PROP FIRMS & FUNDED ACCOUNTS

Profit split

A profit split is the share of trading profits a funded trader keeps, with the remainder going to the prop firm — commonly ranging from 50% to 90% in the trader's favour.

Splits are frequently advertised at the highest available tier, which may require scaling milestones, a subscription, or an add-on purchased at evaluation. The headline figure and the figure applying to a first payout are often different.

The split is also less decisive than it appears in marketing. The difference between an 80% and a 90% split is immaterial if the account is lost to a rule breach, and rule breaches are far more common than payouts.

Related terms

Funded accountA funded account is a trading account backed by a prop firm's capital rather than the trader's own, granted after passing an evaluation, and governed by loss limits and rules the trader must keep to in order to retain it.Prop firmA proprietary trading firm gives traders access to the firm's capital to trade, splitting any profits. Modern retail prop firms typically grant that access only after a trader passes a paid evaluation with defined profit targets and loss limits.Consistency ruleA consistency rule is a prop firm requirement that no single trading day or trade may account for more than a set percentage of total profit, preventing a trader from passing an evaluation on one outsized win.

Maintained by Jared Sinclair, Founder · Syrax Global FZCO · Definitions are educational, not financial advice.

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