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W-8BEN form

Form W-8BEN

Firm terms

Definition

A US tax form where a non-US resident declares this to a US entity that pays them. In some prop firms, it is filled out before the first payout, and a trader from Israel marks their status as a foreign resident.

Detailed explanation

This form does not replace reporting in your country of residence. In Israel, for example, income from prop firm trading is reported in the annual tax return, and the form is only a condition for the company to pay you. The rule for the form is accuracy: full name and address exactly as registered in the account, non-resident status, and a digital signature. Details that do not match the account will delay approval. US residents fill out a different form, W-9.

An example from the prop world

At Take Profit Trader, fill out the form in the user portal before the first payout: name and address as on the account, non-resident status, and digital signature. Details that match the account expedite approval.

How it works at the firms on this site

Based on the rules listed on our firm pages. Rules get updated, so check the firm's page before buying.

Identity verification (KYC)

The process by which the firm verifies your identity before paying you: an ID document, proof of address, and usually a selfie video. In most prop firms, it comes after passing the evaluation or before the first payout, and without it, there is no payout.

Payout methods

The ways a prop firm transfers profit to you: payment platforms like Rise or WorkMarket, international bank transfer, Wise, PayPal, or crypto. Each method has its own transfer time and fee, and not every method is available to Israeli residents.

Renewal

An action that happens automatically every month (or every 30 days), meant to extend the evaluation account's subscription and ensure continuous access so you can keep trading.

Reset

An account reset is a manual action meant to return the trading account to its original starting state by restoring the balance and restarting progress.

Consistency rule

A restriction applied at prop firms (both in the evaluation phases and in funded accounts) to make sure the trader operates systematically and steadily rather than relying on luck or aggressive gambling. The rule usually requires that the best trading day's profit not exceed a set percentage of total profit (or sets limits on position size), ensuring the trading account is built on balanced performance over time and not on a one-time “big hit”.