1-Step vs. 2-Step Prop Firm Challenges: What's the Difference?

Choosing a prop firm challenge often starts with one basic question: What is the difference between a 1-step and 2-step prop firm challenge? 

The main difference is the number of evaluation stages you need to complete. A 1-step challenge has one evaluation phase, while a 2-step challenge requires traders to successfully complete two phases before moving to the next stage of the program. 

However, the number of stages is only one part of the comparison. Profit targets, drawdown limits, minimum trading days, consistency rules, news trading restrictions, holding conditions, payout terms, and fees can all vary between firms and programs. 

That means there is no universal answer to whether a 1-step or 2-step challenge is better. The right comparison depends on the complete rules of each program and how those rules fit your trading strategy and risk management approach. 

What Is a 1-Step Prop Firm Challenge? 

A 1-step prop firm challenge is a trading evaluation with a single evaluation phase. Instead of completing one phase and then moving into a second evaluation, the trader needs to meet the program's objectives during one phase. 

Once the evaluation requirements are satisfied and all applicable rules have been followed, the trader may move to the next stage of the program, such as a funded or trader account, depending on how the prop firm structures its offering. 

Because there is only one evaluation stage, the overall process can be more straightforward to understand. However, that does not necessarily mean the challenge has fewer rules or lower risk requirements. A 1-step program can still have specific profit targets, drawdown limits, consistency requirements, or trading restrictions. 

If you want a more detailed explanation, see our guide on What Is a 1-Step Prop Firm? 

What Is a 2-Step Prop Firm Challenge? 

A 2-step prop firm challenge uses two separate evaluation phases. 

In a typical structure, traders first complete Phase 1 by meeting a specific profit target while staying within the applicable risk limits. After passing Phase 1, they move to Phase 2, which has its own objectives and rules. 

The targets or requirements may be different between the two phases. For example, a firm might use a higher profit target in Phase 1 and a lower target in Phase 2. Other firms may use different drawdown, consistency, or minimum-day requirements across the phases. 

The important point is that there is no single industry-standard 2-step challenge. Each prop firm can define its own evaluation structure. 

If you want a more detailed explanation, see our guide on What Is a 2-Step Prop Firm? For a broader explanation of how these evaluations work, see how prop firm challenges work. 

1-Step vs. 2-Step Prop Firm Challenges: Key Differences

The easiest way to compare a 1-step vs. 2-step prop firm is to look beyond the number of phases. 

 

This comparison shows why simply counting the number of stages is not enough. Two challenges can both be described as 1-step programs but have significantly different trading conditions. 

The same applies to 2-step challenges. The rules governing each phase can change how the overall evaluation works. 

Potential Advantages and Considerations of a 1-Step Challenge

A 1-step challenge may appeal to traders who prefer a more streamlined evaluation structure. 

Single evaluation stage 

There is only one evaluation phase to complete, under one set of objectives and risk limits. Traders do not need to pass a separate second evaluation phase. 

Potentially faster progression 

Because there is no second phase, a trader who meets the objectives can move directly to the next stage of the program. If the program has no minimum trading-day or consistency requirement during the evaluation, the target can potentially be reached in a short period. 

Considerations 

The full objective must be reached in a single phase, so the profit target is usually higher than a single phase of a 2-step challenge. A program can also compensate for having one phase through tighter drawdown rules, consistency requirements, or other conditions. 

A 1-step structure therefore does not automatically mean the evaluation is easier. 

Potential Advantages and Considerations of a 2-Step Challenge

A 2-step challenge divides the evaluation into two phases. 

Structured evaluation process 

The two phases can have different profit targets or other requirements, creating separate milestones rather than one set of objectives. Some traders prefer this staged progression.

Lower targets per phase 

Because the overall objective is split across two phases, each phase can carry a lower profit target. In many programs, this leaves more drawdown room relative to the target in each phase. 

Considerations 

Traders need to complete both Phase 1 and Phase 2 before finishing the evaluation, and passing Phase 1 does not remove the risk limits in Phase 2. The additional phase can also make the overall evaluation take longer, especially if minimum trading days apply to each phase. 

As with a 1-step challenge, the structure alone does not determine whether a program is more or less suitable. The complete rules matter. 

Which Challenge Model May Suit You? 

When comparing a 1 step or 2 step prop firm, consider how your trading strategy interacts with each structure. 

A 1-step challenge may appeal to traders who: 

• Want to reach the next stage without completing a second evaluation phase • Are comfortable reaching a higher profit target within a single phase 

• Take relatively few, high-conviction trades and prefer programs without minimum trading-day or consistency requirements during the evaluation 

• Are comfortable working within a tighter drawdown relative to the profit target A 2-step challenge may appeal to traders who: 

• Prefer a lower profit target in each phase 

• Want more drawdown room relative to the target in each phase 

• Are comfortable meeting minimum trading-day requirements in both phases • Do not mind a longer overall evaluation in exchange for smaller per-phase objectives 

For swing traders, the holding rules of the specific program, such as overnight and weekend positions, may matter more than the number of phases. 

Neither description determines which model is right for an individual trader. Your strategy, risk management, trading frequency, and the specific rules of the challenge all matter. 

What Should You Compare Before Choosing? 

The number of stages should be one factor in a prop firm challenge comparison, not the only one. 

Before choosing between a 1-step trading challenge and a 2-step trading challenge, review the complete rules. 

Profit target 

Check the required target and, for a 2-step challenge, whether the target changes between Phase 1 and Phase 2. 

Maximum drawdown 

Look at both the percentage and the calculation method. A fixed drawdown and a trailing drawdown can affect a trading strategy differently. 

Daily drawdown 

Check whether there is a daily loss limit and how it is calculated. Also check when the daily limit resets.

Minimum trading days 

Some programs require traders to trade on a minimum number of days. Others do not. This can be particularly relevant if you take relatively few trades. 

Time limits 

Find out whether the challenge has a maximum period for completing the evaluation. A program without a time limit can have a different practical structure from one with a fixed deadline. 

Consistency rules 

Some programs require profits to be distributed across multiple trading days. Check whether a consistency requirement applies during the evaluation, after passing, or at the reward stage. 

News trading 

If your strategy involves economic announcements, check whether news trading is permitted and whether restrictions apply to opening, closing, or modifying trades around major releases. 

Overnight and weekend holding 

Swing traders should pay particular attention to holding rules. Some programs allow overnight or weekend positions, while others restrict them depending on the asset or account stage. 

Trading platforms 

Check which platforms are available and whether the platform you prefer is supported by the specific challenge. 

Account sizes 

Compare the available account sizes rather than assuming that all 1-step or 2-step programs offer the same options. 

Payout and reward terms 

Look at when rewards can be requested, applicable eligibility conditions, reward cycles, and any minimum or other requirements. 

Challenge fees 

Finally, compare the fee for the specific account size and program. Pricing can vary between challenge types and can change over time. 

1-Step and 2-Step Challenges at BEM Funding 

BEM Funding currently offers both 1-step and 2-step evaluation structures. Its current evaluation programs include BEM ONE, BEM ONE ONLY, BEM Classic - Normal, and BEM Classic - Swing. 

BEM ONE 

BEM ONE is a single-phase evaluation. Its current rules specify a 9% profit target, 3% maximum daily drawdown, and 6% maximum trailing drawdown. The drawdown trails equity and locks at the initial balance. The program does not currently require a minimum number of trading days and does not apply a consistency rule during the evaluation, so the profit target can be reached on a single trading day. After completing the evaluation and meeting the applicable conditions, traders can access Reward on Demand, where a 35% best-day rule applies. 

BEM ONE ONLY 

BEM ONE ONLY is also a single-phase evaluation, but its current structure uses a 6% profit target, 3% maximum daily drawdown, and 6% maximum drawdown. The drawdown is balance-based, trails the account's balance, and locks at the initial balance. The program has no minimum trading-day requirement, but it has a 30% consistency requirement during the evaluation. In practice, this means the profit target needs to be spread across at least four profitable trading days. Eligible traders can use Reward on Demand after completing the evaluation and satisfying the relevant conditions, where a 30% best-day rule applies. 

BEM Classic - Normal 

BEM Classic - Normal uses a two-phase evaluation, Phase 1: Challenge and Phase 2: Discipline: 

• Phase 1: 9% profit target 

• Phase 2: 4.5% profit target 

• Daily drawdown: 4.5% in each phase 

• Maximum drawdown: 9% in each phase 

• Minimum trading: 3 trading days in each phase. A trading day counts toward this minimum only if it closes with at least 0.5% realized profit, based on the initial balance • Consistency rule: Phase 2 does not apply a consistency rule 

The program also has specific rules governing news trading and weekend holding. For example, weekend holding is permitted during the evaluation, while restrictions apply to certain asset classes after the evaluation. 

BEM Classic - Swing 

BEM Classic - Swing is another two-phase program, Phase 1: Challenge and Phase 2: Discipline, designed around longer-term trading. Its current terms specify 9% and 4.5% profit targets for Phases 1 and 2, respectively, with 4.5% daily drawdown, 9% maximum drawdown, and at least three trading days in each phase. A trading day counts toward this minimum only if it closes with at least 0.5% realized profit, based on the initial balance. Phase 2 does not apply a consistency rule. Overnight and weekend holding are permitted on supported instruments, and the program operates on a swap-free basis. 

The reward structure also differs between BEM's one-step and two-step programs. BEM states that its 1-step programs use Reward on Demand, while its 2-step programs use reward cycles, with a standard 14-day cycle and a 7-Day Reward Add-On available for applicable programs. 

You can explore BEM Funding's 1-step challenges, explore BEM Funding's 2-step challenges, or see all BEM Funding challenges to compare the current programs and their rules. You can also learn how BEM Funding rewards work. 

Because challenge rules can change, traders should review the current program terms before purchasing a challenge. 

FAQs 

What is the difference between a 1-step and 2-step prop firm? 

A 1-step prop firm challenge requires traders to complete one evaluation phase. A 2-step prop firm challenge requires traders to complete two evaluation phases, typically with separate objectives. The specific profit targets, drawdown rules, and trading conditions depend on the program. 

Is a 1-step prop firm easier than a 2-step prop firm? 

Not necessarily. A 1-step challenge has fewer evaluation stages, but that does not tell you whether its overall requirements are easier to meet. Profit targets, drawdown limits, consistency rules, minimum trading days, and other conditions can make a significant difference.

Is a 1-step or 2-step challenge better for beginners? 

There is no universal answer. A beginner should compare the complete rules and consider which evaluation structure they understand and can manage alongside their trading strategy and risk management approach. 

Which challenge has fewer evaluation stages? 

A 1-step challenge has one evaluation stage. A 2-step challenge has two evaluation stages. 

Do 1-step and 2-step challenges have different drawdown rules? 

They can. Drawdown rules are determined by the individual prop firm and program, not simply by whether the challenge is 1-step or 2-step. Both models can use different daily or maximum drawdown methods. 

Do 1-step prop firms have minimum trading days? 

Some do and some do not. Minimum trading-day requirements are program-specific, and a consistency rule can effectively require several trading days even when no minimum is stated. For example, BEM ONE and BEM ONE ONLY currently have no minimum trading-day requirement. BEM ONE has no consistency rule during the evaluation, so it can be passed in a single day, while BEM ONE ONLY's 30% consistency rule means profits need to be spread across at least four profitable days. 

How do I choose between a 1-step and 2-step challenge? 

Start by comparing the complete rules rather than the number of stages alone. Review the profit target, maximum and daily drawdown, minimum trading days, time limits, consistency requirements, trading restrictions, platforms, account sizes, fees, and reward terms. Then consider which structure fits your trading strategy and risk management approach. 

Conclusion 

The main difference in a 1-step vs. 2-step prop firm challenge is the evaluation structure. A 1-step challenge requires traders to complete one evaluation phase, while a 2-step challenge requires two. 

But the number of phases is only one part of the decision. Profit targets, drawdown methodology, minimum trading days, consistency rules, news and holding restrictions, fees, and reward terms can all affect how a challenge works in practice. 

For that reason, traders comparing a one-step vs. two-step prop firm should evaluate the complete rules of each program rather than choosing based only on the number of evaluation stages. 

If you're ready to compare specific programs, explore BEM Funding's available challenges and review the current rules for each option before making a decision.