Choosing between 1-step vs 2-step vs instant funding is one of the first big decisions every prop trader faces. They all promise a funded account but they work very differently, and picking the wrong one can cost you money and time.
So which challenge type is actually best for you? The honest answer: it depends on your experience, your budget, and how you trade. In this guide, we'll break down all three clearly, so you can choose with confidence.
What Are Prop Firm Evaluation Types?
Before a prop firm gives you a funded account, most ask you to prove your skills through an evaluation — a "challenge." The three main types are 1-step, 2-step, and instant funding. Each has a different balance of speed, difficulty, and cost.
Let's look at each one.
1-Step Challenges: Fast but Strict
A 1-step challenge has a single phase. You hit one profit target (usually 8-10%) while staying inside the risk rules, and you're funded.
Pros:
- Fastest route to a funded account one phase, done
- Great for confident, consistent traders
- Less waiting, quicker payouts
Cons:
- Rules are often stricter (tighter drawdown)
- One mistake can end it less room for error
Best for: Experienced traders who trade consistently and want to get funded quickly.
2-Step Challenges: The Classic Route
A 2-step challenge splits the evaluation into two phases for example, an 8% target in Phase 1, then a smaller 5% target in Phase 2.
Pros:
- More relaxed rules and wider drawdown than 1-step
- The two phases let you prove consistency over time
- Usually the cheapest option
- Best for beginners and cautious traders
Cons:
- Takes longer you must pass two phases before funding
- Requires patience
Best for: Newer traders, or anyone who prefers lower pressure and more forgiving rules.
Instant Funding: Skip the Evaluation
Instant funding does exactly what it says — you skip the challenge entirely and start trading a funded account right away.
Pros:
- No evaluation, no profit target to pass
- Start earning from day one
- Perfect if you hate the pressure of a challenge
Cons:
- Usually the most expensive upfront
- Comes with stricter ongoing rules (like consistency requirements)
- Often a lower profit split until you scale
Best for: Traders who are confident, want to start immediately, and don't mind paying more upfront.
Quick Comparison
Here's the simple version:
- Want it fast and you're experienced? → 1-Step
- New, cautious, or on a budget? → 2-Step
- Want to skip the challenge and start now? → Instant Funding
There's no single "best" only the best one for your situation.
Which One Should You Choose?
Ask yourself three questions:
- How experienced am I? Beginners usually do better with 2-step's relaxed rules.
- What's my budget? 2-step is often cheapest; instant funding costs the most.
- How much pressure can I handle? If a strict challenge stresses you out, instant funding removes that entirely.
Whatever you choose, always read the specific firm's rules first drawdown, consistency, and payout terms vary a lot between firms.
Compare Firms by Evaluation Type
Many prop firms offer all three options, but their rules, prices, and payout speeds differ hugely. Instead of checking every firm's website, you can compare them side by side on Propiffy with editor-verified rules and prices.
Use our free prop firm finder to instantly match the right evaluation type to your budget and trading style, or browse all reviewed prop firms to see which offers the best 1-step, 2-step, or instant funding deal.
Frequently Asked Questions
Which is easier: 1-step or 2-step?
2-step is usually easier because the rules are more relaxed and you have two phases to prove consistency. 1-step is faster but stricter, so it suits experienced traders.
Is instant funding worth it?
It can be if you're confident and want to start trading immediately without an evaluation. Just remember it costs more upfront and often has tighter ongoing rules, so read the terms carefully.
Which evaluation type is cheapest?
2-step challenges are typically the cheapest, while instant funding is usually the most expensive. Prices vary by firm, so always compare before you buy.
Can I switch evaluation types later?
You can't change a challenge you've already bought, but you're free to choose a different type next time. Many traders start with 2-step, then move to 1-step or instant funding once they're consistent.
Final Thoughts
The best challenge type isn't the fastest or the cheapest it's the one that fits how you trade. Beginners usually thrive with 2-step's forgiving rules, experienced traders love the speed of 1-step, and instant funding suits those who want to skip straight to trading.
Take a moment to be honest about your experience and budget, compare firms carefully, and pick the path that gives you the best shot at getting funded and staying funded.