Summary: Understanding Prop Firm Payout Schedules—What Actually Happens When You Withdraw Profits
If you’re evaluating proprietary trading (prop) firms, one of the big questions is: how and when do you actually get paid? It’s easy to get dazzled by profit split numbers like “up to 90%” or “instant withdrawals,” but behind the marketing, there are real operational processes, payout frequencies, and even legal quirks that can affect your bottom line. In this article, I’ll walk you through my actual experience with top prop firms, compare their payout schedules, and share some hard lessons (including where I stumbled the first time I tried to withdraw). Along the way, I’ll highlight regulatory differences between regions, factor in compliance realities, and share expert perspectives. Let’s clear up what’s hype, what’s possible, and what you need to watch out for.
What Happens Between Making Profits and Getting Paid? (A Personal Walkthrough)
Last year, I joined two of the well-known prop firms—let’s call them AlphaTrade (a US-based outfit) and EuroFunded (headquartered in the EU). Both promised a generous 80-90% profit split and “fast, reliable” payouts. Here’s what actually happened when I tried to cash out:
- AlphaTrade: Their trader portal showed a “request payout” button. I hit it after my first green month, expecting instant gratification. Instead, I was prompted to upload additional KYC documents—even though I’d already done this on signup. The next payout window was in seven days. When the money finally arrived, it was via ACH transfer, and I was dinged a $25 processing fee. A week-long wait isn’t unusual in the US, due to AML (Anti-Money Laundering) checks as per FINRA’s AML rules.
- EuroFunded: The process was slicker. After passing their challenge, the payout request was processed within 48 hours via SEPA transfer, with no fees. However, I later found out that payouts above €10,000 required additional documentation, in line with EBA AML guidelines.
Lesson learned: payout schedule isn’t just about “how often,” but also “what hoops do you need to jump through?”
How Often Do Top Prop Firms Pay Out?
Most reputable prop firms operate on a bi-weekly or monthly payout schedule. Here’s a quick rundown based on my research, forum reviews, and direct experience:
- FTMO: Bi-weekly payouts (every 14 days). Minimum withdrawal is $100. Payments can be made via bank wire, Skrill, or even crypto. Source: FTMO FAQ.
- MyForexFunds (before regulatory issues): Weekly or bi-weekly options, with PayPal and Wise commonly used for international traders. However, they faced scrutiny from the CFTC for their payout practices—caution advised. CFTC Press Release.
- TopStep: Monthly payouts, ACH for US traders, wire for international. Minimum $100. They’re NFA registered, so expect strict identity checks. NFA Registration Info.
- The5ers: Monthly, with PayPal and wire as options. Some traders report faster processing after building a longer track record.
In my own case, the fastest payout I ever received was three days (from a smaller EU firm), the slowest was nearly two weeks (US-based, with additional compliance steps). Every time, the bottleneck was either compliance checks or the payment processor, not the prop firm itself.
Payout Methods: More Than Just Bank Transfers
I was surprised at how many payout options prop firms now offer. Here’s what’s standard across the top names:
- Bank Wire (ACH/SEPA): Most secure, but can take 2-5 business days and often involves fees (especially for cross-border transfers).
- eWallets (Skrill, PayPal, Wise): Faster and sometimes preferred by international traders. Watch for account limits and currency conversion fees.
- Crypto (USDT, BTC): Increasingly common, especially among global firms. Fast, but you’re subject to crypto volatility and wallet security issues.
Pro tip from my own messy experience: always double-check your payout details. One mistyped IBAN delayed a transfer by a full week—customer support couldn’t undo it until the funds bounced back.
Regulations: Why Payout Schedules Differ by Country
The real reason payout speed varies isn’t just firm policy—it’s regulatory oversight. Let’s look at two examples:
- United States: Firms must comply with stringent AML and KYC rules under the Securities Exchange Act and FINRA. This often means longer verification times and more documentation for large withdrawals.
- European Union: The EBA sets AML standards, but SEPA transfers are more efficient, and documentation requirements below certain thresholds are lighter.
“Verified Trade” Standards: A Cross-Border Comparison Table
| Name | Legal Basis | Executing Authority | Payout Impact |
|---|---|---|---|
| US AML/KYC Verification | Bank Secrecy Act, FINRA, SEC | US Treasury, SEC, FINRA | Slower, more documentation, especially $10K+ |
| EU AML Directive | EU AMLD5/6, EBA | National regulators, EBA | Faster for SEPA, < €10K simpler checks |
| UK FCA Rules | Financial Services and Markets Act | FCA | Similar to EU, but extra scrutiny for non-EU wires |
Case Study: A Trader’s Payout Dispute Between US and EU
Let me share a real-world scenario from a prop trading Discord group (trader names anonymized):
Trader A (US-based) hit a big profit milestone at a UK-headquartered firm. He requested a payout, but it was delayed for “further verification” due to the US Patriot Act requirements. Meanwhile, Trader B (EU-based) with the same firm received their payout within 48 hours, as their transaction fell under the lighter EBA AML regime. Both traders used the same trading system and passed the same firm evaluation, but the withdrawal experience couldn’t have been more different. Here’s what one industry compliance expert said in a recent Finextra interview:
“Payout friction isn’t about the firm being stingy. It’s about different national regulators requiring different documentation, especially if the money is crossing borders or hitting certain size thresholds.”
What Actually Matters When Choosing a Prop Firm?
After several years (and more than a few payout headaches), here’s what I now look for:
- Clear, published payout schedule—not just marketing claims, but real trader testimonials and FAQ statements.
- Multiple payout methods—so you can choose what works best for your country and banking situation.
- Transparent compliance process—firms that tell you upfront what documentation is needed, especially for larger withdrawals, are a green flag.
- Regulatory registration—firms registered with regulators like NFA, FCA, or BaFin are more likely to process payouts by the book. Check actual registration numbers on their websites and verify at the regulator’s site (NFA BASIC for US; FCA Register for UK).
Conclusion: Don’t Just Ask “How Often”—Ask “How Smooth?”
It’s tempting to pick a prop firm based on the biggest profit split or the flashiest “instant payout” claim. But my experience, echoed by countless traders and several compliance experts, is that the best prop firms are those with a transparent, reliable, and well-documented payout process—one that works smoothly for your country’s regulations and your preferred payment method. If you’re trading from the US, expect more verification hoops; if you’re in the EU, things tend to be faster, unless you cross certain thresholds. Always verify a firm’s regulatory status, read real trader reviews (I spend half my research time on forums like EliteTrader and ForexPeaceArmy), and be prepared to submit extra documents when you hit big numbers. That first payout is a milestone—make sure you know the path before you start running.
Next Steps
If you’re considering a prop firm, start by requesting their payout schedule and compliance policy in writing. Test their support by asking about documentation for large withdrawals. And always, always keep screenshots and records of your requests—if there’s ever a dispute, you’ll be glad you did.