Challenge Structure

Evaluation Phase

The trading test period(s) a trader must pass — hitting profit targets while respecting all risk rules — before receiving a live funded account.

What is an Evaluation Phase?

An evaluation phase (also called a challenge phase) is the test stage where a trader must prove they can trade profitably while following the firm's risk management rules. Most firms have 1 or 2 phases before granting a live funded account.

Phase structures

| Model | Phases | Description | |---|---|---| | 2-Step | Phase 1 + Phase 2 | Standard; higher target in P1, lower in P2 | | 1-Step | Phase 1 only | Faster to funded, usually stricter rules | | Instant Funding | 0 | Pay fee, get funded immediately with a profit split cap |

Key rules during evaluation

All of these apply simultaneously:

  • Hit profit target
  • Stay within daily drawdown
  • Stay within maximum drawdown
  • Meet minimum trading days
  • Follow firm-specific rules (no news trading, no EAs, etc.)

Cost

Evaluation phases cost a one-time fee (typically $50–$700 depending on account size). If you fail, you must purchase a new challenge.

How Firms Apply This Rule

FTMO uses a 2-phase model. Funding Pips offers 1-step and 2-step options. FundedNext offers both standard and instant models.

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