One Step Evaluation Forex Prop Firms - The Forex Geek (2024)

Author: The Forex Geek | Published: May 2, 2023

Proprietary trading, or prop trading, is a type of trading where firms invest their own capital to earn profits in financial markets. Prop trading has been around for decades, but in recent years, a new type of prop trading firm has emerged – the One Step Challenge Prop Firm, these firms offer traders a unique opportunity to showcase their trading skills and earn funding to trade with, all in a single step. In this article, we’ll explore the concept of One Step Challenge Prop Firms, how they work, and the pros and cons of joining one. We’ll also provide tips for succeeding as a prop trader in a One Step Challenge Prop Firm.

What is a One-Step Evaluation Prop Firm?

A One Step Challenge Prop Firm is a proprietary trading firm that offers traders the opportunity to participate in a single evaluation and funding process. Unlike traditional prop trading firms, where traders must first complete an evaluation before being offered to fund, One Step Challenge Prop Firms allow traders to showcase their skills and earn funding in one step, the concept of One Step Challenge Prop Firms has become increasingly popular in recent years, with several firms offering this type of trading opportunity. These prop firms typically provide traders with a trading platform, risk management tools, and access to markets, and in return, take a share of the profits generated by the traders.

How One Step Challenge Works

To participate in a One Step Challenge, traders typically need to register with the prop trading firm and pay a fee to participate in the evaluation process. Once registered, traders are given a set amount of time, usually ranging from a few days to a few weeks, to showcase their trading skills using a demo account.

During the evaluation period, traders are required to adhere to certain rules and guidelines, such as maximum drawdown limits and trading volume restrictions. If the trader meets the evaluation criteria and generates a profit during the evaluation period, they are offered funding to trade with, the amount of funding offered by the prop trading firm typically depends on the trader’s performance during the evaluation period. Funding amounts can range from a few thousand dollars to several hundred thousand dollars, depending on the firm and the trader’s skills and experience.

Once funded, traders are typically required to trade within certain parameters, such as maximum position sizes and risk management rules. The prop trading firm takes a share of the profits generated by the trader, usually ranging from 20% to 50%, depending on the firm and the funding amount.

One-Step Evaluation Prop Firms Pros & Cons

There are several advantages and disadvantages to joining a One Step Challenge Prop Firm.

Pros

• Faster Evaluation and Funding: One Step Challenge Prop Firms allow traders to showcase their skills and earn funding in a single step, without having to complete multiple evaluation stages.
• No Upfront Costs: Traders are not required to invest their own capital to participate in the evaluation process, as the prop trading firm typically covers the cost of the demo account.
• Access to Resources: One Step Challenge Prop Firms typically provide traders with a trading platform, risk management tools, and access to markets, which can help traders improve their skills.
• Shared Risk: One Step Challenge Prop Firms share the risk of trading with the trader, as they only take a share of the profits generated by the trader, rather than the entire trading account.

Cons

• Lower Profit Share: One Step Challenge Prop Firms typically take a larger share of the profits generated by the trader, compared to traditional prop trading firms.
• Restricted Trading: Traders are typically required to trade within certain parameters, such as maximum position sizes and risk management rules, which can limit their trading strategies.
• Limited Control: Traders have limited control over the trading account, as the prop trading firm typically manages the account and makes decisions on behalf of the trader.
• Higher Pressure: The One Step Challenge process can be stressful for traders, as they only have one chance to showcase their skills and earn funding.

Top One-Step Challenge Prop Firms

There are several One Step Challenge Prop Firms in the market, each with their own unique features and offerings. Here are some of the top One Step Challenge Prop Firms to consider:

• Topstep: Topstep is a well-known One Step Challenge Prop Firm that offers traders the opportunity to earn funding by passing a trading evaluation. The firm provides traders with a trading platform, risk management tools, and access to markets.

• FTMO: FTMO is another popular One Step Challenge Prop Firm that provides traders with a trading platform and funding opportunities. The firm offers traders a variety of trading parameters and risk management rules to follow.

• OneUp Trader: OneUp Trader is a One Step Challenge Prop Firm that allows traders to showcase their skills and earn funding through a single evaluation, Traders are presented with multiple trading parameters and risk management guidelines by the company to adhere to.

Tips for Succeeding in One-Step Challenge Prop Firms

Here are some tips for succeeding as a prop trader in a One Step Challenge Prop Firm:

• Follow the Rules: It’s important to adhere to the rules and guidelines set by the prop trading firm during the evaluation process and when trading with funded accounts. This can help minimize risk.
• Use Risk Management Strategies: One Step Challenge Prop Firms typically require traders to follow strict risk management rules, such as using stop-loss orders and limiting position sizes. It’s important to follow these rules to minimize losses and protect the trading account.
• Practice, Practice, Practice: Before participating in a One Step Challenge, it’s important to practice trading strategies and techniques using a demo account. This can help build confidence and improve trading skills.
• Stay Up-to-Date on Market News: Staying informed about market news and events can help traders make better trading decisions and improve their chances of success.

Conclusion

One Step Challenge Prop Firms offer traders a unique opportunity to showcase their trading skills and earn funding in a single step. While there are advantages and disadvantages to joining a One Step Challenge Prop Firm, the potential benefits, such as faster evaluation and funding and access to resources, can make it an attractive option for prop traders. By following the rules, using risk management strategies, practicing, and staying up-to-date on market news, traders can increase their chances of success in a One Step Challenge Prop Firm.