Trading with a proprietary trading firm (prop firm) offers a unique advantage—access to significant capital without risking your own. But before you can trade with funded money, you have to prove you’re profitable by passing a prop firm challenge.
Prop firms don’t just hand out cash to anyone. They use challenges to weed out unprofitable traders and find those who can manage risk effectively. If you pass, you gain access to a funded account where you can trade with the firm’s money and keep a portion of the profits.
But passing isn’t easy. Many traders fail due to strict rules, psychological pressure, and a lack of strategy. That’s why we’re breaking down exactly how to pass a prop firm challenge and avoid the common pitfalls that lead to failure.
What Is a Prop Firm Challenge?
A prop firm challenge is a trading evaluation where traders must meet certain profit and risk requirements to qualify for a funded account.
Key Components of a Prop Firm Challenge:
✔ Profit Target – The percentage gain required to pass (typically 5-10%).
✔ Drawdown Limits – The maximum allowed losses before failing.
✔ Time Restrictions – Some firms require passing in as little as 10 days.
✔ Consistency Rules – Limits on trade sizes to prevent high-risk behavior.
Every prop firm has its own unique challenge rules, but the goal is always the same: prove you can trade profitably while managing risk.
How Do Prop Firm Challenges Work?
Step-by-Step Process:
1️⃣ Sign Up – Choose a prop firm and pay the evaluation fee.
2️⃣ Trade the Challenge Account – Follow the firm’s profit and risk rules.
3️⃣ Meet the Profit Target – Reach the required percentage gain.
4️⃣ Stay Within Risk Limits – Avoid exceeding daily or total drawdowns.
5️⃣ Complete the Challenge Period – Some firms require minimum trading days.
6️⃣ Verification Phase (If Required) – Some firms have a second phase to confirm consistency.
7️⃣ Get Funded – Once approved, you can trade a real account with the firm’s capital.
Single-Phase vs. Two-Phase Challenges
Single-Phase: You pass in one round if you meet all the criteria.
Two-Phase: After passing the first phase, you need to prove consistency in a second phase before getting funded.
How Hard Is It to Pass a Prop Firm Challenge?
Reality Check: Success Rates Are Low
The majority of traders fail their first prop firm challenge. Why?
🚨 Overtrading – Trying to hit profit targets too fast.
🚨 Ignoring Risk Rules – Blowing the account with one bad trade.
🚨 Emotional Trading – Revenge trading after a loss.
Many firms don’t release exact pass rates, but some estimates suggest that only 10-20% of traders pass, and even fewer remain profitable in the long term.
Passing isn’t impossible—but it requires discipline, patience, and a solid plan.
How Long Does It Take to Pass a Prop Firm Challenge?
🚀 Best Case Scenario:
Some traders pass in 5-10 days if they hit profit targets quickly.
🐢 More Realistic Timeline:
Most traders need 20-30 days to pass while following risk rules.
🔁 If You Fail Once or Need a Reset:
1-3 months is a realistic timeline for most traders who need multiple attempts.
Patience is key. Rushing increases your chances of failing.
What Happens After Passing a Prop Firm Challenge?
You Get Funded! But There’s a Catch…
After passing, you enter a funded account—but you still need to follow strict rules:
💰 Profit Splits – You typically keep 70-90% of profits, while the firm takes a cut.
💸 Withdrawal Rules – Some firms require you to hit a profit milestone before withdrawing.
📉 Risk Management – If you exceed drawdown limits, your account can be revoked.
Traders who stick to the plan and follow the firm’s rules can build serious capital over time.
Strategies for Passing a Prop Firm Challenge
Want to pass on the first attempt? Follow these strategies:
1. Risk Management First
✅ Max 1-2% risk per trade – Never overleverage.
✅ Use stop-losses – Avoid hitting drawdown limits.
✅ Keep losses small – One bad trade shouldn’t wipe you out.
2. Choose the Right Trading Style
Scalping: Quick in-and-out trades (high risk but fast).
Day Trading: Controlled risk, multiple opportunities daily.
Swing Trading: Requires patience but lower stress.
📌 Tip: Many prop firms require daily trading activity, so swing trading alone might not be enough.
3. Trade the Best Setups Only
Wait for high-probability trades – Don’t force trades.
Follow technical & fundamental analysis – Don’t rely on gut feelings.
4. Control Your Psychology
Stay calm after a loss – Don’t revenge trade.
Focus on process, not money – Follow the rules and the money will come.
Common Mistakes That Lead to Failing a Challenge
🚩 1. Overleveraging & Taking Huge Risks – One bad trade can end your challenge.
🚩 2. Not Following Drawdown Rules – Going over limits = automatic failure.
🚩 3. Emotional Trading – Revenge trading leads to disaster.
🚩 4. Trading Every Setup – Only take high-quality trades.
What Are the Easiest Prop Firm Challenges to Pass?
Some firms offer more lenient rules than others.
Trader-Friendly Prop Firms:
✔ Apex Trader Funding – Allows multiple accounts, more flexibility.
✔ MyFundedFutures – Lower profit targets, simple rules.
✔ Take Profit Trader – 100% refund if you pass.
❌ Harder Prop Firms:
Firms with higher profit targets (10%+).
Firms with low max drawdowns (harder to stay within limits).
Conclusion: Is a Prop Firm Challenge Worth It?
✅ YES, if you:
Have a solid strategy.
Can follow risk management rules.
Want to scale up without risking personal capital.
❌ NO, if you:
Gamble on big trades.
Struggle with emotions.
Don’t have a consistent edge.
👉 Ready to get funded? Compare the best prop firms and find the right challenge for you!
FAQs
What is a prop firm challenge?
A trading evaluation where you prove you can trade profitably to access a funded account.
How long does it take to pass?
Most traders take 20-30 days, but it depends on your strategy and the firm’s rules.
What is the easiest way to pass?
Follow strict risk management, take only the best trades, and don’t rush.
What happens after passing?
You receive a funded trading account but must still follow the firm’s risk rules.
What’s the success rate?
10-20% of traders pass, and even fewer stay profitable long-term.
