The Prop Firm Challenge, Explained — and How to Start One
A prop firm challenge is a simulated-capital evaluation: hit a profit target without breaching a daily loss limit or a maximum drawdown, then move to a funded-style account. ForRealFunding runs 1-Step, 2-Step and Instant models across account sizes from $5K to $500K, with up to a 90% reward split and no maximum time limit. Pay After Pass lets you start any challenge for $9.99.
ForRealFunding's models side by side
Evaluation-stage figures, verified 2026-08-25. Funded-stage limits can differ — the drawdown calculator works them in dollars.
| Model | Daily / Max drawdown | Type | Leverage | Profit target |
|---|---|---|---|---|
| FRF Pro — 1-Step Challenge | 4% / 7% | static | 1:30 | One phase, ~10% target |
| FRF Pro — 2-Step Challenge | 5% / 10% | static | 1:50 | Two phases, ~8% then ~5% target |
| Instant Funding | 3% / 6% | trailing | 1:20 | No target — funded from day one |
| Pay After Pass (Evaluation) | 8% / 15% | static | 1:30 | ~4% target on the evaluation |
1-Step
One evaluation phase. Both limits are measured from your starting balance and don't move as your account grows.
Best for: Traders who want a single hurdle and the tightest drawdown of the standard models.
2-Step
Two evaluation phases with no time limit and the widest drawdown room of the standard models.
Best for: Traders who want the widest standard drawdown room and don't mind a second phase.
Instant
No evaluation — funded from day one. Max drawdown trails your balance upward until it locks at a set profit level.
Best for: Experienced traders who want to skip the evaluation and accept tighter, trailing drawdown.
Pay After Pass
The widest drawdown room of any model, available while you prove your skill for as little as $9.99 before paying the remaining fee.
Best for: Anyone who wants the lowest upfront cost ($9.99) and the widest drawdown room while proving skill.
The rules, in plain English
See exact rules by program & account size →No time limit
Take as long as you need to hit the target.
No minimum trading days on most models
Pass as fast as a disciplined run allows.
No consistency rule on core models
Your best day doesn't disqualify the run.
Weekend & overnight holding allowed
Swing setups are fine.
EAs allowed (no HFT)
Automate, within the stated limits.
News trading allowed in evaluation
A funded-stage nuance applies — stated up front.
Ready to start?
Pick an account size and model on the pricing page, or start any challenge for $9.99 with Pay After Pass and settle the rest after you pass.
FAQ
What is a prop firm challenge?
A prop firm challenge is a simulated-capital evaluation. You trade a simulated account and must reach a profit target without breaching a daily loss limit or a maximum drawdown. Pass, and you move to a funded-style account that pays a share of the profit in real cash.
How much does a prop firm challenge cost?
At ForRealFunding the upfront cost starts at $9.99 with Pay After Pass — you pay the rest of the fee only after you pass. Paying the fee in full up front is also an option, and the fee is refunded after a set number of payouts (120% on a pass). Account sizes run from $5,000 to $500,000.
What's the difference between a 1-Step and a 2-Step challenge?
A 1-Step challenge has a single evaluation phase with one profit target. A 2-Step challenge splits it into two phases with smaller targets and, at ForRealFunding, the widest static drawdown room (5% daily / 10% maximum). Instant funding skips the evaluation entirely in exchange for tighter, trailing drawdown.
Is there a time limit to pass?
No. ForRealFunding sets no maximum time limit to complete a challenge, and most models have no minimum trading days either — so you can take as long as you need or move quickly if a disciplined run lets you.
How hard is it to pass a prop firm challenge?
Industry-wide, only a small share of challenge buyers ever reach a payout — most failures come from breaching a drawdown rule, not from missing the target. The challenge is really a risk-management test. A low-cost entry and a free-retry option lower the cost of the attempts it usually takes.