The first profit withdrawal a trader makes after receiving a funded prop firm account. Many prop firms apply additional conditions to the first payout, such as a minimum number of trading days, a minimum profit amount, or a different profit split compared to later withdrawals.
Why It Matters
- 1The first payout confirms that a trader has successfully transitioned from evaluation to earning real profits.
- 2Because the first withdrawal often has stricter requirements than later payouts, understanding these rules helps traders avoid confusion and plan their withdrawals properly.
Example
- 1A trader receives a $100,000 funded account.
- 2The firm requires 10 trading days and at least $500 in profit before the first payout request.
- 3After 10 days, the trader earns $3,000. With an 80/20 profit split, the trader receives $2,400.
Common Mistakes
- ✖Not knowing about the waiting period and trying to withdraw immediately after getting funded
- ✖Taking excessive risk trying to build a large first payout rather than withdrawing consistently