Best Prop Firms With Challenge
Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.
If you're too busy to read the entire article and want a quick answer, the best prop firm with a challenge is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Unlimited trading period
- Financial stability and support
The five best prop firms with challenge are:
- Hola Prime - A prop trading firm licensed by the FSC of Mauritius that provides funding up to $500,000 with the potential to scale accounts to $4 million
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Instant Funding - Prop firm offering instant funding with account sizes up to $80,000
- GoatFundedTrader - A proprietary trading firm registered in Saint Lucia and Hong Kong, offering simulated capital of up to $400,000 for Forex and CFD trading.
- Earn2Trade - Convinient scaling plans (relatively low profit goal, account upgrades after withdrawing first profit target)
Prop trading has garnered much attention in the past years, and aspiring traders are eager to prove their skills and get funded. However, in order to do so, they have to pass the evaluation challenges set forth by the prop firms. In this article, the experts at TU will analyze the evaluation criteria and the benefits offered by top prop firms.
What is a prop firm challenge?
A proprietary trading firm evaluation challenge (also known as the prop firm challenge) is a very thorough and robust assessment process that is meant to evaluate the trading and risk management capabilities of those traders who wish to seek to trade with the prop firm’s capital.
The challenges set forth by the prop firm require traders to demonstrate their ability and achieve consistent profits, manage funds, and further maintain their trading activity within predetermined limits of maximum drawdown and losses. The parameters of the challenges may vary, and factors such as minimum/maximum trading days, position sizes, trade durations, and trading strategies differ from one prop firm to another.
The main purpose of these prop firm challenges is to identify skilled traders who have the potential to succeed and manage their trades effectively, and thereby being qualified for a funded trading account. As prop firms cannot fund every trader who applies to their program due to inherent financial risks, these evaluation challenges are important in distinguishing profitable and promising traders from those who may not be skilled enough to handle the responsibilities of trading with the firm’s capital. This challenging evaluation process enables prop firms to build a portfolio of competent and qualified traders.
What are the trading conditions of prop firms?
After passing the challenge, traders will find the key conditions of prop firms crucial. We compared the most important of these conditions:
| Profit split up to, % | Funding Up To, $ | Max. Leverage | Mandatory Stop Loss | Weekend Position Closure | |
|---|---|---|---|---|---|
| 95 | 4 000 000 | 1:100 | No | No | |
| 90 | 200 000 | 1:30 | No | No | |
| 90 | 2 500 000 | 1:100 | No | No | |
| 95 | 2 000 000 | 1:100 | No | No | |
| 80 | 400 000 | 1:30 | Yes | Yes |
Top prop firm challenges in 2025 compared
We compared the challenge conditions of five popular prop firms. Here are the parameters we analyzed along with their definitions:
Price (USD or EUR): The cost of participating in each trading plan, specified in either USD or EUR.
Profit Target ($): The monetary profit target that traders need to achieve to pass the challenge.
Daily Loss (%): The maximum allowable daily loss as a percentage of the trading capital.
Max Loss (%): The maximum overall loss allowed as a percentage of the trading capital.
| Trading Plans | Price, USD or EUR | Profit target, $ | Daily loss, % | Max. loss, % | Managed amount, USD | |
|---|---|---|---|---|---|---|
|
Pro Challenges 1 Step Pro |
65 |
500 |
3 |
6 |
5 000 |
|
|
Essential |
119 |
2000 |
5 |
6 |
20 000 |
|
|
One Phase |
49 |
500 |
3 |
8 |
5 000 |
|
|
1 Step |
114 |
1500 |
4 |
6 |
15 000 |
|
|
TCP |
75 |
1750 |
2,2 |
6 |
25 000 |
Benefits of participating in a prop firm challenge
1. Skill enhancement
Prop firm challenges serve as an excellent platform for traders to hone their trading skills. Before participating in a prop firm challenge, traders have the option to test out their trading techniques in demo accounts, thereby enhancing their trading strategies and refining their approach for a successful trading setup.
2. Access to larger capital
One of the main advantages of taking part in a prop firm challenge is the opportunity to have access to a greater capital than you currently have. This access gives traders the ability to take larger positions and potentially achieve greater profits for them and, in turn, the prop firm.
3. Potential for higher profits
According to experts, as prop traders have access to a larger capital and have built-in effective risk management techniques, they may achieve higher profits through successful trading. These prop firms also have funded tiers in their existing plans, and profitable traders can get the opportunity to manage more substantial and bigger trading accounts.
4. Learning from experienced traders
Prop firms often have a social platform wherein selected traders can interact and learn from experienced traders within the firm. By engaging with these individuals, traders can gain valuable insights into market trends, incorporate advanced trading strategies, and employ effective risk management techniques that can substantially improve their trading acumen.
5. Real-world experience
Prop firm challenges simulate real-market conditions and trading scenarios, thereby providing traders with live experiences in a risk-controlled environment. This exposure is very important and is needed to instill confidence and competence in navigating difficult market scenarios effectively.
6. Risk mitigation
When a prop trader is trading with the firm’s capital, they are shielded from the full extent of risk using risk management strategies. This is very beneficial for those traders who are cautious about using their own funds or concerned about losing a large chunk of their capital in risky trading. This setup also allows traders to focus on their own trading strategy and not worry too much about the loss of their initial capital.
7. Network expansion
Participating in a prop firm allows traders to build networking relationships with other traders and professionals in the trading community. Once a trader has built a good relationship with like-minded individuals, it can lead to awarding collaborations, knowledge sharing, and exposure to new trading ideas.
What are the conditions in a prop firm challenge?
1. Drawdown limits
One of the most important conditions in a prop firm challenge is the drawdown limits, and traders should be mindful of it. These limits are kept to keep the trader in check and are crucial in determining their risk management capabilities. A trader should understand whether these drawdowns are measured relative to the trading account balance or do they serve as absolute values, thereby allowing them to take trading positions effectively and prudently.
2. Algo trading rules
For those traders who wish to use expert advisors (EAs) or engage in copy trading, it is very important to review and understand the specific rules that a prop firm employs regarding algorithmic trading methods. Some prop firms do not allow algorithmic trading, and some require traders to seek approval before engaging in automated trading strategies.
3. Winning criteria
Different prop firms have different criteria when it comes to evaluating win-rate. Not all of them solely focus on the raw profit that a prop trader achieves. Some of the additional criteria that these firms may value are consistency, risk-adjusted returns, or other factors. Hence, traders should search and understand how the prop firm ranks their participants and what specific criteria they use to determine the winners. This extensive understanding will help traders to align their trading strategy with the firms’ rules and regulations.
4. Additional rules
Apart from the core conditions mentioned above, there are additional requirements that a trader must keep in mind and adhere to while participating in a prop firm challenge. These could include restrictions on holding positions over the weekends, limitations on lot sizes, requirements for maintaining consistent trading activity, and more. It is very important for traders to understand and deploy such rules to ensure that they are compliant with the laws of the prop firms and maximize their chances of success in the prop firm challenge.
5. Risk management
Prop firm challenges often put more emphasis on the importance of effective risk management. Traders are expected to demonstrate their ability to control losses, preserve capital, and avoid undue risks.
6. Account funding and scaling
Traders should inquire about the funding process and scaling opportunities available to successful participants. After successfully completing the challenge, traders may have the opportunity to trade with the firm's capital. Understanding the terms and conditions for funding and scaling may help traders plan their trading strategies accordingly.
How to choose the right prop firm challenge?
1. Research and compatibility
Before taking up a prop firm challenge, one should conduct thorough research to identify those prop firms which fit the ideal trading goals and skill level. Each prop firm challenge comes with its unique set of evaluation processes and requirements, so it is very essential to find one that aligns with your trading objectives.
2. Allowed trading types
Always research the type of trading that is permitted in the prop firm challenge. Some prop firms are restrictive and may only allow day trading, while other prop firms may have limitations on the markets or the financial instruments that can be traded. You should always choose a challenge that lets you trade in a manner that suits your trading style and setups.
3. Evaluation process
One should always understand the evaluation processes set by the prop firm. There are certain challenges that may require you to achieve a certain level of profitability within a specified time frame, or you may have to deploy risk management techniques that could limit your capital input. Thus, you should familiarize yourself with these requirements to adequately prepare and demonstrate your trading strategies.
4. Fees and costs
Before entering a prop firm challenge, you should be mindful of the fees associated with it. Some prop firms may not charge any fees for a challenge, but others might take an upfront fee or a percentage of profits earned during the evaluation period. You should consider these costs very carefully as they would impact your overall returns and influence your decision to participate or not.
5. Reputation and credibility
Always look for reputable and well-established prop firms. You can read reviews of successful traders who have been associated with the prop firm before and should always select such firms that have a track record of fair evaluations. You can also talk to traders who have been selected before and ask them about their experience with the prop firm.
6. Support and resources
Consider the support and resources offered during the challenge. Some firms may provide educational materials, mentorship programs, or access to trading tools and platforms, which can significantly enhance your learning and trading experience.
7. Growth opportunities
Finally, assess the potential for growth and advancement within the firm. A prop firm challenge that leads to a funded account and opportunities for scaling can be highly beneficial for traders aiming to build a long-term trading career.
Expert Opinion
It's important to understand that prop firm challenges are highly competitive - while the top firms only fund a small percentage of applicants, those individuals gain a unique opportunity. My advice is to approach the challenge with discipline and focus on demonstrating your risk management abilities above all else, because most prop firms are not evaluating you based solely on profits, but also on how you handle drawdowns and adhere to trading rules. Make sure your strategy has defined risk parameters that you don't exceed, even on winning trades. Paper trading for an extended period before starting the challenge can help reinforce good habits.
I also suggest journaling your learning experiences along the way - both what goes well and where you can improve. This self-analysis will serve you well whether you pass the initial evaluation or need to retake the challenge down the road.
Remember that prop firm challenges are essentially job interviews for trading positions. Present yourself professionally by trading responsibly and communicating clearly with your evaluation contacts if needed.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
-
Trader testimonials and reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
-
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
-
Challenges and evaluation process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
-
Profit split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
-
Trading conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
-
Platform and technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
-
Education and support. Quality and availability of training materials, webinars, and one-on-one coaching.
FAQs
What are prop firm challenges?
Prop firm challenges are evaluation processes set up by proprietary trading firms to assess prospective traders' skills and suitability to trade with the firm's capital.
Is it easy to pass a prop firm challenge?
Passing prop firm challenges can be challenging, as they require traders to meet specific profit targets and adhere to strict risk management rules.
What is the best strategy for the prop firm challenge?
There is no one best strategy to pass a prop firm challenge. It depends on a trader’s trading strategy and the rules that a trader has to adhere to within a prop firm.
How many people pass prop firm challenges?
The pass rate for prop firm challenges varies from one prop firm to another, and it also depends on the level of difficulty of the evaluation process that a prop firm has.
Related Articles
Team that worked on the article
Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).
Swing trading is a trading strategy that involves holding positions in financial assets, such as stocks or forex, for several days to weeks, aiming to profit from short- to medium-term price swings or "swings" in the market. Swing traders typically use technical and fundamental analysis to identify potential entry and exit points.
Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.
The idea behind mitigation is to recognize and effectively trade mitigation blocks. These blocks consist of specific price action patterns that signal a change in market sentiment or demand-supply dynamics.
A day trader is an individual who engages in buying and selling financial assets within the same trading day, seeking to profit from short-term price movements.
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
