Compare Prop Firm Challenges

The Complete Guide to Prop Firm Challenges in 2026

Proprietary trading firm challenges have become one of the most popular pathways for aspiring traders to access significant trading capital without risking their own money. A prop firm challenge is essentially an evaluation program where you demonstrate your trading ability on a simulated account under real market conditions. If you meet the firm's requirements for profit targets, drawdown limits, and trading rules, you earn access to a funded account where you keep the majority of profits you generate.

The prop firm industry has grown exponentially over the past few years, with dozens of firms now competing for traders' attention. This competition has driven innovation in challenge structures, pricing, and trader-friendly features. Today, you can choose from 1-step evaluations, 2-step evaluations, 3-step programs, and even instant funding options that skip the evaluation entirely. Each model offers different trade-offs between difficulty, cost, and speed to funding.

Understanding Challenge Structures

The most common challenge format is the 2-step evaluation. In Phase 1, you need to hit a profit target, typically around 8%, while staying within a daily drawdown limit of 4-5% and a maximum drawdown of 8-12%. Phase 2 has a lower profit target, usually 5%, with the same drawdown rules. The entire evaluation can take anywhere from a few days to several months, depending on the firm's minimum trading day requirements and your trading pace.

One-step challenges have gained popularity because they offer a faster path to funding. You only need to pass a single phase, though the profit target is often higher, around 10%. This format suits confident traders who want to minimize the time between paying for a challenge and receiving a funded account. Firms like FTMO, Funded Next, and The5ers all offer competitive 1-step options.

Instant funding programs are the newest addition to the market. They eliminate the evaluation phase entirely, giving you a funded account immediately after purchase. The trade-off is usually a higher price, a lower starting profit split, or more conservative drawdown limits. Instant funding is ideal for experienced traders who are confident in their strategy and want to start earning right away.

How to Choose the Right Account Size

Account size is one of the most important decisions you will make when selecting a challenge. The size you choose should align with your trading strategy, risk management approach, and budget. A trader who risks 1% per trade on a $50,000 account is risking $500 per position, which provides enough room for most strategies. On a $10,000 account, that same 1% risk is only $100, which may not be enough to trade certain instruments effectively.

Keep in mind that most firms offer scaling programs. If you start with a $50,000 account and consistently profit, many firms will increase your allocation to $100,000, $200,000, or even $1 million over time. Starting smaller allows you to learn the firm's rules and build a track record before managing larger capital.

Drawdown Limits Explained

Drawdown limits are the most critical rules in any prop firm challenge. Understanding the difference between trailing and static drawdown can mean the difference between passing and failing. A static maximum drawdown of 10% means your account can never drop more than 10% below its starting balance. If you start at $100,000, your account cannot fall below $90,000. This is straightforward and predictable.

Trailing drawdown, on the other hand, moves with your highest account balance. If your $100,000 account grows to $105,000, the trailing drawdown level moves up to $95,000. This means your profits effectively reduce your available drawdown buffer. Trailing drawdown is more challenging to manage, especially for swing traders who may give back some profits before their trades reach full potential. When comparing firms, pay close attention to whether the drawdown is trailing or static, and whether it is calculated on equity (including open trades) or closed balance only.

Profit Split and Scaling

Once you pass a challenge and become a funded trader, you keep a percentage of the profits you generate. The standard profit split in the industry ranges from 70% to 90%, with some firms offering up to 100% on certain plans. A higher profit split is obviously preferable, but do not let it be the only factor in your decision. A firm with an 80% split but generous drawdown rules and fast payouts may be more profitable in practice than one offering 90% with extremely tight risk limits.

Scaling plans are another factor to consider. Most reputable firms increase your account size as you demonstrate consistent profitability. Some scale your account by 25% every few months, while others double it after specific profit milestones. Over time, scaling can transform a $50,000 account into $500,000 or more, significantly amplifying your earnings even at a modest profit split.

Getting the Best Deal

Challenge prices vary significantly across firms, and there are always promotional offers available. Many firms run seasonal sales offering 10-30% off challenge fees. Our comparison tool tracks current promotions and discount codes across all major firms, helping you find the best price for the challenge type and account size you want. Remember that most firms refund the challenge fee with your first profit payout, so the upfront cost is effectively recoverable if you pass and trade profitably.

Use the filters on this page to compare challenges by the metrics that matter most to your trading style. Whether you prioritize low cost, generous drawdown rules, high profit splits, or specific account sizes, our database covers hundreds of challenge options across 23+ prop trading firms to help you find the perfect match.