Here are the firms showing the most concerning red flags right now:
1. Apex Trader Funding (Significant Payout Backlog)
Apex has dominated the "red flag" discussions in early 2026. While they remain one of the largest firms, the "friction" for traders has reached a boiling point.
- The Red Flag: Payout processing times have ballooned to 10–21 business days for many traders [Jan/Feb 2026 reports].
- Support Ghosting: Traders are reporting that support tickets are being marked as "Solved" or "Closed" without any actual response or payment being issued.
- "Whimsical" Denials: Recent reports show an uptick in denials based on subjective "professionalism" clauses, even when no hard math rules were broken.
2. The Funded Trader (TFT) (The "Infinite Queue")
TFT has struggled with its reputation since 2024, but the last 60 days have seen a resurgence of "liquidity crisis" rumors.
- The Red Flag: A massive backlog of unpaid traders, some claiming they have been waiting for payouts for over 12 months.
- Communication Breakdown: The firm frequently promises "updates" and "transparency" while the actual number of processed payouts remains stagnant relative to the queue.
3. Futures Firms using "ProjectX" (Tech Transition Risk)
A major industry shift occurred recently with the tech provider ProjectX announcing it will end its "Third-Party Service Offering" on February 28, 2026.
- Affected Firms: Tradify, FuturesElite, Top One Futures, and several smaller futures props.
- The Red Flag: While some firms claim a "smooth transition," the sudden exit of a primary tech backbone creates a high risk of frozen accounts, lost trading data, and delayed payouts during the migration. If you are with a firm using ProjectX, the "silence" regarding their new tech stack is a major warning sign.
Specific "Abusive" Red Flags Observed Recently
Firms that haven't shut down are instead using "Invisible Rules" to protect their bottom line during this 2026 liquidity squeeze:
- The KYC Stall: Asking for "Selfies with today's newspaper" or notarized documents during a payout request to buy the firm 14 extra days of liquidity.
- HFT/Latency Scapegoating: Firms like Kortana and others that allow HFT (High-Frequency Trading) to pass the challenge are now retroactively banning those same traders at the payout window, claiming "toxic flow" or "simulated abuse."
- MAE (Max Adverse Excursion) Audit: A new favorite tactic where a payout is denied because your open trade went "too far into the red" before hitting profit, which the firm retroactively labels as "unprofessional risk management."
Summary of Current Risk Levels
Prop FirmPrimary Red Flag (Last 60 Days) Risk Level
Apex Trader Funding Support ghosting & 15+ day payout delays. HIGH
The Funded Trader Year-long payout backlog. CRITICAL
ProjectX Users Tech provider exit (Feb 28 deadline). MODERATE
Peer-to-Peer Advice: If a firm's "Payout Certificate" gallery on Twitter/X is full, but the "Comments" section is full of people asking where their money is, that is your definitive signal. In 2026, a "Payout Certificate" is just a JPEG; a bank transfer is the only thing that counts.