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.

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. Traders do not need to pass a separate second evaluation phase.

Simpler evaluation structure

With one phase, it may be easier to understand the overall sequence of the challenge. The trader can focus on the objectives and risk limits that apply to that evaluation.

Fewer stages to complete

A single-stage structure means there is no additional evaluation phase after the first one.

Potentially more direct progression

Depending on the firm's structure, completing the single evaluation phase can provide a direct path to the next stage of the program.

However, a 1-step structure does not automatically mean the evaluation is easier. A program can compensate for having one phase through its profit target, drawdown rules, consistency requirements, or other conditions.

 

Potential Advantages and Considerations of a 2-Step Challenge

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

Two evaluation stages

Traders need to complete both Phase 1 and Phase 2 before completing the evaluation.

Different objectives across phases

The two phases may have different profit targets or other requirements. This can create a more structured progression through the evaluation.

Structured evaluation process

Some traders may prefer having clearly defined stages rather than completing the entire evaluation through one phase.

More than one milestone

A two-phase structure provides separate evaluation milestones. However, traders still need to satisfy the rules of both phases to complete the overall challenge.

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 you prefer to approach an evaluation.

A 1-step challenge may appeal to traders who:

• Prefer a single evaluation stage
• Want a more streamlined challenge structure
• Are comfortable meeting the required objectives in one phase
• Prefer not to progress through multiple evaluation stages

A 2-step challenge may appeal to traders who:

• Prefer a multi-stage evaluation
• Like having separate phases with defined objectives
• Prefer a structured progression through an evaluation
• Are comfortable managing requirements across two 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 program does not currently require a minimum number of trading days. After completing the evaluation and meeting the applicable conditions, traders can access Reward on Demand.

 

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. It also has a 30% consistency requirement during the evaluation. Eligible traders can use Reward on Demand after completing the evaluation and satisfying the relevant conditions.

 

BEM Classic - Normal

BEM Classic - Normal uses a two-phase evaluation:

• 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, with each trading day requiring at least 0.5% realized profit based on the initial balance

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, 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. 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. For example, BEM ONE currently has no minimum trading-day requirement, while BEM Classic - Normal requires at least three trading days in each evaluation phase.

 

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.