How to Resolve Prop Firm Payout Denials

Date: May 11, 2024

Are you facing a trading payout denial and don't know where to turn? In the world of online trading, such situations can be frustrating and financially distressing. However, it's crucial to navigate these challenges with composure and strategy. This comprehensive guide will walk you through the steps to handle trading payout denials effectively, ensuring you make informed decisions every step of the way.




Trading on online platforms can be lucrative, but it's not without its share of hurdles. One common issue traders face is the denial of payouts by trading firms. When you find yourself in such a situation, it's essential to act sensibly, professionally, and in your best interests. This guide will provide a detailed roadmap to help you resolve payout denials and secure the earnings you rightfully deserve.


Don't Post Anything on Social Media

The first rule when facing a trading payout denial is not to vent your frustration on social media. While it might be tempting to share your grievances with the world, doing so can harm your case. It's crucial to maintain a professional and respectful online presence, as your posts can be used against you in legal proceedings.

Don't Abuse Support Staff or the Firm

Regardless of the frustration you may be experiencing, it's vital to maintain respect and courtesy when communicating with the trading firm's support staff. Abusive language or behavior will not only damage your chances of a resolution but also reflect poorly on your character.

Be Respectful in Communications

When corresponding with the trading firm regarding your payout denial, keep your communications respectful and professional. Use formal language and avoid making accusations without evidence. A polite tone can go a long way in resolving the issue amicably.

Send an Email Requesting Reasons for Denial

Begin the resolution process by sending an email to the trading firm, politely requesting the reasons behind the denial of your payout. This formal inquiry can help you understand the firm's perspective and gather valuable information for your case.

Firm May Cite Reasons like Copy Trading or Multiple IPs

Trading firms often provide reasons for payout denials, such as copy trading or multiple IPs. If these are the reasons given, don't panic. Instead, prepare a thoughtful response that explains your trading rationale for each transaction, especially those flagged as copy trading or involving multiple IPs.


Write a Follow-Up Email Explaining Your Trades

In your follow-up email, comprehensively explain your trading decisions. If the firm has provided proof for their claims, address these specific transactions while also highlighting the rationale behind other trades that were not mentioned in their response.

Offer to Remove Copy Trades for Payout

If the firm's initial response is unsatisfactory, send another email offering to remove the transactions in question to facilitate the payout. This demonstrates your willingness to cooperate and resolve the issue.

If the Issue Persists, Consider Legal Action

If the trading firm continues to deny your payout, even after your efforts to engage in constructive communication, you may need to explore legal options. Remember, this step is a last resort, and it's crucial to proceed professionally.

Find a Lawyer in the Firm's Country

Search for lawyers in the country where the trading firm is located. Many lawyers work on a success fee basis, meaning they only get paid if your case succeeds. This reduces financial risk on your part.

Share Communications and Evidence with the Lawyer

When you engage a lawyer, provide them with all communications with the trading firm, as well as any promotional materials or screenshots related to the firm's services. This will help them build a strong case.

The Lawyer Will File a Case

Your lawyer will file a case in the country where the trading firm is located, citing factors such as mental distress and seeking compensation for the denied payout. Don't worry about the legal details; your lawyer will handle the complexities.

Settlement Is Likely

Trading firms typically prefer to settle rather than engage in lengthy litigation that could harm their business reputation. This is good news for you, as it increases the likelihood of a favorable resolution.

Lawyer's Fee

The lawyer will typically take around 50% of the compensation awarded, as their fee. The remaining 50% will be yours to recover your denied payout.

Maintain Polite and Courteous Communication

Throughout this process, always maintain polite and courteous communication with all parties involved. Avoid making noise on social media or engaging in public disputes.


Facing a trading payout denial can be challenging, but following these steps can help you navigate the situation effectively. Remember to remain respectful, communicate professionally, and seek legal recourse when necessary. With patience and diligence, you can increase your chances of securing the payout you rightfully deserve.


The duration can vary depending on the country where the trading firm is located, but it typically ranges from 3 to 12 months.

While it's possible, seeking legal help is advisable, as it significantly increases your chances of a successful resolution.

In most cases, trading firms prefer to settle rather than engage in lengthy litigation, making a favorable resolution more likely.

It's recommended to engage a lawyer in the same country to navigate the local legal system effectively.

Respond professionally by explaining your trading rationale, especially for the flagged transactions, and offer to remove the contentious trades for payout.

It's not advisable, as public posts can harm your case and should be avoided to maintain professionalism.