Profit Split
The profit split is the share of profits a funded trader keeps, typically 70-90% with prop firms.
The profit split is the share of profits a funded trader keeps, typically 70-90%. A high split on unfair rules is worth less than a fair split on a tradeable account.
The profit split is the percentage of trading profits a funded trader keeps under a prop firm arrangement, with the firm taking the remainder. Standard splits run from 70% to 90%, with higher splits usually tied to account type or scaling milestones. The split matters less than the rules around it: a high split on an account with impossible drawdown constraints is worth less than a fair split on a tradeable one.
How It Works
- Expressed as a percentage, e.g. 80/20 in the trader's favour
- Paid on the firm's payout schedule (weekly, bi-weekly, monthly)
- Some firms increase the split through scaling plans
Trading Tips
Compare the split alongside the drawdown rules and payout schedule, not in isolation
Check whether the split applies from the first payout or after milestones
Profit Split Example
Say two firms offer 80% and 90% splits on $100,000 accounts. The 90% firm caps daily loss at 4% with trailing drawdown. The 80% firm allows 5% static. The generous split costs more in failed challenges than it ever pays in payouts.
How Traders Use Profit Split
Rank splits last among firm criteria: payout reliability, drawdown math and rule clarity decide your income. A 70% split that actually pays beats a 95% split from a firm that invents violations.
Related Terms
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