Forex guide · 6 min read · Updated 8 October 2026

One step vs two step prop firm challenges

The difference between one step, two step and instant funding prop firm accounts: targets, loss limits, fees and which suits a small fixed stop strategy.

Prop firms usually offer three kinds of account. They differ in how many tests you take, how big the targets are and how tight the loss limits are. The numbers below are typical examples; every firm sets its own.

Two step evaluation

You pass two phases. Phase 1 often asks for 8% profit, phase 2 for 5%, with something like a 5% daily loss limit and a 10% overall limit (often static). There is usually no time limit at most firms now, though some still have one.

Good for: most traders, especially with small fixed stops. The targets are modest and the loss limits give room for a normal losing run. It is also usually the cheapest.

One step evaluation

One phase, often a 10% target, but tighter limits: perhaps 3% to 4% daily and 6% overall, and the overall limit is more often trailing.

Good for: traders with a long, steady record who want to get funded in one go. The tighter limits punish losing runs.

Instant funding

No evaluation: you pay a larger fee and trade a funded account straight away. The rules are usually the strictest of all, often with a trailing limit and a profit buffer before your first payout, and the fee is rarely refunded.

Good for: very few people. It can look like a shortcut, but the tight rules make it hard to keep the account.

What the maths says

Suppose you risk 0.5% a trade with a 1:3 reward to risk. An 8% target needs about +16R. A losing run of 8 trades costs 4%, which fits inside a 10% static limit easily but gets close to a 6% one. Use the losing streak calculator to check your own numbers.