Payout structures: 80/20, 90/10, and the small print
Understand how prop firm payouts actually work — splits, frequency, minimums, and the rules that delay your first withdrawal.
Lesson path
Futures, Indices, and Commodities
Prop Firms — Honest Take
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Understand how prop firm payouts actually work — splits, frequency, minimums, and the rules that delay your first withdrawal.
How prop firm money actually moves
The headline number is the profit split. Most firms start at 80/20 in your favor — for every $1,000 in profit, you keep $800 and the firm keeps $200. Some firms (FTMO and others) start at 80/20 and scale up to 90/10 after a few clean months. A few advertise 90/10 from day one. There's no single industry standard, so when comparing firms, the split is the number to anchor on first.
Payout cadence varies. Apex Trader Funding pays every two weeks, which is the most aggressive schedule in the industry. TopStep historically requires a minimum profit buffer plus consecutive trading days before your first withdrawal, then pays roughly monthly. FTMO pays on request after a 14-day minimum hold. The pattern: the more aggressive the cadence advertised, the more important to verify it doesn't change after sign-up. Cadence is usually disclosed clearly, but the gating around it is where surprises live.
Three small-print rules to look for. First, minimum trading days before you can request a payout — usually 5 to 14 days of active trading after funding. Second, payout caps as a percentage of profit — some firms only let you withdraw a fraction of profits at a time, holding the rest as a buffer against future losses. Third, consistency-tied payouts — if your big day exceeded the consistency rule (lesson 03), your payout request may be reduced or denied entirely, even if your total profit looks healthy.
Tax wise, you're typically treated as an independent contractor receiving 1099 income in the US, or self-employment income internationally. There's no withholding — you owe quarterly estimated taxes yourself. Many new prop traders forget this and get hit with surprise tax bills the following April. Set aside 25 to 35 percent of every payout for taxes from day one, regardless of how small the first checks are.
Recap: most splits start at 80/20, some scale to 90/10. Cadence ranges from bi-weekly to monthly with gates. First payouts are slow. Watch for minimum days, payout caps, and consistency-tied reductions. Treat prop income as 1099 — set tax money aside.
Knowledge check
Answer before moving on.
1. You generated $3,000 profit on a funded $50k account in your first month. The split is 80/20. The firm's first-payout policy requires a 14-day minimum hold after funding. What's your realistic timeline to seeing the money?
2. Why should a US prop firm trader set aside 25-35 percent of every payout immediately?
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