Proprietary trading firms (prop firms) provide traders with access to funded accounts, allowing them to trade with the firm’s capital. However, before traders receive funding, they must pass an evaluation process. Two of the most common evaluation models are the One Step Challenge Prop Firm and the 2 Step Evaluation.
Both models have unique benefits and drawbacks, directly influencing a trader’s success, profitability, and growth in the prop trading industry. This article explores how each evaluation model works, their pros and cons, and which one is better suited for different types of traders.
1. Understanding Prop Firm Evaluations
What is a Prop Firm?
A prop firm funds traders with its capital, allowing them to trade without using their own money. Traders keep a percentage of the profits, often ranging from 75% to 90%, while the firm retains the rest.
Why Do Prop Firms Require Evaluations?
Prop firms conduct evaluations to ensure traders:
✔ Have a consistent trading strategy
✔ Manage risk effectively
✔ Can generate profits without excessive drawdowns
There are two main types of evaluation models:
One Step Challenge – A faster and simpler funding process.
2 Step Evaluation – A more structured approach with additional verification.
2. What is a One Step Challenge Prop Firm?
Definition
A One Step Challenge Prop Firm requires traders to pass a single phase before getting funded. Traders must achieve a specific profit target while following the firm’s trading rules.
Key Features of One Step Challenge
Only one evaluation phase
Faster access to funded accounts
Traders must maintain low drawdowns and hit profit targets
Often has higher entry fees
Pros of One Step Challenge
✔ Quick Funding – Traders can start trading real capital faster.
✔ Less Psychological Pressure – No second phase means reduced stress.
✔ Simplified Rules – Fewer restrictions compared to multi-step evaluations.
Cons of One Step Challenge
✖ Higher Risk – Firms may impose stricter drawdown limits.
✖ Higher Fees – The challenge cost is often more expensive than a 2 Step Evaluation.
✖ Less Verification – Prop firms take on greater risk, which may lead to stricter rules for traders.
Best for:
📌 Experienced traders who want quick access to capital.
📌 Scalpers and short-term traders who can hit profit targets quickly.
3. What is a 2 Step Evaluation in Prop Firms?
Definition
The 2 Step Evaluation process requires traders to pass two phases before receiving a funded account. The first phase tests profitability, while the second phase verifies consistency and risk management.
Key Features of 2 Step Evaluation
Two evaluation phases to prove trading consistency
Often has lower profit targets per phase
More relaxed drawdown rules compared to a One Step Challenge
Lower initial fees compared to single-phase evaluations
Pros of 2 Step Evaluation
✔ More Structured Process – Traders have time to demonstrate consistency.
✔ Lower Fees – Generally costs less than a one-step challenge.
✔ Less Strict Rules on Funded Accounts – Firms feel more confident in traders who pass both phases.
Cons of 2 Step Evaluation
✖ Takes More Time – The process is longer compared to a one-step challenge.
✖ More Psychological Pressure – Traders must maintain performance across two phases.
✖ Higher Failure Rate – Some traders succeed in phase one but fail in phase two.
Best for:
📌 Traders who prioritize long-term funding stability.
📌 Swing traders and those who focus on consistent trading strategies.
4. Comparing One Step Challenge vs. 2 Step Evaluation
Feature One Step Challenge 2 Step Evaluation
Number of Phases 1 2
Time to Get Funded Fast Slower
Profit Target Often higher Often lower per phase
Risk Tolerance Higher risk Lower risk
Psychological Pressure Lower (single challenge) Higher (longer process)
Fees Higher Lower
Best For Experienced traders, scalpers Consistent traders, swing traders
Conclusion: If you want fast funding, go for a One Step Challenge Prop Firm. If you prefer a structured evaluation process with lower risks, choose a 2 Step Evaluation.
5. How These Evaluations Impact Trader Success?
1. Risk Management & Consistency
One Step Challenge traders often take higher risks to reach profit targets quickly.
2 Step Evaluation traders focus on long-term consistency, making them more sustainable traders.
2. Psychological Effects
One Step Challenge reduces pressure by eliminating a second phase.
2 Step Evaluation ensures traders can handle stress and maintain discipline.
3. Success Rate & Longevity
Many traders in One Step Challenges fail due to aggressive trading.
2 Step Evaluation traders often stay funded longer due to proven consistency.
4. Profitability & Growth Opportunities
One Step traders start earning faster but have stricter rules on drawdowns.
2 Step traders have more room to scale up and get better trading conditions.
6. Top Prop Firms Offering One Step and 2 Step Evaluations
Best One Step Challenge Prop Firms
✔ SurgeTrader – Quick funding, high profit splits.
✔ FundedNext – No minimum trading days, instant funding model.
✔ True Forex Funds – Competitive fees, instant payouts.
Best 2 Step Evaluation Prop Firms
✔ FTMO – Industry-leading prop firm, trusted by professionals.
✔ My Forex Funds – Lower profit targets, relaxed rules.
✔ The5ers – Focus on long-term growth with scaling plans.
Final Thoughts: Which Model is Better for You?
If you are a highly skilled trader looking for quick funding, a One Step Challenge Prop Firm is the better option.
If you prefer a structured approach with long-term stability, the 2 Step Evaluation is ideal.
Regardless of the model you choose, success in a prop firm depends on risk management, consistency, and discipline. Select the evaluation that matches your trading style, experience, and financial goals to maximize your chances of success.