Prop Shop Trader Faces Backlash Over Sudden Payout Rule Changes, Traders Call It “Bait and Switch”

Prop Shop Trader, a prop firm known for its aggressive growth and promotional deals, is now facing trader outrage after announcing a wave of policy changes that directly impact payouts, account limits, and withdrawal conditions. The changes, effective July 27, 2025, have left many traders feeling blindsided and questioning the firm’s long-term reliability.

If you’re actively trading with Prop Shop—or considering joining—these new restrictions may affect your ability to scale, withdraw, or even maintain active status.

Lower Payout Caps by Account Tier

If you’re using a Gladiator account purchased after July 27, you’re now subject to reduced initial payout caps:

$1,000 for 50K accounts (down from $1,250)
$1,200 for 100K accounts (down from $1,500)
$1,500 for 250K accounts (down from $1,750)

Only accounts purchased before the policy shift will retain the original payout limits. Although the 500K cap remains unchanged at $2,000, the cuts to lower-tier accounts represent a sharp reduction in early earning potential.

Stricter Limits on Active Accounts

Previously, you could manage over ten active accounts, especially if you were scaling across different account types. Now, there’s a hard cap:

Maximum of 10 active accounts total
No more than 5 of each account type (e.g., Warrior Plus or Gladiator)

If you’re currently above this limit, your accounts are grandfathered in—but you can’t purchase new ones beyond the cap.

Tighter Withdrawal Requirements

Starting August 2, 2025, Prop Shop has introduced new conditions you must meet before requesting a payout:

Your account must stay above the “payout eligibility threshold” at all times.
You must have traded on at least 3 separate days during the week of the payout request.
Your first-ever payout now requires at least 6 total trading days on the account’s lifetime.

This adds layers of complexity to the payout process. If you’re used to clean, performance-based withdrawals, you’ll now have to watch your balance closely—and time your trades accordingly.

Updated Consistency Rule

The firm’s consistency rule has also changed:

Previously, no more than 40% of your profits could come from a single day.
That figure is now reduced to 30%—similar to Apex’s consistency model.

For many traders, especially those who rely on high-conviction setups, this makes it harder to pass and stay funded.

Account Inactivity Penalty

If you thought you could take a break between trades, be careful. Traders are reporting that Prop Shop (and similar firms) are enforcing deactivation rules for inactivity:

Challenge accounts: Deactivated after just 7 days of no trades.
Funded accounts: Deactivated after 30 days of inactivity.

These inactivity rules include weekends and offer no warnings via email. If you’re planning a vacation or fall ill, you risk losing your account unless you continue trading or contact support in advance.

“Bait and Switch”? Traders Speak Out

Traders are now accusing Prop Shop of a classic bait-and-switch strategy—offering generous conditions early to attract volume, then tightening rules after traders are committed.

Some are comparing it to recent experiences at other firms like Top One, where similar payout disputes and policy shifts have led to public backlash.

In the words of one industry commentator:
“Why do firms launch with loose rules, then lock down everything once money comes in?”

The answer may lie in risk management—or, as some traders suspect, in limiting actual payouts.

Where Do Traders Go From Here?

If you’re currently trading with Prop Shop, it’s essential to:

Recheck your account type and purchase date
Review the new eligibility rules before your next payout
Monitor your trading days and balances carefully

With other firms like Take Profit Trader, Trade Day, and My Funded Futures offering more transparent models, many traders are beginning to reconsider their options.

The prop trading industry is evolving fast—but trust remains the key currency. And when firms change the rules mid-game, traders are right to push back.