Restricted Countries
A list of countries from which a prop firm will not accept traders, typically driven by US OFAC sanctions, payment processor limitations, or regulatory compliance.
What is Restricted Countries?
Restricted countries are jurisdictions from which a prop firm will not accept traders. The list varies by firm but typically includes OFAC-sanctioned nations (Iran, North Korea, Cuba, Syria, Russia in some firms) plus countries where the firm’s payment processors don’t operate or where local regulatory requirements make trader acceptance unfeasible.
The key insight: this isn’t about the trader’s nationality — it’s about the trader’s residency at signup and payout. A US citizen residing in Iran would face the same restriction as an Iranian national; a Pakistani national residing in Canada would face Canadian restrictions (none for most firms).
Restrictions are enforced via KYC (Know Your Customer) verification at signup. The trader provides government-issued ID + proof of address. The firm matches the country to its restricted list. If matched, the application is rejected. Modern firms also detect VPN/proxy usage during trading — unusual IP-vs-registered-address mismatches flag for review.
How Restricted Countries works
Common restriction tiers:
Tier 1 — Hard restrictions (universal):
- Iran, North Korea, Cuba, Syria, Crimea region (OFAC sanctions)
- Russia (most US firms post-2022)
- Belarus (some firms)
Tier 2 — Soft restrictions (varies by firm):
- Vietnam (restricted by some firms due to payment processor issues)
- Pakistan (varies)
- Bangladesh (varies)
- Nigeria (varies due to fraud-rate concerns)
- Various smaller jurisdictions where Wise/Deel don’t operate
Tier 3 — Generally accepted with caveats:
- India, China, Indonesia, Philippines, Thailand — accepted at most firms with proper KYC
- European Union — generally accepted
- Brazil, Argentina, Mexico — generally accepted (regional payment processor variance)
Enforcement at three points:
- Signup: KYC matches address to restricted list. Rejection is immediate.
- Trading: IP logging detects unusual location patterns. Sustained IP from restricted region triggers review.
- Payout: Payment processor verification (Deel, Wise) requires bank/processor in non-restricted jurisdiction. A trader signed up in Canada attempting payout to an Iranian bank fails verification.
VPN detection: Modern firms detect VPN/proxy usage via known VPN IP ranges, browser fingerprinting, and connection-pattern analysis. Using a VPN to bypass country restrictions is a hard breach — universally results in account closure.
Worked example
Common scenario — Vietnamese trader applying:
- Trader resides in Vietnam, applies to Apex with Vietnamese ID + address
- Apex KYC: Vietnam is on the restricted list (varies by current Apex policy — verify on apextraderfunding.com)
- Application rejected immediately at signup
- Trader tries Tradeify instead — Tradeify accepts Vietnamese residents
- Application approved. Trader proceeds with Tradeify evaluation.
VPN bypass attempt — usually fails:
- Trader resides in Iran. Wants to access Apex.
- Sets up VPN with US exit node. Signs up with US address (faked).
- Apex KYC: address verified via document upload. If trader can’t produce real US documents, KYC fails.
- If they CAN produce documents (e.g., a friend’s address): account opens, but IP logging detects Iranian connection pattern within days. Account flagged.
- First payout request: bank/processor verification reveals Iranian banking. Account closed, payout forfeited, lifetime ban.
The path of least resistance for restricted-country traders is to find a firm that accepts their jurisdiction — not to bypass restrictions. See our country-by-country guide at /prop-firms-by-country/.
Restricted Countries vs related concepts
Side-by-side comparison of Restricted Countries against the most commonly confused alternatives.
| Concept | Definition | Category |
|---|---|---|
| Restricted Countries this term | A list of countries from which a prop firm will not accept traders, typically driven by US OFAC sanctions, payment processor limitations, or regulatory compliance. | Rules & Risk |
| Individual Use | A rule requiring that each prop firm account is used by only one trader — sharing accounts, account-stuffing, or trading on behalf of others is universally prohibited. | Rules & Risk |
| Rule Breach | Any violation of a prop firm's trading rules — some breaches are warnings, others permanently end the account. | Rules & Risk |
Why traders fail Restricted Countries
Assuming restrictions are nationality-based. Restrictions are RESIDENCY-based. A US citizen residing in Iran is subject to Iran restrictions. A Pakistani national residing in Canada is subject to Canadian rules (typically permissive).
Using VPN to bypass restrictions. Universally a hard breach. Modern detection systems catch this within weeks at most. The eventual account closure forfeits any pending payouts.
Not checking the firm’s specific list. “Prop firms accept everyone” is false. Each firm has its own restricted list, often updated. Verify on the firm’s website at signup time, not based on years-old reviews.
Submitting fake KYC documents. Document forgery to bypass country restrictions is fraud, not just a rule violation. Some firms report this to law enforcement in addition to closing the account.
Frequently asked questions about Restricted Countries
Which countries are universally restricted from US prop firms?
OFAC-sanctioned nations: Iran, North Korea, Cuba, Syria, Crimea region. Russia is restricted by most US firms post-2022. Belarus by some firms. These are hard restrictions that no major US prop firm accepts.
Can I use a VPN to bypass country restrictions?
No. VPN usage is universally a hard breach. Modern prop firms detect VPN/proxy usage via IP range analysis, browser fingerprinting, and connection patterns. The eventual account closure forfeits payouts and typically results in lifetime ban.
Which prop firms accept Pakistani / Vietnamese / Bangladeshi traders?
Tradeify is generally most permissive on Tier-2 restricted regions. FundedNext also covers more jurisdictions than US-only firms. Always verify on the specific firm's site at signup — restriction lists change. See /prop-firms-by-country/ on damnpropfirms.com for current acceptance.
How do prop firms verify my country of residence?
KYC at signup: government-issued ID + proof of address (utility bill, bank statement). Payment processor verification at payout: bank account or Deel/Wise account must be in a non-restricted jurisdiction matching the registered identity.
What if my country is restricted but I move to an accepted country?
You can apply with your new country's documents and address. The restriction is residency-based, not nationality-based. Some firms require waiting periods after a country change before accepting applications, but most accept new applications immediately if KYC documents verify the new residency.