Scaling Plan

Evaluation & Funding

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According to Vigil's prop trading glossary, Scaling Plan is a program offered by prop firms that increases your account size and/or profit split as you demonstrate consistent profitability over time. Scaling rewards long-term funded traders with larger capital allocations. In prop trading, understanding scaling plan is critical because it directly affects your drawdown limits, position sizing, and whether you pass or fail an evaluation.

This term is part of the full prop firm glossary.

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How does scaling plan work?

Scaling plans are a key retention tool for prop firms. They reward traders who consistently generate profits without breaching rules. The most common scaling mechanism increases account size by 25% after achieving a certain profit milestone.

The5%ers has one of the most aggressive scaling programs, allowing traders to scale from $20K up to $4M. Their profit split also increases from 50% to 100% as you scale. FTMO scales from $100K to $400K and increases the profit split from 80% to 90%.

Scaling typically requires: (1) a minimum number of profitable payout periods, (2) meeting a profit threshold, and (3) no rule violations during the scaling period. Some firms automatically scale you after criteria are met, while others require you to request it.

What does scaling plan look like in practice?

The5%ers scaling path: start at $20K with 50% split. After 10% profit ($2,000), scale to $40K with 60% split. Continue scaling every 10% milestone: $80K (70%), $160K (80%), $320K (90%), up to $4M (100%). Starting from $20K, it takes 8 scaling milestones to reach $4M. At $4M with 100% split, a 2% monthly return yields $80,000/month -- all yours.

Why does scaling plan matter for prop firm traders?

Scaling Plan determines what stands between your challenge fee and funded capital. Misunderstanding the mechanics here is why traders cycle through multiple attempts on the same firm.

Practical example across firms: FTMO: 2-step, static drawdown, 5% daily loss, from €155. TopStep: 1-step, trailing drawdown, 2% daily loss, from $49.

Common mistake: The most common mistake with scaling plan: rushing to hit the profit target. Most firms have no time limit. Overleveraging to finish faster is the number one account killer. A slow pass beats a fast blowup.

How do different firms handle scaling plan?

Understanding scaling plan is essential when choosing and trading with a prop firm. Compare how different firms handle this:

What terms are related to scaling plan?

Funded Account

A trading account provided by a prop firm after passing the evaluation, where the firm supplies the capital and the trader keeps a percentage of profits. The trader does not risk their own money beyond the challenge fee.

Payout Split

The percentage of trading profits that a funded trader keeps versus what the prop firm retains. Typical splits range from 50% to 100%, with most firms starting at 80% and offering increases for consistent performance.

Compound Growth

Growing your position size proportionally as your account balance increases, so profits generate larger future profits. In prop trading, compounding must be balanced against drawdown limits -- increasing size too fast amplifies losses.

Consistency Rule

A rule requiring that no single trading day accounts for more than a certain percentage of total profits. Designed to prevent lucky one-day windfalls from passing evaluations.

See scaling plan in action
Where can I learn more?

How to Pass FTMO $200,000

Step-by-step guide

How to Pass TopStep $150,000

Step-by-step guide

How to Pass Apex Trader Funding $300,000

Step-by-step guide

FTMO Trust Score

Independent trust audit

TopStep Trust Score

Independent trust audit

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