Is Breakout prop firm legit or a scam? Every trader considering a crypto prop firm evaluation should ask this question, especially when your evaluation fees are on the line and there’s no refund if things go wrong. Smart traders do their homework before handing over evaluation fees, and that’s exactly what we’re going to do here.
What is Breakout Prop Firm?
Breakout is a crypto-native proprietary trading firm founded in 2023 by Alex Miningham and Dylan Loomer, operating as “Breakout Trading Group, LLC” from Tampa, Florida. The firm uses an evaluation-based model where traders must pass rigorous challenges to access funded accounts with up to $200,000 in notional capital.
Key Features:
- Trading across 50+ cryptocurrency pairs
- Up to 5x leverage on BTC and ETH contracts
- 90% profit split for successful traders
- On-demand payment withdrawals
- No personal capital required beyond evaluation costs
The firm gained significant credibility in 2025 when it was acquired by Kraken, one of the world’s largest cryptocurrency exchanges, following a $4.5 million seed funding round led by prominent investors including RockawayX and Mechanism Capital.
Is Breakout Prop Firm Legit or Scam?
Yes, Breakout prop firm is legitimate. The firm operates as a properly registered business entity and has been acquired by Kraken, demonstrating credible operations with verified trader payouts, transparent business practices, and institutional backing from reputable investors.
Following Breakout’s acquisition by Kraken, the firm now benefits from association with one of the most comprehensively regulated crypto exchanges globally. Kraken maintains extensive licenses and registrations across multiple jurisdictions:
United States:
- Money Services Business (MSB) with FinCEN (Registration No. 31000270997766)
- Wyoming-chartered Special Purpose Depository Institution through Kraken Financial
- SEC-registered broker-dealer through Kraken Securities LLC (Member FINRA & SIPC)
- CFTC-registered Futures Commission Merchant (NFA ID #0309379)
Europe:
- Cyprus: CYSEC investment firm license (No. 342/17) via Payward Europe Digital Solutions
- Ireland: E-Money Institution with Central Bank of Ireland (Registration C453020)
- Ireland: Crypto Asset Service Provider license (Registration C468360 & C559106)
- UK: FCA Registered Cryptoasset Firm (FRN 928768) and Electronic Money Institution (FRN 1010381)
Other Key Jurisdictions:
- Australia: AUSTRAC Digital Currency Exchange (ACN 163 237 634)
- Canada: Ontario Securities Commission Restricted Dealer + FINTRAC MSB (M19343731)
- Bermuda: Class F Digital Asset Business license (Registration 202403268)
With this level of regulatory backing, Breakout Prop Firm is not a scam. They’re now part of a crypto excange that’s been around since 2011 and has proven its staying power through multiple market cycles.
But regulatory approval is just one piece of the puzzle – what really matters is how real traders are experiencing the platform day-to-day. Let’s take a look at what actual users are saying on Trustpilot.
Breakout Trustpilot Reviews
Breakout, at the time of writing, maintains an impressive 4.9 out of 5 stars on Trustpilot, which immediately catches your attention. But before you get too excited about that near-perfect score, let’s dig into what real traders are actually saying about their experiences.
Duncan Maclean from the UK doesn’t hold back in his praise:
“Exceptional prop firm, with amazing customer service. You can not fault breakout, one of the best out there!”
That kind of enthusiasm is echoed by Alan Jones, who’s been using the platform for over six months and specifically highlights how “the targets are very reasonable to get for your paid account” and praises their quick, professional problem-solving when issues arise.
The speed factor really stands out in user feedback. Fahad Rehman from Pakistan was genuinely surprised by their daily payouts, noting “Daily payouts is what I love about them. And they process it right away. No hidden stuff like risk management etc.”
When you’re used to waiting days or weeks for payouts from other firms, that kind of speed is game-changing.
However, it’s not all sunshine and rainbows. Donat Shipoli gives us a more sobering 3-star perspective after multiple attempts with the platform. His experience highlights some real operational concerns that potential traders should know about. He describes issues with payment processing where the company made an error but still charged him a 20% penalty, plus mentions that fees can significantly eat into profits with deductions like $22 from a $100 profit.
Even more concerning is Kutay Aktaş‘s 1-star review focusing on trading conditions. After three months and four accounts with Breakout, he reports that “whenever you want to go slightly higher position size, the slippage will punish you” and describes the platform as freezing every few minutes, requiring constant page refreshes. For active traders, especially those doing intraday strategies, these technical issues could be deal-breakers.
While the overall rating is high, the negative reviews highlight specific operational issues that potential traders should consider, particularly regarding platform stability and fee structures.
How to Get Started with Breakout Prop Firm
Seeing that Breakout prop firm is legit, are you ready to put your trading skills to the test? Here’s exactly how to get started with Breakout beginning with the requirements:
What You’ll Need:
- Be at least 18 years old (obviously)
- Stable internet connection that won’t leave you hanging during crucial trades
- Solid understanding of crypto trading fundamentals and risk management
- Enough confidence in your strategy to put it through a real evaluation
You’ll also need to pay an evaluation fee upfront (amount varies based on the account size you’re gunning for). But here’s the good news – that’s literally all the money you need. No additional trading capital required, which is the whole point of prop trading.
Step-by-Step Signup Process
1. Account Registration
- Visit Breakout’s official website
- Complete registration with valid email and personal information
- Verify email address and phone number
- Complete basic KYC (Know Your Customer) requirements
2. Evaluation Purchase
- Select desired account size (up to $200,000 notional)
- Choose evaluation parameters and trading conditions
- Pay evaluation fee using accepted payment methods
- Receive challenge account credentials
3. Challenge Phase
- Access demo trading environment with evaluation capital
- Meet profit targets while staying within drawdown limits
- Demonstrate consistent trading strategy over evaluation period
- Maintain risk management discipline throughout challenge
4. Performance Monitoring
- Track progress through dashboard and performance metrics
- Monitor daily and maximum drawdown limits
- Review profit targets and time requirements
- Access educational resources and support materials
5. Qualification Assessment
- Complete evaluation period successfully
- Meet all profit and risk management criteria
- Pass final review by Breakout’s evaluation team
- Receive notification of qualification status
6. Funded Account Activation
- Sign funded account agreement
- Receive live trading account credentials
- Begin trading with real capital allocation
- Access full range of available cryptocurrency pairs
7. Profit Withdrawal Process
- Generate profits through successful trading
- Request withdrawals through platform interface
- Receive payments within 2-3 hours (based on user reports)
- Maintain account in good standing for continued access
Takeaway
Breakout Prop Firm is legitimate and safe to use, primarily due to its acquisition by Kraken and its association with one of the most regulated cryptocurrency exchanges globally. The combination of institutional backing, transparent operations, positive user reviews, and regulatory oversight through Kraken’s licensing framework provides strong credibility indicators.
FAQs
Is Breakout Prop Firm Legit?
Yes, Breakout is legitimate. The firm was acquired by Kraken, a major regulated cryptocurrency exchange, which provides significant credibility and oversight. Real traders are successfully withdrawing profits, and the platform maintains a 4.9/5 Trustpilot rating with verified reviews confirming actual payouts.
What happens if Breakout goes out of business?
The risk is very low since Breakout is now owned by Kraken, which has operated successfully since 2011 with extensive regulatory licenses. Kraken’s established operations provide stability, but like any trading platform, only invest what you can afford to lose.
How long does the evaluation process take?
Typically 30-90 days, depending on your challenge parameters. You can qualify faster by hitting profit targets early while staying within drawdown limits. Some traders complete evaluations in just a few weeks.
Can I get my evaluation fee refunded?
No, evaluation fees are non-refundable whether you pass or fail. However, successful traders can earn back far more than the initial fee through profit sharing on funded accounts.
What are the main reasons traders fail evaluations?
Exceeding maximum drawdown limits is the biggest reason. Other common issues include inconsistent risk management, violating trading rules, and making emotional decisions under evaluation pressure.
How does the Kraken integration affect existing traders?
You’ll benefit from improved platform stability, access to more trading pairs, and eventual integration with Kraken Pro. The main advantage is increased confidence in the platform’s longevity and regulatory compliance.