Most prop firm challenges come in two steps. On paper the second looks easier than the first. In practice, Phase 2 is where a surprising number of otherwise good evaluations are lost. Here is how a pass prop firm challenge service approaches each stage, and why.
How a two-step evaluation is usually structured
Exact numbers vary by firm and change over time, so always check your own. A typical structure looks like this:
| Rule | Phase 1 | Phase 2 |
|---|---|---|
| Profit target | Commonly 8% to 10% | Commonly around 5% |
| Maximum daily loss | Commonly 5% | Same as Phase 1 |
| Maximum overall loss | Commonly 10% | Same as Phase 1 |
| Minimum trading days | Often a few days | Often the same |
Notice what changes between the phases and what does not. The target halves. The limits stay exactly where they were.
Phase 1: build the buffer first
The early days of Phase 1 set the tone for everything after. The priority is not reaching the target quickly. It is putting distance between the balance and the loss limits, so that a normal losing run later never becomes dangerous.
That means small positions, a firm daily stop well inside the firm’s limit, and no urgency. A buffer of a few percent built carefully in the first week makes the remaining target far easier to reach without stretching risk.
The gap between phases
Once Phase 1 is passed, the firm reviews the account before releasing Phase 2. That review takes time, and many firms issue a fresh account with new credentials for the second phase. Recheck permission and agree the access method before arranging access to the next phase. Do not send credentials through enquiry channels.
Phase 2: why the lower target is a trap
A target of around 5% feels like half the work. The risk is that it also feels like permission to relax. Traders who were disciplined through Phase 1 start taking larger positions to finish quickly, and a single bad day costs them an account that was already most of the way to funded.
The limits have not moved, so the method should not move either. A pass prop firm challenge service treats Phase 2 with exactly the same risk budget as Phase 1. The smaller target simply means fewer good days are needed, not that bigger ones are allowed.
Minimum trading days and any consistency rule also set a floor on how fast Phase 2 can finish, however quickly the profit arrives. It rarely takes half as long as Phase 1.
The funded stage: what only you can do
After Phase 2, the firm usually verifies your identity and issues a contract before the funded account goes live. That part is yours. No provider can or should complete identity verification on your behalf. Once the funded account is issued, you decide whether to trade it yourself or keep the desk on it, which our guide to the funded account covers in detail.
One-step challenges
Some firms offer a single phase instead. One step sounds simpler, but single-phase challenges often compensate with stricter rules, such as a tighter daily limit or a trailing drawdown. The same principles apply: build a buffer first, keep risk small, and size against the current floor. Our rules guide explains the difference between static and trailing drawdown with worked numbers.
What you see from us at each stage
Here is how our prop firm challenge passing service handles each stage in practice.
- Phase 1: regular Telegram updates, including honest notes on quiet days when conditions do not justify trading.
- Between phases: a fresh permission check and an agreed access method for the next phase.
- Phase 2: the same updates, the same risk budget, and a clear note when the target is reached.
- Funded: a handover, and the choice of continuing under a monthly management plan or taking the account yourself.
You can see a real example of a challenge account mid-evaluation, with daily results, on our results page. For realistic timing across both phases, see how long an evaluation takes.
Our desk holds a 95% pass rate across the prop firms we support. That is a track record and not a promise for any single account. Trading carries risk, no outcome is guaranteed, and fees are not refundable once trading has begun.
Common questions
Is Phase 2 easier than Phase 1?
The target is usually lower, but the loss limits are the same. Phase 2 only stays easier if the risk budget stays the same. Relaxing because the target is smaller is a common way to lose an account that was nearly funded.
Do I need to send new login details for Phase 2?
Often yes. Many firms issue a new account for the second phase. Recheck permission and agree the access method before arranging access to the next phase.
Can a passing service complete identity verification for me?
No. Identity verification and the funded contract are between you and the prop firm. A legitimate provider will never ask to complete them on your behalf.
Is a one-step challenge better than a two-step challenge?
Not necessarily. One-step challenges often have stricter rules, such as a tighter daily limit or a trailing drawdown. Compare the full rule sets rather than the number of steps.