Prop firms
What is Evaluation phase (challenge)?
By the verify.trading team · Last reviewed · How we write
An evaluation, or challenge, is the paid test a prop firm sets: reach a profit target within its rules to qualify for a funded account.
Key points
- Paid test with rules and targets.
- One or two phases at many firms.
- Fee is normally at risk.
Evaluation phase (challenge) explained
Many firms use one or two phases with different targets. You pay a fee, trade a test account under the firm's rules, and if you pass you move to the next phase or to a funded account.
The fee is a real cost and is normally not refunded if you fail, so verify the firm and read its rules before paying.
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General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.