When you decide to get funded through a prop firm, one of the first choices you'll face is this: one step challenge or two step challenge?
Both lead to the same destination, a funded trading account. But the path, the pressure, and the trading experience are very different. Choosing the wrong one for your style doesn't mean you'll fail, but it does mean you'll be fighting an uphill battle from day one.
This guide breaks down exactly what each challenge type is, compares them side by side, and helps you decide which one suits your trading approach.
What Is a One Step Challenge?
A one step challenge (also called a one-phase or single-phase evaluation) is a prop firm evaluation where you need to complete only one phase before getting funded.
Here's how it works:
You trade on a simulated account
You must hit a single profit target typically around 8–10%
You must stay within the max daily loss and max drawdown (total loss) limits
Once you hit the target without breaking any rules, you're funded
The appeal is straightforward: one goal, one phase, done.
There's no second round of evaluation. No waiting to start Phase 2. If you trade well and hit the target cleanly, you move directly to a funded account. For traders who are confident in their edge and want to get funded as fast as possible, the one step challenge is built for that.
What Is a Two Step Challenge?
A two step challenge splits the evaluation into two separate phases, each with its own profit target and rules.
Here's how it typically works:
Phase 1: Hit a profit target of around 8% while respecting all risk rules
Phase 2: Hit a lower profit target usually around 4–5% with continued rule compliance
Pass both phases → get funded
The lower per-phase targets make each individual phase feel more manageable. But there's a catch: you have to do it twice. And the transition between Phase 1 and Phase 2 is where many traders lose discipline either relaxing too much after Phase 1 or over-trading to finish Phase 2 quickly.
The two step challenge is designed to test not just profitability, but sustained discipline over a longer period.
One Step vs Two Step Side-by-Side Comparison
Factor | One Step Challenge | Two Step Challenge |
Number of Phases | 1 | 2 |
Profit Target | ~8–10% (single phase) | ~8% (Phase 1) + ~4–5% (Phase 2) |
Time to Get Funded | Faster | Slower |
Challenge Fee | Slightly higher | Generally lower |
Psychological Pressure | High (one shot) | Spread across two phases |
Best For | Experienced, decisive traders | Patient, methodical traders |
Risk of Failure | Higher single-phase pressure | Risk of failing Phase 2 after passing Phase 1 |
Pros and Cons of Each Challenge
One Step Challenge
Pros:
Fastest route to a funded account
Simpler structure one set of rules, one target
Less time spent in evaluation
No risk of "Phase 2 syndrome" (losing discipline after Phase 1)
Cons:
Higher profit target in a single phase
Less room for error mistakes carry more weight
More intense psychological pressure
Slightly higher challenge fee at some firms
Two Step Challenge
Pros:
Lower per-phase profit targets feel more achievable
Spread evaluation allows for consistency to be demonstrated over time
Generally lower challenge fee
Phase 2's lower target gives you room to trade conservatively
Cons:
Takes longer overall to get funded
Failing in Phase 2 after passing Phase 1 is especially demoralising
More phases = more time under evaluation pressure
Requires sustained discipline, not just one good run
Who Should Choose the One Step Challenge?
The one step challenge is the right fit if:
You have a tested, proven strategy that produces consistent results
You trade actively scalpers (traders who make many small, quick trades), day traders, and momentum traders who generate returns quickly will benefit most
You perform better under clear, focused pressure one target, one phase
Your priority is speed you want to start earning on a funded account as soon as possible
You're comfortable with tighter risk parameters since there's only one phase, you need to manage drawdown (total account loss limit) carefully throughout
If you've been trading your strategy on a personal or demo account and it regularly returns 8–10% in a reasonable timeframe, the one step challenge is likely the faster and more efficient path for you.
Who Should Choose the Two Step Challenge?
The two step challenge is a better fit if:
You're building consistency and want a more gradual, structured evaluation process
You prefer lower individual targets rather than hitting a larger number in one go
You're new to prop trading challenges and want more checkpoints along the way
Your trading style is patient swing traders (traders who hold positions for days or weeks) and position traders tend to perform well across two phases
Budget matters two step challenges typically have a lower entry fee, making it easier to start
The two step model rewards traders who can prove they're not just profitable once but consistently disciplined across different market conditions and time periods. If that describes you, it's worth the extra time.
How FundedNow Structures Its Challenges
At FundedNow, you have three challenge options:
One Step Single phase evaluation, fast path to funding
Two Step Two-phase evaluation for structured, progressive assessment
Instant Fund Skip the evaluation entirely and start trading a funded account immediately
All three types share FundedNow's trader-first philosophy: no arbitrary restrictions, no hidden rules, news trading allowed, no time limit on evaluations, and payouts every 7 days via UPI, Bank Transfer, or Crypto.
Compare All FundedNow Challenge Plans
Read FundedNow's Full Trading Rules
One Key Thing to Remember Before You Decide
Both challenges test the same core qualities: discipline, risk management, and consistency. The difference is in how that test is structured, not in what it's measuring.
Before you pick a challenge type, ask yourself:
How consistently does my strategy hit 8–10% over a few weeks? If the answer is "reliably," go one step.
How do I handle pressure? One phase = intense focus. Two phases = sustained discipline.
Do I need speed or structure? If getting funded fast is the priority, one step. If proving consistency matters more, two steps.
There's no universally "better" option. The best challenge is the one that matches how you actually trade, not the one that looks easiest on paper.
Ready to Choose Your Challenge?
FundedNow offers both One Step and Two Step challenges across account sizes from $5,000 to $200,000 so whether you want a direct shot at funding or a structured evaluation journey, the right path is there for you.
Get Started with FundedNow - Choose Your Challenge
Disclaimer: FundedNow provides simulated trading challenges for evaluation purposes. Funded accounts involve real payouts based on simulated performance. Trading involves risk. This article is for educational purposes only and does not constitute financial advice.
