How prop firm challenges work
Two-step, one-step and instant funding models — targets, limits and what happens after you pass.
The classic two-step structure
Most firms offer a two-phase evaluation. Phase 1 usually has a profit target of around 8–10%, and Phase 2 around 5%. Both phases share a daily loss limit and a maximum loss limit, and many require a minimum number of trading days. Many firms have now removed time limits entirely.
One-step and instant funding
One-step challenges get you funded after a single phase, but usually with tighter loss limits and extra rules such as a “best day” or consistency rule. Instant funding skips the evaluation, typically with higher fees, tighter drawdown and a lower profit split.
After you pass
A funded account usually has no profit target. You are paid a percentage of profits — commonly 80–90%, sometimes more with paid add-ons — on a set payout schedule. Many firms refund the challenge fee with your first payout.
Educational content only — not financial, investment or trading advice. Trading forex, CFDs, crypto and other leveraged products carries a high risk of loss and may not be suitable for everyone. Past performance does not guarantee future results.