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How to Resolve Prop Firm Payout Denials

How to Resolve Prop Firm Payout Denials
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How to Resolve Prop Firm Payout Denials

In this article, we’ll offer advice on steps traders can take to resolve payout denials. We also recommend that traders stay calm, act sensibly.

4/27/2024

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How to Resolve Prop Firm Payout Denials

4/27/2024

Prop firms are a great option for traders who want to trade with large amounts of capital while only paying a small fee. Although some traders may feel that since they're paying to trade, they should have complete freedom in their approach, it's important to remember that the prop firm is ultimately the one giving you access to the account. If traders fail to follow the firm's rules, their account could be terminated, and even if they’ve made a profit, the payout might be denied.

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Introduction

No trader wants to face a payout denial. It can be a major blow to a trader’s mindset after putting in the effort to earn those profits. In this article, we’ll offer advice on steps traders can take to resolve payout denials. We also recommend that traders stay calm, act sensibly, and handle these situations in a professional manner.

Don’t Post Anything on Social Media :-

One of the first thing people do is go on social media and start ranting about the prop firm for their payout denial. Social media is a place where a lot of prop firms and traders already stay active all the time and while it is tempting that a trader wants to share what happened with him, it is better to research on every single detail that why did the prop firm denied the payout.

Talking bad about a prop firm can harm your case as the words can be used against the trader.

Don't Abuse Support Staff or the Firm :-

Regardless of the frustration a trader might have for the prop firm, it is very important that a trader must never disrespect or abuse any staff member of that prop firm. Trader should understand that the staff are people who are just working for the prop firm and does not own it. Disrespecting and abusing the staff can only reduce the chances of solving the case and also make a bad image of the trader among people.

Be Respectful in Communications :-

When communicating with the prop firm who denied your payout, try to be polite and professional and talk respectfully. Using formal language is best in these type of situations and try not to make any false accusations, if there are no evidence of something that a trader is accusing the prop firm of then it’s better to just not say it as it can be used against the trader in a legal action.

Send an Email Requesting Reasons for Denial :-

Prop firms usually communicate through emails and it is a great way to request for the reasons on why the payout has been denied by that prop firm. Knowing the reason behind the payout denial is also very crucial before making a bit statement about the Payout Denial.

Write a Follow-Up Email Explaining Your Trades :-

If the prop firm replies back for the issue regarding the payout denial, Trader must have to write a follow-up email where they explain the trading decisions they took while trading with full detail. 

If the prop firm shows proof of why they denied your payout and what trade was taken wrongfully for this denial then tell them your side of the story and address them your strategies if you have not yet done anything wrong.

Offer to Remove the wrongfully made profit for Payout :-

If the firm still does not accept the reasoning then traders should try to offer for removal of the specific profit that has been made wrongfully. Although it is highly unlikely for firms to accept such request but it will show the trader’s loyalty and compliance towards the prop firm.

If the Issue Persists, Consider Legal Action :-

Not every prop firm wants the best for you and traders should understand that if a prop firm denies your payout and you did not do anything wrong then there is one last thing a trader can do as a last resort, Taking Legal Action. 

If a prop firm denies your payout and does not give any reasonable answer for this then traders can take legal action and file a complaint against them.

Find a Lawyer in the Firm's Country :-

Next step that the trader should take is that he should find a lawyer in the same country as the prop firm. Many lawyers take their fees based on if they will win the case against the opposite party. 

Share Communications and Evidence with the Lawyer :-

Make sure that the lawyer knows every single conversation happened between the firm and the trader and also how the rules of that prop firm work and on what terms they denied the payout.

Settlement Is Likely :-

After collecting all the data, lawyer will file a case in that country’s court and then the prop firm will have to show themselves in the court. Prop firms or anyone in general does not like to engage in any activity that can harm their business reputation, Therefore they would most likely prefer to do settlement outside instead of fighting the case.

Conclusion

Facing a situation like payout denials are very challenging and taking the right approach is very crucial, it might seem easy that if we start shouting out this issue on Twitter and other social media platforms then we might get the money but without the right approach, it's very much harder. Keep in mind that being respectful and communicating professionally will increase your chances to get your payout, it will require patience and diligence but it will increase the chances of getting the payout that the trader deserves.

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