What is 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.
This is the mechanism that separates a funded account from a durable source of income.
How it triggers
Conditions vary, but two models dominate. The first rests on cumulative performance: reaching a 10 % gain on the account triggers an increase in capital, often 25 to 50 %. The second rests on consistency: a set number of successful withdrawals, or consecutive profitable months, opens the next tier.
Progression frequently comes with an improved profit split, moving for example from 80 to 90 % across the tiers.
Why it matters
At an identical split, a trader able to produce 3 % a month mechanically earns three times more on a $300,000 account than on a $100,000 one. Scaling is therefore the only lever that grows income without improving performance.
It is also what separates firms built to last from those living on evaluation fees: allocating more capital to a profitable trader only makes sense if the firm genuinely earns from their performance.
The limits to read
Two ceilings frame any scaling plan: the maximum allocation per account, and the number of accounts that can be combined. Some firms advertise very high allocations reachable only by adding several accounts together — that is not the same as trading a single size.
Finally, check whether the drawdown follows the capital as it grows or stays calculated on the initial amount: the answer completely changes your room to manoeuvre at the upper tiers.
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Related terms
- 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.
- Maximum allocation Maximum allocation is the total capital a prop firm will entrust to a single trader. It is reached through the scaling plan and most often sits between $150,000 and $2 million depending on the firm.
- 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.
- 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.