Congratulations again and welcome to the big leagues! It’s time to talk about what every trader cares about most — paying yourself. You should always pay yourself after a few winning days, but don’t forget that trading isn’t a one-and-done activity. Pay yourself while also positioning yourself for the long haul.
What is the Withdrawal Policy?
In the Funded Account® & Premium Funded Account® traders can request a withdrawal of up to 50% of their account balance after accumulating 5 winning trading days per withdrawal request. A winning trading day is counted when a day’s Net PNL is $100 or more.
Winning days are accumulated as a running total between withdrawal requests, they do not need to be consecutive days. This means that after making a withdrawal, a trader will complete 5 additional winning trading days before being eligible for their next withdrawal. This is required for each withdrawal request.
A trader starts their Funded Account with a $0 account balance. On their eighth trading day, they reach their 5 winning trading days with an account balance of $6,000. They request a withdrawal of 50% of their profit and receive $3,000. They continue trading in the Funded Account with $3,000. After totaling an additional 5 winning trading days they can decide if they want to withdraw up to 50% of their profit again.
Premium Funded Account
A trader starts their Premium Funded Account with a $5,000 account balance. On their sixth trading day, they reach their 5 winning trading days with an account balance of $8,000. They request a withdrawal of 50% of their profit and receive $4,000. They continue trading in the Premium Funded Account with $4,000. After totaling an additional 5 winning trading days they can decide if they want to withdraw up to 50% of their profit again.
Additional Withdrawal Information
- If a rule is broken in the account, the trader will receive their profits greater than the account’s starting balance.
- If a rule is broken in the account and there are no profits greater than the account’s starting balance, the remainder of the firm's capital will remain theirs.
- If an account is closed due to 90 days of inactivity or a trader voluntarily requests to close their account, the trader will receive their profits greater than the starting balance.
The “Why” Behind Withdrawing
Just like our funding evaluation, Topstep’s withdrawal policy helps you build discipline and smart account management skills so your balance is ever-growing. When professional traders start earning, they always maintain a cash reserve in their accounts to ensure they have the ability to trade for tomorrow. Topstep also follows these best practices, allowing you to withdraw up to 50% of your balance after every five winning days because it positions our traders and funding firm for a successful and long-term relationship.
Topstep is the only funding opportunity that makes withdrawals about performance instead of having you adhere to an arbitrary number of calendar days (Ex. Withdraw every 30 days). Straightforward so you can focus on what’s important — earning in the live markets. Since starting our evaluation, we’ve had a vested interest in your success, and upon becoming funded, a partnership. We’re really excited to have you as a contributor to our firm and to see you start earning. Keep putting up the wins, pay yourself, and then do it again — let’s go!
How can I Request a Withdrawal?
You can submit a request by contacting our team through this form.
When a withdrawal is requested and approved, we will remove the funds from the trader’s live account. Our firm will then start the process of sending the funds to the trader via their requested method. Withdrawals are generally dispersed to the trader within seven (7) to fourteen (14) business days.
We can process withdrawals using the following methods:
- Checks: We can send any trader a paper check in the mail for the amount requested. Checks sent outside the US will likely take significantly longer than 7 business days, and we do not provide an estimated delivery date for physical mail.
- ACH Wire: Bank wire available for traders with a US-based bank account (the trader does not need to be a US resident). There is no transfer fee for ACH wires. The bank account must be in the trader's name.
- Standard Bank Wire: Bank wire available for traders with banks based outside the US. Traders living outside the US must submit their bank information using SWIFT format to ensure a successful transfer of funds. For standard wire transfers under $500, a $50 transaction fee will be applied. There is no transfer fee for wire transfers over $500. The standard wire is the quickest and efficient method available to make withdrawals for traders outside the US. The bank account must be in the trader's name.
We are unable to process withdrawals via PayPal, and we cannot transfer funds from the Funded Account to a personal trading account held by the trader.
What is the Profit Split?
Traders will receive 100% of the profits from withdrawals, up to a total of $5,000. After the first $5,000 of funds have been received by the trader, the profit split will become 80/20, with the trader receiving 80% of withdrawals and TopstepTrader retains 20% of the requested withdrawal. To be clear, this is per trader. If you withdraw $5,000 and then lose your Funded Account, your next Funded Account withdrawal will be 80/20 when you start back up again.
Once the withdrawal request is processed, the Trailing Max Drawdown will be automatically set to the starting account balance (the trader cannot allow the account balance to reach or go below $0 after a withdrawal).
What Tax Form Should I Fill Out?
The Internal Revenue Service (IRS) requires we collect certain information before any money is paid by a company (TopstepFunded, LLC) to a vendor (Funded Trader). Depending on their nationality, location, and business status, Funded Traders will either fill out a W-9, W8BEN, or W8BEN-E.
|Your Current Location||Your Business||Form to Complete||Payment Information Reported to|
|United States||Anywhere||Individual or Company||W-9||IRS – if total
|Non-US Citizen||United States||Individual or Company||W-9||IRS – if total
|Non-US Citizen||Anywhere EXCEPT the United States||Individual||W-8BEN||No one, held in
|Non-US Citizen||Anywhere EXCEPT the United States||Company||W-8BEN-E||No one, held in
*If the IRS or other governing bodies specifically request reporting, we are obliged to provide
the information. This is rare.