What to read on a prop firm's terms page before you buy
Before paying for a prop firm evaluation, read these sections of the terms page, in this order: payout conditions, drawdown type, what happens on a rule breach, the change-of-terms clause, and the fees that are not on the pricing page. This is a reading checklist, not a recommendation of any firm — that decision is yours.
1. Payout conditions — read these first
The pricing page sells the profit split. The terms page decides whether you collect it. Look for: the minimum number of trading days before a first payout, the minimum payout amount, how often you may request one, any cap on the size of each payout, and any rule that profit must be "consistent" across days to be paid. A generous split with a restrictive payout section is a smaller offer than it looks.
2. Which kind of drawdown
The word "drawdown" covers three rules that behave very differently — static, end-of-day trailing, and intraday trailing. Find out which one applies, and whether the trailing floor ever locks. Our glossary explains the difference.
3. What counts as a breach, and what it costs
Some rules close the account. Some lock it for a day. Some merely void a payout. The terms will say which; the marketing will not. Note the reset fee while you are there.
4. The change-of-terms clause
Nearly every terms page reserves the firm's right to change the rules. What varies is whether changes apply to existing accounts, and how much notice is promised. This clause is the one most people skip and the one that matters most in a dispute. Copy the exact wording somewhere safe.
5. Fees that are not on the pricing page
Activation fees, platform or data fees, fees to raise the profit split, fees for a faster payout. Search the terms page for "fee" and read every match.
6. Simulated or real
Find the sentence that says whether the funded-stage account is simulated. At most firms it is. That is not a criticism — it is simply the model — but it changes what a "payout" is and why the payout rules carry so much weight.
Then keep a copy
Save the terms page on the day you buy — a screenshot, a PDF, and a request to the Internet Archive to capture it. If anything changes later, you will want the original in a form with a date on it that did not come from you. For the firms we track, we keep that copy for you: see the firm pages.