Profit Split
A profit split is the contractual arrangement between a proprietary trading firm and a funded trader specifying the percentage of net profits, usually simulated, that the trader retains after each payout cycle, with the remainder kept by the firm, ranging from 50% to 100% in the trader's favour depending on the firm, the account tier and, at some firms, the payout frequency the trader chooses.
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. Where a split sits in that range depends on the firm's plan and the account tier, and at some firms on the payout frequency: a monthly cycle can pay a higher split than a weekly one. Some firms pay 90% from the first payout. Payout frequency runs from daily or on request to monthly, and some firms tie eligibility to a number of profitable days instead of a calendar cycle. The split is set in the firm's terms for the account; at some firms the trader chooses it when buying the challenge, and it stays fixed for the life of the account.
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 firm keeps the remainder. Where the funded account is a simulated balance, the firm pays the trader's share in real money and the remainder is simply not paid out.
The split is not always uniform across the funded account's life. Some firms use a progressive split: one firm pays 80% by default and 90% once the trader meets its Scaling Plan conditions, and another starts at 50% and rises to 100% as the funded account scales. At other firms the split reaches 100% only on a specific payout choice, for example a monthly payout cycle instead of a weekly or bi-weekly one. The split stated in the firm's terms for the account 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. In this example the whole $4,000 is withdrawn, so Month 2 starts from $100,000; some firms cap a single payout at a share of the balance, which leaves the rest of the profit in the account.
If the trader is instead on an assumed 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 (11 payouts × $400).
Related terms
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Common questions
Is the profit split applied before or after fees?
After trading costs. Commission and swap are charged on the simulated account as trades run, so the split applies to net simulated profit, not gross. What the split is applied to varies by firm: some apply it to the net profit of the whole payout cycle, others to the amount the trader requests, which can be capped at a share of the balance. A fee charged on the payout itself, such as a transfer processing fee, can come off after the split. The firm's payout terms state the method.
Can the profit split change after funding?
It can rise: on a progressive split the trader's share increases once the firm's scaling or account conditions are met, At other firms the split is set when the challenge is bought, sometimes with a higher split sold as an add-on at that point: one firm locks the split chosen at purchase for the life of the account. Whether a firm can change an existing split, and what happens to the split when the trader moves to a larger account, is set in that firm's terms.