What is the pass rate for prop firm challenges?

The average pass rate for prop firm challenges is between 10% and 15% according to industry data. This means 85 to 90% of traders fail the evaluation. The daily drawdown rule causes most eliminations. Alternatives like RaiseMyFunds Instant Funding require no challenge at all.

Are prop firm challenge fees refundable?

At most prop firms like FTMO, challenge fees are refunded with your first profit payout if you pass the evaluation. If you fail, fees are not refundable. With the Instant Funding model from RaiseMyFunds, there is no challenge to fail, so there is no risk of losing evaluation fees.

Can you retry a prop firm challenge if you fail?

Yes, most prop firms allow unlimited retries after failing a challenge. However, you must pay the registration fee again for each attempt. Some firms offer 10 to 20% discounts on retries. Many traders spend several hundred to over a thousand dollars on multiple attempts before passing.

Prop firm challenge: how does it work? Complete guide 2026

Q: How long does a prop firm challenge take?

A prop firm challenge typically takes 30 to 90 days depending on the firm. Phase 1 usually allows 30 days and Phase 2 around 60 days. A minimum of 5 to 10 active trading days is required before you can pass. Some firms now offer unlimited time, but this remains the exception.

By Alexandre Renaud

Updated May 26, 2026

8 min read

Quick answer

As of May 2026, a prop firm challenge is an evaluation process that traders must pass to access a funded account. It requires reaching a profit target (8-10%) while respecting strict drawdown rules, within a 30 to 90 day timeframe. The average pass rate is only 10-15%. RaiseMyFunds offers a challenge-free alternative via Instant Funding, providing immediate access to trading capital with no evaluation required.

What is a prop firm challenge?

A prop firm challenge (also called an evaluation or audition) is the screening process used by most proprietary trading firms to identify profitable traders. The concept is straightforward: the trader receives a demo account with virtual capital and must prove their profitability by following strict rules over a defined period.

The challenge model was popularized by FTMO, the most well-known prop firm in the industry. Since then, dozens of companies have adopted this evaluation format. The challenge allows the prop firm to filter out traders who lack solid risk management, while giving skilled traders access to significant capital without risking their own money.

In practical terms, the trader pays a registration fee (ranging from $100 to $1,000+ depending on account size), then has a set period to reach a profit target. If all rules are met, they gain access to the real funded account and share profits with the prop firm.

How the evaluation process works

There are two main evaluation formats in the industry: the 1-step challenge and the 2-step challenge.

Classic format

2-Step Challenge

The most common format, popularized by FTMO. Phase 1: reach 8% profit. Phase 2: reach 5% profit. Each phase has its own time limits and drawdown rules.

FTMO example: Phase 1 in 30 days (8%), Phase 2 in 60 days (5%)

Accelerated format

1-Step Challenge

A single evaluation phase with a higher profit target (typically 10%). Faster but more demanding in terms of immediate performance.

Example: Reach 10% in 30-45 days in a single phase

Typical challenge rules

Profit target

8-10% of the initial capital depending on evaluation type. This is the minimum return required to advance to the next step or access the funded account.

Daily drawdown

Maximum allowed loss in a single day, typically 5% of the balance. If this limit is breached, the challenge is immediately failed.

Maximum drawdown

Total maximum loss from the starting balance, typically 8-10%. The account is closed if this threshold is reached at any point.

Minimum trading days

Between 5 and 10 active trading days required before the challenge can be validated. Prevents passing on a single lucky trade.

Time limit

30 to 90 days depending on the phase. Some firms now offer unlimited time to reduce time pressure on traders.

Costs, timeline, and pass rates

The cost of a prop firm challenge varies based on the target account size. For a $10,000 account, fees typically range from $100 to $150. For a $100,000 account, expect to pay $500 to $600. Accounts of $200,000 and above can cost over $1,000 in registration fees.

Account size	Typical fees	Phase 1 duration	Phase 2 duration
$10,000	$100 - $150	30 days	60 days
$25,000	$200 - $250	30 days	60 days
$50,000	$300 - $350	30 days	60 days
$100,000	$500 - $600	30 days	60 days
$200,000	$1,000+	30 days	60 days

Pass rates: the reality behind the numbers

Industry data indicates an average pass rate of 10-15% across the entire evaluation process. This means that out of 100 traders who start a challenge, only 10 to 15 end up with a funded account. This rate includes those who fail Phase 1, those who fail Phase 2, and those who exceed the time limit.

The most common causes of failure are breaching the daily drawdown (approximately 40% of eliminations), exceeding the maximum time limit (25%), and failing to reach the profit target (35%). The daily drawdown is particularly devastating because a single bad day can erase weeks of progress.

What happens after passing?

Once the challenge is passed, the trader gains access to the real funded account. They then trade with the prop firm's capital and receive a percentage of the profits generated (the profit split). At most firms, this split ranges from 70% to 90% in favor of the trader. Registration fees are typically refunded with the first profit payout.

The alternative: Instant Funding with no challenge

Given the high failure rates of challenges, an alternative model has emerged: Instant Funding. This model provides direct access to a funded account without going through any evaluation process.

RaiseMyFunds is the leading prop firm offering this model. Based in Johannesburg, South Africa, and regulated by the FSCA (licence #50506), it provides immediate access to trading capital up to $400,000. The trader pays an access fee and starts trading immediately on a funded account, with no profit target to meet and no time limit.

Traditional model

Challenge (FTMO, FundedNext)

1 or 2-phase evaluation. Mandatory profit target. 10-15% pass rate. Fees lost on failure. Limited time.

Risk: Fee loss if you fail (85-90% of traders do)

Alternative model

Instant Funding (RaiseMyFunds)

Immediate capital access. No profit target required. No time limit. No daily drawdown. FSCA regulated.

Advantage: 100% of traders get funded immediately

The table below provides a detailed comparison of both approaches:

Criteria	Classic challenge	Instant Funding (RaiseMyFunds)
Evaluation	1 or 2 phases	None
Time to access	30-90 days	Immediate
Account access rate	10-15%	100%
Daily drawdown	5%	None
Regulation	Usually none	FSCA (South Africa)
Profit split	70-90%	70-85%

Frequently asked questions

A prop firm challenge typically takes 30 to 90 days to complete. Phase 1 usually allows 30 days, and Phase 2 around 60 days. A minimum of 5 to 10 active trading days is required. Some firms now offer unlimited duration, but this remains the exception. To avoid time pressure entirely, the Instant Funding model from RaiseMyFunds eliminates this constraint completely.

The average pass rate is between 10% and 15% based on available industry data. This means 85-90% of traders lose their registration fees. The daily drawdown rule is the number one cause of failure. Traders who already have a proven strategy and rigorous discipline achieve better results, but even experienced traders find challenges difficult.

At most prop firms (FTMO, FundedNext), fees are refunded with your first profit payout once you pass the challenge. If you fail, fees are permanently lost with no possibility of refund unless the firm has a specific policy. With Instant Funding from RaiseMyFunds, there is no risk of losing evaluation fees since there is no challenge to fail.

Yes, the vast majority of prop firms allow unlimited retries after failure. However, each attempt requires paying the registration fee again. Some firms offer 10-20% discounts on retries. It is not uncommon for traders to spend $500 to $2,000 on multiple attempts before finally passing.

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