Once you start making profits at a prop firm, the next things you’ll be concerned about are “withdrawals” and “scaling (expanding capital)”. It’s meaningless if the profits you’ve earned get rejected for withdrawal or if you get stuck with a small trading capital forever.
In this article, we will explain the mechanics of withdrawals at prop firms, a checklist for safely withdrawing, and a detailed roadmap to grow your 2 million yen trading capital to 50 million yen by utilizing a scaling plan.
I heard that prop firms often reject withdrawals. Is that true?
In fact, 99% of withdrawal rejections are not because “the company is a scam”, but because of “your own rule violation”. As long as you keep proper records, your legitimate profits will definitely be withdrawn.
What is Withdrawal at Prop Firms? Explaining the Basic Mechanism
In prop firms, “withdrawal” refers to withdrawing a part or all of the profits you have earned through trading to your own bank account. Unlike a normal FX account, the “trading capital” and “your profits” are clearly separated at prop firms.
Characteristics of Withdrawal at Prop Firms
- Profit sharing ratio is predetermined: At many firms, 80% to 95% goes to you
- Timing of withdrawals is restricted: Bi-weekly, monthly, a certain amount or more
- KYC (Know Your Customer) is mandatory: For anti-money laundering purposes
- Withdrawal fees may apply: Varies by firm and amount
Unlike a regular FX account, you can’t withdraw anytime you want, huh.
That’s right. Prop firms are in the position of letting you trade their “company funds”, so you need to follow the withdrawal rules. However, as long as you follow the rules, you can definitely withdraw.
The withdrawal system of prop firms is different from general FX brokers, as it is a “profit-sharing” mechanism. The principal belongs to the firm, and the trader has the right to receive a portion of the profits under the contract.
Timing of Withdrawals
The following withdrawal schedules are generally common at major prop firms:
- Fintokei: Bi-weekly or monthly (depending on the plan)
- FTMO: 14-day cycle (first withdrawal after 14 days)
- FundedNext: 14 days for the first, then anytime
- The5%ers: Once a month
As the withdrawal rules differ for each firm, be sure to check the terms of service in advance.
Flow from Withdrawal Application to Fund Settlement【In the Case of Fintokei】
Here, we will explain the actual withdrawal flow using Fintokei, which is popular among Japanese traders.
Step 1: Withdrawal Application
Log in to the Fintokei dashboard and click the “Withdrawal Request” button. The available withdrawal amount will be displayed, so enter the desired amount.
- Minimum withdrawal: Usually $50 or more (depending on the plan)
- Withdrawal method: Bank transfer, cryptocurrency, PayPal, etc.
- Profit sharing ratio: 80% to 95% (depending on the scaling plan level)
If I apply for withdrawal, will the funds be transferred immediately?
No, in the case of Fintokei, there is a 2-5 business day processing period after the application. After that, it typically takes a few days for bank transfers or same-day to 1 day for cryptocurrencies.
Step 2: Review and Processing (2-5 business days)
Fintokei’s operations team will check the following items:
- No trading rule violations (prohibited methods, exceeding maximum lot, etc.)
- KYC documents have been submitted (mandatory for the first withdrawal)
- No suspicion of fraudulent activity (arbitrage, multiple accounts, etc.)
During this review period, you don’t need to do anything special. Once approved, a notification will be sent to the registered email address.
Step 3: Fund Settlement
The settlement speed varies depending on the withdrawal method:
| Withdrawal Method | Fees | Settlement Time |
|---|---|---|
| Bank transfer (international) | Around $20-40 | 3-7 business days |
| Cryptocurrency (USDT, etc.) | A few dollars to free | Same day to 1 business day |
| PayPal | A few % | Same day to 2 business days |
| Wise (formerly TransferWise) | Relatively low | 1-3 business days |
If you want to minimize fees, withdrawal via cryptocurrency is recommended. However, you will need a cryptocurrency exchange account.
Points to Note About Withdrawal Restrictions
Fintokei has withdrawal frequency restrictions depending on the plan:
- Crystal Plan: Bi-weekly (once every 2 weeks)
- Pearl Plan and above: Once a month
- After reaching the Scaling Plan: More flexible withdrawals may be possible
It feels inconvenient that I can’t withdraw multiple times a month…
This is implemented from the perspective of capital management and risk management. Frequent withdrawals would reduce the trading capital, so it makes sense for long-term growth.
3 Causes of Withdrawal Rejections and Countermeasures
On social media and forums, you may come across voices saying “My withdrawal was rejected! It’s a scam!” However, in reality, the majority of withdrawal rejections are due to traders’ rule violations.
The following is a breakdown of the main causes of withdrawal rejections:
| Cause | Percentage | Examples |
|---|---|---|
| Rule Violation | About 80% | Use of prohibited methods, exceeding maximum lot, violation of trading hours, etc. |
| KYC Insufficiency | About 15% | KYC documents not submitted, unclear documents, name mismatch, etc. |
| Malicious Firm | About 5% | Fraudulent minor firms, unlicensed operators |
So in most cases, it’s the trader’s own mistake, right?
That’s right. If you choose a major firm (Fintokei, FTMO, FundedNext, etc.), your legitimate profits will almost never be rejected for withdrawal. The problem is “unknowingly violating the rules”.
Cause 1: Rule Violation (About 80%)
The most common is the case where you have inadvertently violated the firm’s rules.
Common violation examples:
- Use of prohibited methods: Arbitrage, tick scalping, HFT (high-frequency trading), etc.
- Exceeding the maximum lot: Exceeding the allowed lot size per trade
- Using copy trading: Prohibited unless explicitly allowed
- Violation of weekend holding: Some firms require closing all positions before Friday close
- Violation of news trading restrictions: Trading around major indicator releases may be prohibited
Countermeasures:
- Thoroughly read the terms of service before signing up (especially the prohibited section)
- Confirm with support before starting the challenge
- Avoid gray-area methods (the risk is not worth it)
Cause 2: KYC Insufficiency (About 15%)
KYC (Know Your Customer) is always required for the first withdrawal. Deficiencies here will result in the withdrawal being held.
Common deficiencies:
- Unclear documents: Photos taken with a smartphone are blurry
- Expired documents: Passport or driver’s license has expired
- Name mismatch: Registered name differs from ID documents (e.g. maiden name)
- Outdated address proof: Utility bills within the last 3 months are often required
Countermeasures:
- Complete KYC before starting the challenge (some firms allow pre-submission)
- Take high-quality photos in a bright place
- Ensure registered information perfectly matches the ID documents
It’s not a good idea to hurry up and prepare the documents after applying for withdrawal, huh.