Apex Trader Funding, a prop firm that has reportedly been struggling to make timely payments to clients in recent months, has now introduced a new solution aimed at streamlining and accelerating the entire process.
However, some reports suggest that the prop firm has begun demanding significant efforts from clients, potentially infringing on their strategies and personal privacy.
Apex Aims to Expedite Payments, but Clients Are Dissatisfied
In a video released this week, Apex Trader Funding addressed the issue of delayed payments. Darrell Martin, CEO and founder of the prop firm, stated that a new security and fraud detection system is undergoing "final touches" to improve the existing payout process for profitable traders.
Martin said on YouTube: "We're working to process payment approvals within 48 hours or less when these requests come in. Our goal is to approve and complete these payments within a few business days, getting traders their funds, and we're working to make this process faster."
Company clients claim that shortly after announcing the accelerated payment process, they began receiving numerous requests to provide video recordings of their trading monitors.
This pattern is unlikely to be well-received by clients. This is particularly evident as PipFarm's latest survey shows that retail traders in prop trading primarily seek clear rules (79%) and fast payouts (75%); low prices or high profit splits are relatively less important.
Requests for 2-Day Screen Monitoring and Self-Recording
Comments under a tweet posted by FundTraders on X (formerly Twitter) seem to confirm reports of numerous requests for video recordings. A user named Brad Roads stated: "I just received a video proof request at 7 PM the night before my payout was supposed to happen. This video proof request is for 'two trading days'. Brother, I don't have time for this."
YouTube user comments suggest that Apex is allegedly requiring clients to not only record their trading and monitor screens but also point a camera lens at themselves.
A user named @muathmuath8450 commented: "They want me to outline my entire trading strategy and record myself with a webcam facing me and the monitor for 2 days while also recording the screen, they also want me to give them a written statement about everything, what a bloody horror show!"
Traders are concerned that this might infringe on their privacy on one hand, and on the other, expose their own investment strategies to the company, giving them full insight into the decision-making process.
Finance Magnates contacted the company for comment on this matter but had not received a response at the time of publication.
Vulnerabilities in the Prop Trading Industry
Apex is not the only company in the prop trading industry that has allegedly encountered difficulties in making timely payments to traders. This is a common issue for many other prop firms, with The Funded Trader being just a recent example, having delayed payments for months and, according to the latest news, having processed 30% of unpaid trader funds and 55% of affiliate funds.
According to Michael Bernan, a contributing writer for Finance Magnates, prop firms have become victims of their own success.
He comments: "Once there aren't enough new traders entering the system to pay for the winners' rewards, companies become technically insolvent and unable to pay fees. Moreover, the demand for high-payout trading on cheap capital is insatiable. Companies try to protect their liquidity by blocking profit withdrawals, citing violations of trading rules that are often unclear, hidden, or created ad hoc."
Bernan concludes: "Essentially, the business model of most firms offering 80-90% profit splits is unsustainable, and most will eventually go bankrupt, leaving clients with unpaid profit splits, and this part of the industry continues to become increasingly dubious."
Reference：This Prop Firm Requires Recording Your Trades for 2 Days. Otherwise, You Won’t Get Paid
