Introduction to Prop Firm Challenges
Proprietary trading firms offer traders the opportunity to trade with firm-funded capital, allowing them to access larger trading accounts without risking their own money. To qualify for these accounts, traders must pass an evaluation process. The most common types of evaluations are the One Step Challenge Prop Firm model and the 2 Step Evaluation model.
While 2 Step Evaluations have traditionally been the standard, many traders are now opting for the One-Step Challenge due to its simplicity, faster access to funding, and fewer restrictions. This shift in preference highlights the growing demand for a more efficient and trader-friendly evaluation process.
Understanding One-Step vs. Two-Step Prop Firm Challenges
What is a One-Step Challenge?
A One-Step Challenge Prop Firm requires traders to meet a single profit target while adhering to specific risk parameters. Once traders achieve this target, they are funded immediately. This model:
- Eliminates the second phase of evaluation, allowing traders to access real capital faster
- Reduces psychological pressure, as traders do not have to replicate their performance in a second phase
- Allows more flexibility, since traders can focus solely on reaching the profit goal without additional requirements
What is a 2 Step Evaluation?
A 2 Step Evaluation involves two phases:
- Phase One: Traders must achieve a specific profit target while following risk management rules.
- Phase Two: Traders must meet a new (often smaller) profit target with continued adherence to risk rules before receiving a funded account.
While the 2 Step Evaluation aims to ensure that traders demonstrate consistency, many find it time-consuming and challenging to pass both phases consecutively.
Why More Traders Prefer the One-Step Challenge
1. Faster Access to Funded Accounts
One of the biggest advantages of the One-Step Challenge Prop Firm model is that traders can access a funded account much quicker compared to the 2 Step Evaluation. Since there is only one phase, traders who hit their profit targets can start trading with real capital almost immediately.
This is especially beneficial for experienced traders who do not want to spend weeks or months proving themselves in multiple evaluation phases.
2. Reduced Psychological Pressure
The 2 Step Evaluation process can be mentally exhausting for traders, as they must replicate their performance twice while ensuring they do not violate any risk rules. Many traders successfully pass the first phase but struggle in the second due to psychological pressure.
The One-Step Challenge eliminates this concern, allowing traders to focus entirely on a single performance goal without the fear of having to repeat it.
3. Lower Risk of Overtrading and Rule Violations
Traders in a 2 Step Evaluation often feel pressured to complete both phases within a limited time, leading to overtrading and unnecessary risk-taking. Many traders pass the first phase only to fail the second due to impatience or market fluctuations.
With a One-Step Challenge, traders can focus on executing high-quality trades without the added stress of repeating the process. This results in better risk management and a higher probability of success.
4. Better for Swing Traders and Longer-Term Strategies
The One-Step Challenge Prop Firm model is often more favorable for swing traders, who hold trades for several days or weeks.
In a 2 Step Evaluation, traders are sometimes required to trade actively or maintain a specific consistency across both phases. This forces some traders into day trading strategies, even if they prefer longer-term setups.
The One-Step Challenge gives traders more freedom to choose their own style, making it an attractive option for those who do not want to be restricted by short-term trading rules.
5. Fewer Restrictions and More Flexible Trading Rules
Many One-Step Challenge Prop Firms have fewer trading restrictions compared to firms offering a 2 Step Evaluation. Some benefits include:
- No minimum trading days requirement, meaning traders can complete the challenge as quickly as they meet the profit target
- More relaxed consistency rules, allowing traders to capitalize on market opportunities without being forced to trade daily
- Scalping and news trading allowances, giving traders the freedom to use any strategy they prefer
These factors make the One-Step Challenge model more appealing, especially for traders who want full control over their trading decisions.
Funding Pips and the Shift Toward One-Step Challenges
Funding Pips, one of the leading prop firms in the industry, has recognized the demand for a more streamlined evaluation process and offers a One-Step Challenge model designed to help traders get funded quickly.
By eliminating unnecessary phases and focusing solely on profitability and risk management, Funding Pips provides traders with a direct path to capital without the lengthy evaluation process of traditional 2 Step Evaluations.
Final Thoughts
The increasing preference for One-Step Challenge Prop Firms highlights a shift in the proprietary trading industry toward faster, simpler, and trader-friendly evaluations.
Traders prefer the One-Step Challenge because it:
- Grants faster access to funded accounts
- Reduces psychological stress
- Encourages better risk management
- Supports swing trading and long-term strategies
- Provides fewer restrictions and greater flexibility
While 2 Step Evaluation still have their place, the demand for a more efficient funding process is driving more prop firms—like Funding Pips—to adopt the One-Step Challenge model. For traders looking for a quicker and more straightforward path to funding, the One-Step Challenge is proving to be the superior choice.
