One-Step or Two-Step Prop Firm Challenges: Find Your Best Fit
Traders looking to get funded by a prop firm often face a crucial decision: choosing between a one-step challenge prop firm and a 2-step evaluation process. Each challenge type has its own structure, rules, and benefits, making it important for traders to select the one that aligns with their trading style and goals.
In this article, we will break down the differences between these two prop firm evaluation models, their advantages and disadvantages, and how traders can decide which one suits them best.
Understanding One-Step Prop Firm Challenges
A one-step challenge prop firm offers a simplified funding process where traders only need to pass a single evaluation phase before receiving access to a funded account. Unlike the traditional two-step models, these firms provide a faster route to funding, making them attractive to traders who want quick access to capital.
Key Features of One-Step Challenges
A one-step evaluation typically requires traders to reach a set profit target within a limited timeframe while following strict risk management rules. Because traders only need to pass one phase, these challenges often have tighter drawdown limits and higher entry costs.
One of the biggest benefits of a one-step challenge is the speed at which traders can start managing a funded account. These challenges often attract scalpers, day traders, and high-frequency traders who can meet profit targets quickly.
Pros and Cons of One-Step Challenges
Pros
- Fastest way to get funded
- Simplified evaluation process
- Lower chance of burnout since there is only one phase
- Suitable for experienced traders who are confident in their strategies
Cons
- Stricter risk parameters, including lower drawdown limits
- Higher challenge fees compared to two-step models
- Less time to recover from drawdowns
Many firms offering one-step challenges require traders to maintain strict risk management, as they are providing direct access to funded capital. Funding Pips, a leading name in prop trading, integrates this model to ensure that traders who pass meet high professional standards.
Understanding the Two-Step Evaluation Model
A 2-step evaluation requires traders to pass two distinct phases before obtaining a funded account. This method is the most common in the prop trading industry, as it allows firms to assess a trader’s consistency and risk management skills over an extended period.
Key Features of Two-Step Challenges
The first phase typically requires traders to achieve a profit target while adhering to specific risk management rules. Once they pass, they move to the second phase, where the profit target is often lower, but traders must continue demonstrating consistency. After completing both phases, they receive access to a funded account.
Many top proprietary firms prefer this structure because it filters out high-risk traders while allowing those with strong risk management skills to qualify. This model suits traders who prefer a longer evaluation period to showcase their trading ability.
Pros and Cons of Two-Step Evaluations
Pros
- More flexibility in trading
- Lower challenge fees compared to one-step models
- Encourages consistent and responsible trading
- Higher overall funding opportunities
Cons
- Takes longer to complete
- Some traders may feel fatigued by multiple phases
- More patience is required to reach a funded stage
A 2-step evaluation is better suited for traders who prefer structured challenges with room to recover from drawdowns. Many firms offering this model provide larger funding options, making it ideal for traders with long-term profitability goals.
Key Differences Between One-Step and Two-Step Challenges
A one-step challenge requires only a single phase to pass, while a two-step evaluation requires traders to prove their consistency over two phases. The one-step model is much faster but comes with stricter risk management rules and higher challenge fees. In contrast, the two-step model offers a lower-cost entry but takes longer to complete.
Traders who are confident in high-frequency, short-term trading may prefer one-step challenges for their efficiency. Those who focus on longer-term consistency may find two-step evaluations more suitable.
Which Challenge Type is Right for You?
The choice between a one-step challenge prop firm and a 2-step evaluation depends on a trader’s experience level, risk tolerance, and trading style.
Traders who prefer a fast-track approach and are comfortable with tight risk parameters should opt for one-step challenges. These evaluations work best for traders who can generate quick profits and follow disciplined risk management.
On the other hand, traders who value stability, flexibility, and long-term evaluation should consider the two-step challenge. This structure gives traders more time to adapt, making it ideal for those who prefer to take measured risks and build consistency over time.
How Funding Pips Supports Both Challenge Models
Funding Pips, one of the leading names in proprietary trading, provides traders with options for both one-step and two-step evaluations. The firm recognizes that different traders have varying strengths and risk appetites, allowing them to select the challenge type that suits them best.
By offering flexible funding options, strong risk management policies, and trader education, Funding Pips ensures that traders are set up for long-term success, whether they choose a fast-track one-step challenge or a comprehensive two-step evaluation.
Conclusion
Both one-step and two-step challenges have their own advantages and cater to different types of traders. A one-step challenge prop firm is best for traders looking for fast funding and direct access to capital, while a 2-step evaluation is ideal for those who prefer a longer evaluation period with more flexibility.
Before selecting a challenge, traders should assess their trading style, experience level, and ability to manage risk. Whether choosing the speed of a one-step challenge or the structured approach of a two-step model, selecting the right prop firm and challenge type can be the key to a successful prop trading career.
