Evaluation Phases and Challenge Types

Two-step

The standard model. Phase one asks for a profit target of around 8 to 10 percent; phase two asks for 5 percent. Both phases carry the same daily and overall loss limits. Two phases mean two chances to fail, but they also mean the firm can afford looser limits and a lower fee, because two passes filter harder than one. Most forex firms started here.

One-step

A single phase with a target of around 10 percent. To keep the filter tight the firm usually pairs it with a trailing drawdown, a lower overall loss limit, or a consistency rule. It is faster and there is one hurdle, but the hurdle is higher. A trader whose edge is steady and low-variance often prefers it; a trader who takes larger swings usually does better with two static-drawdown phases.

Instant funding

No evaluation: you pay a larger fee and receive a funded account immediately. The catch is in the terms: smaller starting balances, drawdown measured tightly, a lower profit split until a profit threshold is reached, and often a rule that the first payout only comes after a set gain. It suits traders who value time over cost and who have already proven their method elsewhere.

Comparing them

Key takeaways

• Two-step is cheaper with looser limits; one-step is faster with tighter ones; instant costs most and skips the test.
• Drawdown rules are the balancing item between the shapes.
• Choose by how your strategy's variance interacts with the limits.