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What is Profit Split?

The percentage of profits a funded trader keeps versus what the prop firm takes — typically 80–90% to the trader.

The profit split is the arrangement between a funded trader and the prop firm governing how profits are divided. Most prop firms offer 80–90% to the trader and keep 10–20%.

Common profit split structures:

FirmTrader ShareFirm ShareNotes
FTMO80–90%10–20%90% available via scaling plan
MyFundedFX80–85%15–20%
E8 Funding80%20%
Topstep90%10%

Why prop firms take a cut:

The prop firm provides capital (risk), infrastructure, and absorbs losses if the trader underperforms. The profit split is compensation for this risk provision.

Scaling plans:

Most firms offer scaling plans — as you consistently hit profit targets, your account size increases and sometimes your profit split improves. FTMO's scaling plan can increase funded account size from $100k to $200k with demonstrated consistency.

The economics from a trader's perspective:

On a $100,000 funded account generating 5%/month:

  • Gross monthly profit: $5,000
  • Trader's share (80%): $4,000
  • Annual earnings at this rate: $48,000
  • On your own $100,000 account generating 5%/month:

  • You keep 100%: $5,000/month or $60,000/year
  • The prop firm arrangement is most valuable when you cannot fund a large account yourself — you get $100k in capital for the price of a challenge fee ($200–$600).

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