A recent report from The Funded Trader (TFT) has shed light on the difficulties traders face in passing proprietary trading firm challenges. According to data shared by TFT CEO and founder Angelo Ciaramello, only 5-10% of traders pass the initial challenge, and of those, just 20% manage to receive a payout. This translates to only 1-2% of all traders successfully earning money from the process.
The Reality of Prop Trading Challenges
These statistics align with broader industry trends, where challenge-based prop firms offer traders access to capital in exchange for passing rigorous evaluation stages. Entry fees for these challenges range from tens to thousands of dollars, making it a costly endeavor for traders who fail to qualify.
Despite these harsh odds, Ciaramello emphasized that trading is inherently difficult, stating on Discord: “The available margin from these numbers allows us to clear our debts. This is not a Ponzi scheme or a fundraising operation; it is a structured approach to rebuild, generate profit, and settle past obligations.”
Long Delays in Payouts for TFT Clients
Beyond the challenge pass rates, TFT has faced significant delays in paying out clients, with over 1,272 traders still waiting for their funds—some for more than a year. In November 2024, the firm reported 900 traders in the payout queue, indicating that the backlog has continued to grow.
In response, TFT has implemented partial repayment agreements, offering traders 10%, 20%, or 30% of their originally owed amounts to help manage its outstanding liabilities. Ciaramello reassured traders, saying: “Every dollar is being reinvested into payouts, accounts, and building a better platform.”
Industry Comparison: How Does TFT Stack Up?
While TFT’s figures may seem alarming, they are not far from industry averages. Data from FPFX Tech revealed that only 7% of 300,000 prop trading accounts achieved a payout, with the average payout amounting to just 4% of the funded plan size. For instance, traders with a $10,000 account typically earned only $400, despite paying an average of $100 to participate in the challenge.
In contrast, PipFarm, another prop trading firm, reported in a recent survey that 41% of its clients reached the payout stage, suggesting that not all firms operate with the same payout dynamics.
What This Means for Traders
TFT’s statistics highlight the inherent challenges of funded trading programs. While the opportunity to trade with significant capital is enticing, traders must carefully assess the risks, costs, and likelihood of success before committing to a challenge. As the industry continues to evolve, traders should stay informed about payout structures and firm reputations to make informed decisions.
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The Reality of Prop Firm Trading
A recent report from The Funded Trader (TFT) has exposed the steep challenges traders face when attempting to pass proprietary trading firm evaluations.
