5 Best 2-Step Challenge Prop Firms

The 2-step challenge is one of the most common evaluation formats in prop trading, and for good reason. It gives traders two separate phases to prove themselves under slightly different pressure. 

This challenge model offers a balanced approach to trader assessment, giving firms more confidence in a trader's consistency while typically providing lower profit targets and more forgiving risk rules than most 1-step models.

In this guide, we'll compare the best 2-step challenge prop firms in 2026, including their trading rules, fees, payout terms, and overall value.

Quick Comparison Table of 2-Step Challenge Prop Firms

‍

What Are Two-Step Challenges?

A 2-step challenge is a prop firm challenge model that requires traders to pass two separate phases before receiving a funded account. You hit a profit target in Phase 1, then a smaller profit target in Phase 2, while staying within the firm's drawdown limits throughout both. 

It's the original prop firm evaluation format and remains the industry standard. Each phase has its own profit target and risk limits designed to test both profitability and consistency.

How Does a 2-Step Challenge Work in Prop Firms?

The purpose of a 2-step challenge is to identify traders who can generate profits while managing risk over multiple evaluation stages. The format exists to filter out lucky one-off results. 

Phase 1 usually asks for a larger profit target, often 8% to 10%, to show you can generate returns. Phase 2 lowers the bar to around 4% or 5% or removes the targets completely. Daily and overall drawdown limits apply across both phases.

Typically:

• Phase 1 focuses on proving profitability.
• Phase 2 focuses on consistency and risk management.
• Once both phases are completed, the trader receives a funded account and becomes eligible for payouts.

Is a 2-Step Challenge Harder than a 1-Step?

Not necessarily harder, just different. A 1-step challenge sets a single larger profit target in a single phase, but the trade-off is usually a tighter trailing drawdown that locks in as your account grows. 

A 1-Step's trailing max loss follows your closing balance higher each day, meaning a profitable run earns you a floor that climbs alongside instead of a permanent buffer. A 2-step spreads the same overall difficulty across two smaller targets.

‍

For most traders, 2-step challenges are actually easier to pass because they place less pressure on achieving high returns, even though it takes longer.

How to Pass a 2-Step Prop Firm Challenge (Pro Tips)

When it comes to 2-step challenges, treat the first and second phases as separate evaluations. Step 2 is typically easier because the profit target is lower, but traders still fail by rushing it.

Here are a few extra tips to keep in mind:

• Risk 0.5% or less per trade, trade fewer pairs, and stick to one clear strategy rather than switching approaches mid-evaluation
• Once you've hit your target in either phase, shift your mindset from chasing gains to protecting what you've already earned
• Avoid increasing position size after losses
• Trade only your proven setups
• Understand every challenge rule

5 Best Two-Step Challenge Prop Firms

To find the best 2-step challenge prop firms for traders, we compared each firm's drawdown structure, profit targets, leverage, consistency rules, profit split, payout speed, and overall trader flexibility.

1. AtlasFunded — Best Overall

AtlasFunded is one of the top prop trading firms, with some of the most competitive and flexible evaluation models in the industry. It offers a standard 2-Step and 2-Step Pro option, designed to test trading consistency across two stages before unlocking a funded account.

2-Step Account Sizes and Trading Rules

• Account sizes: $5K to $400K
• Challenge fee: $28 to $568
• Profit target: 5% to 9%
• Daily loss limit: 5%
• Max. drawdown: 8% to 10% (Static)
• Max. Leverage: 1:100
• Consistency rule: None
• Minimum trading day rule: 5 days

Key Features

• Trading platforms: MT5, TradeLocker, and Match-Trader.
• Expert Advisors: Fully permitted throughout the evaluation and funded stages.
• News trading: You can execute trades using the news across all models.
• Weekend holding: Positions may be held from Friday's close to Monday's open.
• No activation fee: No post-pass charges on any plan.
• 24/7 support: Built-in live chat system available at all times.
• Discord community: 27,000+ members with giveaways and real-time support.
• No time limit

Profit Split and Payout Terms 

AtlasFunded offers an 80% profit split, upgradeable to 100% on its 2-Step challenge. Standard payouts are biweekly, with weekly and on-demand options available at checkout. Payout processing is typically completed within 24 to 48 hours.

Who It's For

It's great for traders looking for the most balanced combination of flexibility, reliable payouts, and realistic evaluation rules.

2. FundedNext — Best for News Traders

FundedNext's Stellar 2-Step challenge is one of the most popular 2-phase evaluations on the market, with a 4.5 Trustpilot rating from 71,000+ reviews. The firm offers a Stellar 2-Step plan, which combines a wide range of accounts, unlimited time, flexible rules, and high profit splits.

2-Step Account Sizes and Trading Rules

• Account sizes: $6K to $200K
• Challenge fees: $44.99-$1099
• Profit target: 5% to 8%
• Daily loss limit: 5%
• Max. drawdown: 10% (static)
• Max. Leverage: 1:100
• Consistency rule: None
• Minimum trading day rule: 5 days

Key Features

• Trading platforms: MT4, MT5, cTrader, TradingView, DXtrade, Match-Trader
• 15% challenge performance bonus: Earn real money during the evaluation
• News trading: Fully permitted with no restrictions
• Expert Advisors: Permitted on MT4 and MT5
• Unlimited trading time: No evaluation deadline on qualifying plans
• FundedNext Academy: Educational content for traders at all levels
• 24/7 live chat and email support

Profit Split and Payout Terms

FundedNext’s Stellar 2-Step accounts offer an 80% profit split that can scale to 90%. Challenge fees are refunded with the first payout. Payouts are available weekly, with most withdrawals processed within 24 to 48 hours.

Who It's For 

Traders who want to trade news events without restriction and value a verified, fast payout guarantee.

3. Top One Trader — Best for Low-Cost Entry

Top One Trader was launched in 2023, and although being fairly new, it has built a strong reputation by combining trader-friendly rules with rapid payouts. It has a 4.5 rating on Trustpilot and offers high capital scaling across its 1-step, 2-step, and Instant Funding models.

2-Step Account Sizes and Trading Rules

• Account sizes: $5K to $150K
• Challenge Fee: $16 to $518
• Cost: $19 to $850
• Profit target: 5% to 8%
• Daily loss limit: 4%
• Max. drawdown: 9%
• Max. leverage: 1:150
• Consistency rule: None
• Minimum trading day rule: 3 days

Key Features

• Trading platforms: Match-Trader, MT5, Tradelocker
• Scaling Potential: Up to $5 million
• News trading is allowed in the evaluation phases
• No time limit
• Fast support
• EAs are allowed during the challenge phase
• Comprehensive Trading Coaching Course included
• Weekend holding is allowed

Profit Split and Payout Terms 

Top One Traders offers a default 80% profit split, which can reach up to 100%. Funded accounts follow biweekly payout cycles, with weekly payouts available as an add-on. Payouts typically take 28 to 48 hours.

Who It's For 

Traders who want a low entry cost and fast access to withdrawals after getting funded.

4. Funded Trader Markets — Best for Flexibility

Funded Trader Markets is a CFD prop trading firm established in 2024 and based in Cyprus, holding a 3.9 out of 5 Trustpilot rating, with payout speed standing out as the most consistently praised feature among traders. The firm’s 2-Step Evaluation Program is built for traders who prefer a steady, phased approach over an instant-funding sprint.

2-Step Account Sizes and Trading Rules

• Account sizes: $5K to $200K
• Challenge fees: $25 to $699
• Profit target: 5% to 8%
• Daily loss limit: 4%
• Max. drawdown: 10%
• Max. Leverage: 1:100
• Consistency rule: None
• Minimum trading day rule: 3 to 5 days

Key Features

• Trading platforms: Match-Trader, MT5, C-Trader, Trade-Locker
• News trading and weekend holding are permitted
• Swap-free account options available
• Up to $1.2 million in scaling
• 24/7 live chat support with response times under two minutes

Profit Split and Payout Terms 

The starting split on the 2-Step Plus plan is 70%, up to 90% with add-ons. Payouts are available on-demand, with a 24-hour processing guarantee.

Who It's For 

Traders who want more freedom in how they trade.  

5. The5ers — Best for Long-Term Scaling

The5ers is one of the longest-established firms on this list and has built its reputation around trader development and account growth. It was founded in 2016 and has been operating for a decade, with a 4.7 Trustpilot rating from 30,000 reviews. The firm offers a standard 2-Step and a Classic 2-Step model.

2-Step Account Sizes and Trading Rules

• Account sizes: $2.5K to $100K
• Challenge fee: $19 to $545
• Profit target: 5% to 10%
• Daily loss limit: 5%
• Max. drawdown: 10% (static)
• Max. leverage: 1:100
• Consistency rule: None
• Minimum trading day rule: 3 days

Key Features

• Trading platforms: MT5 and cTrader
• Trading Academy: Structured courses from basic forex to advanced strategies
• News trading permitted: Allowed on funded accounts across all programs
• No time limit 
• Up to $4 million scaling potential
• Expert Advisors: Supported across all account types
• HUB Credits: Bonuses earned at each level milestone, redeemable for challenges and perks
• Weekend holding: Permitted on Hyper Growth-funded accounts

Profit Split and Payout Terms

The5ers’ 2-step profit split ranges between 80% and 100%. Payouts are available on a biweekly schedule, typically processed within 1-2 days.

Who It's For 

Traders focused on building larger capital allocations over the long term with a trusted firm.

Final Verdict: The Perfect Two-Step Challenge Offer

If you're looking for the best two-step challenge prop firm, the right choice ultimately comes down to your trading style, risk tolerance, and payout preferences. All firms on this list offer a solid two-step structure, but AtlasFunded stands out in 2026 for its low costs, reliable payouts, high profit split potential, trader-friendly rules, and overall flexibility. It’s the best two-step challenge prop firm for both experts and beginners.

‍