The front page carries three numbers: the account size, the profit split and the fee. None of them decide whether you are paid. That is settled by four or five clauses that sit in the rules page, the FAQ and occasionally the terms of service, and they are usually written plainly. The difficulty is knowing which ones matter.
Drawdown is the clause to read first
Everything else is secondary to how the loss limit is measured, because it determines how much room you actually have rather than how much is advertised.
| Type | Measured from | Effect on a profitable account |
|---|---|---|
| Static | Starting balance | Room stays constant |
| Trailing on balance | Highest closed balance | Floor rises as you bank profit |
| Trailing on equity | Highest intraday equity | Floor rises on unrealised profit too |
| Trailing, locked at initial | Highest balance, stops at start | Rises, then freezes once in profit |
Trailing on equity is the strictest of the four. An account that goes well intraday and gives some back can breach without ever closing a losing trade, which surprises people who are watching their closed balance.
The clauses that decide payouts
- Consistency. A cap on the share of profit from the best day, typically 20 to 45 percent. One outstanding day can delay a payout rather than earn it.
- Minimum trading days. Commonly 3 to 10, sometimes required to be days with meaningful activity rather than a single token trade.
- News and weekend holding. Often restricted rather than banned, with the restriction measured in minutes around a release.
- Payout schedule. The first payout date, the cycle after it, and whether the cycle resets when you request early.
- Discretion. Language reserving the right to review, delay or deny. Some discretion is normal; unbounded discretion is the clause to weigh.
A reading order that takes about fifteen minutes
- Find the drawdown type and write down which of the four it is.
- Search the rules page for "consistency" and for a percentage sign.
- Find the first payout date and the cycle length.
- Search the terms for "sole discretion" and read each hit in full.
- Look for a settled payout the firm has published, with a date on it.
If any of the five cannot be answered from the firm's own pages, that is the finding. A rulebook that is hard to read is not necessarily hiding something, but it does mean you would be agreeing to terms you have not actually read, which is the thing worth avoiding.
Frequently Asked Questions
What is the difference between static and trailing drawdown?
A static drawdown is measured from your starting balance and does not move. A trailing drawdown follows your highest balance or equity upward, so a profitable run raises the floor you can breach. Trailing is far easier to hit, and the distinction is often one word in the rules.
What is a consistency rule?
A cap on how much of your total profit may come from a single day or trade, commonly between 20 and 45 percent. Clear the target with one excellent day and you may be asked to keep trading until the distribution evens out.
Does a firm have to publish payout proof?
No, and many do not. Published proof is not a guarantee, but a firm that has never shown a settled payout, and whose terms reserve broad discretion to deny one, is asking for trust it has not evidenced.
