Prop firm profit splits explained

The short answer

Most firms start at 80% and raise it to 90% at a scaling milestone or after a set number of payouts. The increase is worth less than it appears, because it only applies to money you actually withdraw. A shorter payout cycle or a lower minimum withdrawal usually improves your real outcome by more than ten percentage points of split.

In short

·The split applies to net profit after commissions and swap, not gross.

·A 90% split on a high-commission account can pay less than 80% on a cheap one.

·Advertised splits are often the scaled figure, not the starting one.

·The split matters far less than the drawdown rule, because it only applies to money you kept.

What it is

The profit split is the share of funded-account profit that goes to you. 80% is the category norm, 90% is common after scaling, and a small number of firms advertise 100%.

What it is calculated on

Net profit, after trading costs. Commissions, swap and any platform charges come off first, and only then is the percentage applied.

Worked through: $10,000 gross profit with $1,200 of commissions at a 90% split pays (10,000 − 1,200) × 0.9 = $7,920. The same gross with $300 of commissions at an 80% split pays (10,000 − 300) × 0.8 = $7,760. The lower split is nearly identical because the cost base is much lower — and at higher trade frequency it wins outright.

So compare split and commissions together, at your actual trade frequency. See hidden fees.

Starting versus advertised

"Up to 90%" usually means you start lower. Firms advertise the ceiling because it is the better number. Find the starting figure and what raises it — normally a scaling plan step, occasionally a paid add-on at checkout.

Paid split upgrades

Some firms sell a higher split as an add-on. Whether it pays for itself is arithmetic: the upgrade cost divided by the extra percentage points tells you the profit volume at which it breaks even.

A $50 upgrade from 80% to 90% breaks even at $500 of profit. If you expect to make that, it pays. If you are not confident of passing at all, it is $50 spent on an account you may not reach.

The 100% split

A few firms offer 100%, usually on instant-funding accounts or as a promotional tier. The revenue has to come from somewhere, so look for it: a higher entry price, a tighter drawdown, a longer wait to the first payout, or profit withheld until the purchase price is recovered.

None of that makes it a bad deal. It does mean the split alone is not the comparison.

Why it matters less than you think

The split applies only to profit you actually kept, on an account you did not breach. A firm with a 90% split and an intraday trailing drawdown your strategy cannot survive will pay you 90% of nothing more often than a firm with an 80% split and a static limit.

Order of importance when choosing: drawdown structure, payout terms, true cost, then split.

Frequently asked

When does a prop firm profit split increase?

Typically after a scaling milestone — a set percentage gained on the account — or after two or three successful payouts. A few firms sell the higher split as a paid add-on at purchase, which is only worth it if you are confident of reaching payouts at all.

Is a 90% profit split better than 80%?

Only by 12.5% on money you withdraw, which is smaller than the difference between being paid reliably and not. Weight the payout record and the cycle length above the split when comparing firms.

Can a firm lower my profit split?

The funded agreement usually permits changes to future terms, though existing accounts are more often grandfathered. It is one of the clauses worth reading before you scale, because a split reduction at a higher account size is a large change in absolute terms.

Now compare the rules yourself

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