If you're considering trying your luck in the challenge-based prop trading industry, you should know that your chance of receiving a payout is merely 1–2%. This is according to client statistics shared last week by Angelo Ciaramello, CEO and founder of prop firm The Funded Trader (TFT).

While these numbers seem frighteningly low, they align with the broader picture of an industry that charges anywhere from dozens to thousands of dollars for the opportunity to participate in their demo account challenges.

The Funded Trader CEO Reveals Challenge Pass Rates

TFT clients have been waiting for over a year to receive their due funds. In his latest update on the backlog of client payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, CEO and founder Angelo Ciaramello shared some new statistics.

The most important ones concerned the average chances retail traders have of passing the challenge and then meeting the conditions to receive a payout. At TFT, the challenge pass rate ranges from 5 to 10%, and of those, only about 20% of funded traders receive payouts.

“Trading is difficult,” Ciaramello summarized on Discord last week. “The available margin from these numbers allows us to clear our debts. This is not a Ponzi scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term or a fundraising operation; it is a structured approach to rebuild, generate profit, and settle past obligations.”

1–2% Chance of Achieving Payout

Let's do some math. From the data provided by the TFT CEO, only 1% to at most 2% of overall clients achieve a payout. In other words, for every 100 clients who start the process, approximately 1–2 will ultimately receive payouts.

The vast majority (98–99%) of clients do not reach the final payout stage, either because they don't pass the initial challenge (90–95% fail here) or because they don't qualify for payouts after being funded (an additional 80% of the remaining group).

Although TFT certainly has its issues, in this case, their business model isn't that different from other prop firms. However, it's undeniable that their figures are somewhat lower than industry averages.

According to data shared with Finance Magnates last year by prop firm technology provider FPFX Tech, only 7% of 300,000 prop trading accounts achieved a payout. Moreover, these payouts weren't particularly high, averaging just 4% of the funded plan size. So, if a trader received access to a $10,000 account, they gained $400. And for access to such a challenge, they had to pay an average of $100.

Meanwhile, PipFarm, another proprietary trading company, claimed in a survey exclusively provided to Finance Magnates that 41% of clients reach the payout stage.

TFT Clients Waiting a Year for Their Money

Earlier this month, we reported that 1,272 people have been waiting for their due funds from TFT since March 2024, which is over a year. Back in November, the same prop firm reported 900 people in the queue.

Generally, in recent months, TFT has presented many plans to solve the problem, and while some users are receiving payouts, the issue seems to be growing rather than diminishing. Meanwhile, more assurances and ideas on how to resolve the situation keep emerging.

According to Ciaramello's latest update, they managed to reach agreements with some traders for a total amount of $250,000: these traders reportedly accepted 10%, 20%, or 30% of their original owed amounts.

“Do not buy TFT challenges for my sake—I gain nothing from this. Every dollar is being reinvested into payouts, accounts, and building a better platform,” the TFT CEO commented on Discord. “Even once all payouts and accounts are settled, we will continue reinvesting to create the best trading experience possible.”