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Prop Firm Payouts: How Much Should a Trader Expect To Make?

Ready to become a prop firm funded trader? Before you start, let’s check your expectations around payouts and explore how much you could actually make.

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Just starting on your trading journey? It can be both exciting and challenging! Even newbies enjoy Forex trading—in fact, many of our funded traders are young professionals who have claimed large payouts. But before you think about trading with a prop firm, let’s make sure you’re starting with the right expectations.

A whopping $7.5 trillion flows daily in the Forex market! With the right strategy and mindset, you could make thousands of dollars in payouts. But in reality, more than 90% of traders end up losing money. There are several reasons for this, including market volatility, lack of knowledge, and inadequate risk management.

That’s why, as you begin your trading journey, you should keep a practical view of how much you can actually earn. So, let’s debunk the myths surrounding trader payouts.

Prop Firm Payouts
Source: Shutterstock

Misconceptions About Trader’s Income & Payouts

New traders often have misconceptions about how much money they can make. We blame social media! There are plenty of YouTubers claiming they made millions in payouts. While it may or may not be true, it’s certainly not the reality for all traders.

Some brokers promote Forex trading as a get-rich-quick scheme. There’s also a misconception that it requires very little effort. These traders might even try to sell you their strategy or signals, saying you could automate your trades and earn passive income without doing anything.

That’s simply not true. To be a successful trader, you have to put in the work. You must constantly practice your strategy to increase your win rate. Only a few traders transition to earning a full-time income from Forex trading. The rest make a modest living.

You’ll see the success stories on social media but not the failures. So remember, these stories do not represent the majority of traders.

How Much Should You Really Expect to Make in Trading?

The amount of money you can earn from trading depends on several conditions, such as your skill level, the amount of capital you trade, and the market conditions. If you’re a new trader, don’t expect to make a lot of money from trading right away. It takes time and effort to develop the skills and knowledge necessary to be successful.

Statistics on Average Trader Payouts

The average payout in The Funded Trader (TFT) is $7,000. That said, your payout will depend on several factors:

  • Initial Capital: If you’re starting with $10,000, your income will be far less than someone who starts with $200,000.
  • 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.
  • Risk-Adjusted Returns: It’s important to focus on your drawdown when trading. The higher the drawdown, the lower your risk-adjusted returns. Say your initial balance is $10,000 but falls to $6,000 after a streak of losses. Your absolute drawdown will be $10,000-$6,000 = $4,000. If you recover and grow the capital from $6,000 to $11,000, you’ll net a profit of $1,000. Your risk-adjusted return will be 100/400 = 0.25. That’s why you should aim for consistent profitability rather than high percentage gains.

So, how can you achieve consistent returns? Focus on your trading strategy and implement proper risk management. Many new traders make the mistake of over-leveraging, but it’s a double-edged sword. It can amplify both your gains and your losses. Instead, use small leverage to limit your risk.

prop firm payouts
Source: The Funded Trader

Comparing Prop Firm Payouts vs Challenge Commission

To attempt our challenges, you’ll need to pay a fee, also called a challenge commission. We do this to weed out uncommitted traders. If a trader isn’t willing to pay the challenge commission, they probably aren’t serious about making a career out of trading. The challenge commission is also a way for prop firms to recover their operational costs.

If you successfully pass our challenge, we’ll offer you a funded account. Our average payouts vary depending on your account size. We also charge a minimal commission fee:

  • Forex: $3 per lot
  • Metal/Commodities/Oil: $3 per lot
  • Indices/Crypto: $0 per lot

How To Place Withdrawal Request

You can request a profit withdrawal 30 days after placing the first trade on Standard accounts. Rapid Challenge traders can place the request in 14 days. Your account will be made read-only as we evaluate and process the payouts. We process payouts via crypto transfer, bank payments, and Deel.

forecasting payouts
Source: The Funded Trader

Forecasting Monthly Prop Firm Payouts

Because payouts depend on a number of factors (mentioned above), it’s difficult to forecast monthly payouts for traders. Based on our experience, you can expect to make at least 5% per month from trading. So, if you start with $10,000, you can expect to make around $500 per month.

However, this comes only if you keep these aspects in mind:

  • Strategy: Your profit depends entirely on your strategy. What lot size will you trade? Which currency pair? Which session? You must constantly test and improve your strategy to understand what generates consistent returns for you.
  • Mindset: Successful traders treat it as a business. Individual wins and losses aren’t important—instead, aim for long-term profitability. You also need to remove emotions from your trade and focus on your strategy. In addition, plan your day, set achievable goals, and work with discipline.
  • Risk Management: Successful traders have a risk management strategy in place. Add stop-loss orders and profit-taking points to every trade. A common rule of thumb is to not risk more than 1–2% of your trading capital.

Become A Full-Time Trader With The Funded Trader

Trading is risky, and you could end up losing a lot of money. But if you’re serious about generating consistent profits, don’t treat trading as a hobby. You’ll need discipline and a structured approach to make money. And while there’s no way to guarantee significant payouts, a consistent strategy will help you lock in gains and minimize losses.

We advise our traders to train and learn as much as possible before attempting live trading. This will increase your chances of passing our Challenges.

Many TFT funded traders claim thousands of dollars in monthly payouts. You could be next! Get started today.


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