What is profit split?
The profit split is the share of gains paid back to the trader on a funded account. It generally sits between 80 and 90 %, and can reach 100 % at some firms through a scaling plan or a promotional offer.
It is the number prop firms advertise most, and rarely the one that genuinely separates two offers.
What the percentage does not say
An advertised 90 % split is rarely the one that applies to the first withdrawal. Three mechanisms adjust it.
The starting tier first: many firms begin at 80 % and only reach their maximum after several successful withdrawals or a step up in the scaling plan. Some even apply a reduced rate on the first few thousand dollars of profit.
The payment cycle next: a high split locked behind a monthly cycle ties up your capital longer than a lower split paid every two weeks. Over a year, the cash-flow difference often exceeds the percentage difference.
The minimum withdrawal threshold last: some firms only allow a payout above a floor amount, which mechanically pushes back the first payment on small accounts.
What the split covers
The share applies only to gains. Losses remain entirely the firm’s, within the drawdown allowed: beyond it the account is closed and you lose access, but you never owe the company money. That is precisely what you buy when you pay for the evaluation.
Comparing honestly
At equal profit, the useful question is not “what percentage” but “how much reaches my bank account, and how soon”. An 85 % split paid fortnightly with no minimum is worth more, in practice, than a capped 90 % paid monthly.
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Related terms
- Consistency rule A consistency rule caps the share a single day can represent in total profit. Set between 15 and 50 % depending on the firm, it most often blocks a withdrawal rather than failing a challenge.
- Funded account A funded account is the trading account a prop firm allocates once the evaluation is passed. The trader operates under continuing risk rules and keeps a share of the profits, without ever holding the nominal capital.
- Payout A payout is the actual transfer of a funded trader's gains. It follows a cycle specific to each firm, after a minimum period since the account was opened, and often above a floor amount.
- Scaling plan A scaling plan is the mechanism by which a prop firm increases the capital allocated to a consistent trader. Progression triggers after a number of profitable cycles or successful withdrawals, and sometimes comes with a higher profit split.