1-Step vs 2-Step Prop Firm Challenges — Which Should You Choose?

One of the first decisions you'll face when choosing a prop firm is the challenge format: 1-Step or 2-Step? Each has clear advantages and trade-offs that can significantly impact your chances of getting funded.

How 1-Step Challenges Work

A 1-Step evaluation has a single phase. You need to hit a profit target (usually 8-10%) while staying within the maximum drawdown limit. Once you pass, you get a funded account.

Advantages of 1-Step:

• Faster to funded — only one phase to clear
• Lower total fees in some cases
• Less time commitment — hit the target and you're done
• Simpler rules — one set of targets to focus on

Disadvantages of 1-Step:

• Higher profit targets — firms often set 8-10% in a single phase
• Less room for error — no second phase to prove consistency
• Tighter rules in some cases to compensate for fewer phases

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How 2-Step Challenges Work

A 2-Step evaluation has two phases:

• Phase 1: Hit a profit target (usually 8-10%)
• Phase 2: Hit a lower target (usually 5%) to confirm consistency

Only after passing both phases do you receive funding.

Advantages of 2-Step:

• Lower per-phase targets — 5% in Phase 2 is very manageable
• Proves consistency — firms trust you more
• More forgiving — two chances to show your skills
• Often cheaper than 1-step for the same account size

Disadvantages of 2-Step:

• Takes longer — two phases can mean weeks of trading
• More fee risk — if you fail Phase 2, you might need to restart
• Psychological fatigue — maintaining discipline across two phases

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Which Firms Offer What?

Best 1-Step Challenge Firms:

• Apex Trader Funding — $17 entry, 100% profit split on first $25K, futures focused
• Topstep — $49 entry, 90% split, NFA Member, Express Funded option
• Breakout — $49 entry, up to 100% split, crypto only, daily payouts

Best 2-Step Challenge Firms:

• FTMO — $89 entry, up to 90% split, the industry standard
• FundedNext — $59 entry, up to 95% split, no time limits
• Funding Pips — $49 entry, up to 100% split, zero payout denials

Firms That Offer Both:

• MyFundedFX — 1-Step, 2-Step, and even 3-Step options
• FTMO — recently added a 1-Step alongside their classic 2-Step
• Breakout — both formats available for crypto

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1-Step vs 2-Step: Side by Side

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Which Format Is Better for Beginners?

If you're new to prop trading, we recommend starting with a 2-Step challenge. Here's why:

• The lower Phase 2 target (5%) gives you room to build confidence
• You learn to trade consistently across multiple phases
• Failure in Phase 1 costs the same either way, but 2-Step gives you a second confirmation phase

Our pick for beginners: FundedNext — no time limits mean you can take as long as you need, and the 95% profit split rewards your patience.

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Which Format Is Better for Experienced Traders?

If you're a profitable trader who just needs capital, 1-Step is the way to go:

• Get funded faster and start earning sooner
• Less time spent in evaluation means more time making money
• Simpler process with fewer variables

Our pick for experienced traders: Apex Trader Funding — $17 entry with 100% profit split on first $25K is simply unbeatable.

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The Bottom Line

There's no universally "better" format — it depends on your experience level, trading style, and risk tolerance.

• Choose 1-Step if you're confident in your edge and want the fastest path to funding
• Choose 2-Step if you want lower targets per phase and prefer a structured evaluation

Use our Prop Firm Matcher to find the perfect challenge format for your trading style.