Profit Split

Context & Mechanics

How it works

The profit split governs which share of the profits made in a funded account stays with the trader and which goes to the prop firm. Historically common are 70/30 to 90/10 in the trader's favour; 80/20 is a widespread middle ground. The split applies at every payout: with $4,000 of cycle profit and 80/20, the trader receives $3,200 and the firm $800.

Payout logic and high-water mark

Payouts follow fixed cycles, often every 14 or 30 days, sometimes with minimum amounts. Many providers use high-water-mark logic: after a losing cycle, payouts resume only once the balance exceeds the previous high – only net new profit counts. Additional conditions such as minimum trading days or a consistency rule can delay the first payout. Rule breaches before the payout date usually forfeit the claim entirely.

Economic context

The split sounds generous but is only one component of the equation: evaluation fees, resets, and forfeited claims of failed participants finance the model. Since most accounts are run as simulations, the provider pays profits out of its own revenue – payout reliability therefore depends on the provider's integrity. Reports of denied payouts are a real risk factor that should be examined before signing up.

Why it matters for traders

What matters is not the advertised maximum split but the effective payout amount after all conditions: cycle length, high-water mark, minimum amounts, fees. A 90/10 split with strict payout hurdles can be effectively worse than 80/20 with simple rules. Calculating the path to the first payout in advance avoids disappointment: the GlanWick simulator replicates funded-account conditions including profit targets risk-free – GlanWick is a training and simulation tool and not a prop firm itself.

Execution Example

A trader runs a funded account of nominally $100,000 with an 80/20 profit split, a 14-day payout cycle and high-water-mark logic.

Cycle 1: +$4,000 profit → payout of $3,200 to the trader, $800 to the prop firm; new high after the cycle reset.
Cycle 2: −$1,200 loss → no payout; the balance sits below the high-water mark.
Cycle 3: +$2,000 profit → only the net new profit above the previous high counts: $800 → payout $640.
After three consecutive profitable cycles the provider raises the split to 90/10 under the scaling plan – from then on $3,600 of a $4,000 profit would stay with the trader.

Execution Risk & Errors

Looking only at the advertised maximum split instead of the effective payout conditions

Overlooking high-water-mark logic and expecting payouts after losing cycles

Not knowing minimum amounts and cycle lengths

Risking rule breaches shortly before the payout date and forfeiting the claim

Confusing the split with net earnings (not factoring in fees and resets)

Frequently Asked

What profit split is common?

Historically most offers range between 70/30 and 90/10 in the trader's favour; 80/20 is a widespread middle ground. Some providers improve the split through a scaling plan.

When do I receive my first payout?

Fixed cycles of 14 or 30 days from the funded start are common, sometimes with minimum trading days or minimum amounts. Exact conditions vary by provider.

What does high-water mark mean for the profit split?

Only net new profit above the previous high is paid out. After a losing cycle, the balance must exceed the old peak before the split applies again.

Is a higher split automatically better?

No. A 90/10 split with strict payout hurdles can effectively yield less than 80/20 with simple rules. The entire payout process is what matters.