Profit Split
The percentage of trading profits a funded trader keeps, with the remainder going to the prop firm.
Definition
The profit split is the percentage of net trading profits that a funded trader receives from a prop firm. The rest goes to the firm. A 90% profit split means the trader keeps 90 cents of every dollar of profit and the firm takes 10 cents. Profit splits range from 50% to 100% depending on the firm and the account tier.
Example
A trader with a $100K funded account at 80% profit split earns $10,000 in a month. They receive $8,000 and the firm keeps $2,000. Some firms offer scaling plans that raise the profit split (e.g., from 80% to 90%) after consistent performance.
Why It Matters
Profit split is a key factor in evaluating the long-term value of a prop firm. A firm with a lower challenge fee but higher profit split can be more profitable overall than a cheaper firm with a lower split. Also check whether the split applies to gross or net profits, and whether there are withdrawal fees on top.
Firms Using This (5)
Related Terms
Scaling Plan
A structured path that increases the trader's account size after hitting performance milestones — more capital, often with improved profit splits.
Funded Account
The trading account granted after passing the evaluation — almost always simulated, with real profit splits and real payouts.
Payout Frequency
How often a funded trader can request withdrawal of their profit split — on-demand, weekly, bi-weekly, or monthly.
← All termsLast updated 2026-04-21