FundingPips Two-Step Challenge Explained: Rules, Targets & the Real Trader Breakdown

The 2-Step challenge is FundingPips' flagship evaluation—and the model I recommend to almost every trader who asks. Two phases, clear targets, static drawdown, unlimited time, and the most forgiving risk parameters of any FundingPips product.

But "forgiving" doesn't mean "easy." The 2-Step still eliminates the majority of traders who attempt it. The difference is that when you fail, it's almost always because of your trading—not because the rules were unreasonably tight. That's what makes it the fairest evaluation FundingPips offers.

I've passed the 2-Step Standard on FundingPips and traded the funded account. This breakdown covers every rule, every target, every funded-stage surprise, and the strategy adjustments that most guides skip.

Tested firsthand: I've traded multiple FundingPips accounts—passed evaluations on 2-Step Standard and Pro, dealt with the funded-stage rule switches, and withdrawn real money through Tuesday Payday. What you're reading comes from live funded trading, not from reading their marketing page.

For the complete breakdown of every FundingPips account type—including how 2-Step Standard, Pro, 1-Step, and Zero differ in drawdown rules, profit splits, and pricing, plus which account size actually makes sense for your trading style—read my full FundingPips accounts overview. It covers all five sizes from $5K to $100K with real cost analysis. For the absolute latest, check FundingPips' website or their FAQ section.

Two Versions: Standard vs Pro

FundingPips offers two 2-Step models. Same two-phase structure, dramatically different rules:

My recommendation is always the Standard. The 10% drawdown gives you room to survive normal market volatility, bad days, and the inevitable losing streaks that every trader faces. The Pro's 6% drawdown turns those same events into account-ending breaches.

Pricing by Account Size

‍The Pro is always cheaper upfront. But the Standard refunds your fee after the 4th payout, making it effectively free if you succeed. The Pro never refunds. Over any meaningful trading timeline, the Standard is the better value.

Phase 1: The Student Phase

Phase 1 is your proving ground. Here's what you need to accomplish:

Profit target (Standard): 8% of starting balance. On a $50K account, that's $4,000. On a $100K account, $8,000.

Profit target (Pro): 6% of starting balance. On a $50K account, $3,000. On a $100K account, $6,000.

Daily loss limit: 5% Standard / 3% Pro. This resets at server rollover time. If your equity drops more than this amount from the day's starting equity (or balance, whichever is higher), the account is terminated immediately.

Maximum drawdown: 10% Standard / 6% Pro. Your equity can never fall below this level from the starting balance. On a $50K Standard, the floor is $45,000. On a $50K Pro, the floor is $47,000.

Minimum trading days: 3 on Standard, 1 on Pro. You must execute at least one trade on 3 (or 1) separate calendar days. You can't just open one trade and let it run.

Time limit: None. Take a week, a month, or six months. There's no deadline pressure.

Phase 1 Strategy (Standard $50K)

The numbers that matter: you need $4,000 in profit without your account dropping below $45,000 or losing more than $2,500 in a single day.

My approach: Moderate. $250 risk per trade, targeting $200–$350 daily. At this pace, Phase 1 takes 2–3 weeks. I'm not in a hurry—there's no time limit—and the moderate pace keeps me well away from both the daily loss and max drawdown limits.

Week 1 mindset: Trade small, build a cushion. Your goal isn't hitting the target—it's proving your strategy works on FundingPips' execution. End week 1 with $500–$1,000 in profit and you've established a buffer that protects you through normal losing days.

Week 2–3 mindset: Maintain the same sizing. Don't increase position sizes as you approach the target. The most common Phase 1 failure: traders at 6–7% profit get impatient, increase lot sizes to "just finish it," take an outsized loss, then spiral trying to recover. The unlimited time limit exists for a reason—use it.

The 10% drawdown advantage: On the Standard, even if you have a terrible week and lose $3,000 (6% of account), you still have $2,000 of drawdown room left. On the Pro, that same $3,000 loss would breach the 6% drawdown immediately. This safety margin is why the Standard is worth the extra cost.

Phase 2: The Practitioner Phase

You passed Phase 1. Your account resets to the starting balance with fresh drawdown limits. Phase 1 profits don't carry over.

Profit target (Standard): 5%. On $50K, that's $2,500. Noticeably lower than Phase 1's 8%.

Profit target (Pro): 6%. Same as Phase 1. No reduction.

Everything else—drawdown, daily loss, leverage—remains identical to Phase 1.

Why Phase 2 Feels Different

Phase 2 is psychologically tricky despite the lower target (on Standard). Common Phase 2 traps:

Overconfidence. "I passed Phase 1, this should be easy." Phase 2 isn't easier—the market is the same market. The lower target just means you need to do less of the same thing that worked.

Strategy change. Some traders switch approaches between phases, thinking they need something "better" for Phase 2. If your Phase 1 strategy produced 8% profit, it can produce 5%. Don't fix what isn't broken.

Relaxation. The lower target makes some traders trade more casually—taking B-grade setups, skipping their trading plan, ignoring session timing. The drawdown limits haven't changed. Sloppy trading still breaches accounts.

Phase 2 Strategy Adjustment

The only adjustment I make from Phase 1 to Phase 2: reduce risk per trade by 25%. If I risked $250/trade in Phase 1, I risk $200 in Phase 2. The lower target doesn't require aggressive sizing, and reducing risk protects the progress I've made.

Daily target drops to $150–$250. At $200/day, Phase 2 passes in about 12 trading days. Two weeks of disciplined trading and you're funded.

What Happens After Passing Both Phases

After clearing Phase 2, the sequence is:

1. KYC verification. Upload government ID and proof of address. Processing takes 1–3 business days. Name on documents must match your account registration exactly.

2. Customer agreement. Sign the FundingPips trading agreement that governs your funded (Master) account.

3. Onboarding period. Your Master account is created and connected to risk management systems. This typically takes 2 working days.

4. Choose your payout cycle. Before you can start trading, you select your preferred payout frequency. This determines your profit split percentage.

5. Receive Master account credentials. New login details for your funded account. Same platform (MT5, cTrader, or Match-Trader), fresh balance, new rules.

Total time from passing Phase 2 to receiving funded account: typically 3–7 business days.

The Funded-Stage Rule Changes

This is what catches most traders off guard. The evaluation and funded stages have different rules:

‍The news trading restriction is the biggest adjustment. During evaluation, you can trade NFP, CPI, FOMC—no restrictions. On the funded account, opening or closing positions within 5 minutes of high-impact events means any profits from those trades are stripped from your payout. The trades aren't cancelled—you keep the P&L on your account—but the profit doesn't count toward your withdrawal.

The 3% single-trade cap means on a $50K account, no single trade can produce more than $1,500 in profit. If your strategy relies on occasional large runners, you'll need to split entries into multiple positions or accept the cap. Two $1,200 winners are fine; one $2,400 winner is capped at $1,500.

The lot size limit (20 lots on $50K, 40 on $100K) rarely affects individual traders but can constrain those running multiple correlated positions simultaneously.

Payout Options on the Funded Account

This is where FundingPips gives you genuine flexibility:

My recommendation: Bi-Weekly at 80%. Weekly payouts at 60% leave too much money with FundingPips. Monthly at 100% ties up your profits for 30 days—risky if you have a bad month and breach before withdrawal. Bi-Weekly hits the sweet spot: you extract profits every two weeks at a strong 80% split, without the consistency rule headache of On-Demand.

The On-Demand trap: 90% split sounds great, but the 35% consistency rule means your best single trading day can't exceed 35% of total cycle profits. If you have one $800 day and your cycle total is $2,000, that day is 40%—above the cap. You'd need to keep trading until your total reaches at least $2,286 ($800 / 35%) before requesting a payout. For traders with variable daily P&L, this creates constant friction.

Realistic Earnings by Account Size

All figures based on Bi-Weekly (80%) payout split. Actual results vary based on trading performance, consistency, and market conditions.

A $50K Standard account at 3% monthly return with 80% split generates $14,400/year. At $100K, that's $28,800/year. These aren't fantasy numbers—3% monthly is a conservative target for disciplined traders. The challenge is sustaining it month after month without breaching the funded-stage rules.

Common 2-Step Mistakes (From Experience)

Mistake #1: Treating the evaluation like a sprint. No time limit means no reason to rush. Traders who try to pass Phase 1 in 3 days take excessive risk. A $250 daily target on a $50K Standard passes Phase 1 in 16 days—comfortably within any reasonable timeframe.

Mistake #2: Not reading funded-stage rules before purchasing. The news restriction, lot size limits, and consistency rules only apply after funding. If your entire strategy is built around trading NFP or CPI, you'll pass the evaluation easily—then discover you can't use that strategy on the funded account. Read the funded rules before starting the evaluation.

Mistake #3: Oversizing after a winning streak. You're at 6% profit, feeling confident. You double your lot size to "finish fast." One losing trade at double size erases 3 days of gains. This is the #1 failure mode I see in the FundingPips Discord—not bad traders, but impatient ones.

Mistake #4: Revenge trading after a loss. The daily loss limit exists to stop you. But many traders breach it by trading through frustration after a first loss, then a second, then a third—each one taken in "recovery mode" rather than with a clear setup. My rule: after 2 consecutive losing trades, I'm done for the day. No exceptions.

Mistake #5: Ignoring the 3% single-trade cap on the funded stage. This doesn't affect the evaluation, so traders build habits during evaluation that don't survive funding. If your strategy regularly produces $2,000+ winners on a $50K account, start splitting entries during the evaluation phase so the habit is already built.

The 2-Step Scaling Path

After funding, consistent performance unlocks larger capital through FundingPips' scaling program:

The Hot Seat is FundingPips' ultimate tier: doubled capital, maximum drawdown, and 100% profit split with on-demand payouts. A $50K Standard account becomes $100K with 100% split. A $100K account becomes $200K. The scaling path can eventually reach $2 million in managed capital.

Reaching Hot Seat takes approximately 16 payout cycles of consistent profitability with 40% total profit. At bi-weekly payouts, that's roughly 8 months minimum. It's a long road, but the destination—100% profit on doubled capital—is the best deal in prop trading.

Frequently Asked Questions

What happens if I barely miss the target and my account is close to the drawdown limit?

There's no "close call" mechanism. If your balance is at $53,500 on a $50K Standard (3.5% above target) but your equity briefly dips below $45,000, the account is terminated regardless of how close you were to the target. The drawdown limit is a hard floor, checked in real-time.

Can I hold trades over the weekend during evaluation?

Yes. Weekend holding is allowed on both Standard and Pro 2-Step evaluations. The drawdown limits still apply, and you'll face any gap risk on Sunday open—but the rules don't prohibit overnight or weekend positions.

If I fail Phase 2, do I keep my Phase 1 progress?

No. If you breach during Phase 2, the entire evaluation is terminated. You start over with a new purchase—back to Phase 1. There's no option to "retry just Phase 2."

Can I change my payout option after funding?

FundingPips may allow payout option changes between cycles. Check your dashboard or contact support. Changing mid-cycle is typically not allowed.

Is the 2-Step Standard the best FundingPips model overall?

For most traders, yes. The 10% static drawdown and 5% daily loss limit are the most forgiving parameters FundingPips offers. The 1-Step is faster but harder (6% drawdown). The Zero is instant but brutally tight (5% trailing). The Pro is cheaper but constrained (6% drawdown, 3% daily loss). The Standard is the only model where the math genuinely favors the trader.

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