Nearly 1,300 Traders Still Waiting for Their Money

The proprietary trading industry is facing another credibility crisis as The Funded Trader (TFT) struggles to settle overdue payouts. Since March 2024, a total of 1,272 traders have been waiting for their funds, despite repeated promises from the firm to address the issue. The backlog continues to grow, raising serious concerns about the firm's financial stability and its ability to meet trader expectations.

A Year of Delays and Unkept Promises

TFT initially assured its traders that by January 2025, a final repayment plan would be in place. However, months later, no concrete solution has been implemented. Instead, the company has proposed yet another series of repayment plans, leaving traders frustrated and uncertain about their funds.

In its latest announcement, TFT presented three options for handling the overdue payments:

1. Prioritizing large payouts – focusing on settling the biggest outstanding amounts first.
2. Equal payments for all traders – a flat monthly payment distributed to each trader, such as $25 per trader.
3. A hybrid approach – combining elements of the first two options, allowing those with larger payouts to receive slightly higher refunds over time.

According to a recent community poll on Discord, the majority (40%) of traders favor the equal payment approach, ensuring that everyone receives something rather than a select few being prioritized.

Can TFT Recover from This Crisis?

The situation is reminiscent of past prop firm collapses, where mismanagement and financial strain led to mass trader losses. TFT ceased operations for five months in 2024, only resuming in August, and its current payout delays raise questions about the firm’s long-term viability.

Despite the ongoing crisis, TFT has acknowledged its financial struggles and insists that it is actively working on a solution. "I see this as a challenge that I'm determined to overcome," a TFT representative stated in a Discord post, reinforcing their commitment to the firm’s future. However, traders remain skeptical, with many questioning whether the company will ever fully honor its obligations.

What This Means for the Prop Trading Industry

TFT’s payout delays serve as a warning sign for traders considering proprietary trading firms. As the industry remains largely unregulated, firms can easily fall into liquidity crises, leaving traders with little recourse. The growing concerns around TFT highlight the importance of conducting due diligence before choosing a prop firm.

As the situation unfolds, traders and industry analysts alike are closely watching whether TFT can restore confidence or if it will become another failed prop firm in a competitive market.

For the latest update from The Funded Trader, check their official statement here.

For an in-depth analysis, check out  The Funded Trader's collapse and its implications for the prop trading industry