Prop Firm Profit Split : How Are the Profits Shared ?
Profit split, a fundamental concept in the prop trading world, refers to how trading profits are shared between proprietary trading firms and traders. Discover the profit split structures of top prop firms like FTMO, My Forex Funds, SabioTrade, and OneFunded in this in-depth analysis.
Profit split is an agreement between the prop firm and the trader regarding the distribution of profits generated through trading. It’s typically expressed as a percentage or ratio.
For example, an 80 : 20 profit split means the trader receives 80% of the profits, while the prop firm receives 20%.
However, be aware that each prop firm has its own rules and conditions, which may include evolving profit splits, withdrawal restrictions, or strict performance requirements.
1. SabioTrade Profit Split
The prop firm SabioTrade offers a profit sharing model initially set at 80 : 20, but can increase up to 90 : 10. The trader therefore receives up to 90% of their trading profits.
Withdrawals
SabioTrade allows withdrawals every week, regardless of the account type ordered. You’ll receive rewards via bank transfer, which are processed within 24 hours.
SabioTrade Consistency Rules
The consistency rule at SabioTrade requires that no single trade represents more than 40% of total profits, with a minimum of 5 to 7 trades of comparable size to demonstrate a balanced and disciplined approach.
What is a consistency rule?
The Consistency Rule, also called consistency rule, stipulates that no trading day should exceed a certain variation compared to the trader’s average performance. In principle, this rule aims to encourage the trader to be consistent and coherent in their trades.
The prop firm OneFunded offers a profit sharing model that can evolve up to 90 : 10 through a Scaling Plan.
Withdrawals
OneFunded allows the first withdrawal as soon as the target is reached. Subsequent earnings can be withdrawn every 14 days (bi-weekly) with a minimum amount of $100.
OneFunded Consistency Rules
OneFunded does not impose strict consistency rules during evaluation or funded accounts, thus allowing greater flexibility in profit distribution without daily limits or on single trades, as long as other risk rules (such as drawdown) are respected.
The prop firm FTMO offers a profit sharing model initially set at 80 : 20 for the prop trader. This ratio can be adjusted up to 90 : 10 through the Scaling Plan offered by FTMO.
The Scaling Plan : A Tool, Not a Promise
FTMO’s Scaling Plan allows for increasing trading capital and the profit sharing ratio.
To be eligible, the trader must generate at least 10% net profit over four consecutive monthly cycles and make a minimum of two withdrawals.
These criteria can be difficult to achieve, especially for less experienced traders.
Profit Withdrawals on FTMO
FTMO allows withdrawals after 14 days of trading on a funded account. The trader has the option to choose the day of profit sharing, but this choice is limited to three changes during the trading period.
FTMO Consistency Rules : An Indicator, Not a Constraint
Unlike other prop firms, FTMO does not apply a Consistency Rule that would affect withdrawals or profit sharing. However, they have introduced a “Consistency Score” in their Account MetriX application.
This score is purely informational and aims to help traders track their trading consistency. It has no impact on withdrawals or profit split, it’s only an indicator.
FTMO Summary Table
Criteria
Details
Profit Split Ratio
80 : 20, adjustable up to 90 : 10 with conditions
Withdrawals
After 14 days, limited choice
Consistency Rules
“Consistency Score” indicator, no constraint
4. My Forex Funds Profit Split
The prop firmMyForexFunds has a profit sharing model that starts at 75 : 25 for the trader.
This ratio increases with time and performance, every 20% of validated gains.
Withdrawals and Limitations
In the first month, it is mandatory to trade for at least 10 days to be eligible for a withdrawal.
Payments can be made in Bitcoin, which offers additional flexibility.
MyForexFunds Consistency Rules
To date, MyForexFunds does not apply consistency rules that affect withdrawals or profit sharing. However, they do have performance criteria to be respected like any prop firm.
Current Situation of MyForexFunds
You may have heard about this, MyForexFunds recently had its funds frozen by US authorities due to regulatory issues. The platform is therefore currently blocked until further notice.
Summary Table
Criteria
Details
Profit Split Ratio
75 : 25, can increase with performance
Withdrawals
After 10 days of trading, 24 to 72 hour processing time
Consistency Rules
None
Current Situation
Funds frozen by US authorities, platform blocked
5. Fidelcrest Profit Split
Depending on the account type and risk strategy you choose, profit sharing can vary on Fidelcrest.
For Micro Trader and ProTrader accounts with a normal risk strategy, profit sharing is 80 : 20. If you opt for an aggressive risk strategy, this percentage can go up to 90 : 10.
Consistency Rules
To date, Fidelcrest has not implemented any consistency rule that impacts withdrawals.
WeGetFunded is a relatively new prop firm on the trading scene, managed by Catalyst Creations FZCO, registered in Dubai. It was funded in March 2023 and officially started operations on May 15, 2023.
The basic offer provides an 80 : 20 profit split, where the trader receives 80% of the generated profits. There is an option to increase this share to 90 : 10 for an additional 20% fee on the plan price.
Consistency Rules and Withdrawals
WeGetFunded does not apply consistency rules. Withdrawals are quite flexible; the first withdrawal is possible after one month of activity, and subsequent ones can be made every two weeks.
Note
The use of trading robots or arbitrage techniques is strictly prohibited.
In Summary : Caution is Essential with Profit Splits
The excitement around the financial opportunity offered by prop firms can quickly make one forget the subtleties surrounding profit split agreements. As we’ve seen through the examples, the “profit split” is a key element that can vary considerably from one firm to another.
Pitfalls to Avoid
Be vigilant about terms that may seem advantageous at first glance but hide restrictive clauses.
From hidden fees to consistency rules that limit your withdrawals, every detail matters. Some firms may even establish a minimum profit threshold to reach before you can make a withdrawal, which can quickly transform an opportunity into a trap.
Always Do Your Research
The diversity of rules among prop firms currently on the market, including those that have implemented consistency rules, requires rigorous analysis on your part.
To date, here are the main prop firms that have implemented consistency rules :
SabioTrade
FTMO
FTUK
Funded Academy
Lux Trading Firm
Nova Funding
OspreyFX
Super Funded
To Conclude on Profit Split
The “profit split” is undoubtedly a determining criterion in choosing a prop firm. Your success as a trader depends largely on the conditions you accept.
Always be well-informed, cautious, and ready to read the fine print, because in the world of trading, details make all the difference.
Passionate about trading and cryptocurrencies, Mehdi discovered Bitcoin and blockchain technology in 2017. Since then, he has made it his mission to make the world of investing and Web3 accessible to everyone.
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