Proprietary trading firms (prop firms) provide traders with capital in exchange for a profit split, allowing them to scale their trading without risking personal funds. Many of the best prop firms use a 2-step evaluation process to assess traders' skills before granting them access to funded accounts. This article explores the top prop firms offering 2-step evaluations, their benefits, and how to choose the right one for your trading style.

What is a 2-Step Evaluation in Prop Firms?

A 2-step evaluation is a common challenge-based assessment used by prop firms to determine whether a trader qualifies for a funded account. The process typically consists of:

1. Phase One: Traders must hit a profit target while maintaining risk management rules.

2. Phase Two: A second evaluation phase with similar targets but often with a lower profit requirement.

3. Funded Account: Upon passing both steps, the trader receives access to the firm's capital with a profit-sharing arrangement.

Benefits of 2-Step Evaluation Prop Firms

• Structured Trading Challenges – Encourages discipline and risk management.

• Reduced Risk – Traders can prove their skills before managing large capital.

• Higher Success Rate – Compared to single-step evaluations, 2-step assessments ensure consistency in performance.

• Scalability – Many firms offer increased capital allocation upon consistent profitability.

Best Prop Firms Offering 2-Step Evaluations

1. FTMO

Evaluation Structure:

• Phase 1: 10% profit target, 30-day limit

• Phase 2: 5% profit target, 60-day limit

• 80-90% profit split upon funding

Why Choose FTMO?

• Reputable and well-established in the industry

• Generous payout structure

• Excellent trader support and educational resources

2. My Forex Funds (MFF)

Evaluation Structure:

• Phase 1: 8% profit target, 30-day limit

• Phase 2: 5% profit target, 60-day limit

• 75-85% profit split

Why Choose MFF?

• Lower profit targets make it beginner-friendly

• Flexible trading conditions with no restrictions on strategies

• Rapid growth with increasing capital allocation

3. The 5%ers

Evaluation Structure:

• Phase 1: 6% profit target, no time limit

• Phase 2: Additional profit requirements

• Up to 95% profit split for funded traders

Why Choose The 5%ers?

• No time restrictions, allowing traders to move at their own pace

• Higher initial capital compared to competitors

• Great for swing traders due to relaxed rules

4. E8 Funding

Evaluation Structure:

• Phase 1: 8% profit target, 30-day limit

• Phase 2: 5% profit target, 60-day limit

• 80% profit split upon funding

Why Choose E8 Funding?

• Fast-growing prop firm with innovative funding models

• User-friendly dashboard for tracking progress

• Excellent scaling plan for profitable traders

5. True Forex Funds

Evaluation Structure:

• Phase 1: 8% profit target, 30-day limit

• Phase 2: 4% profit target, 60-day limit

• Up to 80% profit split

Why Choose True Forex Funds?

• Competitive profit split and low targets

• Allows weekend holding and news trading

• Fast payout structure

How to Choose the Right 2-Step Prop Firm

1. Profit Targets and Time Limits

Look for a firm with achievable profit targets and reasonable time limits based on your trading style.

2. Payout Structure

Consider the profit split percentage and whether the firm offers rapid payouts or scaling plans.

3. Trading Rules and Restrictions

Some firms have restrictions on trading during news events, overnight holding, or hedging. Choose one that aligns with your strategy.

4. Fees and Refund Policies

Most prop firms charge an upfront evaluation fee, which is refunded upon successful completion. Compare costs before committing.

Conclusion

The best prop firms with 2-step evaluations offer traders an opportunity to access significant capital while demonstrating their skills. FTMO, My Forex Funds, The 5%ers, E8 Funding, and True Forex Funds are among the top firms providing structured challenges for aspiring funded traders. By evaluating their profit targets, payout structures, and trading rules, you can choose the right prop firm that fits your strategy and financial goals.

If you're serious about scaling your trading career, selecting the right 2-step evaluation prop firm can be a game-changer for long-term success.