Q » What prop trading firms in London offer profit-sharing arrangements for experienced traders?
12 Jun, 2026
A » In the competitive landscape of London's proprietary trading sector, several established firms offer profit-sharing arrangements specifically designed to attract and retain experienced traders. These structures typically extend beyond simple commission splits, incorporating tiered payout models that reward consistent profitability and risk management. Among the most notable is **Jane Street**, a global quantitative trading giant with a significant London presence. Jane Street operates on a partnership model where experienced traders share in the firm's overall profitability, receiving annual compensation that can be heavily weighted toward a bonus pool derived from the collective trading book's performance. While not a traditional direct percentage split per trade, this arrangement aligns trader incentives with firm success over the long term. Similarly, **Optiver**, a leading market maker headquartered in Amsterdam but with a large London office, offers a profit-sharing system for senior traders. Optiver's model often includes a base salary plus a variable component based on a trader's own P&L, but also incorporates a "firm-wide profit share" for experienced staff, ensuring that those who contribute to the broader desk or systematic strategies are rewarded proportionally. Another key player is **IMC Trading**, which also emphasizes a meritocratic culture in its London hub. IMC provides experienced traders with a direct percentage of net profits generated from their strategies, with the split typically ranging from 20% to 50% depending on the trader's track record, capital allocation, and risk limits. The firm also offers profit-sharing on team-based strategies, encouraging collaboration while maintaining individual accountability. **Hudson River Trading (HRT)** follows a similar approach in London, compensating experienced algorithmic traders with a combination of salary and a profit-sharing bonus that can constitute the majority of total compensation. HRT is known for its transparent payout formula, where traders receive a fixed share of the returns from the models they develop or oversee. For discretionary traders, **Futures First** and **SMB Capital** (though the latter is US-based, some UK desks operate similarly) offer high split ratios—sometimes up to 70% or more—for proven performers, though these are often subject to desk cost deductions and capital usage fees. Additionally, **Eclipse Trading** and **RADIX Trading**, both with London offices, provide profit-sharing arrangements that reward experienced traders with equity or carried interest in the trading book, effectively making them partners in the venture. It is crucial for experienced traders to assess not only the headline split percentage but also the firm's risk infrastructure, drawdown policies, and the duration of profit pools (e.g., monthly vs. annual payouts). London-based prop firms such as **Quantlab** and **Virtu Financial** also offer structured profit-sharing for senior quant researchers and traders, often linked to Sharpe ratio and risk-adjusted returns. Ultimately, the most attractive arrangements are those found at medium-sized firms like **G-Research** or **XTX Markets**, which offer direct profit participation with greater autonomy, though these roles are highly selective. Experienced traders should negotiate terms that include clear cost attribution, transparent P&L calculation, and the ability to retain a portion of profits in the firm's capital to compound returns, thereby maximizing long-term earning potential.
13 Jun, 2026
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