The prop trading firm The Funded Trader (TFT), whose clients have been waiting for payouts for a year, is now focusing on transparency. As part of this new strategy, its CEO and founder, Angelo Ciaramello, shared trader payout statistics, which reached $386 thousand in March.

Given that on average only 1 in 20 traders pass a prop firm's challenge, estimates allege that revenues during this period could have been at least three times higher.

The Funded Trader with Largest Payout in Over Six Months

Ciaramello announced on Discord that by March 25, TFT had paid out $386,000 to clients who successfully passed the challenge and earned on their funded account since the beginning of the month.

"We're only 25 days into March and we've already sent out a MASSIVE $386,000+ in payouts," Ciaramello commented. "And guess what? That doesn't even include the backlogged payouts still being processed."

He was referring to over 1,000 traders who have been waiting for their funds since March 2024, when the company faced issues and temporarily suspended operations.

TFT got back on its feet in August, and as the CEO admits, March payouts are the highest since returning to normal operations, which is seven months ago.

The prop firm also ensures that each payout can be verified on the blockchain, as TFT's payments operator, Rise, processes all transactions using crypto infrastructure. The list of March payouts, including the largest one exceeding $17 thousand, matches the public ledger records.

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Only 1% of Clients Make Money

As mentioned earlier, TFT has focused on transparency in the face of recent criticism for issues with settling dues to its clients. In early March, the prop firm reported that the challenge pass rate ranges from 5-10%, of which only 20% reach payouts.

"Trading is difficult," Ciaramello explained on Discord. "The available margin from these numbers allows us to clear our debts. This is not a Ponzi scheme or a fundraising operation; it is a structured approach to rebuild, generate profit, and settle past obligations."

As a result, only 1-2% of all TFT clients actually make money. Knowing these statistics, we can try to estimate how much the prop firm potentially earns in a month. The cheapest challenges start at $50, in which case the prop firm could have generated alleged revenues of around $965,000 in March. The most expensive challenges, costing over $1,000, would generate revenue in the tens of millions of dollars.

Without knowing the exact sales statistics for specific challenges, it's difficult to pinpoint where the final number lies within this range. However, even assuming the most modest scenario, this calculation demonstrates why prop trading firms can be highly profitable despite paying out significant sums to successful traders.

The vast majority of participants (98-99%) do not reach the payout stage, either failing the initial challenge (90-95%) or not qualifying for payouts after being funded (an additional 80% of the remaining group).

Nearly 1,300 Traders Waiting a Year for Their Money

Earlier in March, Finance Magnates reported that 1,272 people have been waiting for due funds from TFT since March 2024. This number seems to be growing rather than decreasing, as in November, the same company reported 900 people in the queue.

The prop firm presents new plans to solve the problem, and some users have received payouts, but the issue hasn't been fully resolved. However, Ciaramello assures that the company's growing payouts and higher revenues are increasing the pace of settling arrears.

According to Ciaramello's latest update, they managed to reach agreements with some traders for a total amount of $250,000: these traders reportedly accepted 10%, 20%, or 30% of their original owed amounts.

"Here's how we see it: More revenue → More payouts → More testimonials → More profit for TFT → More funds to pay back owed payouts & accounts → Reputation restored," added Ciaramello. "We're dead serious about restoring trust and delivering on our promises. That starts with fast payouts and honoring every agreement we've made."

Although TFT's activities certainly raise controversies, it must be honestly admitted that many other companies with payout problems have disappeared from the market over the past year (there could have been as many as 100). The Funded Trader, however, remains afloat and is trying to settle its dues.