What Is Their Fee and Profit Sharing Structure?
What Is Their Fee and Profit Sharing Structure?
When choosing a prop firm, two of the most important things to understand are the fees you’ll pay and the profit sharing structure you’ll receive once funded. These two factors determine how much you keep as a trader—and how much you spend before even starting.
Here’s a clear breakdown to help you understand how most prop firms structure their costs and payouts.
1. Challenge Fees
Most prop firms require a one-time fee to enter their evaluation. The price usually depends on the account size.
Common examples:
- $5K–$10K accounts → lower fees
- $50K–$100K accounts → higher fees
This fee is not usually refundable unless the firm specifically offers a refund after passing Phase 2.
2. Phase 1 and Phase 2 Are Included
Unlike monthly subscriptions, challenge-based firms only charge once.
That single fee covers:
- Phase 1
- Phase 2
- Funded account activation
Some firms offer discounts or promo codes depending on the season.
3. No Monthly Payments After Funding
Once you get funded, you typically don’t pay any subscription.
Your only requirement is to follow the rules and trade consistently.
4. Profit Sharing Explained
Every firm has its own payout model, but most follow this structure:
- 70/30 split → Common among entry-level firms
- 80/20 split → Standard for experienced traders
- 90/10 split → Premium firms or scaling rewards
This means if you make $1,000 in profit and your split is 80/20, you keep $800 while the firm keeps $200.
5. Payout Frequency
Most prop firms pay:
- Weekly
- Bi-weekly
- Or monthly
Faster payouts are preferred by traders who rely on trading as income.
6. Scaling Plans
Some firms reward consistent traders by increasing the account size and profit share.
For example:
Trade profitably for 3 months → Account grows + profit split improves.
This is ideal for long-term traders.
7. Additional Costs to Watch For
While many firms are transparent, always check for:
- Reset fees
- Hidden admin fees
- Forced withdrawal conditions
- Account inactivity rules
Small details can affect how much you earn.
