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What Is a Minimum Payout

The minimum payout rule refers to the requirement set by prop firms that traders must meet a certain profit threshold before they are eligible to request a payout from a funded account. This rule does not impact evaluation stages, as payouts are only available after a trader becomes funded. The minimum payout amount is the least amount of profit that must be generated and retained in the account before a withdrawal request can be submitted.

How It Works in Practice

Each firm sets its own minimum payout thresholds, and these amounts may vary not only from firm to firm but also across different account types within the same firm. For example, a $50,000 funded account may require a minimum payout of $1,000, while a $150,000 account could have a $2,000 minimum. In some cases, the threshold is fixed regardless of account size, while in others, it scales proportionally based on risk, funding level, or chosen payout schedule.

Once the trader reaches the minimum profit threshold and satisfies any other payout-related conditions, such as active trading days or consistency requirements, they are eligible to submit a withdrawal request. If the trader’s realized profit is below the minimum payout threshold, they must continue trading until the requirement is met.

Why This Restriction Exists

The minimum payout rule is used to ensure that withdrawals are operationally efficient and aligned with the firm’s risk model. Processing small payouts can create unnecessary administrative overhead and reduce the incentive for traders to trade with consistency and structure. By setting a baseline, firms encourage traders to build and manage accounts over time rather than exiting quickly after a few small wins.

This rule also allows the firm to observe the trader’s performance over a longer stretch before releasing capital. It reflects the firm’s desire to reward steady progress rather than short-term spikes in performance. In some cases, firms also apply this rule in tandem with a consistency review to ensure that the profits were generated in a stable and repeatable manner before the payout is approved.

Considerations for Traders

Traders should always review the minimum payout threshold for their specific funded account before planning withdrawals. Some firms disclose this amount clearly during onboarding, while others include it in their help center or payout FAQ. Traders who request a payout below the allowed threshold may be automatically declined or asked to continue trading until the profit meets the requirement.

It is also important to factor in this rule when managing risk. If a trader reaches a profit just short of the minimum payout level and then takes a loss, they may need to regain that profit before becoming eligible again. Understanding this rule in advance helps prevent frustration and allows for more strategic decision-making around when to lock in gains or reduce exposure.

Summary

The minimum payout rule sets the lowest profit amount a trader must earn before being eligible to request a withdrawal from a funded account. The threshold varies by firm and sometimes by account size or plan type. This rule promotes operational efficiency and encourages traders to manage accounts with consistency and discipline. Traders should confirm the minimum payout requirement before requesting a withdrawal and plan accordingly to avoid falling short of eligibility.