Prop Firm Terms and Conditions: What 45 Firms' Contracts Let Them Do

Prop firm terms and conditions give most firms the right to end your account when they decide to. Of the 44 firms whose terms PropTested read for The State of Prop Trading 2026, 39 keep a broad right to close or refuse an account at their own discretion. 35 of 45 require an identity check before the first payout. Data as of November 5, 2026.

What do prop firm terms and conditions let a firm do?

We read the terms, rules pages and help centres of 45 firms clause by clause. A clause counts only where the firm's own text states it. The chart shows how many of the 45 contain each of nine clauses that can stop a payout.

The top of the list is about how you trade, not how much you lose. 26 firms ban or limit copy trading, 27 keep the right to decide which strategies are allowed, and 24 ban high-frequency trading. A loss limit ends an account in the open. These clauses act after the fact, when the firm reviews your trades.

Can a prop firm close your account for no reason?

At most firms the contract allows it. 39 of the 44 firms that state how accounts end keep a broad right to close or refuse one at their own discretion. Only 5 tie closure to grounds their terms list, such as a rule breach or fraud.

The firms whose terms tie closure to listed grounds are FTMO Futures, The5ers, Hola Prime, Hola Prime Futures and HyroTrader. That is a difference in wording, and it does not prove how a firm acts in a dispute.

The table shows the clause at the most reviewed firms that use one. We quote the first sentence of our reading of each clause, with the section number where the firm gives one.

Which prop firms have which clauses?

The table lists every firm whose terms we read, with the clauses its own pages state. A blank cell means we did not find the clause, which is not proof that it is absent. Firms with the most clauses come first.

A long list is not automatically worse. Many firms with more clauses spell out what others leave to a single discretion sentence. Read the count together with the column on how a firm can close an account. The safety ranking weighs both, and the rules table shows what each firm allows.

Can a prop firm refuse to pay you?

Yes, under the same terms. A payout request starts a review, and the terms say what the firm may do with profit it finds suspect. These are the first lines of that section at the most reviewed firms.

20 firms apply a consistency test when you ask for money, and 14 cap what one payout can be. Both delay money rather than cancel it. The guide to denied payouts works through each rule with dollar examples, and the consistency calculator checks your best day against every firm's limit.

Do prop firms check your identity before a payout?

Most do. 35 of the 45 firms require an identity check before the first payout. 13 of the 27 firms whose terms mention interviews say they may ask a trader to explain the trades first. Where firms state a processing time, the median is 24 hours, across 21 firms.

Run the check before you trade, not after you pass. A name or country mismatch found at payout time holds the money while support sorts it out. Each firm's payout page lists its stated methods and timing.

Which clauses should you read before you buy a challenge?

Four sections decide whether profit reaches you. Each one usually sits in a different document, so a search of the main terms alone can miss it.

1. Termination. Search for "sole discretion" and "for any reason". Note whether the clause names grounds or leaves it open.
2. Prohibited strategies. Look for copy trading, high-frequency trading, gambling and news rules. Check whether your style is on the list, then compare the firms that allow copy trading, news trading and EAs.
3. Payout review. Find what the firm may do with profit it finds suspect, and whether it can act on other accounts you hold.
4. Payout conditions. Read the consistency rule, the cap per payout and the minimum days. These sit on the funded stage and are easy to miss in the test rules.

Then save a dated copy. In the first 8 days of our change log, 53 of 86 firms changed a price, a rule, a plan or an offer. Every change is dated on the updates page.

Should a broad discretion clause stop you from buying?

On its own, no. 39 of 44 firms use one, including firms with long payout records. The clause tells you where the risk sits. It sits in the firm's judgement, so its record of using that judgement matters more than the wording.

Weigh the clause against evidence you can check. Payouts readable on the blockchain, review volume and company age are in the payout statistics. The challenge cost guide shows what you put at risk per attempt. This guide summarises published terms and is not legal advice. For a dispute or a large account, have a lawyer read the agreement that applies to you.