At PAX MARKET FUNDS–style firms, funded traders can access large capital, high profit splits, and scaling opportunities — all of which influence your true earning potential. In this detailed guide, we break down how prop trading payouts work, what affects your income, and realistic earning scenarios for beginners and advanced traders.
1. How Prop Trading Income Really Works
Your earnings in prop trading depend on four main components:
1. Funded Capital Size
The more capital you manage, the higher your potential returns.
Typical accounts:
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$10,000
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$25,000
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$50,000
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$100,000
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$200,000+
PAX MARKET FUNDS–style models offer even larger scaling accounts, sometimes up to $1M+.
2. Profit Split Percentage
Prop firms pay traders a profit share such as:
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70/30
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80/20
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90/10
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Some firms (like PAX MARKET FUNDS style) offer up to 95% to the trader.
This means if you earn $10,000 in a month with a 90/10 split, you keep $9,000.
3. Your Monthly Performance
This depends on your trading style:
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Low-risk Swing Trader: 2% – 5% monthly
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Experienced Day Trader: 5% – 15% monthly
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High-skill Scalper: 10% – 25% monthly
(Consistent profits matter more than big profits.)
4. Scaling Plans
Prop firms reward disciplined traders.
If you hit profit targets without breaking rules, firms increase your capital:
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$50k → $100k → $200k → $500k → $1M
This massively increases earning potential over time.
2. Realistic Income Scenarios in Prop Trading
Let’s break down practical examples using a PAX MARKET FUNDS–style profit split (90/10 to the trader).
Scenario 1: $50,000 Account – Conservative Trader (5% Monthly)
Profit:
5% of $50,000 = $2,500
Your Payout:
90% of $2,500 = $2,250/month
Annual estimate: $27,000 – $30,000
Perfect for beginners who focus on low-risk trading.
Scenario 2: $100,000 Account – Moderate Trader (8% Monthly)
Profit:
8% of $100,000 = $8,000
Your Payout:
90% of $8,000 = $7,200/month
Annual estimate: $80,000 – $100,000
This is where most profitable day traders aim to reach.
Scenario 3: $200,000 Account – Skilled Trader (10% Monthly)
Profit:
10% of $200,000 = $20,000
Your Payout:
90% of $20,000 = $18,000/month
Annual estimate: $200,000+
These results require discipline, experience, and strong risk management.
Scenario 4: $1,000,000 Scaling Account – Advanced Trader (5% Monthly)
Profit:
5% of $1,000,000 = $50,000
Your Payout:
90% of $50,000 = $45,000/month
Annual estimate: $500,000+
This is the top tier of prop trading, usually achieved after months of consistency.
3. Factors That Influence Your Earnings in Prop Trading
1. Risk Management
The most profitable traders risk 0.5–1% per trade.
Consistency matters far more than hitting home-run trades.
2. Psychology Under Pressure
Prop firms have rules.
If you break them — no payout.
That’s why emotional control (fear, greed, FOMO) directly affects earnings.
3. Trading Strategy
Profits vary depending on your approach:
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Scalping = more trades, more payouts
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Swing trading = fewer but larger moves
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Algorithmic trading = consistent automation
Choose a strategy that matches your personality.
4. Market Conditions
Your income changes depending on volatility:
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Good volatility → More opportunities
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Low volatility → Fewer high-reward setups
Successful traders adapt, not chase.
4. Can You Make a Full-Time Income From Prop Trading?
Yes — many traders do.
But it requires:
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Strict rule-following
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Risk management
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Realistic expectations
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Consistency over months
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Avoiding emotional mistakes
Prop trading is NOT a get-rich-quick model.
It is a performance-based business.
5. How PAX MARKET FUNDS–Style Models Help Traders Earn More
Prop firms like PAX MARKET FUNDS are designed to maximize trader earnings, offering:
✔ High profit splits (up to 90–95%)
✔ Fast withdrawals
✔ Scaling plans up to $1M+
✔ Flexible trading rules
✔ Low-risk challenge structures
✔ Access to professional trading capital
This makes it possible for consistently disciplined traders to earn far more than they could with their own funds.