Prop Firm TOS Comparison Matrix: 11 Firms Evaluated

We graded 11 futures prop firms against the 10 most critical legal clauses. See exactly who protects your profits—and who protects themselves.

Risk Management· Interactive Guide
·By Brendan Nolan

Following up on our guide to the 10 Clauses That Matter, we’ve taken the Terms of Service for all 11 firms reviewed on this site and graded them.

A Green (Good) score means the firm’s clause is transparent, fair to the trader, and standard or better than industry norms. A Yellow (OK) score means there are restrictions you must navigate, but they are manageable. A Red (Bad) score indicates a significant red flag that puts your capital or profits at risk.

The Master TOS Comparison Grid

Right to Modify
⚠️ok

Standard industry language, but they generally grandfather active accounts.

Payout Definition
good

Clear payout structure; one of the most reliable in the industry.

Prohibited Trading
good

Very clearly defined rules, little ambiguity compared to offshore firms.

Drawdown Definition
good

EOD Trailing Drawdown is standard and fair.

News Restrictions
⚠️ok

Strict news restrictions, but transparently automated.

Consistency Rule
⚠️ok

50% rule in Combine; relatively fair but must be managed.

Retroactive Audits
good

No history of retroactive payout denials for technicalities.

Dispute & Jurisdiction
good

Based in Illinois, US jurisdiction.

Account Termination
good

Clear, rule-based termination policies.

Intellectual Property
⚠️ok

Standard data usage clauses.

Right to Modify
⚠️ok

Can modify rules, usually give notice via Discord.

Payout Definition
⚠️ok

Frequent payouts, but recent delays and strict review periods noted.

Prohibited Trading
⚠️ok

Broad "gaming" definitions have been used during payout reviews.

Drawdown Definition
⚠️ok

Offers both EOD and Intraday; Intraday trailing is high risk.

News Restrictions
good

Trading during news is fully allowed.

Consistency Rule
bad

Strict 30% consistency rule enforced tightly at payout.

Retroactive Audits
bad

Known to audit trading history retroactively during payout requests.

Dispute & Jurisdiction
good

US-based company.

Account Termination
⚠️ok

Has invoked "sole discretion" terminations in the past.

Intellectual Property
⚠️ok

Standard industry language.

Right to Modify
⚠️ok

Standard terms.

Payout Definition
good

Excellent payout reputation and transparency.

Prohibited Trading
good

Clearly defined limits without "gotcha" clauses.

Drawdown Definition
good

EOD Drawdown ensures unrealized profits don't penalize you.

News Restrictions
⚠️ok

Platform auto-liquidates before news; no longer a hard fail.

Consistency Rule
⚠️ok

30% consistency rule is standard.

Retroactive Audits
good

No pattern of retroactive denials.

Dispute & Jurisdiction
good

Based in the US.

Account Termination
good

Fair, rule-driven termination policy.

Intellectual Property
⚠️ok

Standard data clauses.

Right to Modify
⚠️ok

Standard modification clauses.

Payout Definition
good

Very reliable payout process, clear guidelines.

Prohibited Trading
⚠️ok

Standard anti-gaming language.

Drawdown Definition
⚠️ok

Rapid accounts use intraday trailing (high risk); Flex uses EOD (good).

News Restrictions
⚠️ok

Must close 2 min before/after Tier 1 news.

Consistency Rule
good

Rapid accounts have no consistency rule in the funded stage.

Retroactive Audits
⚠️ok

Standard compliance review at payout.

Dispute & Jurisdiction
⚠️ok

Based in US, but standard arbitration clauses.

Account Termination
⚠️ok

Standard termination clauses.

Intellectual Property
⚠️ok

Standard usage.

Right to Modify
⚠️ok

Standard terms of service modification rights.

Payout Definition
⚠️ok

Growing payout history, clear terms.

Prohibited Trading
⚠️ok

Standard definitions of prohibited trading.

Drawdown Definition
good

EOD drawdown on Straight To Sim Funded accounts.

News Restrictions
good

No restrictions on trading the news.

Consistency Rule
good

No consistency rules.

Retroactive Audits
⚠️ok

Standard review process.

Dispute & Jurisdiction
⚠️ok

US-based entity.

Account Termination
⚠️ok

Standard language.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard right to modify terms.

Payout Definition
⚠️ok

Reliable, but payouts require minimum active days.

Prohibited Trading
⚠️ok

Some vague "gaming" language present.

Drawdown Definition
good

Offers EOD and Static options.

News Restrictions
good

News trading is permitted.

Consistency Rule
⚠️ok

40% best day rule (legacy); 23% active day rule on newer accounts.

Retroactive Audits
⚠️ok

Standard payout audits.

Dispute & Jurisdiction
good

US-based entity.

Account Termination
⚠️ok

Standard terms.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard modification rights.

Payout Definition
⚠️ok

Clear guidelines.

Prohibited Trading
⚠️ok

Standard anti-arbitrage language.

Drawdown Definition
good

EOD drawdown available.

News Restrictions
⚠️ok

Allowed, but check specific asset class restrictions.

Consistency Rule
⚠️ok

Standard limits.

Retroactive Audits
⚠️ok

Standard review.

Dispute & Jurisdiction
⚠️ok

US operations.

Account Termination
⚠️ok

Standard terms.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard terms.

Payout Definition
good

Unique PRO firm setup designed for easy withdrawals.

Prohibited Trading
⚠️ok

Standard language.

Drawdown Definition
good

EOD drawdown available.

News Restrictions
⚠️ok

Permitted on certain account types.

Consistency Rule
good

No consistency rules.

Retroactive Audits
⚠️ok

Standard audits.

Dispute & Jurisdiction
good

US-based.

Account Termination
⚠️ok

Standard terms.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard right to modify.

Payout Definition
good

90/10 split once funded, max $2,000 per request, min $500. Processing is extremely fast (often minutes).

Prohibited Trading
⚠️ok

Standard rules, but strictly enforces a 30-second minimum trade holding time.

Drawdown Definition
good

End-of-Day (EOD) trailing drawdown updates nightly and prevents intraday trailing failures.

News Restrictions
good

News trading is fully allowed.

Consistency Rule
⚠️ok

50% consistency rule applies during evaluation, but is completely removed once funded.

Retroactive Audits
⚠️ok

Standard compliance review.

Dispute & Jurisdiction
⚠️ok

Standard dispute terms.

Account Termination
⚠️ok

Standard terms.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard terms.

Payout Definition
⚠️ok

Standard.

Prohibited Trading
⚠️ok

Standard language.

Drawdown Definition
⚠️ok

Various options available.

News Restrictions
⚠️ok

Standard restrictions.

Consistency Rule
⚠️ok

Standard.

Retroactive Audits
⚠️ok

Standard review.

Dispute & Jurisdiction
⚠️ok

US-based.

Account Termination
⚠️ok

Standard terms.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard right to modify terms.

Payout Definition
good

Starts at 90/10 split and scales to 100/0 split after 16 payouts.

Prohibited Trading
⚠️ok

Standard anti-gaming and HFT restrictions (minimum 15-second hold time).

Drawdown Definition
good

Closed-trade EOD trailing drawdown is very fair for swing trades.

News Restrictions
good

No restrictions on trading news events during evaluation.

Consistency Rule
⚠️ok

30% consistency rule applies during 8-day payout cycle.

Retroactive Audits
⚠️ok

Standard compliance review at payout.

Dispute & Jurisdiction
good

US-based in Sarasota, Florida.

Account Termination
⚠️ok

Standard termination language.

Intellectual Property
⚠️ok

Standard.

Right to Modify
⚠️ok

Standard terms allowing rules adjustment, though active evaluations are usually grandfathered.

Payout Definition
good

100% split on the first $15,000, and 90/10 split thereafter. No minimum trading days.

Prohibited Trading
bad

Broadly defined prohibited conduct rules including bans on high-frequency scalp trading and simulated trading exploitation.

Drawdown Definition
good

End-of-Day (EOD) trailing drawdown updates nightly and prevents intraday trailing failures.

News Restrictions
⚠️ok

News trading allowed in evaluation, but restricted on funded/payout accounts.

Consistency Rule
⚠️ok

40% consistency rule applies (no single day may exceed 40% of total profit).

Retroactive Audits
⚠️ok

Compliance review triggered at payout request.

Dispute & Jurisdiction
good

US-based entity.

Account Termination
⚠️ok

Standard termination clauses for rule breaches.

Intellectual Property
⚠️ok

Standard intellectual property protections.

What to Do With This Information

No firm has a perfect TOS. The goal is not to find a legally flawless contract—because you won't—but to find a firm whose rules align with your trading style and who has a track record of not abusing their discretionary clauses.

Firms that score mostly Green and Yellow, like Topstep and TradeDay, generally offer the fairest playing fields for retirees. Firms with Red marks may still be viable, but require extremely aggressive payout schedules and strict adherence to their specific (and sometimes frustrating) compliance rules.

BN

Brendan Nolan

Retired Trader & Founder

After spending 25+ years as a Product Management executive designing platforms for the nation's top 401(k) and retirement providers, Brendan transitioned into active futures trading in his 60s. He built PropFirmRetiree to help late-career professionals apply disciplined, risk-first principles to prop firm trading.

Read Brendan's Story →