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10 Best 2-Step Prop Firms
Best 2-Step Prop Firms
The 2-step evaluation is the industry standard and the most popular challenge model in prop trading. You pass two phases — typically an 8% profit target in Phase 1 followed by a 5% target in Phase 2 — before receiving a funded account. This structure lets firms verify consistency over a longer period while keeping individual targets manageable. Most 2-step programs have no time limit, giving you the freedom to trade at your own pace. The main advantage over 1-step is lower per-phase risk: instead of needing to hit 10% in one shot, you split the requirement across two manageable phases.
Split Targets
Phase 1: typically 8% profit target. Phase 2: typically 5%. Lower per-phase pressure than 1-step.
Consistency Check
Two phases prove you can trade consistently, not just get lucky on one good week.
Lower Cost
2-step challenges are usually 15-30% cheaper than equivalent 1-step programs for the same account size.
No Time Limit
Most 2-step firms now offer unlimited time to pass both phases. Trade only your best setups.
Top 5 Firms for Best 2-Step Prop Firms
| Prop Firm | Rating | Max Drawdown | Profit Split | Evaluation Type |
|---|---|---|---|---|
| 4.8/5 | 10% | Up to Up to 90% | 2-Step | |
| 4.8/5 | 10% | Up to Up to 100% | 2-Step | |
| 4.7/5 | 10% | Up to 80% | 2-Step | |
| 4.7/5 | 10% | Up to Up to 90% | 2-Step | |
| 4.6/5 | 8% | Up to 85% | 2-Step |
Find Your Perfect Firm10 Results
| # | Firm | Rating | Actions |
|---|---|---|---|
1 | 4.8 | ||
2 | FundingPips 2-Step evaluation. Profit target: 8%. Max drawdown: 10%. | 4.8 | |
3 | Alpha Capital Group 2-Step evaluation. Profit target: 8%. Max drawdown: 10%. | 4.7 | |
4 | Axi Select 2-Step evaluation. Profit target: 0%. Max drawdown: 10%. | 4.7 | |
5 | Blue Guardian 2-Step evaluation. Profit target: 8%. Max drawdown: 8%. | 4.6 | |
6 | Topstep 2-Step evaluation. Profit target: 6%. Max drawdown: 3%. | 4.5 | |
7 | City Traders Imperium 2-Step evaluation. Profit target: 10%. Max drawdown: 10%. | 4.5 | |
8 | Investing.com Challenges 2-Step evaluation. Profit target: 8%. Max drawdown: 10%. | 4.5 | |
9 | For Traders 2-Step evaluation. Profit target: 8%. Max drawdown: 10%. | 4.4 | |
10 | Darwinex Zero 2-Step evaluation. Profit target: 0%. Max drawdown: 10%. | 4.3 |
19/10% off
Split
Up to 90%
From
$89
Type
2-Step
2-Step evaluation. Profit target: 10%. Max drawdown: 10%.
Split
Up to 100%
From
$32
Type
2-Step
2-Step evaluation. Profit target: 8%. Max drawdown: 10%.
Split
80%
From
$77
Type
2-Step
2-Step evaluation. Profit target: 8%. Max drawdown: 10%.
Split
Up to 90%
From
$0
Type
2-Step
2-Step evaluation. Profit target: 0%. Max drawdown: 10%.
Split
85%
From
$129
Type
2-Step
2-Step evaluation. Profit target: 8%. Max drawdown: 8%.
Split
90%
From
$49
Type
2-Step
2-Step evaluation. Profit target: 6%. Max drawdown: 3%.
Split
Up to 100%
From
$109
Type
2-Step
2-Step evaluation. Profit target: 10%. Max drawdown: 10%.
Split
80%
From
$69
Type
2-Step
2-Step evaluation. Profit target: 8%. Max drawdown: 10%.
Split
Up to 90%
From
$109
Type
2-Step
2-Step evaluation. Profit target: 8%. Max drawdown: 10%.
Split
Investor Allocation
From
$38
Type
2-Step
2-Step evaluation. Profit target: 0%. Max drawdown: 10%.
Why 2-Step is the Industry Standard
The 2-step evaluation model dominates the prop firm industry because it strikes the perfect balance between risk for the firm and accessibility for the trader. By splitting the evaluation into two phases (usually 8% then 5%), firms can weed out traders who simply got lucky on one massive trade. For traders, the lower per-phase targets mean less psychological pressure to force trades.
The Psychology of Phase 2
Many traders easily pass Phase 1 but fail Phase 2, despite it having a lower profit target. This happens because traders become overly cautious or drastically change their risk management to "protect" their progress. The key to passing Phase 2 is to trade the exact same strategy and lot sizes that got you through Phase 1.
Pros of Best 2-Step Prop Firms
- Lower profit target per phase reduces the need to over-leverage
- Usually significantly cheaper than 1-step challenges
- Proves long-term consistency to yourself and the firm
Cons of Best 2-Step Prop Firms
- Takes longer to get funded compared to 1-step or instant accounts
- Psychological fatigue can set in during Phase 2
- Requires strict adherence to drawdown rules over a longer period
How to Succeed with Best 2-Step Prop Firms
01
Analyze the Targets
Look for the standard 8% / 5% split. Avoid firms demanding 10% / 8%.
02
Check Drawdown Types
Ensure the firm uses "Static" or "Balance-based" drawdown, not trailing.
03
Verify Time Limits
Choose firms that offer unlimited time so you never have to force a trade.
04
Pass Phase 1
Trade your normal system with 0.5% to 1% risk per trade until you hit 8%.
05
Conquer Phase 2
Do not change your strategy. Hit the 5% target and get your live funded account.
Frequently Asked Questions
How long does a 2-step evaluation take?
There is no fixed duration — most firms now offer unlimited time. On average, traders pass Phase 1 in 2-4 weeks and Phase 2 in 1-3 weeks, but you can take as long as you need.
Is 2-step easier than 1-step?
Generally yes, because the profit target is split across two phases. Instead of hitting 10% in one go, you target 8% then 5%. This reduces pressure per phase, though you must maintain discipline across both.
What happens if I fail Phase 2?
Most firms require you to restart from Phase 1 with a new purchase. However, some firms offer free retries, discounted retries, or the ability to retry Phase 2 only.
Are the drawdown rules the same in both phases?
Yes — the daily loss limit and maximum drawdown rules apply equally in Phase 1, Phase 2, and the funded account. Breaking them in any phase results in a fail.