What is a prop firm challenge?
A prop firm challenge is a paid evaluation on a simulated account. Reach the profit target without breaking the loss limits and the firm gives you a funded account with a share of the profits.
Typical two-step challenge on $100,000: an 8–10% target in phase 1, 5% in phase 2, a 4–5% daily loss limit, an 8–10% max loss and 3–5 minimum trading days. The fee, often $400–$600 at that size, is lost if you breach.
The phases
- Evaluation (phase 1): the bigger target, usually 8–10%.
- Verification (phase 2): a smaller target, often 5%, same loss limits.
- Funded: no target, the same limits, profit split and payouts.
Rules at popular firms
| Firm (two-step program) | Daily loss | Max loss | Phase 1 target | Phase 2 target |
|---|---|---|---|---|
| FTMO (static max loss) | 5% | 10% | 10% | 5% |
| FundedNext | 5% | 10% | 8% | 5% |
| The5ers | 5% | 10% | 8% | 5% |
| FundingPips | 5% | 10% | 8% | 5% |
| Alpha Capital | 5% | 10% | 8% | 5% |
| E8 Markets | 5% | 8% | 8% | 4% |
| MyFundedFX | 5% | 8% | 8% | 5% |
| FXIFY | 4% | 10% | 10% | 5% |
| Maven Trading | 4% | 8% | 8% | 5% |
| Blue Guardian | 4% | 8% | 8% | 4% |
| Topstep (futures, trailing) | 2% | 4% | 6% | — |
| Apex Trader Funding (futures, trailing) | — | 5% | 6% | — |
Percentages of the starting balance for each firm's best-known two-step program, as the FundedLot app prefills them; futures firms count drawdown in dollars, shown as the 50K account's share. Programs and rules change, so your firm's dashboard has the final word. FundedLot is not affiliated with any firm listed.
How to pass
- Size from the daily loss limit: one stop at most a quarter of it.
- Take fewer, planned trades with an entry, a stop and targets set before you click.
- Practice the exact rules free before paying, and read the fine print on news and consistency.
The full walkthrough: what is a prop firm challenge and how to crack a funded account.
FAQ
What is a prop firm challenge?
A paid trading evaluation on a simulated account: reach the profit target without breaking the daily loss limit or the max drawdown to earn a funded account.
How much does a prop firm challenge cost?
Commonly $50 to $100 for $10,000 accounts and $400 to $600 for $100,000 accounts; some firms refund the fee with the first payout.
How many people pass prop firm challenges?
Firms rarely publish it; common industry estimates put first-attempt pass rates around 10%.