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Based in Exeter - working across prop trading firms worldwide

Glossary · Evaluations

Prop firm challenge

  • Also called
  • evaluation
  • prop challenge
  • funded challenge

What it means

In a prop firm, challenge and evaluation usually mean the same product. Challenge is the word most traders search for and most firms put on their buttons; evaluation is the more precise word for compliance copy, because it describes a test rather than a contest.

A challenge is defined by a small set of parameters: account size, fee, profit target, daily loss limit, maximum loss limit, drawdown type, minimum trading days, time limit if any, and the rules on news trading, weekend holding, expert advisors and copy trading. Change any one of them and the pass rate and payout liability change with it.

Some firms use challenge for phase 1 and verification for phase 2. Whatever names you choose, use them consistently on the pricing table, the rules page, the dashboard and the emails, because inconsistent labels are a common source of support tickets.

Related terms

Read these next.

Evaluations

Evaluation

An evaluation is the paid, rule-bound test a prop firm sells, in which a trader must hit a profit target in a simulated account without breaking any risk rule.
Evaluations

Challenge fee

A challenge fee is the one-time price a trader pays to start a prop firm evaluation; some firms refund it with the first payout, others never do.
The website

Pricing table

A prop firm pricing table lists each program and account size with its fee and core rules side by side, so traders can compare and buy without opening the rules page.
The website

Rules page

A prop firm rules page is the single, canonical explanation of every evaluation and funded-stage rule, with definitions, worked examples and an update date.
Evaluations

Pass rate

Pass rate is the share of prop firm evaluations that end in a pass rather than a breach, measured per phase or end to end; it drives payout liability.

On your website

Where this shows up on a prop firm site.

Feature

Challenge pricing table

The table traders compare first: program, size, price, target, daily and maximum loss and split, readable in ten seconds on a phone.
Feature

Rules pages

Rules a trader can read one way: one page per rule, worked examples from your own numbers, and a table of which rules apply to which plan.
Guide

How Many Traders Pass Prop Firm Challenges?

Prop firm pass rates: what the few published figures say, why pass rate drives challenge pricing, and how operators should read and publish it.
Guide

How Should a Prop Firm Price Its Challenges?

How to price prop firm challenges: start from expected payouts per account size, subtract discounts and commission, add costs, stress-test a bad month.

Looking for a prop firm to trade with, not a website? Compare firms on PropFirmPal, the comparison site our founder owns.Go to PropFirmPal →

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