What is Evaluation?
An evaluation is the testing phase a trader must complete before being granted a funded account by a prop firm. It typically requires hitting a profit target (5-10%) without breaching risk rules like daily loss limits or maximum drawdown. Evaluations come in 1-step, 2-step, or 3-step formats, with each additional step typically lowering the entry fee but adding time before funding. The average pass rate across major firms in 2026 sits at 7-10%, with discipline and risk management being the primary differentiators between traders who pass and those who fail.
Real-world example
FTMO's standard evaluation is a 2-step process requiring an 8% profit in Phase 1 and 5% in Phase 2.
Key takeaways
A test phase a trader passes to qualify for a funded account.
It typically requires hitting a profit target (5-10%) without breaching risk rules like daily loss limits or maximum drawdown.
Evaluations come in 1-step, 2-step, or 3-step formats, with each additional step typically lowering the entry fee but adding time before funding.
The average pass rate across major firms in 2026 sits at 7-10%, with discipline and risk management being the primary differentiators between traders who pass and those who fail.
Evaluation vs. One-Step Evaluation
Two terms that frequently get conflated. Here's how they actually differ.
EvaluationChallenge Structure · ROOKIE
One-Step EvaluationChallenge Structure · ROOKIE
A test phase a trader passes to qualify for a funded account.
A single-phase challenge with one profit target.
Frequently asked questions
What is Evaluation?
An evaluation is the testing phase a trader must complete before being granted a funded account by a prop firm. It typically requires hitting a profit target (5-10%) without breaching risk rules like daily loss limits or maximum drawdown. Evaluations come in 1-step, 2-step, or 3-step formats, with each additional step typically lowering the entry fee but adding time before funding.
Why does Evaluation matter for prop firm traders?
Evaluation is one of the formats prop firms use to evaluate traders before funding. The structure affects cost, time-to-funding, and which trader profiles the firm tends to suit.
Can you give an example of Evaluation?
FTMO's standard evaluation is a 2-step process requiring an 8% profit in Phase 1 and 5% in Phase 2.
How is Evaluation different from One-Step Evaluation?
Evaluation and One-Step Evaluation are commonly confused. Evaluation: A test phase a trader passes to qualify for a funded account. One-Step Evaluation, by contrast: A single-phase challenge with one profit target.
What should traders watch out for with Evaluation?
Evaluations come in 1-step, 2-step, or 3-step formats, with each additional step typically lowering the entry fee but adding time before funding. The average pass rate across major firms in 2026 sits at 7-10%, with discipline and risk management being the primary differentiators between traders who pass and those who fail.