What is the most common prop firm rule?

A daily loss limit: 14 of the 16 firms whose rule pages we read publish one. A maximum loss rule is close behind (13 of 16).

Is a trailing drawdown worse than a static one?

For the same trades, yes - in our simulation of 20,000 traders a trailing floor ended about twice as many accounts in 30 days as a static floor of the same size.

Do all prop firms have a consistency rule?

No. 7 of the 16 firms we read publish one, and some apply it only to payouts on funded accounts.

Are prop firm payouts taxed in Australia?

The ATO has no page written for prop firm payouts that we could find. Its general business-or-not test applies; ask a registered tax agent or request a private ruling for your case.

Prop firm rules explained

Almost every prop firm challenge is a set of loss limits plus a profit target. The two rules that end most accounts are the daily loss limit and the maximum drawdown (fixed or trailing). On top sit consistency rules (no single day can be too big a share of profit), minimum trading days, payout rules and news or weekend limits. On 5 November 2026 we read the rule pages of 16 firms: 14 publish a daily loss rule, 13 a maximum loss rule and 7 a consistency rule.

Checked 5 November 2026 · sources below

What the 16 firms we read publish (rule pages read 5 November 2026)

Rule	Firms that publish it	What it means in practice
Daily loss limit	14 of 16	Lose more than a set amount in one day (often 3-5% of the start balance, or a dollar amount on futures plans) and the account ends.
Maximum loss (drawdown)	13 of 16	A floor under the account. Static floors stay put; trailing floors move up as the account grows.
Profit target	10 of 16	Usually 8-10% for step 1 on forex/CFD plans; futures plans use a dollar target.
Minimum trading days	10 of 16	You must trade on a set number of separate days before you pass.
Payout rules (split, minimum, waiting days)	11 of 16	When you can withdraw, how much the firm keeps, and the smallest payout allowed.
Consistency rule	7 of 16	Your best day may be at most a set share (often 30-50%) of total profit.
News trading limit	6 of 16	No new orders a few minutes before and after big data releases, on some plans.
Weekend holding limit	5 of 16	Positions must be closed before the weekend on some plans.
Robots / EA rules	5 of 16	Limits on copy trading, tick scalping or third-party robots.

The same rule, different firms (as each firm's page stated it, plan named)

Firm and plan	Daily loss	Maximum loss
Goat Funded Trader 2-Step Standard 100k	5%, from higher of balance/equity at 5 pm EST	10% static
Blue Guardian 2-step Standard 100k	4% of initial balance	8% static
FundedNext Stellar 2-step 100k	5% of initial balance	10% of initial balance
The5ers 2-step 100k	3% of previous day's closing balance or equity	10% of initial balance
Maven Standard 2-step 100k	4%, equity-based	8% static
Topstep Trading Combine 50K	$1,000, optional in the Combine	$2,000, trailing end-of-day
Breakout 1-Step Classic 100k	3% of balance at 00:30 UTC	6% of initial balance, static

The two rules that end most accounts

Daily loss limit. Measured from a reset time (often 5 pm New York or midnight UTC). Some firms count open losses (equity), some only closed trades (balance). One bad day with too much size is enough to fail, even if the month is green. Maximum loss. A static floor stays at, say, $90,000 on a $100,000 account. A trailing floor follows your highest balance up, so profits you give back count against you. In our simulation a trailing floor was breached about twice as often as a static one by the same trades.

Consistency, payout and news rules

A consistency rule caps your best day as a share of total profit - with a 30% rule and a $3,000 best day you need $10,000 total profit before a payout. Try it with your own days in our consistency rule calculator. Payout rules set the split (80-90% to the trader is common in the plans we read), a minimum amount and waiting days. News rules block orders around big releases on some funded accounts.

Prop firm trading tax in Australia: what we could find

We found no ATO page written for prop firm payouts (checked 5 November 2026). The ATO's general test is whether your activity is carrying on a business - it looks at things like volume, regularity, a business plan and records, not the amount of money. Whether a payout is business income, and whether a challenge fee can be claimed, depends on your facts. A registered tax agent or an ATO private ruling gives a firm answer. This is general information, not tax advice.

The firm rule pages we read

Every count and quote above comes from these pages, read on 5 November 2026 for the plan named. Plans and rules change, so check the page before you buy.

Before you buy a challenge

Write down, from the firm's own rule page: the daily loss amount and when it resets, whether it uses balance or equity, whether the maximum loss trails and if it locks, the consistency rule in payouts, and any news or weekend rule. Then see which rule your own trades would break first with our prop firm rules check.

Questions

What is the most common prop firm rule?: A daily loss limit: 14 of the 16 firms whose rule pages we read publish one. A maximum loss rule is close behind (13 of 16).
Is a trailing drawdown worse than a static one?: For the same trades, yes - in our simulation of 20,000 traders a trailing floor ended about twice as many accounts in 30 days as a static floor of the same size.
Do all prop firms have a consistency rule?: No. 7 of the 16 firms we read publish one, and some apply it only to payouts on funded accounts.
Are prop firm payouts taxed in Australia?: The ATO has no page written for prop firm payouts that we could find. Its general business-or-not test applies; ask a registered tax agent or request a private ruling for your case.

Sources

Check which rule breaks you first

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