How should a prop firm handle VPNs and location masking?
Quick answer
VPNs are common and often legitimate, so most firms do not ban them outright. They matter where they hide residence in a restricted country or link multiple accounts. Use KYC to confirm residence before payouts, and treat a VPN as one signal among several rather than proof of abuse.
Detailed answer
General information, not legal, tax or regulatory advice. Rules differ by country and change over time; confirm your position with a qualified professional before acting on it.
A balanced policy:
- Allow VPNs for privacy, but require that residence is truthfully declared.
- Verify residence at KYC before paying.
- Restricted countries: deny payouts to residents regardless of how they connected.
- Linked accounts: combine IP data with other evidence.
Write the policy into your terms so traders know a VPN does not change eligibility. Apply it the same way to everyone: a VPN plus a verified address in an allowed country is normal, while a VPN plus a payout destination in a restricted country is a reason to stop and review. This is general information, not legal advice.
Example
A trader connects through a VPN from a different country each week but verifies a residence in an allowed country and is paid to a bank account in their own name there. That is normal privacy behaviour, not abuse.
Record the verified country with each payout decision.
PropExecutor team · Updated
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