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Trading Safetyprop-trading

Prop Firm Payout Denied? Top 3 Reasons & How to Appeal (2026 Guide)

T

Trade-Wise Staff

Editor

You are reading Lesson 7 of the prop-trading course.

1. The 'Consistency' Rule Trap

Many firms require your biggest day's profit to be less than 50% of your total profit.

  • Example: You make $10,000 total. One lucky trade made $8,000.
  • Result: Denied. Why? Because you are not consistent; you are lucky.
  • Fix: Keep your lot sizes consistent. Don't YOLO on news.

2. IP Address Conflicts

If you log in from a different country (VPN) or share your account with a friend to 'help you pass', their automated systems flag this immediately.

  • Rule: 1 Trader = 1 IP Address. Never let anyone else trade your account.

3. High-Frequency Trading (HFT)

Using bots that exploit demo server lag (arbitrage) works in the challenge but fails in the funded stage. Firms in 2026 have zero tolerance for this.

Recommendation: Stick to the Giants

When it comes to payout reliability, FTMO remains the gold standard. They have paid out hundreds of millions since 2015 without scandal. While they are more expensive, you are paying for the *certainty* that if you follow the rules, you get paid.

Vetting a New Firm

Before joining a cheaper firm, check their TrustPilot for 'Payout Denied' reviews.

Use our Prop Firm Comparison Table to find firms with verified payout histories and clear rules.

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