Proprietary trading firm The Funded Trader has shared updates on its operational recovery following a recent relaunch. The firm has resumed paused accounts, restructured payouts, and is actively working to address financial obligations, with 900 traders still awaiting payments.
Unsustainable Payout-to-Revenue Ratios
The firm acknowledged past issues with an unsustainable payout structure, where monthly payouts reached as high as 75–80% of revenue from challenge fees. This imbalance created financial strain, prompting a reevaluation of its payout policies.
“Previously, we were operating with an unsustainably high payout-to-revenue ratio,” the firm stated on X, highlighting the challenges that led to the suspension of accounts and payouts.
Steps Toward Financial Recovery
Since resuming operations, The Funded Trader has introduced measures to address outstanding debts owed to traders, vendors, and affiliates:
- Payment Plans for Larger Payouts: High-value payouts have been broken into manageable payment schedules.
- Gradual Processing of Smaller Accounts: Smaller accounts are being addressed systematically.
- Profits Allocated to Obligations: Revenue generated during the recovery phase is being used to settle debts and rebuild financial stability.
The firm is gradually releasing paused accounts, starting with those valued at $100,000 or more, while prioritizing risk management to ensure sustainability.
New Developments and Partnerships
The Funded Trader also highlighted its collaboration with its sister company, The Futures Traders, which plans to launch Volumetrica Trading, a platform focused on order flow analysis. Volumetrica will integrate The Funded Trader’s technology to enhance its offerings in the trading industry.
Commitment to Long-Term Stability
While progress is being made, The Funded Trader acknowledged that full recovery is still underway. The company has emphasized transparency and its dedication to restoring trust among traders.
“We are committed to continuing this process and ensuring long-term sustainability,” the firm stated, while cautioning traders to remain vigilant about potential challenges in the broader proprietary trading industry.
The relaunch reflects The Funded Trader’s efforts to stabilize operations, balance payouts, and rebuild confidence in its platform amidst ongoing industry challenges.
