Profit Split
Profit split is the share of net trading profits a trader keeps versus what the prop firm retains. Splits often improve with milestones.
Profit split is the percentage of net trading profits the trader keeps versus what the firm retains. Standard retail prop-firm splits range from 70/30 (trader/firm) to 90/10, with 80/20 being roughly the industry midpoint at the start of 2026.
Several variables affect the effective split. Commissions and platform fees are usually deducted from gross profits before the split is calculated, so a "80% split" on a strategy that pays 30% of gross profits in commissions is closer to a 56% effective split on gross. Some firms escalate the split with scaling milestones — e.g. 80% at first payout, 90% after the account grows past a threshold.
For instant-funding accounts, the first-payout split is sometimes lower than the steady-state split (e.g. 50% on the first payout, 80% thereafter) to recoup the upfront fee. For first-loss accounts, the split is typically more trader-favorable (80–95%) because the trader's deposit absorbs initial losses.
The reported split is also not the trader's effective return on capital. Because the funded account is almost always simulated, the trader's "split" is really a share of the firm's fee-pool revenue. The headline split number is most useful as a comparison metric across firms with similar account-size and payout structures.
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