The FTMO 2-Step Challenge remains one of the most widely used evaluation models in the prop trading industry. It uses a two-stage verification process designed to test consistency over time while offering relatively generous risk limits compared to most one-step challenges.
FTMO 2-Step Challenge Structure
The evaluation is divided into two phases: the FTMO Challenge and the Verification stage. Traders must pass both stages before receiving a funded FTMO account.
| Feature | Phase 1: Challenge |
|
|---|---|---|
| Profit Target | 10% | 5% |
| Trading Period | Unlimited | Unlimited |
| Minimum Trading Days | 4 Days | 4 Days |
| Maximum Daily Loss | 5% | 5% |
| Maximum Total Loss | 10% | 10% |
Account Types: Standard vs Swing
FTMO allows traders to choose between two account configurations depending on their trading style.
Standard Account
- Leverage: 1:100
- News Trading: Restricted during high-impact news events on funded accounts.
- Weekend Holding: Not allowed.
- Best For: Scalpers and intraday traders who close positions daily.
Swing Account
- Leverage: 1:30
- News Trading: Allowed.
- Weekend Holding: Allowed.
- Best For: Swing traders and position traders.
Drawdown Rules Explained
The FTMO 2-step challenge uses static drawdown limits, meaning the maximum loss thresholds are calculated based on the original account balance rather than trailing the account upward.
- Example: On a $100,000 account, the maximum total loss limit remains fixed at $90,000.
- If the account grows to $115,000, the failure point still remains $90,000.
- This effectively increases the safety buffer as profits accumulate.
Fees, Profit Split, and Scaling
- Entry Fee: Lower than the FTMO 1-Step Challenge.
- Refund Policy: The challenge fee is refunded with the first payout.
- Profit Split: 80% to the trader by default.
- Scaling Plan: After 4 months with at least 10% profit and two payouts, account size increases by 25% and the profit split upgrades to 90%.
Who the FTMO 2-Step Challenge Is Best For
Ideal For
- Traders who prefer static drawdown instead of trailing drawdown.
- Risk-controlled traders who want more breathing room with a 5% daily loss limit.
- Traders comfortable passing two evaluation stages before funding.
Not Ideal For
- Traders who want instant or very fast funding.
- High-risk traders who rely on aggressive account growth strategies.
