Best Two-Step Prop Firm Challenge: Side-by-Side Comparison
Choosing the best two-step prop firm challenge isn’t just about the highest payouts or lowest fees. Each firm’s rules, risk limits, and scaling plans can dramatically impact your odds of passing—and your long-term earning potential. Below, we compare five top prop firms using real data, not marketing hype.
| Firm | Rating | Profit Target | Drawdown (Max/Daily) | Profit Split | Account Sizes | Leverage | Challenge Cost | Min Days | Trading Period | Instruments | Scaling | News/Weekend/EA |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FTMO | 4.8 | 10% | 10% / 5% | 80/20 → 90/10 | $10K-$200K | 1:100 | $155-$1,080 | 4 | 30d/60d | Forex, Indices, Commodities, Crypto, Stocks | Up to $2M | Y / Y / Y |
| FundedNext | 4.6 | 10% | 10% / 5% | 80/20 → 90/10 | $6K-$200K | 1:100 | $59-$999 | 5 | 30d/60d | Forex, Indices, Commodities, Crypto | Up to $4M | Y / Y / Y |
| The5ers | 4.3 | 6% | 6% / 3% | 50/50 → 100% | $6K-$100K | 1:30 | $95-$875 | 3 | Unlimited | Forex, Metals, Indices | Up to $4M | N / N / N |
| Funded Trading Plus | 4.5 | 10% | 6% / 4% | 80/20 → 100% | $5K-$200K | 1:30 | $119-$999 | 0 | Unlimited | Forex, Crypto, Indices, Commodities | Up to $5.25M | Y / Y / Y |
| Blue Guardian | 4.6 | 10% | 6% / 4% | 85/15 → 90/10 | $10K-$200K | 1:100 | $87-$897 | 5 | Unlimited | Forex, Crypto, Indices, Commodities | Up to $4M | N / Y / Y |
What Actually Matters in a Two-Step Challenge?
Passing a two-step challenge comes down to more than just the headline profit split. Here’s what you should really focus on:
- Profit Target vs Drawdown: A 10% target with a 10% drawdown (FTMO, FundedNext) is more forgiving than a 10% target with only 6% maximum loss (Funded Trading Plus, Blue Guardian).
- Trading Period: Unlimited time (The5ers, Funded Trading Plus, Blue Guardian) means no deadline pressure, but can hide other traps (like tight drawdown).
- Instrument Access: Only FTMO lets you trade stocks. The5ers is Forex/metals/indices only—no crypto or stocks.
- Leverage: 1:100 (FTMO, FundedNext, Blue Guardian) gives more flexibility than 1:30 (The5ers, Funded Trading Plus), especially for day traders and scalpers.
- Rules on News/Weekend/EAs: Some firms ban news trading or EAs on funded accounts (The5ers, Blue Guardian). If your strategy relies on these, check closely.
- Scaling Potential: FundedNext and Blue Guardian both scale up to $4M, but the path and requirements differ.
Don't just chase the highest profit split or lowest fee. Match the firm's rules to your trading style and risk tolerance, or you may pay for a challenge you'll never pass.
FTMO: The Gold Standard—But Not the Easiest
With a 4.8/5 rating, FTMO is the most established name in prop trading—and for good reason. Their two-step challenge offers:
- 10% profit target (Phase 1), 10% max drawdown (5% daily)
- Account sizes from $10K to $200K ($155 - $1,080 fee)
- Profit split: 80/20, scaling to 90/10 with consistency
- Instruments: Forex, indices, commodities, crypto, stocks
- Leverage: 1:100
- 4 minimum trading days, 30 days (Phase 1), 60 days (Phase 2)
- Scaling up to $2M after 4 months of profitable trading
- Free challenge retake if profit target met
FTMO’s rules are clear and well-documented. News trading, weekend holding, and EAs are allowed. However, their 10% profit target can be tough—especially with a strict 5% daily loss limit. Challenge fees are higher than some competitors, but FTMO’s reliability and monthly payouts make it a favorite for serious traders.
If you want maximum instrument flexibility, a trusted payout history, and are confident you can hit 10% in 30 days, FTMO is the benchmark. But if you prefer lower profit targets or a lower-cost challenge, look elsewhere.
FundedNext: Profit Share During Challenge, Huge Scaling
FundedNext (4.6/5) is a newer player but gaining traction fast. Their two-step challenge is similar to FTMO, but with some unique twists:
- 10% profit target, 10% max drawdown (5% daily)
- Account sizes: $6K to $200K ($59 - $999 fee)
- Profit split: 80/20, scaling to 90/10
- 15% profit share during challenge phases (with conditions)
- Leverage: 1:100
- 5 minimum trading days, 30/60 day phases
- Scaling up to $4M with consistent profitability
Key differences: FundedNext pays you 15% of profits even while you’re in the challenge—if you pass both phases. Their scaling plan is also among the most aggressive. But, challenge profit share comes with conditions, and some rules (like withdrawal minimums) can be complex. Customer support may lag during peak times.
If you want to maximize scaling and earn a profit share even during the challenge, FundedNext stands out. Just be ready for a slightly more complex rulebook—and make sure you understand the payout timing.
The5ers: Low Targets, Tight Drawdown, Unlimited Time
The5ers (4.3/5) offers a very different challenge model:
- 6% profit target (lowest of all), 6% max drawdown (3% daily)
- Account sizes: $6K to $100K ($95 - $875 fee)
- Profit split: 50/50, scaling up to 100% after milestones
- Unlimited trading period (no time pressure)
- Leverage: 1:30 (lowest in group)
- 3 minimum trading days
- No EAs, news trading, or weekend holding allowed
- Scaling up to $4M by doubling at milestones
The5ers’ main selling point is the 6% profit target—much easier to hit than 10%. But, the 6% max drawdown and 3% daily limit leave almost zero room for error. The leverage cap (1:30) and restricted instruments (no stocks or crypto) make this challenge best for conservative Forex or index traders. No time limit helps, but only if you can avoid drawdown breaches.
If you’re a low-risk, steady trader who hates deadline pressure and can manage tight drawdown, The5ers is a fit. Aggressive or high-frequency traders will find the risk rules suffocating.
Funded Trading Plus: Flexible Payouts, 100% Profit Split
Funded Trading Plus (4.5/5) blends unlimited time with unique payout rules:
- 10% profit target, 6% max drawdown (4% daily)
- Account sizes: $5K to $200K ($119 - $999 fee)
- Profit split: 80/20, scaling to 100% after milestones
- Unlimited trading period, 0 minimum trading days
- Leverage: 1:30
- News trading, EAs, and weekend holding allowed
- Scaling up to $5.25M (Premium track)
- Payouts from Day 0 or Day 1
The trailing drawdown here is a big deal: it shrinks after withdrawals, so you need to plan your payout strategy. Leverage is lower (1:30), and some programs auto-close trades over the weekend. US traders are restricted. Hedging and grid trading are prohibited, so check if your method is allowed.
If you want maximum payout speed and the potential for a 100% profit split, this is a strong contender. But, the 6% drawdown with a 10% target is tough, and the trailing drawdown after withdrawals can surprise the unwary.
Blue Guardian: High Base Profit Split, Unique Risk Controls
Blue Guardian (4.6/5) stands out for its risk management tools and payout promises:
- 10% profit target, 6% max drawdown (4% daily)
- Account sizes: $10K to $200K ($87 - $897 fee)
- Profit split: 85/15, scaling to 90/10
- Unlimited trading period, 5 minimum trading days
- Leverage: 1:100
- Overnight/weekend holding allowed, EAs allowed
- No news trading on funded accounts
- Scaling up to $4M (25% every 3 months at 12% profit)
- Guardian Shield closes trades at 1-2% loss; 2nd breach = termination
- 24h payout guarantee or 100% profit split
The 85% base split is among the best, and the Guardian Shield can help undisciplined traders avoid catastrophic losses—but it can also close your trades early, which may not suit every strategy. The fee refund is only after your 4th payout, so expect a longer wait than FTMO or FundedNext. US traders face some restrictions.
If you want a high base profit split and value built-in risk controls, Blue Guardian is worth a look. But be sure your strategy won’t trigger the Guardian Shield, and be prepared for a longer wait for your fee refund.
Non-Obvious Trade-Offs: What Most Reviews Miss
- Drawdown vs Profit Target Ratio: The5ers’ 6%/6% is easier to pass than Funded Trading Plus’s 10%/6%, even though both have unlimited time.
- Leverage Impacts: Traders using smaller stops or short-term strategies may struggle with 1:30 leverage (The5ers, Funded Trading Plus) compared to 1:100 (FTMO, FundedNext, Blue Guardian).
- Payout Timing: Some firms (Funded Trading Plus, Blue Guardian) offer instant payouts. Others require you to wait for the first 30 days or more.
- Scaling Reality: While several firms advertise scaling to $2M-$5M+, only a small percentage of traders ever reach these levels. Focus on your odds of passing and keeping a $50K-$100K account alive.
- Rule Enforcement: Some firms (Blue Guardian, The5ers) have automated systems that will close trades or terminate accounts instantly if you breach. Know exactly what triggers these failsafes.
“Unlimited time” sounds great, but with a low drawdown threshold (like 6%), you may run out of risk buffer long before you run out of days. Use the PropSurvivalEngine challenge calculator to simulate your actual odds.
Which Firm Is Best for Your Trading Style?
There’s no single “best” two-step challenge—only the best match for your risk profile and strategy. Here’s how to decide:
- FTMO: Best for traders seeking maximum flexibility, proven payouts, and a global reputation. Drawdown and profit targets are balanced, but the evaluation is strict.
- FundedNext: Best for scaling ambitions and those who want to earn during the challenge. Slightly more complex rules.
- The5ers: Best for low-risk, patient traders who want unlimited time and can live with tight drawdown.
- Funded Trading Plus: Best for those seeking fast payouts and the potential for a 100% profit split. Watch out for trailing drawdown shrinkage.
- Blue Guardian: Best for those who want a high base split and built-in risk management, and don’t trade news events.
For direct feature-by-feature breakdowns, see our prop firm comparison tool or check real-time health grades at /health.
Bottom Line: Which Two-Step Challenge Should You Choose?
If you want the most trusted, “no surprises” experience and are confident in hitting a 10% profit target, FTMO remains the gold standard. If your style is lower-risk and you prefer a lower profit target—even with less room for error—The5ers offers the easiest statistical pass rate (6%/6%).
Scaling ambitions? FundedNext and Blue Guardian both offer paths to $4M+, but make sure their rules align with your strategy. If you want the fastest payouts and a shot at 100% of your profits, Funded Trading Plus is a dark horse—just beware the trailing drawdown.
- Use the PropSurvivalEngine calculator to model your challenge odds for each firm.
- Read each firm’s rulebook in detail, especially around drawdown enforcement and allowed strategies.
- Choose the firm whose rules and scaling plan fit your actual trading method—not just the one with the best marketing.
Remember: the “best” challenge is the one you can pass and keep funded, not just the one with the flashiest payouts.