Prop Firms With the Highest Profit Split and Total Payouts
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If you're too busy to read the entire article and want a quick answer, the best prop firm with the highest profit split and total payouts is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Profit splits often ranging from 70% to 90%
- Flexible trading conditions for all users
Top Highest Paying Prop Trading Firms:
- Hola Prime - A prop trading firm licensed by the FSC of Mauritius that provides funding up to $500,000 with the potential to scale accounts to $4 million
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Instant Funding - Prop firm offering instant funding with account sizes up to $80,000
Understanding the profit split is essential for traders seeking to maximize their earnings and make informed decisions when selecting a prop trading firm. In this article, TU explores the fascinating world of proprietary trading firms, focusing on those that offer the highest profit split and total payouts to their traders. Whether you are an aspiring trader or a seasoned professional, this article sheds light on the critical aspect of profit sharing within the world of prop trading.
In addition to exploring the profit split ratios, we will also reveal the largest proprietary trading firms based on disclosed information about their total payouts. By providing this valuable insight, traders can gain a comprehensive understanding of not only the profit split opportunities but also the scale and financial success of these top prop trading firms.
What is the typical profit split ratio?
In the realm of proprietary trading, the profit split ratio is a critical factor that determines how much of the trading profits traders are entitled to keep for themselves. Usually prop firms offer favorable to traders profit splits, such as 60/40, 70/30, or even 80/20. The most attractive opportunities lie with the highest paying prop trading firms that grant traders significantly more generous splits, sometimes going as high as 90/10 or exceptionally even allowing traders to retain 100% of the profit. However, these exceptional arrangements often come with specific terms and conditions tied to the trader's performance and trading volume.
It's essential to consider the specific firm's profit split conditions can be influenced by a trader's track record, trading volume, and overall profitability. Additionally, the firm's overall financial health and trading strategies may also play a role in determining the profit split.
Top 3 Prop Firms With the Highest Profit Split Ratio
The highest-paying proprietary trading firms offer the most lucrative profit splits, allowing traders to retain a significant portion of their earnings. We compared profit splits and other important parameters to give a comprehensive overview of each firm's offerings.
Profit Split Up to (%): This indicates the maximum percentage of profits that traders can retain. It's a key factor as it directly impacts traders' earnings.
Managed Amount Up to: This parameter shows the maximum amount of capital a firm allows traders to manage. It reflects the potential growth opportunities for traders within the firm.
Maximum Leverage: The highest leverage offered by the firm, which can amplify both potential profits and risks. This is important for traders who utilize leverage to maximize their trading positions.
Instruments: The variety and types of financial instruments available for trading. A wider range of instruments can provide more trading opportunities and strategies.
Minimum Price (Trading Plan): The minimum cost associated with the firm's trading plans. It helps traders understand the initial financial commitment required.
| Profit split up to, % | Funding Up To, $ | Max. Leverage | Instruments | Min. Price, $ | Open account | |
|---|---|---|---|---|---|---|
| 95 | 4 000 000 | 1:100 | Forex, CFDs on indices, cryptocurrencies, and precious metals | 48 | Open an account Your capital is at risk.
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| 90 | 2 500 000 | 1:100 | Forex, indices, cryptocurrencies, metals, energies (oil, gas) | 44 | Open an account Your capital is at risk.
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| 90 | 200 000 | 1:30 | CFDs on: currency pairs, gold, oil, global indices, stocks, cryptocurrencies, ETFs | 119 | Open an account Your capital is at risk.
|
What are the biggest prop firms by the total payouts?
Determining the exact total payouts of prop trading firms can be challenging, as many of them are not publicly traded companies and do not disclose such information. However, Traders Union, in their article "Biggest Prop Trading Companies in the World," analyzed open data and estimated the total payouts of some of the largest prop firms.
According to their findings, as of 2021, FTMO has reported approximately $29 million in total payouts, while FundedNext recorded around $22 million in payouts in 2022. Other significant players in the industry, such as The 5%ers, Lux Trading Firm, and Audacity Capital, were also highlighted as major prop firms. Keep in mind that these figures are estimates based on available data, and the actual total payouts of these prop firms may vary.
How much do top prop traders make?
The earnings of top prop traders can vary widely and depend on several factors, including their skill level, the size of the trading account they manage, the profit split with the prop firm, and the overall performance of their trading strategy. Some highly successful prop traders can make $1K+ and even $1M+. However, it's important to note that not all prop traders achieve such high earnings, and the vast majority of traders may not reach these levels of income.
On the other hand the average salary for a proprietary trader in the United States is around $100,000+ per year. For instance, in New York, the average salary for prop traders is around $126,000, and in states like New Hampshire and Rhode Island, it is approximately $124,000.
Can you make a living trading for a prop firm?
Yes, it is possible to make a living by trading for a prop trading firm. Many prop firms offer attractive profit splits to their traders, allowing them to retain a significant portion of their trading profits. If a trader consistently performs well and manages risk effectively, they can generate substantial earnings. However, it's essential to remember that trading involves inherent risks, and not all traders will be consistently profitable. Success in prop trading requires discipline, skill, and a solid trading strategy.Additionally, traders should be aware of the specific terms and conditions of the prop firm they are trading with, as profit splits, payout frequency, funding sizes, and other factors can vary between firms. It's also crucial to start with a realistic capital base and manage risk appropriately to ensure sustainable income over time.
How to choose a prop firm with the optimal profit split?
Maxim payout ratio plays a really important role and influences trader’s income significantly. Howereve, when selecting a prop trading firm with the optimal profit split, traders must consider more than just the maximum payout ratio. One crucial factor to evaluate is how long it takes to reach the maximum profit split. Some firms may offer higher profit splits, but only for traders with larger accounts or after achieving specific (often high) profit targets.
Additionally, traders should carefully evaluate other factors such as account costs, profit targets, and risk management rules. Account costs, including evaluation fees and subscription charges, can impact overall profitability. Profit targets and risk management rules directly influence a trader's trading strategy and ability to meet the firm's requirements for advancement.
Moreover, traders should consider the firm's trading instruments, leverage options, platform features, and support provided. A well-rounded prop firm that aligns with a trader's preferences and goals will contribute to a more successful trading experience.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
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Trader testimonials and reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
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Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
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Challenges and evaluation process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
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Profit split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
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Trading conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
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Platform and technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
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Education and support. Quality and availability of training materials, webinars, and one-on-one coaching.
FAQs
What is the prop firm profit split rule?
The profit split rule in prop trading refers to the percentage of trading profits that traders receive and the portion retained by the prop trading firm. For example, if the profit split rule is 80/20, the trader will receive 80% of the trading profits, and the prop firm will retain 20%. The profit split can vary among different firms and may be based on factors such as the trader's experience, account size, and trading performance.
What is a typical prop trading profit split?
A typical prop trading profit split varies depending on the firm and trading account. It generally ranges from 50/50 to 90/10, with traders receiving a percentage of their trading profits, and the prop firm retaining the rest. Some firms may offer more favorable splits for higher-performing traders.
What prop firm pays out the most?
Based on the available data, FTMO and FundedNext are among the prop firms with significant payouts. FTMO reported around $29 million in total payouts in 2021, while FundedNext recorded approximately $22 million in payouts in 2022.
How much do prop traders make?
Top-performing traders can make six-figure or even seven-figure incomes annually, while less experienced traders may earn less. The average salary for prop traders in the United States is approximately $100,000 per year.
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Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Also, Andrey is a member of the National Union of Journalists of Ukraine (membership card No. 4574, international certificate UKR4492).
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).
Proprietary trading (prop trading) is a financial trading strategy where a financial firm or institution uses its own capital to trade in various financial markets, such as stocks, bonds, commodities, or derivatives, with the aim of generating profits for the company itself. Prop traders typically do not trade on behalf of clients but instead trade with the firm's money, taking on the associated risks and rewards.
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.
Risk management in Forex involves strategies and techniques used by traders to minimize potential losses while trading currencies, such as setting stop-loss orders and position sizing, to protect their capital from adverse market movements.
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
