Profit split
The share of trading profits you keep at a prop firm - usually rising as you scale past evaluation.
The share of trading profits you keep at a prop firm - usually rising as you scale past evaluation.
Prop firms fund accounts and take a cut of what you make with them; the split starts modest in the first funded stage and climbs as you hit payout milestones, with common starting points around 80/20 or 70/30 in the trader's favour. The headline percentage is only half the contract: payout frequency, minimum profit before a withdrawal is allowed, and whether the firm's fees are refunded on first payout all change what actually reaches you.
Splits also differ between simulated 'funded' environments and live capital, and some programs pay on simulated performance only - a model that changes what the firm is actually risking. Read the payout clause before the split clause: a 90% share with a $10,000 minimum and monthly-only windows is worth less than a lower percentage paid on demand.
Worked example
You are paid 80% of profits on a $100,000 account and clear $4,000 in a month: $3,200 is yours under the base split. If the same program pays 90% but only above a $5,000 monthly minimum, that month pays nothing - the higher number was never reachable.
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