Profit Split
A profit split is the contractual arrangement between a proprietary trading firm and a funded trader specifying the percentage of simulated net profits the trader retains after each payout cycle, with the remainder kept by the firm, typically ranging between 50% and 100% in the trader's favour depending on the firm and account tier.
Splits range from 50/50 at the lowest tier of some firms to 90/10 or even 100/0 at the highest tier of others. The most common funded-account split across the major firms in 2025–2026 is 80/20 in the trader's favour, with payout cycles ranging from weekly to monthly. The split is contractual and is documented in the funded-account agreement issued at funding.
This page covers the mechanic; it is not trading advice.
Prop firm rules vary between firms and change frequently. Always verify specific rules directly with your firm before making any decision.
How the profit split works in practice
The share of your trading profits you keep. If a firm offers an 80% split and your funded account generates $1,000 in a payout cycle, you receive $800 and the firm retains $200. The remainder reflects the firm's compensation for providing the capital, carrying the risk, and operating the platform.
The split is not always uniform across the funded account's life. Many firms use a progressive split — 80% for the first payout, 85% for subsequent payouts, 90% after a scaling milestone. Some firms cap the split at 100% under specific conditions (e.g. after a refund-cycle is complete or for traders in certain account tiers). The contractual split documented at funding is the authoritative figure for any given payout cycle.
An 80% split across a $4,000 winning month
Funded account: $100,000. Profit split: 80% to the trader. Payout cycle: monthly. Month 1 net simulated profit: $4,000.
Trader's payout = $4,000 × 80% = $3,200. Firm's retained share = $4,000 × 20% = $800. The funded account balance resets to the $100,000 starting balance for Month 2.
If the trader is on a progressive split that rises to 90% after the first payout, Month 2's $4,000 profit yields $3,600 to the trader and $400 to the firm. Over a 12-month period of consistent $4,000 monthly profit, the difference between a fixed 80% split and a progressive 80%/90% split is $4,400 — material to the trader's compounding.
Related terms
Common questions
Is the profit split applied before or after fees?
Net profit (after commission, after swap, after any per-trade or per-month fees specified in the funded-account agreement) is the base on which the split is applied. The split percentage applies to net simulated profit, not gross. Firms publish the calculation method in the funded-account terms — verify directly.
Can the profit split change after funding?
The split documented at funding governs the account. Firms may offer the trader a higher split as part of a scaling plan or an account upgrade, but the trader's existing account cannot have the split unilaterally reduced. A trader who upgrades to a larger account size typically starts a new agreement with that account's split — the old account is closed or rolled into the new agreement, as specified in the firm's scaling plan documentation.