Prop Trading Basics

29 Sep 2026

18 min read

What Is a 1-Step Prop Firm?

A 1-step prop firm is a proprietary trading firm that offers a single-phase evaluation model, meaning traders need to complete one evaluation before qualifying for the firm's next stage or funded program. Instead of completing multiple evaluation phases, traders work toward the requirements of one challenge while following the firm's trading and risk-management rules.

The term "1-step prop firm" generally refers to the firm's 1-step challenge or evaluation model, rather than a completely different type of prop firm. The exact requirements vary between firms. Profit targets, drawdown limits, minimum trading days, consistency rules, and trading restrictions can all differ.

For traders who already understand how prop firm challenges work, a 1-step model can provide a more straightforward evaluation structure. However, having only one phase does not automatically make a challenge easier. The complete set of rules matters.

How the 1-Step Model Works in Short

A 1-step prop firm uses a single evaluation phase before a trader can qualify for the next stage of its program.

In a traditional two-step challenge, a trader must successfully complete two separate evaluation phases. In a 1-step challenge, those evaluation requirements are combined into one phase.

The typical process looks like this:

Choose a challenge → Select an account size → Complete one evaluation → Meet the required objectives → Qualify for the next stage or funded program

The trader still needs to follow the firm's rules throughout the evaluation. A single phase can include a profit target, daily drawdown, maximum drawdown, consistency requirement, or other conditions.

The important point is that one-step does not mean rule-free. It describes the number of evaluation stages, not the overall difficulty or risk of the program.

If you want a broader explanation of how prop firms operate, see our guide to What Is a Prop Trading Firm?. If you're specifically interested in what happens after qualifying, our guide to What Is a Funded Trading Account? covers the funded-account concept in more detail.

How Does a 1-Step Prop Firm Challenge Work?

A typical 1-step trading challenge follows a relatively straightforward process.

1. Choose a challenge

First, the trader selects a 1-step challenge offered by the prop firm.

Different programs can have different account sizes, targets, drawdown models, trading conditions, and fees.

Before choosing a challenge, compare the full rule set rather than focusing only on the number of evaluation phases.

2. Select an account size

Prop firms may offer several account sizes within their 1-step programs.

The account size is the nominal balance associated with the challenge. It does not necessarily represent cash deposited into a personal brokerage account.

What matters is how the account size relates to the challenge's profit target and drawdown limits.

For example, a 6% drawdown on one account size represents a different dollar amount than a 6% drawdown on another. Comparing percentages and absolute amounts can therefore both be useful.

3. Start the evaluation

After selecting the program, the trader begins the single evaluation phase.

The trader's objective is generally to reach the required performance target without violating the applicable risk rules.

The specific requirements depend on the prop firm.

4. Meet the required objectives

A 1-step evaluation may require the trader to reach a defined profit target while staying within the program's drawdown limits.

Some programs may also include minimum trading days, consistency requirements, or other conditions.

Not every 1-step challenge uses the same objectives.

5. Follow the firm's trading rules

Reaching the profit target is only part of the evaluation.

A trader can potentially reach the target and still fail if they breach a maximum daily loss or drawdown rule.

Other rules can address news trading, overnight positions, weekend holding, prohibited strategies, or consistency.

The specific terms should always be checked before starting a challenge.

6. Complete the evaluation

Once the trader meets all applicable objectives without violating the rules, the single evaluation phase is complete.

Some firms may conduct a verification or review before granting access to the next stage.

7. Move to the next stage or funded program

What happens after passing depends on the firm's model.

A successful trader may move to a funded or trader account, or to another post-evaluation stage.

This is also where the term 1-step funded account can become relevant. The account that follows a successful one-step evaluation may have its own trading and reward conditions, so passing the challenge does not necessarily mean that all restrictions disappear.

What Are the Typical Rules of a 1-Step Prop Firm?

There is no universal rulebook for 1-step prop firms. Each company can define its own evaluation conditions.

Common requirements may include the following.

Profit targets

A profit target is the amount of profit a trader needs to generate to complete the evaluation. The target is usually expressed as a percentage of the initial account balance.

A lower target does not necessarily mean an easier challenge. The target should be evaluated together with the program's drawdown and other risk limits.

Maximum drawdown

Maximum drawdown defines how much the account can decline before the evaluation is considered failed.

Some firms use a fixed drawdown, while others use a trailing or dynamic calculation. Trailing drawdowns can also differ in whether they follow the account's balance or its equity, and whether they stop trailing at a certain level.

Understanding how the drawdown is calculated can be more important than the percentage itself.

Daily drawdown

A daily drawdown or daily loss limit restricts the amount an account can lose within a trading day.

The calculation can vary between firms. Some programs calculate it based on balance, equity, or a defined daily reference point.

Minimum trading days

Some 1-step challenges require traders to trade for a minimum number of days. Others do not.

A minimum-day requirement can be particularly relevant for traders who only take a small number of high-conviction setups.

Keep in mind that a program without a stated minimum-day rule can still require several trading days in practice if it applies a consistency rule (see below).

Time limits

Some evaluations have a maximum period in which the trader must complete the challenge. Other programs do not impose a maximum trading period.

A trader should therefore check both the minimum and maximum trading-day requirements before choosing a program.

Consistency rules

A consistency rule can require profits to be distributed across multiple trading days rather than coming primarily from one unusually profitable day. Many firms express this as a "best-day rule": the most profitable day cannot exceed a set percentage of total profit.

A consistency rule also creates an implicit minimum number of profitable days. For example, under a 30% best-day rule, no single day can account for more than 30% of total profit, so at least four profitable days are needed. Under a 35% rule, at least three are needed.

Consistency rules can apply during the evaluation, after passing, or both. Not every 1-step challenge has one at every stage.

For example, BEM ONE currently does not apply a consistency rule during its evaluation, but applies a 35% best-day rule at the Reward on Demand stage. BEM ONE ONLY applies a 30% consistency requirement during the evaluation and a 30% best-day rule at the Reward on Demand stage. These are BEM-specific rules and should not be treated as standard 1-step industry requirements.

News trading

Some prop firms restrict trading around major economic announcements. Others allow traders to trade through news events.

If your strategy relies on economic releases, check the challenge's news-trading rules before participating.

Overnight and weekend trading

Some programs restrict holding positions overnight or over weekends.

Others allow it.

This can be especially important for swing traders, whose strategies may depend on holding positions for several days.

What Are the Benefits and Considerations of a 1-Step Prop Firm?

A 1-step model has some structural characteristics that may appeal to certain traders. However, these should be considered alongside the complete trading conditions.

Potential benefits

One evaluation stage:

A trader only needs to complete one evaluation phase. There is no second phase to restart, and only one set of objectives to understand and complete.

No changing rules between phases:

In a multi-phase challenge, targets and conditions can differ from one phase to the next. A single phase means the trader works under one rule set for the entire evaluation.

A potentially shorter path to the next stage:

Because there is no second phase, a trader who meets the objectives can move on without completing an additional evaluation. Depending on the program's rules, this can shorten the time between starting the challenge and reaching the post-evaluation stage.

Considerations

One step does not necessarily mean easier.

A single evaluation can still have demanding profit targets or restrictive drawdown limits.

Rules still matter.

A 1-step challenge can include daily drawdown, maximum drawdown, consistency, or trading restrictions.

Profit targets vary.

Different firms can set very different targets for their one-step programs.

Post-evaluation conditions vary too.

Passing the evaluation does not mean that every firm uses the same funded-stage or reward structure.

For these reasons, the number of evaluation phases should be treated as just one comparison point.

1-Step vs. 2-Step Prop Firm Challenges

The main difference between the two models is the number of evaluation phases.

Factor	1-Step Challenge	2-Step Challenge
Evaluation stages	One	Two
Evaluation structure	One set of evaluation requirements	Requirements are divided between two phases
Profit targets	Set for the single phase	May have different targets for each phase
Trading rules	Depend on the specific program	May differ between phases
Time limits	Vary by program	Vary by program and phase
Drawdown	Depends on the program	Depends on the program and may differ by phase
Next stage	May move directly to a funded/trader stage	Usually follows successful completion of both phases
Potential fit	Traders who prefer a single evaluation	Traders who prefer a staged evaluation

Neither model is universally better.

A trader who prefers a single evaluation may find a 1-step structure easier to understand operationally. Another trader may prefer a two-step model with separate evaluation stages.

The more useful comparison is between the actual rules of the programs, not simply the number of steps.

What Should Traders Look for in a 1-Step Prop Firm?

If you're comparing a 1-step prop firm, look beyond the fact that it has only one evaluation phase.

Account sizes

Check the available account sizes and how the corresponding drawdown limits translate into actual dollar amounts.

Profit target

Understand how much profit is required and how the target interacts with the account's drawdown.

Maximum drawdown

Check whether the drawdown is fixed, trailing, or calculated using another methodology, and whether it is based on balance or equity.

Daily drawdown

Understand the daily loss limit, how it is calculated, and when it resets.

Minimum trading days

Check whether you need to trade on a minimum number of days to complete the challenge, and whether a consistency rule effectively requires several trading days.

Consistency rules

Determine whether a consistency requirement applies during the evaluation, after passing, or both.

Time limits

Find out whether there is a deadline for completing the evaluation.

News trading rules

If you trade around economic announcements, make sure the program permits your strategy.

Overnight and weekend trading

Check whether positions can remain open outside regular market sessions.

Trading platforms

Confirm which platforms are available for the specific challenge. Platform availability can affect your execution tools, charting, and overall trading workflow.

Payout and reward terms

Before choosing a challenge, understand how rewards or payouts work after the evaluation. These terms determine what passing is actually worth to you.

Check:

• Reward or profit-share percentage

• Minimum reward amount

• Reward frequency

• Eligibility conditions, including any best-day or consistency rule at the reward stage • Processing fees

• Available payment methods

Challenge fees

Finally, compare the challenge fee with the complete set of trading conditions.

A lower entry fee does not necessarily mean lower overall cost if the program's rules do not suit your trading strategy.

1-Step Challenges at BEM Funding

BEM Funding currently offers two 1-step challenge options: BEM ONE and BEM ONE ONLY. Both use a single evaluation phase, have no minimum trading-day requirement, and offer Reward on Demand with an 80% reward share. Their evaluation rules are different.

BEM ONE

BEM ONE is a single-phase evaluation with 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 has no minimum trading-day requirement and no consistency rule during the evaluation, so the profit target can be reached on a single trading day.

After the evaluation is successfully completed and the applicable eligibility conditions are met, traders move to a BEM Trader Account with Reward on Demand. At this stage, BEM's current rules include an 80% reward share and a 35% best-day rule.

BEM ONE ONLY

BEM ONE ONLY is another single-phase evaluation, with 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.

There is no minimum trading-day requirement, but the evaluation includes a 30% consistency requirement. In practice, this means the profit target needs to be spread across at least four profitable trading days.

After completing the evaluation and meeting the applicable requirements, traders may become eligible for a BEM Trader Account with Reward on Demand. The current Reward on Demand requirements for BEM ONE ONLY include an 80% reward share and a 30% best-day rule, alongside other conditions.

These differences show why traders should not evaluate 1-step programs based only on the number of evaluation stages. Even two programs from the same firm can have different targets, drawdown structures, and consistency requirements.