The lowest amount of profit a trader must have available before they can request a withdrawal from their funded account. If your available profit is below the minimum, you must continue trading until the threshold is met.
Why It Matters
- 1Minimum payout thresholds prevent traders from making frequent tiny withdrawals that create administrative overhead for the firm.
- 2The minimum typically ranges from $50 to $500 depending on the firm and account size.
- 3A high minimum payout can be frustrating during slow trading periods when daily profits are modest.
- 4If you're earning $100-200/week, a $500 minimum payout means waiting 3-5 weeks between withdrawals.
Example
- 1Your funded account has a $200 minimum payout.
- 2After your first two weeks, you've earned $180 — below the minimum.
- 3You trade for 3 more days and earn another $120, bringing your total to $300. You can now request a withdrawal: $300 x 80% split = $240 payout.
- 4The remaining $60 (firm's 20% share) stays with the firm.
Common Mistakes
- ✖Not checking the minimum payout threshold before choosing a firm
- ✖Letting profits accumulate well beyond the minimum, increasing drawdown risk on earned profits
- ✖Confusing minimum payout with the profit share calculation