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

Flux TradingFebruary 22, 20264 min read8 views

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

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

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

1-Step vs 2-Step: Side by Side

Feature	1-Step	2-Step
Phases	1	2
Typical profit target	8-10%	Phase 1: 8-10%, Phase 2: 5%
Time to funded	Faster	Slower
Difficulty	Higher per phase	Lower per phase
Cost	Sometimes higher	Sometimes lower
Best for	Experienced traders	Beginners

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.

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.

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.