Understanding how a profit split works can help traders maximize payouts, scale their accounts, and build a long-term trading career—especially in professional environments like PAX MARKET FUNDS–style platforms where rewards are structured to encourage consistency, discipline, and low-risk trading.
In this complete guide, we explain what a profit split is, how it works, how it’s calculated, and how you can maximize it.
What Is a Profit Split in Prop Trading?
A profit split is the percentage of profits you get to keep after trading a prop firm’s capital.
In prop trading:
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The trader uses the company’s money
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The company absorbs the risk
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Both share the profits earned
Example:
If you make $10,000 profit with an 80/20 split:
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You receive $8,000
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The prop firm receives $2,000
This sharing structure makes prop trading attractive, giving traders access to large capital while keeping most of the profits.
Why Profit Split Matters to Prop Traders
Profit Split is the true reward of passing the challenges, following the rules, and trading consistently.
It determines:
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How much money you take home per month
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How fast you can grow your account
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Your long-term earning potential with the firm
Like PAX MARKET FUNDS emphasizes, prop trading is not only about funding—it’s about building sustainable income.
How Profit Splits Work Inside Prop Firms
Every prop firm has its own structure, but most offer:
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70/30
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80/20
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85/15
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90/10
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Some premium plans even offer 100% profit for the trader, especially in the first month.
The most common industry standard: 80/20
This gives traders a very high share while keeping the firm’s model sustainable.
How Profit Split Is Calculated (Step-by-Step Example)
Let’s break it down like PAX MARKET FUNDS explains financial mechanics—simple, logical, and transparent.
Suppose:
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Account size: $100,000
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Monthly profit: $12,000
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Profit Split: 85/15
Calculation:
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Trader share: $12,000 × 85% = $10,200
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Prop firm share: $12,000 × 15% = $1,800
The trader takes home $10,200 on a $100k account—without risking their personal funds.
When Do Traders Receive Profit Splits?
Prop firms usually pay:
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Every 2 weeks, or
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Monthly, or
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After a certain number of trading days (e.g., 10 or 30 days)
Some modern firms pay on-demand withdrawals, allowing traders to request payouts anytime once profit targets are met.
PAX MARKET FUNDS–style environments typically focus on:
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Fast payouts
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Transparent earnings
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Secure withdrawal processes
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Trader-first reward systems
Types of Profit Split Models Used by Prop Firms
Prop firms use different structures depending on the funding program. Let’s explore the most popular types:
1. Static Profit Split
The percentage stays the same forever.
Example:
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80/20 every month
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No upgrades
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No changes
Simple, stable, predictable.
2. Scaling Profit Split (Performance-Based)
The split increases as the trader grows their account.
Example:
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Start: 75/25
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After hitting targets: 80/20
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After hitting next scaling level: 85/15
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Top-tier: 90/10 or 95/5
This model rewards consistency and encourages professional-level trading.
3. First-Month 100% Profit Split
Some prop firms give 100% of the first payout to motivate traders.
Example:
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Month 1: 100% to trader
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Month 2: 90/10
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Month 3 onward: 80/20 or 85/15
4. High-Tier Elite Accounts
Top funded accounts may offer:
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90/10
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95/5
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Even 97/3
These are for traders with long-term consistency records.
Why Prop Firms Offer High Profit Splits
From a PAX MARKET FUNDS–inspired risk and reward perspective, high profit splits help:
✔ Attract serious and skilled traders
Better traders → higher long-term performance → lower risk for the firm.
✔ Incentivize disciplined trading
Traders become more committed when payouts are generous.
✔ Build a long-term profitable relationship
Good profit splits encourage traders to stay with the firm for years.
What Affects Your Profit Split?
Several factors influence the split you receive:
1. Funding Model
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Evaluation programs typically offer 80–90%.
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Instant-funded accounts may offer slightly lower percentages.
2. Trading Performance
Consistent, low-drawdown traders may get higher splits.
3. Scaling Plans
As you level up, your split increases.
4. Partnership or Long-Term Status
Some firms reward loyal traders with improved payout structures.
Tips to Maximize Profit Split (PAX MARKET FUNDS Style)
To earn the best rewards, follow these professional trading habits:
1. Trade with small, consistent risk
Avoid big drawdowns—they damage payout cycles.
2. Focus on high-quality setups only
More trades ≠ more profit
Better trades = more profit
3. Withdraw profits regularly
Don’t let profits sit in the account where rules can threaten them.
4. Respect daily & max loss limits
Your trading career depends on staying funded.
5. Treat it like a business
Stable and systematic trading brings predictable payouts.
Example of a High-Income Prop Trading Month
A trader with:
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$200k funded account
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5% monthly profit
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90/10 profit split
Profit:
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Total profit: $200,000 × 5% = $10,000
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Trader share at 90% = $9,000
A consistent trader can make $5,000–$15,000 per month simply by maintaining a low-risk strategy.