Prop Firm The Funded Trader Suspends All Payouts, Sparking Dissatisfaction

The Funded Trader, a proprietary trading firm, explained the suspension payouts in a post on social media platform X last Thursday.

"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 tickets for us to resolve, payouts included."

"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."

Meanwhile, The Funded Trader emphasized that the company has sent $150 million in payouts to date (ending by March 14) and expects to pay more.

Many traders were disgruntled with the company's explanation. A trader said he had been trading for several months to gain profits, only to be suddenly banned. Another comment  has even gone as far as to accuse The Funded Trader of having financial problems, stating, "Just admit, you don’t have enough money for payouts."

Others questioned the company's criteria for rejecting payouts, suggesting that they could reject any payment and call their behavior "gambling" simply because the company didn't want to see traders make a profit.

The Funded Trader didn't respond directly to this comment but published another post on March 15 that referred to situations in which traders may be considered to be gambling, "If you buy 70 accounts, risk 4% per trade, blow each account in under 3 days, have a negative trading PnL of $1,000,000 but then reach a $100k payout, you may be banned for gambling. What do you think?"

The announcement comes after The Funded Trader said its migration to cTrader, DXtrade and Match-Trader, due to restrictions placed on the proprietary trading industry by MetaQuotes.