How Prop Firm Challenges Work
A prop firm challenge (also called an evaluation or combine) is a paid test. You trade an account under a set of rules. Hit the profit target without breaking a rule and you get a funded account; break a rule and the attempt is over and the fee is gone. Almost everyone who fails, fails on the rules, not on picking direction. So here are the rules, one by one.
1. The profit target
The amount you have to make to pass. Futures firms usually state it in dollars (for example $3,000 on a 50K account). Forex firms use a percentage (for example 10% on FTMO's first phase). Some challenges have two phases, each with its own target.
2. Maximum drawdown: the rule that ends most attempts
The furthest your account is allowed to fall. There are three kinds, and the kind matters more than the size:
| Type | How it moves | Difficulty |
|---|---|---|
| Fixed (static) | Never moves. On a 100K account with 10% max loss, you fail below $90,000, however high you've been. | Easiest |
| End-of-day trailing | Moves up with your closing balance at the end of each day. What happens during the day doesn't move it. | Medium |
| Intraday trailing | Moves up with your highest point, including open profit. A trade that goes +$800 and comes back to zero has used up $800 of room. | Hardest |
Most firms stop the trailing once it reaches your starting balance, so after enough profit it becomes a fixed floor.
3. Daily loss limit
A cap on how much you can lose in one day. Forex firms usually count open trades too, so a losing position you haven't closed can break it. On some futures firms it's optional, or it only pauses you for the day instead of failing the account. Read which one your firm uses.
4. Consistency rules
A consistency rule caps how much of your total profit can come from your single best day. Topstep's is reported at about 55% during the Combine. If your best day was $2,000, you need at least about $3,640 in total ($2,000 ÷ 0.55) even when the target is $3,000. Apex has no consistency rule to pass, but uses a 50% rule before each payout.
These rules punish one big lucky day. If your style is a few large wins, look for a firm without one, or plan to keep trading after you hit the target.
5. Minimum days and time limits
Some firms make you trade a minimum number of days (FTMO's 2-Step is commonly reported at 4 per phase). Time limits differ too: Apex gives 30 days of access per evaluation fee, while Topstep and FTMO's 2-Step have no hard deadline.
6. Getting paid
Passing isn't the end. Funded accounts have their own payout rules: a minimum number of winning days, consistency checks, payout caps and a profit split (usually 80–100% to you). Many "funded" accounts are simulated, and the firm pays you out of its own money. That's why payout rules are strict and why the firm's payout record matters.
What it really costs
Count on more than one attempt. If a challenge costs $150 and you pass one in three tries, getting funded costs you about $450, plus any activation fee. Compare firms on that total, not the sticker price.
Ready to compare firms? See the top 10 futures and CFD prop firms.