Payouts, profit split and scaling

Lesson 10 of 12 in the course “Prop Trading”. Free, with animations and a quiz.

The profit split

The trader’s share is usually 80–90% of profit. Mira made $4,000 on her funded account with an 80% split, so she’s owed $3,200. Many firms also refund the challenge fee with the first payout. Check the rules: sometimes there’s no refund but the share grows over time.

When and how they pay

The first payout can usually be requested after 14–30 days of trading on the funded account, then every 1–2 weeks or on request. Before that you need an identity check (KYC) and a signed contract, and the firm reviews your trades for breaches. They pay by bank transfer, crypto or payment services, depending on the firm and the country.

Scaling

If you profit consistently, many firms grow your account: for example, by 25% every few months with profit and no breaches. That way a trader grows not by betting bigger but by earning the firm’s trust. The percentage risk stays the same; it’s just calculated on a bigger amount.

Taxes

A prop payout is your income. In most countries you must declare it, often as service or self-employment income. In the UAE, where Mira lives, there’s no personal income tax, but in the US, EU countries and many others there is. Rules differ everywhere, so check with a tax adviser in your country.

How not to lose a funded account

Funded isn’t the finish line, it’s the start of the job. Same rules, more pressure: now there’s something to lose. Trade the same risk as in the exam, or less. Withdraw profit regularly: money in your bank account can’t burn, even if the firm closes the account.

Check yourself

1. Mira made $5,000 on a funded account with a 90% split. How much is she owed?
   Correct answer: $4,500. 90% of $5,000 = $4,500. The firm keeps the other $500.
2. What’s almost always required before the first payout?
   Correct answer: An identity check (KYC) and a contract. The firm must know who it’s paying and check the trades for breaches. So get your documents ready in advance.
3. Mira got a funded account. How should she trade now?
   Correct answer: Same risk as in the exam or less, and withdraw profit regularly. The limits on funded are the same. Steady risk keeps the account alive, and withdrawn money is safe.

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