The firm calculates the payout based on a sliding scale ticket average. For example, if your ticket avg. is less than $10, you get 20% of your GROSS P&L. If your average is between $10-$20, you get 30%. If your avg. is greater than $20, you get 50%, etc. etc.
Ticket avg. is calculated as gross P&L divided by number of shares traded.
Firms that pay out a straight percentage will do it based off of NET P&L, not GROSS.
If you're the type of trader who trades very high volume but you have a low ticket average, then the ticket average payout will probably be more beneficial. But if you're a very efficient trader who can maintain a high ticket average, then its better to be paid a straight percentage of net P&L.
Usually, firms that have the sliding scale ticket average payout will provide free training and have a vested interest in seeing traders succeed. The profit split gives firms an incentive to really train you. It's a good situation for a newbie. Once you've learned how to trade, you can always switch to another firm that offers the straight percentage payout.
