Best 2-Step Challenge Prop Firms

The 2-step challenge is the industry standard evaluation model pioneered by FTMO. Phase 1 requires you to hit a higher profit target (typically 8–10%), while Phase 2 has a lower target (usually 5%) to confirm your consistency. This two-phase structure gives you more room to demonstrate your trading ability across different market conditions.

The 2-step model is generally considered more forgiving than 1-step alternatives because the reduced Phase 2 target lets you trade more conservatively after proving you can be profitable. Many traders prefer this structure because it aligns with how professional risk management works — show you can generate returns, then show you can do it consistently.

When comparing 2-step challenges, pay close attention to whether the profit target resets between phases, whether the time limit is per-phase or cumulative, and whether the drawdown rules differ between Phase 1 and Phase 2. These details can significantly affect your probability of passing.