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 , 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 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.”