A payout is the trader's share of profits from a funded prop firm account. Splits typically range from 70% to 90% in the trader's favor, with 80/20 being the de facto standard for most retail prop firms in 2026. Payouts are usually requested by the trader on a fixed cycle — monthly at FTMO, every 14 days at FundedNext, on demand at some newer firms — and paid via wire transfer, crypto (USDT, USDC), or PayPal depending on the firm and the trader's region.
The first payout often includes the trader's original challenge fee as a refund, which is a marketing mechanism to make the offer feel risk-free. Subsequent payouts are profit-only.
Worked example
You hold a $200,000 FTMO funded account. Over a calendar month you close $7,000 in profit. You request your monthly payout. With an 80/20 split, $5,600 lands in your bank account; FTMO keeps $1,400. Your account balance resets to $200,000 — the profit is withdrawn, not left to compound on the funded account. To compound, you must qualify for the scaling plan.
Why it matters
The payout is the entire economic point of the funded account. Understanding the cycle, the minimum profit threshold (often 1% of the initial balance), the consistency rule, and the payment rails matters more than which firm has the most aggressive marketing. A firm that pays 90% but takes 60 days to process is worse than one paying 80% in 5 days.
Common pitfalls
- Requesting a payout the day a consistency rule kicks in (one trading day cannot account for more than 30-50% of total profit, depending on the firm).
- Forgetting that crypto payouts often have a network fee deducted by the firm.
- Treating the first payout as pure profit when part of it is just your refunded challenge fee.
- Tax surprises — payouts are self-employment income in most jurisdictions.