Live Funded Account, then that account will be automatically closed at the end of the trading day.
How much does it cost to join prop trading firms? This is one of the most common questions beginner prop traders usually ask. Many prop trading firms typically charge a monthly subscription fee of $150 to $25000. It is essential always to compare the fees and the benefits the company offers before joining one.
How much does the average prop firm trader make? ›
In conclusion, the income of prop firm traders can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.
Can you make a living trading for a prop firm? ›
Prop trading can be lucrative, with earnings tied to a profit-sharing ratio. Unlike traditional brokers relying on commissions, prop traders' income directly links to generated profits. Ratios vary, often ranging from 75/100 to 90/100, offering flexibility based on experience and strategy.
Why do 90% of traders fail? ›
Most new traders lose because they can't control the actions their emotions cause them to make. Another common mistake that traders make is a lack of risk management. Trading involves risk, and it's essential to have a plan in place for how you will manage that risk.
What are the problems with prop trading firms? ›
- Traders in prop firms often have limited control over the firm's capital. They may need to deposit their own money as collateral or risk management. - Additionally, payouts are subject to the firm's rules, which may restrict a trader's access to profits.
What are the disadvantages of prop firms? ›
5 Cons of Prop Trading
- Auditions. For some traders, the requirement to pass an Audition or Challenge may be viewed as a drawback. ...
- Competitive Environment. ...
- No Guaranteed Income. ...
- Long Learning Curve. ...
- Psychological Pressure.
Traders can often withdraw their profits on a bi-weekly or monthly basis, providing them with a regular income stream. However, the frequency of withdrawals will vary depending on the prop firm and the trader's agreement with them.
How do I know if my prop firm is legit? ›
Read reviews to tell if your forex prop firm is legit. There are several effective ways to tell if your forex prop trading firm is legitimate. Start by reviewing the evaluation and challenge criteria to get funded. Review the profit-sharing agreement model and structure too.
What are the payouts for prop trading firms? ›
Statistics on Average Trader Payouts
Profit Split: The average prop firm will offer a 80-20 profit split once you become a funded trader. TFT, on the other hand, gives up to a 90% split, — even as high as 95% in some promotions — the highest in the industry.
How much does a prop firm pay you? ›
In conclusion, the income of prop firm traders can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.
