That "trusted" trading YouTuber? They're making $10,000-$60,000 per month from your failed challenge fees. Every time you buy a challenge with their link, they pocket 5-35% of your payment.
The Truth: Most prop trading influencers hide affiliate commissions, violate FTC disclosure laws, and promote dangerous firms because they pay the highest rates—not because they're safe for traders.
This investigation exposes commission structures, FTC violations, why influencers push bad firms, and how to identify hidden affiliate scams.
Trading influencers earn 5-35% commission every time you fail a prop firm challenge. Top affiliates make $10k-$60k/month pushing dangerous firms while hiding commissions and violating federal disclosure laws.
According to industry research, prop firm affiliate commissions range from 5% to 35% of every challenge purchase.
Translation: When you buy a $300 challenge with an affiliate link paying 20% commission, the YouTuber earns $60. If you fail (90%+ do), they keep the commission and you lose everything. Their incentive is volume, not your success.
Here are the actual commission structures, pulled from public affiliate programs:
Example: $300 challenge = $105 commission OR $100 flat
Example: $300 challenge = $75 commission
Example: $300 challenge = $60 commission
Example: $300 challenge = $60 commission
Higher tiers unlock with more referrals per month
Commission depends on performance milestones
Industry-high rate for mid-tier program
Ongoing commissions from reset fees
Higher tiers = higher flat commissions
Recently launched affiliate program
Critical Pattern:
Notice which firms pay the highest commissions? Many are newer, less established, or have questionable reputations. High commission = high risk for traders. Firms with sustainable business models (real capital, good payout records) pay lower commissions because they don't need aggressive affiliate marketing to attract volume.
Most prop firms use tiered commission structures. The more you refer, the higher your commission rate. Here's FTMO's model:
8-10% commission rate
12-15% commission rate
15-18% + free $50k challenge
18-20% + free $100k challenge
This creates incentive for volume over quality. More referrals = higher tier = more money.
Federal law requires affiliate disclosure. According to the FTC guidelines, influencers MUST:
Penalty:
Up to $43,792 per violation. Yet most prop trading YouTubers completely ignore these requirements.
Here's the complete ranking showing which firms pay YouTubers the most:
Tier 1 (25-35%): SabioTrade, ThinkCapital, E8 Markets, CTI
Tier 2 (15-20%): FTMO, Apex, FunderPro, FundedNext
Tier 3 (10-15%): Funding Pips, various others
Tier 4 (5-10%): Established firms with good reputations
Pattern: Highest commissions = newest/riskiest firms desperate for volume.
Bad firms pay 25-35%. Good firms pay 5-10%. YouTubers earn 3-7x more promoting dangerous firms.
When traders fail, they retry. More retries = more commission payments. Firms with 95% failure rates generate most affiliate revenue.
If firm shuts down or denies payouts, YouTuber already collected commissions. Zero liability for recommendations.
Some programs pay ongoing commissions on resets, add-ons, and subscription fees. Worse firm performance = more recurring income.
Based on FTC guidelines, here's what prop trading YouTubers should do vs. what they actually do:
The Reality:
Estimated 90%+ of prop trading YouTubers violate FTC disclosure requirements. Enforcement is rare but penalties can reach $43,792 per violation.
Let's calculate how much YouTubers make from your failures:
Conversion rate: 2% click affiliate link = 400 clicks
Total revenue to firm: $15,000
$15,000 × 20% = $3,000 from ONE video
45 × $300 = $13,500 lost by traders
YouTuber keeps full $3,000 commission
With 10-20 videos/month: $30,000-$60,000/month affiliate income while followers lose money.
Unless explicitly stated otherwise, treat every firm recommendation as affiliate-motivated.
Check Reddit, Trustpilot, and multiple sources. Don't rely solely on YouTube reviews.
"10% off" means nothing if firm never pays out. Choose safety over savings.
Honest creators disclose upfront. Dishonest ones dodge the question.