Best Prop Firms for Two Step Challenges

How a two step challenge works

A two step challenge splits the evaluation into two phases. The first phase sets a profit target that is commonly around 8% to 10%, and the second sets a lower one, commonly around 5%, with the same or similar loss limits throughout. Pass both without breaking a rule and the firm offers a funded account. The format has been used in forex and CFD prop trading for many years, and many firms still build their main program around it. The firms listed above offer at least one two phase program.

Who this suits

Two step programs suit traders who value room for error over speed. Loss limits are often wider than on single phase programs, and the second target is lower, which helps strategies that have uneven weeks or hold trades for several days. The format also suits traders who want to prove consistency to themselves before trading a funded account, since passing twice under the same rules is a firmer test of a strategy than passing once.

The trade offs

The main cost is time. Two phases take longer than one, and at many firms minimum trading day rules apply in each phase. There are also two chances to break a rule, so a single bad day in phase two can end an attempt that was nearly complete. Fees are often lower than single phase programs of the same size, though not always, and some firms refund the fee with the first payout. Pricing that looks cheap can also hide a lower profit split on the funded account or a longer wait for the first payout.

What to check before you buy

• Targets for each phase. Check both targets and whether any minimum trading days apply in each phase.
• Loss limits. Confirm the daily and maximum loss, how each is measured, and whether they stay the same in phase two and on the funded account.
• Time limits. Many firms have removed time limits, but some still set one for each phase.
• Fee refund. Find out whether the fee is refunded, and whether it is paid with the first payout or later.
• Trading restrictions. Read the rules on news trading, weekend holding, Expert Advisors and copy trading, which can differ between the challenge and the funded stage.

How to compare the firms listed

Compare programs of the same account size. Put the two targets next to the maximum loss, then check whether the maximum loss is static or trailing, since a static limit gives more room for the same headline figure. Convert each fee to a price per $1,000 of account size, and include any fee refund in your view of the total cost. On the funded side, compare the profit split, the first payout date, the payout frequency and any consistency rule. Each firm's profile sets out its programs and rules, and the comparison table lets you filter by platform, asset and country.

For a side by side view of the formats, see one step vs two step challenges, and firms with a single phase are listed under one step challenges. How long it takes to pass a challenge covers realistic timelines, and a successful evaluation day by day shows how an attempt can be paced across both phases.