Prop trading challenges are a great way to test your skills as a trader.With a funded account, you don’t need to risk your own funds when you trade. Instead, you trade in a simulated environment. Prop trading firms mirror the trades of successful traders, as Earn Forex explains, and everyone can win.However, prop trading firms want to find great traders to partner with. The challenge phase is how those firms find the right traders.These contests are a chance to show off your talents, hit profit targets, and earn access to a funded account. And that can mean earning positive returns when you consistently make good trades.There are many prop firms out there, meaning lots of options for traders to try out a challenge account. So, which challenge and prop firm are best?Today, we’ll look at challenge accounts from three industry leaders: FundedNext vs FTMO vs Funded Trader. Our FundedNext review, FTMO review, and Funded Trader review can help you pick the challenge that’s right for you.So, let’s get right into it. Here’s a review of the challenge phases offered by FundedNext, FTMO, and Funded Trader.

FundedNext, Funded Trader & FTMO Pros and Cons: Challenge Options

Before we look at each of the major challenges offered by these top prop trading firms, we want to make an important point clear.Every trader is different. Learning about the differences between challenges can help you find the right option for your trading style.Be sure to review any challenge before you sign up. Check out key details and metrics like the account size, profit target, trading period, and maximum drawdown. Read the rules and learn what sets these accounts apart from each other. Then, choose the challenge that’s best for you.With that useful reminder out of the way, here’s a look at the top challenges from each of these firms.

Funded Trader Challenge Options

Funded Trader offers five major challenge account types with at least five account size options (i.e. the amount of simulated funds you can trade with) for each. Here’s a brief recap of what makes each of these challenge account types unique:

• Standard: This challenge has two phases and offers 1:200 leverage while requiring three minimum trading days. The maximum drawdown is 10% and the max daily drawdown is 5%. Phase 1 has a profit target of 10%, while Phase 2 has a profit target of 5%.
• Rapid: This two-phase challenge offers, with 1:100 leverage and zero maximum trading days. Drawdown maximums are 5% daily and 8% maximum. Profit targets are 8% in Phase 1 and 5% in Phase 2.
• Dragon: A three-stage challenge with 1:100 leverage and zero maximum trading days. Profit targets are 8%, 5%, and 5% respectively for each phase. The maximum drawdown is 10% and the max daily drawdown is 5%.
• Knight: This one-phase evaluation offers 1:30 leverage and zero minimum trading days. The single-phase profit target is 10%. Maximum drawdowns are 3% daily and 6% total.
• Royal: A two-phase challenge with 1:50 leverage and five minimum trading days. Profit targets are 8% in Phase 1 and 5% in Phase two. Maximum drawdowns are 5% daily and 10% total.

FTMO Challenge Options

Unlike some other prop firms, FTMO offers a single two-step challenge to aspiring prop traders. If you’re comparing FTMO vs FundedNext or FTMO to many other firms, keep this difference in mind. If the goals and parameters of this challenge don’t align with your trading style or timeline, FTMO does not offer other options.