Want to know how TopStep payouts work? Here’s a quick breakdown to get you started:
- Payout Basics: You can withdraw trading profits once you meet performance milestones. First, achieve 5 non-consecutive winning days (each with $200+ Net PnL) to qualify for payouts. After 30 winning days, you unlock daily withdrawals.
- Profit Split: Keep 100% of your first $10,000 in profits. After that, TopStep applies a 90/10 split, where you keep 90%.
- Withdrawal Limits: Minimum payout is $125. For Express Funded Accounts, you can withdraw up to $5,000 or 50% of your balance. Live Funded Accounts allow daily withdrawals of up to 100% after reaching 30 winning days.
- Processing Time: Withdrawals are processed in 1–3 business days (ACH/Wise) or up to 10 days for international wires.
- Important Rule: Payouts reset your Maximum Loss Limit (MLL) to $0, impacting your account risk and buying power.
Key Tip: Plan withdrawals wisely to maintain trading flexibility and account growth.
| Account Type | Initial Payout Requirement | Ongoing Requirement | Payout Limits |
|---|---|---|---|
| Express Funded Account | 5 winning days ($200+ Net PnL) | 5 more winning days per payout | Up to $5,000 or 50% of balance |
| Live Funded Account | 5 winning days ($200+ Net PnL) | 5 more winning days per payout | 100% of balance after 30 winning days |
TopStep’s payout system rewards consistency and discipline. Keep reading for a detailed guide to maximize your withdrawals while growing your trading account.
Topstep Payouts SIMPLIFIED In Under 10 Mins (Rules, Strategy, KYC, etc.)
Requirements for Payout Requests
To withdraw your trading profits from TopStep, you need to meet certain performance benchmarks and account-specific criteria. These rules are designed to ensure consistent trading success and form the backbone of TopStep’s payout system.
Trading Performance Requirements
For your first payout, you must achieve five winning trading days – these don’t have to be consecutive, but each day must have a Net PnL of $200 or more. For every subsequent payout, you’ll need to complete an additional five winning days. Once you’ve accumulated 30 total winning days across funded accounts, you’ll unlock the option for daily payouts [1].
| Account Type | Initial Requirement | Ongoing Requirement |
|---|---|---|
| Express Funded Account | 5 non-consecutive days with Net PnL ≥ $200 | 5 additional winning days after each payout |
| Live Funded Account | 5 non-consecutive days with Net PnL ≥ $200 | 5 additional winning days after each payout |
These requirements are consistent across account types, though the payout structures differ based on the account.
Account Type Rules
Payouts can only be requested from Funded Level accounts – either Express Funded or Live Funded. Both account types require five winning days to qualify for payouts, but their withdrawal rules differ slightly:
- Express Funded Account: You can withdraw up to $5,000 or 50% of your account balance, whichever is lower.
- Live Funded Account: Initially, you’re allowed to withdraw up to 50% of your balance. After reaching 30 winning days, you can request daily payouts of up to 100% of your account balance [1].
Winning days are counted across all funded accounts, giving you flexibility as you trade [1].
Balance Limits for Payouts
The minimum payout request is $125 [1]. In the early stages of trading with TopStep, you can withdraw up to 50% of your account balance per payout request for both Express Funded and Live Funded Accounts. However, for Express Funded Accounts, there’s an additional cap of $5,000 per payout request, even if 50% of your balance exceeds this amount.
Once you’ve reached the 30 winning day milestone in your Live Funded Account, these caps are lifted. At that point, you can request daily withdrawals of up to 100% of your account balance [1].
How to Request a Payout
Once you’ve met the trading performance requirements, requesting a payout from TopStep is simple and can be done directly through their platform. The process involves accessing your dashboard, submitting the required documentation, and waiting for approval. Typically, the entire process takes just a few business days.
Using the Payout Dashboard
To begin, log in to your trader dashboard, locate the payout form, and ensure all your details are accurate before submitting. Your account balance must be at least $125 to proceed. When completing the payout form, double-check all the information to avoid errors that could delay processing. TopStep evaluates each request based on compliance with their payout policy (five winning days of $200 or more), adherence to their code of conduct, and whether you’ve avoided using prohibited trading strategies [3].
Once you’ve submitted the form, confirm your identification and banking details to move your request forward.
Required Documents and Verification
After submitting your payout request, you’ll need to go through a verification process. This step ensures both your trading performance and identity are validated.
TopStep requires KYC (Know Your Customer) documentation and banking information [1]. This includes submitting forms such as ACH/Wire/SWIFT details and KYC documents [1]. The specific form you’ll need depends on your chosen withdrawal method.
It’s essential to use the email address linked to your TopStep account when submitting these documents [1]. Using a different email could lead to verification issues and delays. Additionally, you only need to submit the Adobe banking form once unless your banking details change or your government-issued ID expires [1]. If your bank requires a verification letter, TopStep does not provide one. However, you can share a copy of your Express Funded Account Agreement with your bank for verification purposes [1].
Processing Time and Approval
TopStep processes payouts daily [1], meaning your request will quickly enter their review queue. Once all required documentation is submitted, payout approvals typically take 1-3 business days [1].
After approval, funds are transferred from your trading account. Here’s a breakdown of typical processing times based on the withdrawal method:
| Withdrawal Method | Processing Time |
|---|---|
| Wise | 1-3 business days |
| ACH | 1-3 business days |
| Wire/SWIFT | 3-5 business days |
| International Wire/SWIFT | 5-10 business days |
Keep in mind that processing times can vary. Transfers through Wise and ACH are usually completed within 1–3 business days, while wire transfers take 3–5 days, and international wires may take 5–10 days. Note that most banks and payment providers do not process transactions on weekends or public holidays [1].
Important: A $20 processing fee applies to ACH or Wise payouts on the New TopStep Dashboard [1]. To avoid confusion with your account balance during the transfer process, it’s a good idea to wait until the payout reflects on your Trader Dashboard before placing additional trades [2].
With your documents verified and a clear understanding of the payout timeline, you’re ready to select the withdrawal method that works best for you.
Payout Methods and Fees
TopStep offers several withdrawal options tailored to traders around the globe. Each method comes with its own fees and processing times, so understanding these details can help you pick the most efficient and affordable option for your needs.
Available Payout Methods
TopStep provides four main payout methods: Wise, ACH (Automated Clearing House), Wire/SWIFT transfers, and PayPal. Here’s a breakdown of how each works:
- Wise transfers: A great option for international traders, Wise offers competitive exchange rates and faster processing. It connects with banks worldwide and often beats traditional wire services on currency conversion costs.
- ACH transfers: Designed for U.S.-based traders, ACH is a reliable and efficient way to transfer funds between domestic banks.
- Wire and SWIFT transfers: These are ideal for traders needing to send money to banks that don’t support other transfer methods. They operate through traditional banking networks, ensuring secure and reliable transactions.
- PayPal withdrawals: Perfect for those who frequently use PayPal, this method adds convenience for managing payouts alongside other financial activities.
Each method has its own fee structure and processing time, which we’ll cover next.
Fees and Processing Times
The cost of withdrawing funds – and how quickly you’ll get them – varies depending on the method you choose. Here’s what you need to know:
- For payouts made using the New TopStep Dashboard, ACH and Wise transfers both have a $20 processing fee, deducted directly from the payout amount. For example, withdrawing $500 would result in $480 in your account [1].
- Wire transfers and PayPal withdrawals also come with fees, but these depend on your bank’s charges and the destination of the funds [5]. Additional bank fees may apply for wire transfers.
Processing times differ as well:
| Withdrawal Method | Processing Time |
|---|---|
| Wise | 1–3 business days |
| ACH | 1–3 business days |
| Wire/SWIFT | 3–5 business days |
| International Wire/SWIFT | 5–10 business days |
Keep in mind that these estimates can vary due to additional reviews or delays. Transactions typically aren’t processed on weekends or public holidays [1].
International Transfer Considerations
For international traders, there are extra factors to think about. Currency exchange rates and banking regulations in your country can influence both the cost and the time it takes to receive funds [4]. Some banks outside the U.S. might require additional steps, like submitting a verification letter for incoming funds [1].
While the $20 fee for Wise transfers is straightforward, international wire transfers can involve hidden costs. These might include charges from intermediary banks, currency conversion fees, and fees from the receiving bank. Combined, these can significantly increase the overall expense.
To avoid surprises, double-check the fee structure for your chosen method and ensure all required banking details and KYC (Know Your Customer) documents are in order. This will help prevent delays and unexpected costs [4][5].
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Profit Split Structure and Thresholds
TopStep uses a tiered profit split system that adjusts once your lifetime earnings hit specific milestones. Here’s how it works and what it means for your withdrawals.
100% Payouts Up to $10,000
When you start, you get to keep 100% of your first $10,000 in lifetime earnings [1]. It doesn’t matter if you withdraw this in smaller amounts or in fewer, larger payouts – every dollar is yours (minus any processing fees) until your total withdrawals reach $10,000. For example, if you withdraw $4,000 from one funded account and $6,000 from another, that adds up to $10,000, and the next tier will kick in for any additional earnings.
90/10 Split After $10,000
Once your total payouts exceed $10,000, the profit split changes to 90/10. This means you keep 90% of the earnings, while TopStep takes 10%. For instance, if you withdraw $2,000 after crossing the $10,000 mark, you’ll receive $1,800, and $200 goes to TopStep [1]. Let’s say your total earnings are $9,500 and you withdraw $1,000: the first $500 will be paid at 100%, while the remaining $500 will be split 90/10, giving you an additional $450 [1].
Tracking Profits Across Multiple Accounts
TopStep doesn’t track profits on an account-by-account basis. Instead, it calculates your total earnings cumulatively across all funded accounts under your name. This means you’ll keep 100% of your profits until your combined withdrawals from all accounts hit $10,000. After that, the 90/10 split applies to any further payouts [1]. This system emphasizes consistent performance and ensures that traders focus on long-term profitability rather than trying to game the system by spreading withdrawals across multiple accounts.
Account Changes After Payouts
When you request a payout from your TopStep account, your trading capacity and risk management settings undergo automatic adjustments. These changes are designed to maintain discipline and manage risk effectively. By understanding these updates, you can better plan withdrawals and avoid unexpected surprises when you return to trading.
Maximum Loss Limit Reset
One key adjustment is the reset of your Maximum Loss Limit (MLL) to $0 after your first payout [6]. Essentially, this reset gives you a fresh start for risk calculations, but it also eliminates any loss cushion you previously had.
Here’s a breakdown of the original MLL values for different account sizes:
| Account Size | Original Maximum Loss Limit |
|---|---|
| $50,000 Account | $2,000 MLL |
| $100,000 Account | $3,000 MLL |
| $150,000 Account | $4,500 MLL |
For example, if you have a $100,000 account with a $3,000 MLL and withdraw $20,000, your new account balance drops to $80,000, and your MLL resets to $0. From that point on, any losses directly reduce your remaining capital. Since TopStep calculates the MLL based on your end-of-day balance [7], many seasoned traders suggest reaching an MLL of $0 before taking payouts. This strategy can help preserve your account in the long run [2].
Position Size and Buying Power Changes
Another important adjustment involves your trading capacity. After a payout, your available buying power decreases, which directly impacts the leverage and position sizes you can manage [2]. For instance, if you were previously trading 10 contracts at full capacity, a significant withdrawal might reduce your buying power to the point where you can only safely trade 6 or 7 contracts. These recalculations are designed to keep your risk levels in check.
Scaling Plan Adjustments
Payouts also affect your scaling plan. TopStep recalculates your scaling plan based on your updated account balance, which can influence your ability to grow your account [8]. This plan helps traders gradually increase their equity while managing risk. However, if your balance decreases after a payout, you might be moved to a lower tier. This adjustment reduces your trading capacity and could delay your progression to higher contract sizes.
To navigate these changes effectively, consider enabling features like open position displays and order confirmations in your trading platform [8]. These tools can provide better oversight and help you adapt to your updated position limits. Ultimately, these adjustments are part of a risk management framework aimed at supporting your account’s long-term health.
Payout Timing Strategies
Once you’ve got a handle on how payout requests and processing work, the next step is to think about when to withdraw your profits. Timing your payouts wisely can make a noticeable difference in your trading performance, account growth, and even your tax situation. By strategically planning withdrawals, you can balance your immediate cash needs with long-term goals while keeping risks in check.
Small vs. Large Withdrawal Amounts
When deciding between frequent, smaller withdrawals or larger, less frequent ones, your choice should depend on your trading goals and financial needs.
- Small, frequent withdrawals help preserve more of your trading capital, allowing your account to grow steadily.
- Larger withdrawals provide immediate cash flow but can reduce your buying power for future trades.
For full-time traders, it often makes sense to align withdrawals with monthly expenses. This approach ensures you’re covering your living costs without over-drawing from your trading account. Part-time traders, on the other hand, might start small – covering just one fixed monthly expense with trading profits – and then increase withdrawals as their consistency improves.
Another strategy is withdrawing profits after particularly strong trading sessions. This can help prevent overconfidence, which often leads to risky decisions. If keeping a large account balance tempts you into poor judgment, consider withdrawing most or all of your profits. Use part of it for personal expenses and set the rest aside for future trading opportunities. This naturally brings us to the importance of maintaining a healthy account buffer.
Maintaining Account Balance Buffers
Keeping a cushion in your trading account is crucial. This buffer protects you during drawdowns and ensures you have enough capital to keep trading effectively. Regularly withdrawing profits can also help manage psychological stress, as it gives you a sense of progress without jeopardizing your trading capacity.
A practical approach is splitting your profits. For example, you might withdraw 60% for personal use while reinvesting the remaining 40% back into your account. This method is particularly useful for growing smaller accounts over time while still enjoying the rewards of your trading efforts.
Tax Planning Considerations
Taxes are a big part of trading, and timing your withdrawals around tax deadlines can help you manage liabilities more efficiently. Since day trading profits are taxed as ordinary income at rates ranging from 10% to 37% [9][10], it’s worth planning withdrawals to align with lower tax brackets and ensure you have enough set aside for estimated taxes.
Here are a few strategies to consider:
- If you expect your income to drop next year, you might defer some withdrawals to take advantage of lower tax rates later.
- Conversely, if you anticipate higher earnings in the future, accelerating withdrawals this year could help you benefit from a lower tax bracket now.
- You can also offset gains with trading losses throughout the year. If your losses exceed your gains, you can deduct up to $3,000 against your ordinary income [10].
To stay on top of quarterly estimated tax payments, plan larger payouts before the deadlines – January 15, April 15, June 15, and September 15. This ensures you have enough cash on hand to meet your obligations. By understanding your tax situation and timing withdrawals strategically, you can maximize your net profits and set yourself up for long-term success in trading.
Key Points for TopStep Traders
Navigating TopStep’s payout system effectively requires a thoughtful strategy that balances immediate financial goals with long-term trading success. It’s not just about withdrawing profits – it’s about managing your trading capital wisely to ensure sustained growth.
Summary of Requirements and Process
To qualify for payouts with TopStep, you need to meet specific performance criteria. The payout structure is simple: you keep 100% of profits up to $10,000, and beyond that, profits are split 90/10. The minimum withdrawal amount is $125, and you can make requests on a weekly basis [1].
However, there are a few key points to keep in mind during the payout process. First, you’ll need to provide proper documentation for verification, and trading should be paused while the payout is being processed. Additionally, payouts impact your account parameters, such as resetting the Maximum Loss Limit and adjusting position sizes, as previously discussed [2].
With these requirements clear, let’s dive into how to approach withdrawals with a strategy that supports both short-term gains and long-term success.
Planning Withdrawals for Long-term Success
TopStep traders who achieve lasting success often adopt a measured approach to withdrawals. Instead of pulling out all their profits, they prioritize keeping enough capital in their account to handle potential losing streaks and maintain trading flexibility. This approach also helps manage emotions and reduces the temptation to overtrade.
It’s a good idea to pay yourself regularly, but with a plan in mind. Think of your funded account as a personal brokerage account that you’re building over time. By doing this, you ensure you can continue trading effectively. Many traders prefer to withdraw profits after particularly strong months or successful trading days, locking in gains while keeping their account robust [1].
After a large payout, it’s wise to temporarily lower your daily risk to protect your account as it rebuilds. Smaller, consistent payouts can also help reinforce the value of your trading efforts and keep overconfidence in check. Be aware that requesting a full 100% payout will result in the closure of your Live Funded Account [1]. Striking a balance between regular withdrawals and account growth is crucial to creating a sustainable trading career.
FAQs
How can traders effectively manage their account balance after receiving a payout, considering the reset of the Maximum Loss Limit?
To keep your account balance in check after receiving a payout, start by setting specific withdrawal goals and sticking to them. This approach ensures you secure your earnings while leaving enough funds to keep trading. Instead of taking out large sums all at once, consider making smaller, spaced-out withdrawals. This method not only supports financial stability but can also help you avoid potential tax headaches.
Another key step is regularly reviewing your trading performance and tweaking your strategies when necessary. Staying disciplined with your risk management plan is crucial – it helps you handle the reset of the Maximum Loss Limit, protect your profits, and steer clear of unnecessary risks.
What does the 90/10 profit split mean for traders, and how can they maximize their earnings under this model?
The 90/10 profit split allows traders to retain 90% of their profits once they achieve a total payout of $10,000. This setup is designed to reward traders who show consistent performance and disciplined trading, offering a fantastic chance to build lasting profitability.
To make the most of this model, it’s crucial to stick to a well-thought-out trading strategy paired with effective risk management. This means respecting the Maximum Loss Limit and regularly meeting daily profit goals. By maintaining steady performance over time, you can fully capitalize on the benefits of this profit-sharing arrangement.
What should international traders consider when selecting a payout method to avoid high fees and receive funds quickly?
International traders need to weigh several important factors when selecting a payout method to keep fees low and ensure payments arrive on time. Start with transaction fees, which can differ significantly depending on the method you choose. For instance, wire transfers typically have flat fees ranging from $20 to $50, and intermediary banks may tack on additional charges.
Next, take a close look at currency exchange rates and any conversion fees. Banks often add a markup to the standard exchange rate, which can quietly increase your overall costs. Don’t overlook processing times, either. While international wire transfers usually take 1–3 business days, other methods might be slower, potentially affecting your cash flow.
Finally, focus on security and reliability. Choose payout methods that offer straightforward payment tracking, so you can monitor transactions with confidence. By considering these elements, traders can streamline their payment processes and sidestep avoidable delays and costs.
