A prop trading firm’s rollout of a new account structure has generated significant trader backlash after what was initially described as voluntary became mandatory for certain participants. Funding Pips introduced its Prime account in mid-2024, with CEO Khaled Ayesh publicly stating the programme would remain optional. However, traders selected by the firm’s Responsible Trading Team were subsequently required to transition without choice.

The Prime account operates by converting a trader’s fourth cash withdrawal into account credit worth twelve and a half times the payout amount, subject to profit thresholds and transfer caps. While some traders can voluntarily access Prime by forfeiting their fourth payout, confusion has arisen over who must participate and under what circumstances. The number of forced versus voluntary transitions remains undisclosed.

Online complaints have intensified across review platforms and social media, with traders citing unclear communication about the mandatory nature of certain transitions. One-star reviews now comprise eight percent of the firm’s Trustpilot feedback, though prop trading firms routinely face both orchestrated negative campaigns and potentially inflated positive reviews purchased in bulk. Nevertheless, the detailed nature of Prime-specific complaints suggests genuine grievances beyond automated criticism.

The controversy highlights operational transparency challenges facing retail prop trading operations, particularly when modifying payout structures for funded accounts. While firms may implement risk management measures through account tier systems, ambiguous communication regarding mandatory participation can erode trader trust and damage reputation across a competitive marketplace.

FXnCO Insight

Prop firms modifying payout terms must ensure crystal-clear communication and obtain explicit consent before transitioning traders to alternative account structures, as reputational damage from perceived bait-and-switch tactics can rapidly undermine client acquisition efforts.

Source: Finance Magnates