When choosing a proprietary trading firm, understanding how profits are split is crucial. Each firm has its own structure, ranging from flat rates to tiered systems that reward consistent performance. Here’s a quick breakdown of four major firms:
- For Traders: Offers a fixed 15% profit split with no time restrictions and bi-weekly payouts. Challenge fees range from $46 to $413 based on account size. A straightforward option but lacks profit split growth.
- The5ers: Starts with a 50% split, scaling to 100% for consistent traders. Maximum account scaling reaches $4 million, with bi-weekly payouts. Ideal for long-term growth but requires patience to reach top tiers.
- Topstep: Rewards futures traders with 100% of the first $10,000 in profits, then 90% beyond that. Initial withdrawals are capped at $5,000 during the first 30 days, with conditions for payouts and scaling.
- FTMO: Begins with an 80% split, increasing to 90% for consistent performance. Payouts are available after 14 days, and accounts can scale up to $2 million. Known for its two-step evaluation process and higher starting splits.
| Firm | Initial Split | Max Split | Payout Frequency | Max Scaling | Challenge Fees |
|---|---|---|---|---|---|
| For Traders | 15% | 15% | Bi-weekly | $100,000 | $46–$413 |
| The5ers | 50% | 100% | Bi-weekly | $4,000,000 | Varies |
| Topstep | Varies | 90% | Regular | Varies | Varies |
| FTMO | 80% | 90% | After 14 days | $2,000,000 | €89–€439 |
Each firm caters to different trading styles. For consistent earnings, FTMO and The5ers offer growth opportunities, while For Traders provides simplicity. Topstep is tailored for futures traders with specific conditions.
Prop Firms 2025: How To Pass The Challenge & Actually Get Paid - E145
1. For Traders
For Traders operates on a clear and straightforward profit-sharing system, making it easier for you to understand your potential earnings and shape your trading strategy effectively.
Profit Split Percentage
The profit-sharing model is simple: traders receive a significant portion of the profits from the very beginning. This flat-rate system ensures consistency, so you always know what share of your successful trades will come back to you. There’s no guessing involved - just a straightforward percentage that remains the same throughout the program.
Payout Frequency
Payouts are scheduled regularly, giving you access to your earnings without long delays. As long as you meet the minimum trading activity requirements, you’ll enjoy a steady cash flow. This can be crucial for covering expenses or reinvesting in your trading activities.
Additional Fees and Conditions
While the profit splits and payout schedule are appealing, there are a few conditions to keep in mind. Adhering to the program’s risk management rules - like limits on daily losses and overall drawdown - is essential to avoid account restrictions. On the bright side, standard payout requests don’t come with additional withdrawal fees, meaning the majority of your hard-earned profits go straight to your account.
2. The5ers
The5ers provides a dependable payout system, offering bi-weekly payouts across all its programs - Bootcamp, High-Stakes, and Hyper Growth. This ensures traders have predictable access to their earnings without unnecessary delays.
With a stellar Trustpilot rating of 4.9/5 based on over 18,000 reviews, The5ers has built a strong reputation for transparency and reliability. This dedication to consistent payouts and clear communication makes it an attractive choice for traders looking for a stable profit-sharing platform.
3. Topstep
Topstep is a well-known name in the U.S. futures trading scene, offering traders a chance to earn based on performance milestones. However, traders should carefully review the firm’s conditions before diving in.
Profit Split Percentage
Topstep’s profit-sharing model is designed to reward success. Traders keep 100% of their first $10,000 in profits and then receive 90% of all profits beyond that. However, there’s a catch: during the first 30 days, payouts are limited to 50% of profits, with a maximum cap of $5,000. For example, if a trader earns $15,000 in their first month, they can only withdraw $5,000 until the 30-day period ends. This policy ensures traders meet specific consistency requirements before gaining full access to their earnings.
Payout Frequency
To access payouts, traders must meet certain conditions. Topstep offers daily or weekly payouts, but only after traders achieve 5 winning days. Additionally, the firm charges a monthly subscription fee starting at $49, which can affect overall profitability. These rules emphasize steady performance over sporadic success.
Additional Fees and Conditions
Topstep’s rules extend beyond profit splits. One notable challenge is the 50% consistency rule, which can limit a trader’s ability to withdraw profits or progress in the program. Some traders have reported difficulties navigating this rule, although success is possible with persistence. For instance, one trader mentioned overcoming initial challenges and eventually securing three payouts.
Scaling Opportunities
Topstep provides opportunities for traders to scale their accounts, but these come with strict position size limits. This structure may not appeal to aggressive traders aiming for rapid growth. Combined with the $5,000 initial withdrawal cap and the consistency rule, Topstep’s system tends to favor traders who adopt a steady, conservative approach.
Currently ranked #3 among top futures prop firms for U.S. traders, Topstep has a score of 78/100. The ranking reflects its strong educational resources and robust platform, though its payout restrictions set it apart from simpler, flat-rate models discussed earlier.
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4. FTMO
FTMO has established itself as a prominent name in the trading world, known for its challenging evaluation process and well-organized structure. In the U.S., it operates as FTMO US through a partnership with Oanda, aligning it with local regulatory standards.
Profit Split Percentage
FTMO offers traders an initial profit-sharing split of 80% for the trader and 20% for the firm, with the option to increase to 90% as traders demonstrate consistent performance over time. This setup not only rewards loyalty but also provides traders with a clear path to grow their earnings as they prove their skills.
Additional Fees and Conditions
To access a funded account, traders must complete FTMO's two-step evaluation process, which includes a challenge phase followed by verification. Fees for the challenge range from €89 to €439, depending on the account size. While these fees might seem like a notable investment, they are standard across the industry.
FTMO's reputation is bolstered by its rigorous evaluation, which ensures traders are well-prepared for live trading. This commitment to quality is reflected in its impressive TrustPilot rating of 4.8 out of 5, based on feedback from over 29,000 users.
For traders seeking a dependable and methodical platform, FTMO offers a solid option with a focus on preparation and consistent performance.
Pros and Cons
Each trading firm offers a unique profit-sharing model, creating a balance between immediate earnings and long-term growth opportunities.
For Traders provides a flat 15% profit share on virtual capital accounts, with no time restrictions and bi-weekly payouts. Challenge fees range from $46 for a $6,000 account to $413 for a $100,000 account. Its standout feature is flexibility - traders aren’t under pressure from strict time limits. However, the profit split remains fixed and doesn’t increase over time.
The5ers takes a growth-oriented approach. Traders start with a 50% profit split and can eventually retain 100% of profits at the highest tier. Accounts can scale up to $4,000,000, with balances doubling upon hitting profit targets. Payouts are bi-weekly. The downside? Reaching the top-tier split requires significant time and consistent performance.
Topstep caters to futures traders with a balanced structure. It offers consistent payouts and a clear path for scaling, though the maximum scaling potential depends on the account type.
FTMO starts with an impressive 80% profit split, which can increase to 90% with consistent performance. Payouts are available on-demand after 14 days, giving traders more control over their cash flow compared to fixed bi-weekly schedules. Accounts can scale up to $2,000,000, offering substantial growth opportunities. However, FTMO’s two-step evaluation process is known for being challenging, with fees ranging from €89 to €439, depending on account size.
| Firm | Initial Profit Split | Maximum Profit Split | Payout Frequency | Maximum Scaling | Challenge Fees | Key Advantage |
|---|---|---|---|---|---|---|
| For Traders | 15% | 15% | Bi-weekly | $100,000 | $46–$413 | No time constraints |
| The5ers | 50% | 100% | Bi-weekly | $4,000,000 | Varies | Highest scaling potential |
| Topstep | Varies | Varies | Regular | Varies | Varies | Tailored for futures traders |
| FTMO | 80% | 90% | On-demand after 14 days | $2,000,000 | €89–€439 | High initial split + flexibility |
This table highlights the key features of each firm, showcasing how their models align with different trading styles and goals.
The main trade-off lies between high initial profit percentages and long-term scaling potential. FTMO offers an attractive starting split for those seeking immediate returns, while The5ers targets traders looking for gradual progress toward full-profit retention. Meanwhile, For Traders focuses on evaluation flexibility, making it easier for traders to demonstrate consistency over time.
Payout frequency also shapes how traders access their earnings. While most firms provide bi-weekly payouts, FTMO stands out with its on-demand option after a 14-day period, which can be especially helpful for managing personal finances or reinvesting earnings.
Challenge fees vary based on account size. Both For Traders and FTMO use tiered pricing, so traders should carefully evaluate the cost of entry against their expected performance and the profit-sharing structure.
Lastly, the evaluation process is a critical factor. FTMO’s rigorous two-step process ensures that only well-prepared traders gain access to funded accounts, creating a higher barrier to entry. On the other hand, For Traders offers a more relaxed evaluation process, giving traders extra time to showcase their consistency without the added pressure of strict deadlines.
Conclusion
Choosing the right prop firm comes down to aligning its features with your trading style and financial objectives. Factors like profit splits and evaluation methods play a big role in determining your potential earnings and growth. Here’s a quick recap of what each firm brings to the table:
- For Traders: Offers a flexible evaluation process, giving traders the freedom to focus on consistency without the stress of time constraints.
- The5ers: Prioritizes long-term growth, rewarding steady performance with profit retention that can reach up to 100%.
- Topstep: Caters to futures traders, providing regular payouts and structured scaling plans tailored to the unique demands of the futures market.
- FTMO: Appeals to those looking for higher profit retention and quicker payouts, thanks to its on-demand withdrawal options.
Ultimately, there’s no one-size-fits-all solution. The best choice depends on how well a firm’s profit-sharing model and evaluation process align with your trading strategy and long-term aspirations.
FAQs
What should I look for in a proprietary trading firm's profit split structure?
When considering the profit split structure of a proprietary trading firm, pay attention to a few critical aspects. Start with the profit split percentage - how much of the profits you get to keep. Next, evaluate how quickly you can withdraw your earnings and whether there are any drawdown rules that could impact your trading strategy. Another key feature to look for is whether the firm offers scaling options, which can help you expand your account over time as you prove your trading skills.
Beyond the numbers, take a close look at the firm's reliability. Are the rules clear and easy to understand? Does the company provide responsive customer support? Check out reviews from other traders to gauge their experiences. A firm with a solid reputation and a track record of consistent payouts can make a big difference in your trading journey.
How do evaluation processes at proprietary trading firms affect a trader's ability to secure a funded account?
Evaluation processes at proprietary trading firms are key to deciding if traders are eligible for a funded account. These evaluations often come with specific benchmarks, such as hitting a profit target, staying within maximum loss limits, and completing a set number of minimum trading days.
Meeting these standards shows a trader's competence and discipline - qualities that are critical to earning access to the firm's capital. On the flip side, breaking the rules or falling short of the requirements can lead to delays or even disqualification from funding. That’s why it’s crucial for traders to thoroughly understand and prepare for these evaluations.
What are the benefits and downsides of choosing a firm with a fixed profit split compared to one with a tiered or scalable profit-sharing model?
A fixed profit split offers clarity and consistency, making it straightforward for traders to estimate their earnings. This structure is particularly appealing for those who value simplicity in their financial arrangements. However, it doesn't provide extra incentives for traders who achieve exceptional results or generate substantial profits.
In contrast, tiered or scalable profit-sharing models can encourage higher performance by increasing a trader's profit share as their results improve. While potentially more lucrative, these models often come with added layers of complexity and may require traders to meet specific performance thresholds. These thresholds could involve taking on greater risks. It's essential to weigh your trading objectives and assess your risk tolerance before choosing the structure that aligns best with your needs.