The 2-step evaluation is by far the most traded evaluation model in the prop trading industry. It requires you pass two different evaluation phases at the challenge stage before you finally get funded.
It is best known for its balanced structure, lesser restrictions, high starting profit split, and cheaper pricing. These are not surprising as it is sometimes referred to as the ‘industry standard.’
Hence, the question of which prop firms offer the best 2-step programs in 2026 pops up. And that is what this guide addresses.
What You’ll Learn in This Guide:
- What a 2-step evaluation is
- Why traders prefer 2-step accounts
- Top 7 2-step evaluation prop firms in 2026
- Key features, profit splits, and payout reliability
- Common mistakes to avoid when choosing a prop firm
What A 2-Step Evaluation Is
“Prop trading is using a company’s capital to trade, instead of risking your own capital.”
A 2-step evaluation account is a popular prop firm account model which requires you meet two different profit requirements at the evaluation stages in order to get funded. Prop firms usually give specific profit targets and rules you must follow in order to advance to the funded stage.
The structure is usually:
phase 1 —> phase 2 —> live funded. After meeting phase 1 requirements, you advance to phase 2. After meeting phase 2 requirements, you advance to the live funded stage where you can finally get paid a percentage (usually starting from 80%) of the profits you make.
The 2-step account is generally regarded as the industry standard. The rules are the fairest of all evaluation models, its profit split is the highest, and the pricing is cheaper than those of 1-step and instant accounts.
Why Traders Prefer 2-Step Evaluation Accounts
The 2-step evaluation model has become the most popular choice among prop traders. It strikes a balance between difficulty, affordability, and payout potential, making it suitable for both beginners and experienced traders.
Here are some of the reasons why traders consistently choose the 2-step model over others prop firm account models:
1. Balanced Difficulty
Unlike 1-step models that can be overly strict, 3-step models that feel too long, or instant funding with profit consistency rule, the 2-step evaluation offers a fair and achievable structure.
You’re given enough time across two phases without unnecessary pressure. And you get to trade with the fairest rules compared to other models.
2. Lower Cost Compared to Instant Funding and 1-Step
2-step challenges are generally more affordable than instant funding accounts and 1-step accounts.
Instead of paying a high upfront fee, you can start trading 2-step evaluation accounts at lower entry cost, making it easier to get started.
3. Higher Trust and Credibility
The 2-step evaluation model is the first and most balanced evaluation model. Most reputable prop firms like FTMO and FundedNext use the 2-step model. All firms start with the 2-step model even if they do not have the three other account models.
Because of this, traders see it as the industry standard, with a higher level of trust and payout reliability.
4. Better Risk Management Structure
The 2-phase process naturally encourages:
- Discipline
- Consistency, and
- Proper risk management
By passing two stages, traders are less likely to rely on luck, instead they are more likely to build sustainable trading habits.
5. Competitive Profit Splits
Many 2-step prop firms offer profit splits between 80% and 95%, with some scaling up to 100%.
This gives traders a strong earning potential compared to other account models.
6. Realistic Trading Conditions
Most 2-step programs come with:
- Reasonable profit targets — profit targets are usually realistic in relative to the allowed loss limits. Having enough drawdown makes it easier for you to risk responsibly while maintaining realistic targets.
- Clear drawdown rules — max overall loss starting from 8% with some up to 10% and daily drawdown starting from 4% with some up to 5%
- Flexible trading styles (scalping, day trading, swing trading, etc.)
This makes it easier for traders to apply real strategies without over-adjusting.
7. Widely Available Across Top Firms
Almost every major prop firm offers a 2-step challenge, giving traders multiple options to choose from based on their preferences.
Even if your favorite firm does not offer the 3-step model or any other account model, it would surely have the 2-step account model available.
Top 7 2-Step Evaluation Prop Firms in 2026
This section brings you our top picks for 2-step evaluation accounts. We consider them top based on payout reliability, fairness of trading conditions, longevity, and traders reviews on Propfirmmatch and Trustpilot
1. FTMO – Best Overall
- Profit split: Up to 90%
- Evaluation type: 2-step challenge
- Why it’s top: Industry benchmark, reliable payouts, strict but fair rules
FTMO remains the gold standard in prop trading, trusted by thousands of traders worldwide. Read our guide on how to pass your FTMO evaluation account.
2. FundedNext – Best for Fast Payouts
- Profit split: Up to 95%
- Unique feature: Earn during evaluation
- Why it’s top: Flexible rules, trader-friendly policies, and rapid payouts
3. The5%ers – Best for Long-Term Growth
- Profit split: Up to 100% (scaling plan)
- Evaluation type: Multiple options, including 2-step
- Why it’s top: Focus on consistent, low-risk traders and account scaling
4. FundingPips – Best for High Profit Splits
- Profit split: 95–100%
- Evaluation type: 2-step
- Why it’s top: Competitive pricing and high potential returns
5. FXIFY – Best for Flexibility
- Profit split: Up to 100%
- Evaluation type: 1-step, 2-step, and 3-step
- Why it’s top: Customizable evaluations for different trader levels
6. Maven Trading – Best for Low Entry Cost
- Entry cost: starts at $19 for a $2k account, and $22 for a $5k account.
- Profit split: Up to 95%
- Why it’s top: low entry cost and trader-centric payouts
7. E8 Markets – Best for Forex & Futures Traders
- Profit split: Up to 90%+
- Why it’s top: Strong risk policies, solid evaluation structure, multi‑asset support
The table below is a comparison of the seven firms listed above, using their $100k 2-step evaluation accounts.
|
Firm |
Account Size (2-Step) |
Fee |
Profit Split |
Daily Drawdown |
Max Drawdown |
Payout Reliability |
|---|---|---|---|---|---|---|
|
FTMO |
$100k |
€540 |
80% – 90% |
5% |
10% |
Reliable |
|
FundedNext |
$100k |
$399.99 / $549.99 |
80% – 95% |
4% / 5% |
8% / 10% |
Reliable |
|
FundingPips |
$100k |
$399 / $529 |
80% (60% – 100%) |
3% / 5% |
6% / 10% |
Reliable |
|
E8 Markets |
$100k |
$260 / $488 |
80% – 90%+ |
4% / 5% |
8% |
Reliable |
|
Maven Trading |
$100k |
$440 |
80% |
4% |
8% |
Reliable |
|
FXIFY |
$100k |
$549 |
80% – 100% |
4% |
10% |
Reliable |
|
The5%ers |
$100k |
$491 |
80% – 100% |
5% |
10% |
Reliable |
What Makes a Good 2-Step Prop Firm
Although the 2-step account is the most popular model, you tend to face the difficulty of choice when you want to get yourself an account.
Almost every firm offers it. Then you ask yourself “which should I choose?”
When choosing a 2-step evaluation firm, focus on:
- Payout reliability: the first thing you should focus on is choosing firms with proven track records of payouts. Do they pay? Have they paid? Are the payouts verifiable? These are the questions you should ask.
- Profit targets: profit targets for 2-step accounts usually range from 8% to 10% for phase 1 and 4% to 6% for phase 2. If the trading conditions and payout reliability are similar, you should consider going for the ones with lesser profit targets.
- Drawdown rules: accounts with trailing drawdowns should be your last choice. For comfort and peace of mind, you can go for static drawdowns or EODs(end of day drawdowns). Also, the bigger the drawdown percentage, the better the account is for you.
- Profit split & scaling: Higher splits and clear scaling plans help maximize earnings.
- Trader support: Responsive customer service and community guidance matter. You want to be sure you’re getting a quick response if you face any difficulty.
Common Mistakes Traders Make When Choosing a Prop Firm
Here are common mistakes prop firm traders make, which you should avoid when choosing a prop firm to trade with:
- Choosing based on low fees alone: some traders choose firms solely based on low fees and offers that are too good to be true.
- Ignoring payout proofs: payout proofs are meant to tell you how reliable a firm is. Do not make the mistake of ignoring them.
- Not fully understanding trading rules: have you ever happened to see someone say “I can’t believe I breached my account. I wasn’t aware that the drawdown limit is 8%.” These are the issues with not reading or not understanding trading rules.
- Entering challenges without a tested trading strategy: “my friend got paid thousands by FTMO, let me buy a challenge account and chase payouts too.” It doesn’t work that way. Your friend got paid for his skill. For you to be profitable, you need a working trading strategy and proven risk management approach.
Conclusion
At the end of the day, the best 2-step prop firm for you is not about the biggest account size or the highest profit split. It is about trading conditions that actually help you succeed in trading.
Profitable traders focus on firms that offer realistic profit targets, trader-friendly drawdown models (especially EOD), consistent and reliable payouts, and flexible rules that support long-term growth.
Take your time to compare the firms listed above, choose one that fits your trading style, and start your evaluation with a clear plan.
The opportunity is there, but only the disciplined traders actually capitalize on it!
❓ Frequently Asked Questions About 2-Step Prop Firms
🔹 What is a 2-step prop firm evaluation?
A 2-step prop firm evaluation is a funding model where traders must pass two phases before getting access to a funded account.
- Phase 1: Reach a higher profit target
- Phase 2: Reach a lower target with better risk control
Once both stages are passed, you receive a funded account and can start earning payouts.
🔹 Why do traders prefer 2-step prop firms?
Most traders prefer 2-step evaluations because they are more realistic and forgiving compared to instant or 1-step models.
Key reasons:
- Lower pressure to overtrade
- More time to prove consistency
- Better risk management structure
👉 This makes them ideal for traders who want long-term sustainability, not just quick wins.
🔹 What is the best drawdown type for 2-step prop firms?
The best drawdown type is End-of-Day (EOD) drawdown.
- It allows temporary floating losses during trades
- It reduces the chances of failing due to intraday fluctuations
- It gives traders more flexibility to manage positions
👉 Avoid trailing drawdown, especially in Phase 1 — it makes passing significantly harder.
🔹 What is the profit split in 2-step prop firms?
The profit split is the percentage of profits you keep after getting funded.
Typical splits:
- 80/20 (you keep 80%)
- 90/10 (top-tier firms)
Some firms increase your split over time through scaling plans, rewarding consistent traders.
🔹 What is the difference between daily drawdown and overall drawdown?
- Daily drawdown: The maximum loss allowed in one trading day
- Overall drawdown: The total loss allowed on the account
👉 In most 2-step challenges:
- Daily DD ≈ 4–5%
- Overall DD ≈ 8–10%
You must stay within both limits to pass each phase.
🔹 Balance-based vs equity-based drawdown — which is better?
- Balance-based drawdown: Only counts closed trades
- Equity-based drawdown: Includes floating losses in real time
👉 Better option: Balance-based
It gives you more breathing room and reduces the risk of failing trades prematurely — especially useful during volatile market conditions.
🔹 How long does it take to pass a 2-step evaluation?
It depends on the firm, but most allow:
- 30–60 days for Phase 1
- 30–60 days for Phase 2
Some firms have no time limits, which is ideal if you prefer a slower, low-risk trading approach.
🔹 Can beginners pass a 2-step prop firm challenge?
Yes — but only with proper risk management.
Successful beginners usually:
- Risk 0.5%–1% per trade
- Focus on consistency over big wins
- Avoid overtrading
👉 The structure of 2-step evaluations actually helps beginners build discipline.
🔹 Which features should I look for in a 2-step prop firm?
For the best chance of passing and staying funded, look for:
- EOD (not trailing) drawdown
- Reasonable profit targets (8–10%)
- High profit split (80%+)
- No strict time limits
- Fast and reliable payouts
Ready to get funded? Try out our top 2 rated firms — FTMO and FundingPips.
