Three Step Prop Firm Challenges Explained
A three step challenge splits the evaluation into three phases with smaller targets, trading a lower bar in each phase for a longer test overall.
A three step prop firm challenge splits the evaluation into three phases, each with its own profit target and usually the same loss limits, and the trader must pass all three before receiving a funded account. Targets per phase are usually smaller than in one step or two step challenges, often 5% or 6% and as low as 2% or 3%, and some firms price the format below their other challenges. The trade off is a longer test with more total profit to make and three separate chances to breach.
How a three step challenge works
Each phase is a separate test on the same account size. The trader reaches the target without touching the daily or maximum loss limit, meets any minimum trading days, and then receives a new account for the next phase. After the third phase the firm reviews the account, runs its identity checks if it has not already done so, and issues the funded account.
- Targets. Some firms use the same target in every phase, others use falling or rising targets.
- Loss limits. Most keep the same daily and maximum loss throughout, and the maximum loss is usually static, measured from the starting balance of each phase.
- Minimum days. A minimum per phase multiplies by three, so a three day minimum becomes at least nine trading days in total.
- Fresh start. At most firms each phase begins at the original balance, so profit above the target does not carry over.
The format sits alongside the more common structures listed under one step challenges and two step challenges, which one step vs two step challenges compares.
Worked example
This example uses a made up $100,000 three step challenge at an imaginary firm with a 5% target in each phase, a 4% daily limit, a 5% static maximum loss and a minimum of three trading days per phase.
| Phase | Starts at | Target | Floor | What happened |
|---|---|---|---|---|
| 1 | $100,000 | $105,000 | $95,000 | Passed in 12 trading days, closing at $105,400 |
| 2 | $100,000 | $105,000 | $95,000 | Fell to $97,100 in week two, then passed in 19 trading days |
| 3 | $100,000 | $105,000 | $95,000 | Passed in 9 trading days |
The trader made at least $15,000 of simulated profit over 40 trading days to earn the funded account, and the extra $400 from phase 1 did not carry into phase 2. In phase 2 the account came within $2,100 of the floor, and a slightly worse week would have ended the attempt after two phases of work.
The lower target in each phase does not by itself make the whole challenge easier, because the chances multiply. As a made up illustration, a trader with a 70% chance of passing any single 5% phase has a 34% chance of passing all three, since 0.7 times 0.7 times 0.7 is 0.343. The same trader with a 55% chance at an 8% first phase and 70% at a 5% second phase would have 38.5% in a two step. The numbers are invented, but the arithmetic shows why the number of phases matters as much as the size of each target. The pass probability simulator runs the same test on your own statistics.
How firms differ
The rules below were published by each firm in September 2026 and apply to the product named.
| Firm and product | Targets | Daily loss | Maximum loss | Notes |
|---|---|---|---|---|
| Titan Capital 3 Step | 6% in each phase | 4% of the initial balance | 10% static | 3 trading days per phase |
| FXIFY Three Phase | 5% in each phase | 5% | 5% static | 5 trading days per phase; no time limit |
| Hantec Trader Endurance | 6% at each stage | 4% | 8% static | 3 trading days per stage |
| Lark Funding 3 Step | 5%, then 4%, then 3% | None | 5% static | No minimum trading days |
| Maven Trading Standard 3 Step | 3% in each phase | 2% | 3% static | Priced from $13 for a $2,000 account |
| Fintokei StartTrader | 2%, then 3%, then 6% | 3% of start of day equity | 6% | 180 days per phase; no more than 40% of a phase target from one day |
| The5ers Bootcamp | 6% in each step | None in the evaluation | 5% static, 4% once funded | Fee split between an entry fee and a payment on funding |
Three patterns stand out. The ratio of target to room varies widely: Titan Capital asks for 6% a phase with 10% of room, while Maven Trading asks for 3% with only 3% of room and a 2% daily limit, so a single bad day can end a Maven phase. Time rules range from none at FXIFY to 180 days a phase at Fintokei. And some firms use the format to lower the upfront cost, as The5ers does by collecting part of the Bootcamp fee only when the trader is funded, which is explained in The5ers Bootcamp explained.
Comparing three step challenges
Price alone says little about a three step challenge. A more useful comparison sets the list price against the total profit the trader must make across all three phases and the room the maximum loss leaves in each. The table uses $100,000 accounts at list prices in late September 2026, before any discount codes.
| Firm | List price | Total target across phases | Maximum loss in each phase |
|---|---|---|---|
| Hantec Trader | $299 | 18% | 8% |
| Maven Trading | $299 | 9% | 3% |
| Lark Funding | $370 | 12% | 5% |
| Titan Capital | $389 | 18% | 10% |
| FXIFY | $399 | 15% | 5% |
| Fintokei | $419 | 11% | 6% |
Hantec Trader and Maven Trading share the lowest list price, but Hantec asks for twice the total profit with more than twice the room in each phase. Discount codes change the prices often, so compare the ratios first and the price second.
Who the format suits
Three step challenges fit traders whose results come in steady, modest gains, who risk a small share of the account per trade and who are not in a hurry. The smaller target in each phase removes the temptation to size up to reach a large number quickly. They fit less well for traders whose profit comes in occasional large wins, since each phase is another stretch in which a losing run can reach the floor, and for traders who want a first payout soon.
Common mistakes
- Reading only the first phase’s rules. Targets, time limits and consistency rules can change from phase to phase.
- Trading on after reaching a target. Profit above the target usually does not carry over, so extra trades only add risk.
- Ignoring the target to room ratio. A 3% target with a 3% maximum loss is a different test from 6% with 10%.
- Underestimating time. Minimum days, review time between phases and any deadlines add up across three phases.
- Relaxing in the last phase. The third phase is the same test as the first, and a breach there loses all the earlier work.
Checklist
- Write down the target, daily limit and maximum loss for every phase.
- Check whether the maximum loss is static or trailing in each phase.
- Add up minimum trading days and any time limits across all three phases.
- Compare the fee per $1,000 of account size with the same firm’s two step.
- Check the funded account’s split, payout timing and any consistency rule.
- Estimate your chance of passing each phase, then multiply, not add.
The general path from purchase to payout is set out in how a prop firm challenge works, and staying clear of the floor in each phase is covered in how to avoid a drawdown breach. Firms offering the format are listed under three step challenges, minimum day rules are compared in minimum trading days and inactivity rules, and timelines in how long it takes to pass a challenge. More beginner guides sit under getting started.
Frequently Asked Questions
What is a three step prop firm challenge?
It is an evaluation split into three phases. The trader reaches a profit target in each phase without breaking the daily or maximum loss limit, meets any minimum trading days, and moves to a new account for the next phase. After the third phase the firm issues a funded account. Targets per phase are usually smaller than in one step or two step challenges.
Is a three step challenge easier than a two step?
Each phase usually is, because the target is smaller, but the whole challenge is not automatically easier. The chances of passing each phase multiply, the total profit needed is often higher, and there are three stretches in which a losing run can reach the floor. Compare the target to room ratio in each phase and the total time, not just the headline targets.
How long does a three step challenge take?
It depends on the targets, your results and any minimum days. Titan Capital requires three trading days in each phase and FXIFY five, so the minimum is nine or fifteen trading days before any review time. Fintokei allows up to 180 days for each StartTrader phase, while FXIFY and Titan Capital set no time limit on their three step challenges.
Which prop firms offer three step challenges?
Firms with three phase challenges in September 2026 included Titan Capital, FXIFY, Hantec Trader, Lark Funding, Maven Trading and Fintokei, and The5ers runs its Bootcamp as three steps. Their targets range from 2% to 6% a phase, and their maximum loss from 3% to 10%, so the challenges are very different tests despite sharing the same format.
Does profit carry over between phases?
Usually not. At most firms each phase starts on a fresh account at the original balance, so profit made above the target in one phase is not added to the next. Once a target is reached, further trades in that phase add risk without helping the next phase, so there is little to gain from trading on once the target and minimum days are met.