The evaluation process a trader must pass to receive a funded account. Involves reaching a profit target while staying within drawdown limits.
Most prop firm challenges have two phases. Phase 1 typically requires 8% profit within a daily DD of 5% and max DD of 10%. Phase 2 requires 5% profit with the same DD rules. Challenge fees range from $13 (Maven Trading) to $1,080 (FTMO 200K). The average pass rate is estimated at 5-15%, meaning most traders need multiple attempts. PropWise's Challenge Cost Calculator estimates total expected spending based on your pass rate.