Minimum Payout Threshold
The smallest withdrawal amount a firm will process — profits below this threshold stay in the account until accumulated enough to request.
Definition
The minimum payout threshold is the smallest dollar amount a firm will pay out in a single withdrawal request. Thresholds range from $50 on small accounts to $250-500 on larger accounts, with some firms requiring $100 minimums regardless of account size. Below the threshold, the profit sits in the funded account balance until the trader accumulates enough to exceed the minimum. Thresholds typically apply separately to each withdrawal request, not to cumulative profit — so a trader can have $400 in profit on a firm with a $500 threshold and still be unable to withdraw.
Example
Why It Matters
Payout thresholds matter most for traders using small accounts or testing a firm with a first challenge. A $100 threshold on a $10K account means the trader must generate ~1% in gross profit per withdrawal before any cash can leave the firm. Thresholds also interact with payout frequency: a monthly-frequency firm with a $500 threshold effectively gates the first payout behind at least $625 in gross profit (80% = $500). Traders should check both the threshold and the frequency before committing to a firm — they combine to determine how quickly firm-health signals arrive.