Account Types
Two-Step Challenge
Definition
An evaluation with two phases — traders must meet profit targets in both steps to receive funding.
How It Works
Two-step challenges split the evaluation into Phase 1 (typically 8-10% profit target) and Phase 2 (typically 5% profit target). This is the most common evaluation format across the industry.
Phase 2 usually has the same drawdown rules but a lower profit target, designed to test consistency. Two-step programs generally offer better terms — lower fees, higher profit splits — because the firm can better assess risk over two phases.
Most major firms (FTMO, FXIFY, FundedNext) use this format as their primary offering.
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