Payout Split
Evaluation & FundingThe percentage of trading profits that a funded trader keeps versus what the prop firm retains. Typical splits range from 50% to 100%, with most firms starting at 80% and offering increases for consistent performance.
Payout splits are one of the most important factors in firm selection. A higher split means more money in your pocket for the same trading performance. Most firms start at 80% and scale up to 90% based on consistency or account growth.
Some firms offer aggressive splits to attract traders. Apex and TopStep give 100% of the first $10,000-$25,000 in profits, then drop to 90%. The5%ers start low at 50% but scale up to 100% over time. FundedNext offers up to 95%.
Payouts occur on different schedules: weekly (TopStep), bi-weekly (FTMO, The5%ers), monthly (Apex), or on-demand within 24 hours (FundedNext). Some firms require a minimum profit threshold before you can request a payout. Consider both the split percentage and payout frequency when choosing a firm.
You make $10,000 profit on a funded account. At FTMO (80% split): you keep $8,000. At TopStep (90% split): you keep $9,000. At The5%ers (50% starting split): you keep $5,000. Over a year of consistent $10K/month profits, the difference between 80% and 90% split is $12,000 in your pocket.
Payout Split directly affects whether you pass or fail a prop firm evaluation. Unlike trading your own account where you can recover from mistakes over time, prop firm rules create hard boundaries -- violate them once and you lose your challenge fee and have to start over. Evaluation rules determine the path from paying a challenge fee to receiving funded capital. Getting this wrong means wasted money and time. Many traders cycle through multiple evaluation attempts because they misunderstand these mechanics.
Practical example across firms: FTMO and TopStep handle this differently. FTMO is a 2-step firm with static drawdown and a 5% daily loss limit, starting from €155. TopStep is a 1-step firm with trailing drawdown and a 2% daily loss limit, starting from $49. These structural differences mean your approach to payout split must adapt to whichever firm you choose.
Common mistake: Many traders rush through evaluations trying to hit the profit target as fast as possible. This leads to overleveraging and blowing accounts. The firms with no time limit (most of them) give you the freedom to be patient. Use it. A slow, consistent pass rate beats a fast blowup every time.
Funded Account
A trading account provided by a prop firm after passing the evaluation, where the firm supplies the capital and the trader keeps a percentage of profits. The trader does not risk their own money beyond the challenge fee.
Profit Target
The minimum profit a trader must generate to pass an evaluation phase or qualify for a payout. Once hit, the trader advances to the next phase or receives their funded account.
Scaling Plan
A program offered by prop firms that increases your account size and/or profit split as you demonstrate consistent profitability over time. Scaling rewards long-term funded traders with larger capital allocations.
Prop Firm (Proprietary Trading Firm)
A company that provides traders with capital to trade financial markets in exchange for a share of profits. Modern retail prop firms charge an evaluation fee and fund traders who demonstrate consistent profitability.