One Step Challenges
Prop trading firms offer structured accounts and evaluations for traders to access more capital without taking on financial risk. To get a funded account, traders must complete an evaluation or challenge, which involves hitting specific profit targets within risk limits. After passing the challenge, traders can start trading with the prop firm’s capital instead of their own money. Some firms also offer instant funding accounts, which skip the evaluation for a higher fee. One-step evaluations are straightforward, single-phase challenges that fast-track traders to funding with just one successful performance check. These are suitable for confident traders with a solid trading background, but may lack the structured progression offered by multi-step models for beginner traders.
Two-Step Evaluations
Two-step evaluations are a two-phase approach to assess trading skills and consistency. The first phase involves reaching a profit target while adhering to drawdown limits. If met, the requirements are reduced, focusing on stable performance rather than aggressive growth. Completing both stages grants access to a funded account. These evaluations are suitable for traders seeking a balanced assessment and newer traders, as they allow for gradual skill development over two phases.
Three-Step Evaluations
Three-step evaluations are a method used to assess a trader’s long-term consistency, discipline, and risk management skills. These accounts require traders to complete three phases, each with refined goals and drawdown limits. Passing all three stages leads to a funded account. These evaluations are beneficial for traders who thrive under structured challenges and those looking to refine their approach. However, they may not be suitable for faster access to capital due to the time and consistent effort required across multiple phases.
Instant Funding Accounts
Instant funding accounts offer immediate access to trading capital without undergoing an evaluation phase, making them ideal for experienced traders with a consistent track record. These accounts are ideal for those who want to start trading with capital immediately without meeting extensive profit targets or benchmarks. Although the one-time fees are typically higher than multi-step evaluations, the trade-off is direct access to a funded account without going through an evaluation phase.
Funded Trader Accounts
Traders transition from evaluation accounts to funded accounts after completing evaluation phases. This involves a shift in trading responsibility, with firms requiring steady performance and regular risk management. Profit splits are typically competitive, ranging from 70% to 90%. Payment schedules vary, with some offering weekly or bi-weekly withdrawals and others on a monthly cycle.
Prop firms often offer scaling plans to increase account size over time, allowing traders to grow their trading capital incrementally based on consistent performance.
Some firms double the account balance after achieving specific profit milestones, increasing earning potential and promoting disciplined trading practices. Reviewing potential prop firms can help you find the best fit based on your trading goals and growth aspirations.
Add-Ons for Customising Accounts
Prop firms offer add-ons that allow users to customize their accounts to suit their trading goals and preferences. These features include increased profit splits, higher leverage options, faster payout cycles, and less strict loss limits.
Increased profit splits allow traders to keep a larger share of their profits..
Higher leverage options enable larger position sizes for aggressive traders.
Faster payout cycles allow for weekly or bi-weekly withdrawals instead of monthly payouts and so on.
Less strict limits provide greater flexibility for high-volatility markets or complex trading strategies.
These add-ons are particularly useful for traders looking to maximize earnings, reduce restrictions, or access funds more quickly.
You can modify your prop trading experience to match your needs by adding on features that customize your account, such as reducing limits or increasing profit splits. For traders whose unique approaches don’t conform to the parameters of most accounts, this is a great perk. It is important to consider your risk tolerance and trading objectives when deciding which add-ons to get, as they may incur additional costs.