Profit split
Also known as: prop firm profit split, reward split
Profit split: A profit split is the percentage of eligible profits on a funded prop firm account that the firm pays to the trader; the firm keeps the rest.
How does a prop firm profit split work?
After a trader passes a prop firm challenge, profits on the funded account are shared: the trader receives the agreed percentage of eligible profits at each payout. The percentage, how often payouts can be requested, minimum payout amounts and conditions such as a consistency rule vary by firm and programme. Some firms increase the split as the trader receives more payouts.
What counts as eligible profit?
Usually the closed profit above the funded account’s starting balance since the last payout, after any rule checks. Profits made by breaking a rule are typically excluded: what is a prop firm.
Worked example
Illustrative only: a funded $100,000 account closes the payout period at $104,000, so eligible profit is $4,000. With an 80% profit split the trader receives $3,200 and the firm keeps $800; the account then continues from its starting balance under the firm’s rules.
Learn more
- What Is a Prop Firm? How Prop Trading Firms Work
What a prop firm is and how prop trading firms work: challenge fees, prop firm evaluations, funded and simulated accounts, profit splits, rules and risks.
- Prop Firm Challenge Explained: One-Step, Two-Step and Instant Funding
How a prop firm challenge works: one-step vs two-step evaluations, instant funding, profit targets, drawdown limits, trading days, fees and refunds.
Related terms
- Funded account
A funded account is the prop firm account a trader receives after passing a challenge, or directly through instant funding, on which profits are shared under the firm's profit split.
- Consistency rule
A consistency rule is a prop firm condition that limits how much of a trader's total profit may come from a single day or trade, so that results are not driven by one outsized gain.
- Profit target
A profit target is the gain, usually a percentage of the initial account size, that a trader must reach to pass a stage of a prop firm challenge.