For paragraphs,
for subheadings. No other tags. Let me draft. Title: "Velotrade Report: Only 7% of Funded Traders Ever Get a Payout" Slug: "velotrade-report-7-percent-funded-traders-payout" Content: Proprietary trading firms have exploded in popularity over the past five years, but a new report suggests the odds of actually making money from them are slim. Velotrade's 2026 Prop Firm Transparency Report examined the rulebooks of six firms — Topstep, FTMO, FundingPips, Blue Guardian, HyroTrader, and Velotrade itself — and found that across more than 300,000 funded accounts, only about 7% of traders ever received a payout.
The 7% Payout Reality
That number comes from a broad analysis of funded accounts at the six firms. A separate study by hoc-trade, which looked at 500,000 traders, found that roughly 70% of failures came from hitting loss limits, not from missing profit targets. In other words, most traders don't blow up because they can't make money — they blow up because they lose too much.
Consistency Rules That Slash Profits
Four of the six firms apply what's called a consistency rule. These rules can erase 33% to 50% of the profit from a single strong trading day. The report highlights a troubling scenario: a trader can pass all evaluation stages and close a position in profit, yet still have their account terminated because of an obscure rule clause. That kind of fine print, the report argues, makes it nearly impossible for traders to know where they stand.
Fixed vs. Trailing Drawdown
The report also draws a sharp contrast between two common drawdown models. FTMO uses a fixed drawdown capped at 10% of the starting balance. Topstep uses a trailing drawdown that rises as the account balance grows. The same trade can result in a pass under a fixed drawdown but a fail under a trailing one. For traders who don't understand the difference, the consequences can be brutal.
Industry Turmoil After MetaQuotes Ban
The prop firm industry has already seen a shakeout. In February 2024, MetaQuotes banned prop firms from using its MT4 and MT5 platforms for US clients. Several firms collapsed in the aftermath. The Funded Trader halted operations and later acknowledged over $2 million in denied payouts. True Forex Funds shut down citing insolvency, leaving about 300 traders owed $1.2 million. SurgeTrader closed within days, with its CEO admitting that roughly 10% of payout obligations went unpaid.
Despite that turmoil, interest in prop firms has only grown. Monthly search volume for the term "prop firm" jumped from about 880 in early 2020 to roughly 49,500 by 2025 — a more than 50-fold increase.
Transparency Over Profit Splits
The report argues that when choosing a prop firm, the clarity of the rulebook matters more than the advertised profit split. Gianluca Pizzituti, CEO of Velotrade, put it bluntly: "Could a trader read our rules once, in one sitting, and know every way their account could end? If the answer is no, the rulebook is not finished."
For traders considering a prop firm, the takeaway is clear: read the fine print carefully. The rules that sound like small details — consistency requirements, drawdown types, obscure termination clauses — can be the difference between a payout and a zero.
Proprietary trading firms have exploded in popularity over the past five years, but a new report suggests the odds of actually making money from them are slim. Velotrade's 2026 Prop Firm Transparency Report examined the rulebooks of six firms — Topstep, FTMO, FundingPips, Blue Guardian, HyroTrader, and Velotrade itself — and found that across more than 300,000 funded accounts, only about 7% of traders ever received a payout.
The 7% Payout Reality
That number comes from a broad analysis of funded accounts at the six firms. A separate study by hoc-trade, which looked at 500,000 traders, found that roughly 70% of failures came from hitting loss limits, not from missing profit targets. In other words, most traders don't blow up because they can't make money — they blow up because they lose too much.
Consistency Rules That Slash Profits
Four of the six firms apply what's called a consistency rule. These rules can erase 33% to 50% of the profit from a single strong trading day. The report highlights a troubling scenario: a trader can pass all evaluation stages and close a position in profit, yet still have their account terminated because of an obscure rule clause. That kind of fine print, the report argues, makes it nearly impossible for traders to know where they stand.
Fixed vs. Trailing Drawdown
The report also draws a sharp contrast between two common drawdown models. FTMO uses a fixed drawdown capped at 10% of the starting balance. Topstep uses a trailing drawdown that rises as the account balance grows. The same trade can result in a pass under a fixed drawdown but a fail under a trailing one. For traders who don't understand the difference, the consequences can be brutal.
Industry Turmoil After MetaQuotes Ban
The prop firm industry has already seen a shakeout. In February 2024, MetaQuotes banned prop firms from using its MT4 and MT5 platforms for US clients. Several firms collapsed in the aftermath. The Funded Trader halted operations and later acknowledged over $2 million in denied payouts. True Forex Funds shut down citing insolvency, leaving about 300 traders owed $1.2 million. SurgeTrader closed within days, with its CEO admitting that roughly 10% of payout obligations went unpaid.
Despite that turmoil, interest in prop firms has only grown. Monthly search volume for the term "prop firm" jumped from about 880 in early 2020 to roughly 49,500 by 2025 — a more than 50-fold increase.
Transparency Over Profit Splits
The report argues that when choosing a prop firm, the clarity of the rulebook matters more than the advertised profit split. Gianluca Pizzituti, CEO of Velotrade, put it bluntly: "Could a trader read our rules once, in one sitting, and know every way their account could end? If the answer is no, the rulebook is not finished."
For traders considering a prop firm, the takeaway is clear: read the fine print carefully. The rules that sound like small details — consistency requirements, drawdown types, obscure termination clauses — can be the difference between a payout and a zero.
