One-step vs two-step prop firm challenges

Most forex and CFD prop firms offer both one-step and two-step challenges. The names describe how many phases you must pass. The real differences are in the targets, the loss limits, the price and what happens once you are funded.

How each model works

One-step: you hit one profit target, follow the rules, and you are funded.

Two-step: you pass phase 1, then a verification phase with a lower target. Then you are funded.

The futures firms we track, such as Topstep, Tradeify, My Funded Futures and Take Profit Trader, use a single evaluation phase. This guide focuses on forex and CFD firms where both options sit side by side. For the basics, see how prop firm challenges work.

Side by side: FTMO

FTMO offers both. From our database, checked 3 November 2026, for a 100K account:

FTMO 1-Step 100K

• Fee: €499.
• Profit target: 10%.
• Daily loss: 3%.
• Maximum loss: 10%, end-of-day trailing.
• Consistency: for orders from October 2026, your best day can be no more than 50% of total profit.
• Split: 90%.
• Fee refund: none.

FTMO 2-Step 100K

• Fee: €540.
• Profit targets: 10%, then 5%.
• Daily loss: 5%.
• Maximum loss: 10%, static.
• Minimum trading days: 4.
• Split: 80% in our data, with a 90% share listed on FTMO's scaling plan page for 2-Step.
• Fee refund: with your first reward.
• Optional Swing account, with no news restriction and overnight and weekend holding allowed.

Side by side: FundedNext

FundedNext offers Stellar 1-Step and Stellar 2-Step. For 100K:

Stellar 1-Step 100K

• Fee: $569.99.
• Profit target: 10%.
• Daily loss: 3%.
• Maximum loss: 6%, static.
• Minimum trading days: 2.
• Payouts every 5 business days.
• Fee refund with your third reward, for purchases from 12 January 2026.

Stellar 2-Step 100K

• Fee: $549.99.
• Profit targets: 8%, then 5%.
• Daily loss: 5%.
• Maximum loss: 10%, static.
• Minimum trading days: 5.
• Bi-weekly payouts.
• Fee refund with your first withdrawal.

The pattern

Across both firms, the same trade-off appears:

• One-step has one target, so it can be faster. In exchange, loss limits are tighter. Daily loss falls from 5% to 3%. FTMO's maximum loss trails. FundedNext's falls from 10% to 6%.
• Two-step needs more total profit across two phases. In exchange, you get more room to lose and, at these two firms, an earlier fee refund.

Prices are close at 100K. The choice is about rules, not cost.

The room-to-target ratio

A useful comparison is to divide the maximum loss by the profit target. A higher number means more room for error.

• FTMO 1-Step: 10% of room for a 10% target. Ratio 1.0, but the room trails.
• FTMO 2-Step phase 1: 10% for 10%. Ratio 1.0, static. Phase 2: 10% for 5%. Ratio 2.0.
• FundedNext Stellar 1-Step: 6% for 10%. Ratio 0.6.
• FundedNext Stellar 2-Step phase 1: 10% for 8%. Ratio 1.25. Phase 2: 10% for 5%. Ratio 2.0.

The ratio ignores daily limits and trailing, so use it as a starting point only. Our drawdown calculator and profit target calculator help you test your own numbers.

Phase 2 is not a formality

Traders often treat verification as easy because the target is lower. The loss limits usually stay the same, though, and a breach in phase 2 still ends the attempt. At FTMO and FundedNext, phase 2 asks for 5% with the same 10% maximum loss.

Keep the same risk per trade you used in phase 1. Many traders relax after passing phase 1 and size up. That is often when accounts slip.

Thinking about cost per attempt

Price per attempt matters if you expect more than one try. An illustrative comparison at 100K, using the list prices above:

• Two attempts at FTMO 1-Step cost €998. Two at the 2-Step cost €1,080.
• If the second 2-Step attempt passes and pays a reward, that fee comes back. The 1-Step fee does not.
• At FundedNext, both models refund only after funded payouts, but the 1-Step waits for the third reward.

Discount codes and sales change these numbers often. Check our discounts page for current offers.

Who should pick one-step

• Traders with a low-volatility style and small daily swings.
• Traders who keep risk per trade small and rarely have big losing days.
• Traders who want one target and a faster path to the funded stage.

Watch for the tighter daily limit and any consistency rule. One big day can cause a breach or a delay.

Who should pick two-step

• Traders whose equity curve has bigger swings.
• Traders who want static drawdown at firms where the one-step trails.
• Traders who value an earlier fee refund.
• Swing traders at FTMO who need the Swing account, which is offered only with the 2-Step.

The cost is time. You must pass twice, and a second phase brings a second chance to make mistakes.

Questions to ask before you buy

1. What is the daily loss limit, and how is it measured?
2. Is the maximum loss static or trailing?
3. Is there a consistency rule, and does it fail the account or only delay it?
4. When is the fee refunded, if at all?
5. Do the funded rules differ between the two models?

Browse every challenge we track on our rules hub, or compare firms on our comparison page.

Key takeaways

• One-step: one target, tighter limits.
• Two-step: two targets, more room and often an earlier refund.
• Prices at 100K are close at FTMO and FundedNext.
• Pick the model that suits how your account swings.

Prices and rules change. Confirm current terms on each firm's official site before you buy. FTMO prices are in EUR. This guide is educational and not financial advice. Trading involves risk. FundedKings may earn a commission if you buy through our links or use our codes. See our affiliate disclosure.