PropShopTrader is committed to fostering a disciplined, responsible, and fair trading environment. Our proprietary internal compliance system monitors for behaviors that may compromise account integrity or platform security, including gambling-like activities, prohibited forms of copy trading, account churning, collusion, and fraud. Here’s an overview of what traders need to know about our compliance measures:
System for Flagging High-Risk Activities #
Our system monitors and flags behaviors that may indicate high-risk or gambling-like activity, such as:
- Drastic changes in contract size, unusual trading patterns, or potential collusion between accounts.
- Excessive account resets or inconsistent trading patterns, which may indicate account churning or speculative trading without a defined strategy.
- Attempts to manipulate payouts, account balances, or products using fraudulent methods.
If a trader is flagged, they will receive a notification on their trader dashboard and an appeal email at the end of the trading day detailing the reason for the flag.
Note: A detailed Flags Guide is available in two places after you log in — under Quick Reference on the Dashboard, and separately within the Trader Dashboard, titled “Understanding Flags and Probation Guide.”
Multiple Accounts: Identity Consistency and Strategy Variation #
Account and Profile Limitations: #
- Traders are allowed only one profile and a maximum of 20 active simulated accounts across all products. Exceeding this limit or creating multiple profiles may result in account termination.
- For security purposes, all accounts must be registered under the same name as shown on the trader’s KYC legal documents, and this name must remain consistent throughout their journey with us. Name changes or conversions between individual and business accounts are not permitted once registered.
Example: If you register as an individual, you must continue to operate as an individual. Similarly, if you register as a business, you must continue to operate as a business. Due to legal and tax implications, we cannot allow any changes to your registration status at any time.
Regulatory Expectations for Strategy Variation: #
In accordance with regulatory requirements, traders who purchase multiple accounts are expected to employ different trading strategies across those accounts. This approach enables us to effectively monitor risk and assess each trader’s performance during the 12-week risk assessment period. PropShopTrader assumes that traders will apply varied strategies to their multiple accounts.
Flagging and Payout Restrictions #
- If a trader is flagged by our compliance system or team, they will not be eligible to request a payout that week, even if they meet the 40% consistency rule.
- To lift the payout restriction for that week, flagged traders must provide supporting evidence to our Compliance Team by replying to the Flag Appeal Email received sent after market close on the day the flag is issued. If the flag is issued on a Friday, the evidence must be submitted before 1:00 AM EST on Saturday, which is when the payout window opens. Submitting before this time ensures our team has enough time to review the appeal and, if approved, allows the trader to request a payout before the window closes.
- If the appeal is successful, the flag will be removed from the account.
- Appeals submitted after the payout window opens will only be reviewed after it closes, and only to remove the flag from the account history — not to reinstate the missed payout.
- Traders flagged during the week (Monday to Friday) cannot request a payout over the weekend (1:00 AM EST Saturday to 5:00 PM EST Sunday).
- Gambling Flags reset after the market reopens on the new week, allowing traders to trade consistently and request a payout if they meet all guidelines without being flagged.
Trader Support for Flagged Accounts #
If you believe you’ve been flagged incorrectly, our Compliance Team is here to help. We are committed to transparency and to working closely with each trader to ensure a fair and individualized review process.
Case-by-Case Review Process
- Each flagged case is reviewed individually, taking into account each trader’s unique approach and trading style.
- Our Compliance Team evaluates the submitted materials to determine if the flag can be lifted and whether the trader remains eligible for the payout request.
Required Documentation for Review
To support your case, please provide:
- Trading Plan: A detailed explanation of your strategy.
- Justification for Strategy Adjustments: Evidence explaining any changes in your approach.
Consistent and responsible trading behavior increases the likelihood of a favorable review outcome. If additional proof is needed, our Compliance Team will inform you of any specific documentation requirements.
Guidance and Transparency #
- At all times, the Company maintains a commitment to transparency with traders.
- We actively work with flagged traders to help them understand the reason for the flag and, where possible, to avoid similar issues in the future.
- Our Compliance Team will guide you toward achieving consistency for the following week, supporting you in aligning with the Company’s standards.
By adhering to these guidelines, traders contribute to a secure, professional trading environment. Our goal is to support responsible trading while maintaining the highest standards of integrity and safety across our platform.