Profit Split
The percentage of trading profits a funded trader keeps versus what is paid to the prop firm, typically ranging from 70% to 95% in the trader's favour.
What is Profit Split?
Profit split is the revenue-sharing agreement between you (the funded trader) and the prop firm. When you generate profits on your funded account, the split determines what percentage goes to you.
Industry standard
- 80/20: Trader keeps 80%, firm keeps 20% โ was the old standard
- 90/10: Now common among competitive firms
- 100/0: Some firms offer this (usually up to a limit or during a promotional period)
Scaling and split upgrades
Many firms increase your profit split as you hit performance milestones:
- Reach 10% profit โ split upgrades from 80% to 90%
- Reach scaling threshold โ account size and split both increase
What the firm keeps isn't wasted
Prop firms use their share to cover infrastructure, platform fees, risk management teams, and customer support. Firms offering 100% splits typically recoup costs through challenge fees instead.
How Firms Apply This Rule
FTMO: up to 90%. FundedNext: up to 95%. Funding Pips: 80โ100% depending on plan. Topstep (Futures): 90% after first $10K, then 100%.
Related Terms
Scaling Plan
A structured programme allowing funded traders to grow their account size by hitting consistent profit targets, rewarding successful traders with more capital.
Payout Frequency
How often a funded trader can request and receive their share of profits from a prop firm โ ranging from weekly to monthly.
Evaluation Phase
The trading test period(s) a trader must pass โ hitting profit targets while respecting all risk rules โ before receiving a live funded account.
