Profit Split
Also known as: profit share, performance split, trader payout share, profit sharing ratio
What is it?
A profit split is the agreed percentage of a funded account's profit that goes to the trader, with the remainder kept by the firm that supplied the capital. It is quoted trader-first, so 80/20 means you keep 80%. It is the price of the capital, and it is not the whole price.
| On $8,000 of account profit | 70/30 split | 80/20 split | 90/10 split |
|---|---|---|---|
| Your share | $5,600 | $6,400 | $7,200 |
| The firm's share | $2,400 | $1,600 | $800 |
| Payout fee (illustrative) | $120 | $120 | $120 |
| Reaches your bank | $5,480 | $6,280 | $7,080 |
| Difference against 70/30 | Baseline | +$800 | +$1,600 |
Payout processing fees and currency conversion are usually deducted after the split, so the headline percentage overstates what arrives. Many firms also scale the split upward with tenure or account size, starting at 70% and reaching 90% after several successful payout cycles, which makes the first cycle's rate a poor guide to the long-run rate. The arithmetic is worth doing in dollars rather than percentages.
On a $100,000 funded account that returns $8,000 in a cycle, an 80/20 split pays the trader $6,400 and the firm $1,600. Move the split to 90/10 and the trader receives $7,200 - an $800 difference on a single cycle, and the reason experienced traders weigh the split at least as heavily as the evaluation fee.
Why it matters: The profit split converts a trading result into actual income, so ten points of difference in the ratio changes take-home pay more than most strategy tweaks do.
Trader payout = Net account profit x Profit split % (payout and conversion fees are deducted afterwards)
The split changes no single trade's risk, but it sets how much of a successful cycle actually reaches you.
Real-world example
A $100,000 funded account closes a cycle up $8,000. At an 80/20 split the trader receives $6,400; the identical result at 90/10 would have paid $7,200.
How SignalBots handles it
SignalBots reports each strategy's historical win rate and reward-to-risk, so you can model what a cycle might produce and then apply your firm's split to see what would actually reach you. See /risk-warning.
Pro tip
Compare firms on the split you will hold in cycle four, not cycle one - a 70% starting rate that scales to 90% beats a flat 80% for anyone who lasts.
Common pitfalls
Reading the advertised split as take-home pay and ignoring the payout processing fee and conversion spread deducted after it.
Frequently asked questions
What is a typical prop firm profit split?
Most retail firms sit between 70/30 and 90/10 in the trader's favour, with 80/20 the common starting point. Splits above 90% usually come with a higher evaluation fee or stricter rules.
Is the profit split calculated before or after fees?
The split applies to net trading profit, after spread, commission and swap. Payout processing and currency conversion fees are then taken out of your share afterwards.
Can the profit split change over time?
Yes. Many firms run a scaling plan that raises the split as you complete consecutive profitable payout cycles, often reaching 90% after three or four of them.
Do I still get paid if I breach after a profitable month?
Profit already withdrawn is yours. Profit still sitting in the account when the breach happens is normally forfeited, so payout timing matters as much as the split itself.
Why does the firm keep any of the profit?
The firm supplied the capital and absorbs the losses of every trader who fails. The retained share funds those losses along with the platform, the data feeds and the payouts.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
