A two-step challenge asks you to hit a profit target twice under the same loss limits. FTMO’s 2-Step is the best-known version: a 10 per cent target in the Challenge, then 5 per cent in the Verification, with a 5 per cent daily loss limit, a static 10 per cent maximum loss, at least 4 trading days in each phase, and no time limit. This plan is built around those rules; adjust the numbers for another firm.

Before you buy: two weeks on demo

  1. Write your rules: markets, setups, entry, stop, target, and the maximum trades a day.
  2. Trade them on a free demo account for two weeks at the challenge’s limits, with your own daily stop at 2.5 per cent.
  3. Record every trade. If the demo would have breached a limit, fix that before paying any fee.
  4. Choose the account size whose fee you can lose without it affecting how you trade.

Phase one: the 10 per cent target

Phase one: the 10 per cent target. Risk per trade: 0.5% (0.25% after two losses in a day); Personal daily stop: 2.5% down, then no more trades that day; Weekly review: Check win rate and average win and loss against your demo record; Expected time: Four to eight weeks, depending on how many trades you take; Near the target: Same size; no larger trades to finish
Phase one: the 10 per cent target: the figures from this section at a glance.
SettingPlan
Risk per trade0.5% (0.25% after two losses in a day)
Personal daily stop2.5% down, then no more trades that day
Weekly reviewCheck win rate and average win and loss against your demo record
Expected timeFour to eight weeks, depending on how many trades you take
Near the targetSame size; no larger trades to finish

If you reach 10 per cent before 4 trading days, finish the remaining days at minimum size. FTMO counts a trading day as any day with an executed trade.

Phase two: the 5 per cent Verification

The rules are the same and the target is half. The danger here is relaxing. Keep the same risk and daily stop; at 0.5 per cent a trade the smaller target usually takes two to four weeks.

The first funded month

  • Keep the same risk. The funded account has the same loss limits, and there is no new fee to pay if it is lost, only a new challenge.
  • Check the funded-account rules that did not apply in the evaluation. At FTMO, news restrictions apply on a Standard funded account but not in the Challenge or Verification.
  • Plan the first payout: FTMO allows the first request from the 14th day after your first funded trade, with positions closed. A small first payout tests the process and, on the 2-Step, triggers the fee refund.
Illustrative example: a ten-week route

A trader takes about two trades a day at 0.5 per cent risk with a positive expectancy. The Challenge takes six weeks, including one week flat after a losing streak, and the Verification three more. The first funded payout is requested two weeks after funding: ten weeks from start to first payout, with no day ever more than 2.5 per cent down.

Use our prop firm calculator to size each trade from your daily stop.

Frequently asked

How do I pass a two-step prop challenge?

Test your method on demo under the same limits first, then trade the challenge at 0.5 to 1 per cent risk a trade with a personal daily stop well inside the firm's limit, and keep the same size through both phases.

What are the FTMO 2-Step rules?

A 10 per cent profit target in the Challenge and 5 per cent in the Verification, a 5 per cent daily loss limit, a static 10 per cent maximum loss, at least 4 trading days in each phase and no time limit.

How long should a two-step challenge take?

At safe position sizes, often four to eight weeks for the first phase and two to four weeks for the second. FTMO's fastest possible route is 8 trading days, but there is no time limit.

What changes once I am funded?

Usually the loss limits stay the same, but some rules start to apply, such as FTMO's news restriction on Standard funded accounts. Plan a small first payout to test the process.