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For many traders, getting access to a larger trading account can be difficult. A one step prop firm challenge offers a simpler route. Instead of going through multiple evaluation phases, traders only need to complete one assessment before becoming eligible for a funded account, subject to the firm's rules.
But what exactly is a one step prop firm challenge, and how does it work? More importantly, what should you know before choosing one?
Let’s break it down.
A 1 step prop firm challenge is a trading evaluation that requires you to meet a specific set of targets and risk conditions in a single phase.
You typically purchase an evaluation account with a chosen balance, such as $5,000, $50,000, or $100,000. You then trade that account according to the prop firm's rules.
The main goal is usually to reach a predefined profit target without violating the maximum drawdown, daily loss, or other risk parameters.
Unlike a two step challenge, there is no separate first and second evaluation phase. You have one set of requirements to complete.
Once you successfully meet the conditions, you may become eligible for a funded trading account.
Although rules vary between prop trading firms, the process generally follows a straightforward structure.
The first step is selecting the account size that suits your trading approach and risk tolerance.
For example, a prop firm may offer several account sizes ranging from smaller accounts for newer traders to larger accounts for experienced traders.
The account size doesn't mean you should immediately trade at maximum exposure. Your position sizing should still be based on your strategy and risk management.
After choosing an account, you begin trading under the firm's conditions.
These can include:
Profit target
Maximum daily loss
Maximum overall drawdown
Minimum trading days
Leverage limits
Restrictions on certain trading strategies
Rules around holding positions overnight or during major news events
Understanding these rules is just as important as understanding your trading strategy. A trader can reach the required target but still fail the challenge by exceeding a risk limit.
The next objective is to reach the firm's specified profit target while staying within all risk limits.
This is where discipline becomes important.
A one step challenge may appear easier because there is only one phase, but that doesn't mean traders should rush to complete it. Increasing position sizes simply to reach the target faster can expose the account to unnecessary risk.
A more sensible approach is to trade the same setup and risk management process you would normally use.
Once the required target is reached without breaking the firm's rules, the evaluation is generally considered successful.
The next stage depends on the prop firm's model. Some firms may move you directly to a funded account, while others may have additional account activation or verification requirements.
Always check the specific terms before starting.
The biggest difference is the number of evaluation phases.
|
One Step Challenge |
Two Step Challenge |
|
One evaluation phase |
Two evaluation phases |
|
Usually one profit target |
Usually separate targets for each phase |
|
No second evaluation stage |
Must pass both stages |
|
Simpler evaluation structure |
More gradual evaluation process |
Neither structure is automatically better for every trader.
A one step challenge may appeal to traders who prefer a shorter evaluation process. A two step model may suit traders who prefer having more time and separate stages to demonstrate consistency.
The better choice depends on your strategy, risk tolerance, and trading style.
The main attraction is simplicity.
With only one evaluation phase, traders have fewer stages to complete and can focus on one clear objective. There is also less need to adjust your approach between different evaluation phases.
For traders who already have a tested strategy and understand risk management, this structure can be easier to follow.
However, simpler does not mean risk-free. The challenge still comes with rules that need to be followed carefully.
Don't choose a one step challenge based only on the advertised account size or profit target.
Look closely at the complete rulebook.
Pay particular attention to the maximum drawdown, daily loss limit, minimum trading days, leverage, permitted strategies, payout conditions, and any restrictions that could affect the way you trade.
Also check the firm's pricing, platform options, support, and account terms. These details can have a significant impact on your overall trading experience.
A one step challenge can be worth considering if you already have a defined trading strategy and can consistently manage risk.
It may not be suitable if you're still changing strategies, increasing position sizes impulsively, or relying on individual trades to reach a target quickly.
The important thing to remember is that the objective isn't simply to hit a number. You need to reach the target while demonstrating that you can operate within the firm's risk parameters.
A 1 step prop firm challenge simplifies the evaluation process by putting everything into a single phase. You choose an account, trade according to the prop firm rules, reach the required target, and, if all conditions are met, move toward the firm's funded trading model.
The shorter structure can be appealing, but successful trading still comes down to the basics: a tested strategy, sensible position sizing, disciplined risk management, and patience.
Before signing up, take the time to understand the rules. A challenge should fit the way you trade, rather than forcing you to completely change your approach just to pass.
About the Author: Sam Saleh
Sam Saleh, a London-based trader, began his trading journey at 19 while studying Business at the University of Bedfordshire. With expertise in trading and a background in marketing, he now coaches at Hola Prime, where he develops educational content aimed at building trader confidence, consistency, and financial literacy.
