Proprietary trading firms (prop firms) provide traders with access to capital, allowing them to trade larger positions while managing risks effectively. Many top firms use a 2-step evaluation process to assess traders’ skills before granting funded accounts. This article explores the best prop firms that offer 2-step evaluations, their features, and how traders can maximize their chances of success.

What is a 2-Step Evaluation in Prop Firms?

Understanding the Two-Step Process

A 2-step evaluation requires traders to pass two phases before receiving a funded account. Each phase typically has specific profit targets, drawdown limits, and trading rules to ensure a trader’s consistency and risk management skills.

Why Prop Firms Use 2-Step Evaluations

• Assess Trading Skills: Ensures traders can consistently generate profits.

• Risk Management Testing: Evaluates how well traders handle drawdowns.

• Long-Term Success: Filters out high-risk traders and rewards disciplined ones.

Key Features of the Best 2-Step Evaluation Prop Firms

1. Realistic Profit Targets

Top prop firms set achievable profit targets for both evaluation phases, typically:

• Phase 1: 8-10% profit target

• Phase 2: 5% profit target

• No tight deadlines for reaching targets

2. Fair Drawdown and Risk Management Rules

Good prop firms balance risk and reward by offering:

• Daily drawdown limits (e.g., 4-5%)

• Overall drawdown limits (e.g., 8-12%)

• No hidden penalties for strategy execution

3. Competitive Profit Splits

After passing both evaluation phases, traders typically receive:

• Profit splits of 80-90%

• Instant payouts after first withdrawal

• Scalability options to increase funding

4. Advanced Trading Platforms & Execution

The best prop firms provide traders access to:

• MetaTrader 4/5, cTrader, and TradeLocker

• Fast execution with minimal slippage

• Low spreads and high leverage options

5. Diverse Market Access

Traders should choose firms that offer:

• Forex, indices, commodities, and crypto trading

• Options for both swing trading and scalping strategies

• No restrictions on holding trades overnight or over the weekend

Top Best Prop Firms with 2-Step Evaluations

1. FTMO

• Profit split: 90%

• Profit target: 10% (Phase 1), 5% (Phase 2)

• Minimum trading days: 10

• Low spread and high liquidity

2. My Forex Funds (MFF)

• Profit split: 85%

• Profit target: 8% (Phase 1), 5% (Phase 2)

• No minimum trading days

• Fast payout options

3. The Funded Trader

• Profit split: 80-90%

• Profit target: 10% (Phase 1), 5% (Phase 2)

• Leverage: 1:100

• No restrictions on news trading or holding positions

How to Pass a 2-Step Evaluation Successfully

1. Focus on Consistency Over Big Wins

• Avoid overleveraging and maintain a risk-reward ratio of at least 1:2.

• Stick to a predefined strategy without deviating under pressure.

2. Manage Risk Effectively

• Use a maximum risk per trade of 1-2%.

• Implement stop-loss orders to protect capital.

3. Trade Within Firm Guidelines

• Ensure all trading rules are followed (e.g., no arbitrage, copy trading restrictions).

• Avoid emotional trading and maintain discipline throughout both phases.

Conclusion

Choosing the best prop firms with a 2-step evaluation is crucial for traders looking to scale their accounts while maintaining discipline. By comparing factors such as profit targets, drawdown limits, and profit splits, traders can select the best firm suited to their trading style. With the right approach, passing a 2-step evaluation can be a stepping stone to a successful trading career.