Profit Split in Prop Trading: How does profit split work in props?
Prop trading, or trading on the capital of an investment company, is rapidly gaining popularity among traders around the world. One of the key elements of this cooperation is the so-called profit split – profit sharing between the trader and a prop trading company. Understanding how profit split works, what models are available, and what to look for when choosing a company will allow you to make an informed choice and maximize your income. In this article, we will take a closer look at the profit split structures in prop trading, compare the most important companies on the market, and point out what to consider before making a decision.
What is profit split in prop trading?
Profit split is a percentage division of profits earned by a trader on the company's capital. The most common proportions are 70/30, 80/20, 90/10and in the best cases even 95/5 in favor of the trader. The prop trading firm keeps a portion of the profits as compensation for providing the capital and bearing the risk, and the rest goes to the trader.
Thanks to this model, a trader can trade with larger capital without the risk of losing his own funds, and the company earns on the success of its best participants.
The most popular profit sharing models
In the prop trading industry, there are several main profit split models that vary in their level of flexibility and motivation for the trader.
Fixed profit split
This is the simplest model in which a trader always receives the same percentage of profits, regardless of results or seniority.
- Typical proportions: 80/20, 85/15, 90/10,
- Transparent rules and easy calculation of potential earnings.
For whom: This model is particularly attractive to people who value stability and predictability.
Progressive profit split
In this model, the trader's share of profits increases with the results achieved or the length of time in the company.
- Start from a lower level (e.g. 60%), increase to 80%, 90% or even 95%,
- Typically, certain conditions must be met (e.g., a series of several months of profits, a specified percentage of profit, no violations of the rules).
For whom: This solution motivates long-term development and building stable results.
Hybrid model
It combines elements of both of the above models: the trader starts with a fixed, lower split, and after meeting the conditions, moves to a higher, progressive split.
- Flexibility to suit different types of traders,
- Opportunity to quickly advance to a higher level of profit sharing.
For whom: The hybrid model is often found in modern prop firms that want to attract both beginners and experienced traders.
Choosing the right profit-sharing model for us depends on individual expectations – people focused on quick profits may prefer a fixed split, while those building a long-term career may prefer a progressive or hybrid one.
Profit Split Comparison at Selected Prop Trading Firms
Different prop trading companies offer different terms of profit sharing, capital scaling, and payouts. Below we have listed the most important parameters for five popular brands:
| Company | Profit Split for Trader | Division model | graduation | Payout speed | Special Notes |
|---|---|---|---|---|---|
| FTMO | 80-90% | Progressive | Up to $2M | Up to 8h, bi-weekly | 90% after meeting the scaling plan conditions |
| The Trading Pit | 50-80% | Progressive | Yes | After reaching the threshold | Starting from 50–60%, increasing to 80% |
| 5%ers | 50-90% | Progressive | Yes | Fast | 50% standard, up to 90% in higher programs |
| Fintokei | 50-95% | Progressive/different accounts | Yes | Every 2 weeks | 50% (Swift Trader), 80-95% (Pro Trader) |
| Spice Prop | 60-90% | Depends on the program | Up to €500K | After 2 challenges | 60-90% depending on the program and account size |
| FunderPro | 80-90% | Fixed/progressive | Yes | Fast, every 14 days | 80% standard, 90% after meeting the conditions |
As you can see, the profit split conditions are very diverse. The highest share of profits (up to 95%) is offered Fintokei in the Pro Trader program, while FTMO allows you to reach 90% after meeting the scaling plan conditions. It is also worth noting the differences in minimum requirements, payout frequency and program flexibility.
Key factors affecting profit split
When choosing a prop trading company, it is not worth being guided solely by the profit split percentage. Other terms of cooperation that can significantly affect real earnings are also important, such as:
- Fees for participating in the program (challenge fee, monthly account maintenance),
- Conditions for scaling capital (whether funds can be increased and on what terms),
- Drawdown and risk restrictions,
- Frequency and speed of profit payments,
- Possibility of trading during news, overnight, weekends,
- Transparency of regulations and technical support.
It is worth carefully analyzing the entire offer, and not just the percentage of profit share - often a lower share, but better scaling or payout conditions, may be more beneficial in the long run.
How to choose the best profit split offer?
The selection of the optimal profit split structure depends on the trader's individual needs, trading style and career development expectations.
- People looking for quick profits may prefer programs with a high, fixed profit split and frequent payouts.
- Traders building a long-term career should consider firms with a progressive model and the ability to scale capital.
- It is worth paying attention to additional benefits: education, support, flexibility of trade.
The best offer is one that combines a high profit split with transparent rules, quick access to profits and the possibility of development within the program.
Summary
Profit split is the foundation of cooperation in prop trading, determining the real earnings of the trader. The best companies offer up to 95% of profits for the trader, but the conditions of scaling, withdrawals and transparency of regulations are equally important. Before choosing a company, it is worth thoroughly analyzing all aspects of the offer to ensure optimal conditions for development and maximization of profits in the world of prop trading.