Profit Split

A profit split defines how trading profits are divided between a funded account holder and the prop firm. After a trader passes the evaluation phase and receives a funded account, any profits they generate are split according to a predetermined ratio. Common structures include 80/20 (trader keeps 80%), 70/30, and 90/10. Some firms offer scaling plans where the split improves as the trader demonstrates consistent profitability over time.

Profit splits have a significant effect on affiliate economics because they are one of the primary factors traders evaluate when choosing a prop firm. Higher splits attract more traders, which increases challenge purchases and affiliate conversion volumes. However, higher splits also reduce the firm's revenue per funded trader, which can affect the sustainability of affiliate commission rates. Affiliates promoting firms with aggressive splits may see higher conversion rates but should consider whether the firm can sustain those payouts long-term.

The relationship between profit splits and challenge purchase pricing creates a competitive dynamic in the prop trading space. Firms may offer higher splits at premium challenge tiers or as part of promotional campaigns. For affiliates, understanding how split ratios relate to firm positioning helps them choose which prop firm partner programs to promote. A firm offering 90/10 splits with low challenge fees may generate more volume, but the per-conversion value to the affiliate depends on the CPA or commission structure of the deal.