Glossary · Prop Firms
Profit Split
Profit split is the percentage of profits a funded trader keeps versus the percentage the prop firm retains, applied once a trader clears an evaluation and moves to a funded account. It's usually shown as a ratio (trader share / firm share) and is fixed in the firm's payout policy, though some firms let it change over time.
Why it matters
The split determines your actual take-home pay on every withdrawal, so two challenges with similar account sizes can produce very different real earnings once you factor in the split. Some firms lock the split from the first payout, while others start lower and raise it through a scaling plan or a paid add-on upgrade, which changes how much a trader can earn over a longer run of consistent results.
Live data
Example
Say a trader earns a gross profit on a funded account. At an 80/20 split, the trader keeps the larger share and the firm keeps the smaller share. If that same firm offers a scaling plan that lifts the split to 90/10 after a run of consistent payouts, the same gross profit would instead pay out a larger share to the trader, with a smaller share retained by the firm.
Common misconception
Traders often assume the highest advertised split wins automatically, but a headline split means little if the profit target is harder to hit or the payout cycle is slow. A firm offering a lower split with an easier target and a faster payout cycle can put more money in a trader's account sooner than a firm advertising a higher split with stricter conditions. The split is only one variable in the total payout equation, not the whole answer.
Related terms
See also
The FXIFY firm profile, which publishes a default profit split alongside an optional add-on upgrade to a higher tier, is a useful concrete reference point for comparing scaling structures across firms.
Sources
Risk disclaimer: Trading carries a substantial risk of loss and is not suitable for everyone. Prop-firm evaluations charge fees and most traders do not pass. Nothing here is financial advice; figures can change, so verify current terms with the firm before purchasing.
Next step
See how firms actually apply this.
Compare current account sizes, rules, discounts and funding terms side by side.
