How do account sizes affect prop firm economics?
Quick answer
Larger account sizes command higher fees but also create larger payouts, because the same percentage profit means more money. Smaller sizes attract newer traders and more volume. Price each size on its own payout risk, and keep platform cost per account flat if you can.
Detailed answer
What changes with size:
- Fee: grows with balance, but usually less than proportionally.
- Payout per success: grows in direct proportion to balance.
- Buyer profile: larger accounts attract more experienced traders, who may pass more often.
- Risk concentration: a few large funded accounts can dominate monthly payouts.
Model each account size separately rather than averaging. Platform costs that scale with account size distort this; on PropExecutor every account costs one credit whether it starts at $5,000 or $200,000, so the difference between sizes in your model comes only from fees and payouts.
Worked example
A trader making 4% on a $10,000 account earns $400 of profit; on a $100,000 account, $4,000. With an 80% split, the payouts are $320 and $3,200. If the larger account sells for five times the price of the smaller one, it still carries ten times the payout per success.
Practical consequence
Price large sizes on their own expected payouts, and consider tighter rules or caps for them.
PropExecutor team · Updated
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